As I’m wrapping up teaching at a few Veterinary schools this year, I’m getting a lot of questions around tips for navigating contract negotiations.
While this article is hopefully timely for new graduates, the principles and strategies are universal and can be leveraged regardless of your career stage. With that in mind, whether you’re stepping into your first role as a veterinarian or you’re a seasoned professional seeking a new opportunity, negotiating your compensation and benefits package is a critical step in securing a role that supports your financial, professional, and personal goals. Yet, for many veterinarians, the thought of discussing money or perks can feel daunting. Fortunately, with the right preparation and mindset, you can enter these conversations with confidence and clarity.
Here are key tips and strategies for negotiating a compensation package that reflects your value—whether you’re just starting out or bringing years of experience to the table.
Know Your Value—and Back It Up with Data
Before any negotiation, understand what you bring to the practice.
- New Graduates: Highlight externships, relevant certifications (e.g., Fear Free, ultrasound, acupuncture), special interests (like surgery, dentistry, or exotics), and professional skills – leadership, financial acumen, communication skills, and core values.
- Experienced Veterinarians: Emphasize your production history, surgical or case management expertise, leadership roles, and any contributions to client retention or team mentorship.
Use industry benchmarks from sources like the AVMA, AAHA, VHMA, and state associations to know what’s standard for salary, production bonuses, PTO, and CE allowances based on your region and experience level. The recent 2025 AVMA Economic State of the Profession (free for AVMA members) has some great national benchmarks.
Understand the Practice’s Compensation Model
Veterinary compensation models vary widely (see my March article in Animal Health News and Views for a detailed overview) and can include:
- Base Salary Only: Offers predictability, but limits income growth.
- Base + Production (ProSal): Provides stability with the opportunity for bonuses based on services rendered.
- Straight Production: High risk/high reward—can be lucrative for high performers, but offers little cushion during slow seasons or time off.
Ask for clarity on the following:
- What is the base salary?
- What is the production rate (typically 18–25%)? Is production offered equally on services and items like prescription refills and diets? Does the hospital use split production (typically a higher production rate for services and lower on inventory items)?
- Is production calculated on gross or collected revenue?
- Are chargebacks (e.g., for refunds or unpaid invoices) deducted from production?
- How often are bonuses paid (monthly, quarterly)?
Understanding the model helps you evaluate earning potential and avoid surprises. I also suggest candidates ask the practice owner what the average annual production is per FTE at the hospital they’re interviewing. If the average associate is producing $500,000 annually, and you want a base salary of $120,000, you’d need to hit roughly $600,000 in annual production and the hospital may not have the systems, processes, and pricing in place for you to accomplish that. (As a side note, the average small animal FTE DVM produces about $615,000/year with top performers hitting closer to $900,000 – 1M.)
Don’t Overlook the Value of Benefits
Salary is just one part of your total compensation. Benefits can significantly impact your overall well-being and long-term financial health.
Key items to review and negotiate:
- Health Insurance: Premiums, deductibles, employer contribution, and coverage details
- Continuing Education (CE): How much is covered annually? Is time off provided for CE?
- Paid Time Off (PTO): How many days are included? Is it separate from sick leave?
- Retirement Plans: 401(k) or SIMPLE IRA? Is there an employer match?
- Licensing and Memberships: Are state licensure, DEA registration, and professional dues reimbursed?
- Liability Insurance: Does the practice cover your professional liability insurance?
- Relocation Assistance or Signing Bonus: Especially for new grads or cross-country moves. Be sure to ask about repayment terms.
- Student Loan Repayment or Tuition Assistance: Becoming more common as a recruitment tool.
Make sure to weigh the total package rather than focusing solely on base salary.
Ask the Right Questions Before Negotiating
Before countering an offer, gather all relevant information.
- What’s the typical caseload and appointment length?
- How many support staff will be assisting you?
- What are the expectations for on-call, weekends, or holidays?
- What types of cases or procedures will you be expected to manage?
- How are emergencies or after-hours handled?
These operational details impact your ability to produce revenue—and your quality of life.
Timing and Tone Matter
Negotiation is not a confrontation—it’s a conversation. Approach it with professionalism, gratitude, and clarity.
- New Grads: It’s okay to ask questions even if you’re not negotiating aggressively. Use phrases like, “Is there flexibility in this part of the offer?” or “Would you mind sharing with me how you arrived at the value of x benefit or compensation?”
- Experienced Doctors: Frame negotiation in terms of mutual value: “Given my production history and experience mentoring associates, I’d like to discuss a compensation structure that better reflects the impact I expect to bring to your team.”
Don’t rush to accept an offer on the spot. A polite request for time to review is always appropriate.
Customize Your Ask
Tailor your requests based on what matters most to you:
- Want to improve work-life balance? Ask for a four-day workweek or additional PTO.
- Focused on long-term financial security? Negotiate for a higher 401(k) match or equity potential.
- Eager to grow clinical skills? Request increased CE support or mentorship in a specific area.
Demonstrating thoughtfulness and alignment with the practice’s goals makes your ask more persuasive.
Leverage Multiple Offers (If You Have Them)
If you’re comparing offers, avoid playing practices off each other, but you can say:
“I’m very excited about this opportunity and I have another offer with a slightly higher base salary. I’d love to make this work if we can close that gap.” If you’re going to ask for more money, it’s fine to leverage other offers, but always important to back up what you’ll do to produce the revenue needed to support it.
This shows interest while encouraging them to improve their offer.
Get Everything in Writing
Once the final offer is agreed upon, ensure all components—salary, production structure, benefits, schedule, and any bonuses—are outlined in your employment agreement. Verbal promises, even made in good faith, can be forgotten or misunderstood later.
Don’t hesitate to have a legal or career advisor review your contract, especially if it includes a non-compete, buy-in pathway, or ownership discussion.
Be Prepared to Walk Away
If an offer doesn’t meet your financial needs or align with your values, it’s okay to decline.
Trust that the right position is out there—and that saying “No” opens the door to a better “Yes.”
Keep Growing Your Skills and Value
Whether you’re actively negotiating or planning for a future opportunity, continue to build your marketability:
- Track your production numbers and case types.
- Seek mentorship or certifications in high-demand areas.
- Get involved in leadership, team training, or community outreach.
- Stay updated on trends in telemedicine, practice ownership, or mobile care.
The more value you bring, the more leverage you’ll have in every future negotiation.
In Summary
Negotiating compensation and benefits doesn’t have to be intimidating. By understanding your value, doing your research, and communicating clearly, you can secure a package that supports your professional and personal goals.
Whether you’re evaluating your first offer or making a mid-career move, remember this: negotiation is not about being difficult—it’s about being empowered.