Episode #295 – How to Recruit Veterinarians in a Challenging Job Market, Part 4
Caleb: Welcome to “The Animal Health and Veterinary Employment Insider,” brought to you by The VET Recruiter. In this podcast, Animal Health executive recruiter and Veterinary recruiter Stacy Pursell of The VET Recruiter provides insight and practical advice for both employers and job seekers in the Animal Health and Veterinary industries. The VET Recruiter’s focus is to solve talent-centric problems for the Animal Health industry and Veterinary profession. In fact, The VET Recruiter’s mission is to help Animal Health and Veterinary companies hire top talent, while helping Animal Health and Veterinary professionals attain career-enhancing opportunities that increase their quality of life.
Today, we’ll be continuing our discussion about recruiting veterinarians in a challenging job market. Hello, Stacy, and thank you for joining us today.
Stacy: Hello, Caleb. As always, I’m glad to be here with you.
Caleb: Stacy, what will we be talking about today in the next part in our series about recruiting and hiring veterinarians?
Stacy: We are going to focus on the offer of employment, which as we’ve been discussing, is the “moment of truth” when it comes to recruiting veterinarians. If a candidate accepts an employer’s offer, then the employer has successfully recruited them. If, on the other hand, the candidate does not accept the offer by either turning it down outright or simply disappearing or “ghosting,” then the employer has not been successful.
Caleb: So I’m thinking there is a lot riding on the actual job offer.
Stacy: Everything is riding on the offer in terms of recruiting veterinarians. Keep in mind that offers can be negotiated and they’re often negotiated in the job market. However, the first offer is a starting point and can set the tone for negotiations, if there are any. And Animal Health and Veterinary employers must do everything they can during the recruiting process to ensure that the candidate accepts its offer, or at the very least, has a positive reaction to it.
Caleb: Okay, that all makes sense Stacy. Where would you like to begin today?
Stacy: I’d like to start with the reasons why candidates are rejecting offers in today’s job market.
Caleb: Okay, great. What reasons are those Stacy?
Stacy: The first reason is most obvious, and that’s because the compensation contained in the offer was likely too low. It wasn’t compelling enough to make a move, and this is something that I’ll examine more closely later in today’s podcast episode.
The second reason is that the recruiting process was too long and drawn out. When this happens, the candidate’s initial excitement wears off.
Caleb: You have to “strike while the iron is hot” as an employer, is that it?
Stacy: Yes, that’s right. The third reason why candidates are rejecting offers is because they received an offer from another organization. Quite possibly, it was a competitor of the organization that made the initial offer. Veterinarians who are exploring opportunities are receiving multiple offers.
And the fourth reason is that the candidate doesn’t see a compelling reason to join the organization. They made the choice to either stay where they are or they decided to take another offer, which I just alluded to.
Caleb: Stacy, when a candidate stays at their current employer, does that mean they’ve taken a counteroffer?
Stacy: Not always. When a candidate accepts a counteroffer from their current employer, they’ve typically already given their notice and let their employer know of their intention to leave. However, there are some situations in which a candidate decides to drop out of the recruiting process of one or more organizations and simply stay where they are. They made the decision without accepting an offer from another employer or accepting a counteroffer from their current employer.
Caleb: Because they didn’t find any of the other opportunities compelling enough. Stacy, I noticed that you’ve used the word “compelling” a couple of times. Can you elaborate on that and why it’s important for employers to be compelling when recruiting veterinarians?
Stacy: Yes, absolutely. The word “compel” means to force someone to do something. In this case, we don’t mean to physical force someone to accept a job offer, but to make the offer so enticing that the person has no choice but to accept the offer. That’s how good the offer has to be, so good that the person literally has no choice but to accept it.
This is indicative of the state of the job market and the shortage of veterinarians within the profession. The unemployment rate for veterinarians is pretty much non-existent. I wouldn’t be surprised if it was zero percent. And because there is a shortage of veterinarians, those who are employed are more than likely being treated well by their employer. So they’re not motivated to make a move unless the offer of employment that another organization makes to them compels them to move.
Caleb: Because they’re comfortable where they are.
Stacy: Right. And there is a lot that goes into a compelling offer of employment. Money and compensation are certainly part of it, and I said, I’ll examine that in more detail later in the episode. But there are other elements of an offer that candidates consider, and those other elements could be what compels them to accept it.
Caleb: What elements are those?
Stacy: It shouldn’t be any secret that people’s attitudes toward work, their job, and their career have changed in recent years. People are not motivated strictly by a competitive salary and benefits, but they also want an overall great experience. I think of Starbucks in this instance. People can get a $1 cup of coffee anywhere, but they come to Starbucks and spend a lot more money, $5, 6, or 7 dollars for a coffee because of the experience they receive.
Each year, LinkedIn publishes its “Global Talent Trends Report.” They haven’t released their report for 2023 yet, but their 2022 report had some interesting insights. According to that report, employees across all industries are rethinking their priorities and their relationships with employers. Specifically, there are three things that they want.
First, they want flexible work arrangements. Second, they want more work-life balance. And third, they want to work for an employer that values their physical and emotional well-being. If you’re not able to offer all of these things to recruits, then you reduce the chances that a candidate will accept your offer of employment.
Caleb: Stacy, isn’t there only so much that Veterinary practices and hospitals can do when it comes to flexible work arrangements? I mean, veterinarians really can’t work from home for the most part. They have to be onsite to treat animals in the majority of Veterinary practices.
Stacy: All of that is correct. However, virtual care and telemedicine have become more common during the past few years, due in part to the pandemic.
Not only that, though, but candidates’ demands regarding schedule flexibility have become bolder in recent years.
Caleb: What do you mean by that?
Stacy: During the past couple of years, we’ve seen candidates who have said they only want to work certain days of the week. And of course, they’ve said that they don’t want to work on the weekends. Other candidates have dictated how many days they wanted to work during the week.
Caleb: You mean, like only working four days?
Stacy: Yes, but even more than that, some candidates have said they would only work three days per week if the employer wanted them to accept the offer.
Caleb: Only three days per week? And no weekends?
Stacy: Yes, so while the veterinarians would definitely be onsite and working at the practice or hospital, they would only be doing so on certain days of the week and only for a certain number of days during the week.
Caleb: Are there Veterinary employers that are offering this type of flexibility to veterinarians? Or should I say accepting their demands? I imagine that not a lot of employers are just offering three-day workweeks right out of the gate.
Stacy: Some are and some are not. It depends on each employer’s individual hiring situation and how much they need veterinarians. But this illustrates the type of leverage that veterinarians have in this job market and the things that they’re looking for if they’re going to make a move.
Caleb: And a three-day workweek would compel them?
Stacy: A three-day workweek would compel them, although not every employer is offering that or would agree to that. So employers have to compel candidates any way that they can with whatever resources they can.
Caleb: What about the recruiting process itself? I know you mentioned that earlier as one of the reasons that a candidate would reject a job offer or simply disappear. What can an employer do about that to ensure that a candidate accepts its offer?
Stacy: Yes, as I mentioned, when the process is long and drawn out, the candidate’s initial excitement about the opportunity tends to fade. That’s why an employer has to “strike when the iron is hot,” as you phrased it. There are two main reasons to have a timely recruiting process. First, it increases the chances that you’ll keep candidates engaged during the process. And second, it will brand your organization in a positive way.
And I have some tips for creating a streamlined recruiting process. First, only include people who need to be part of the process. The more people there are, the more slowly it will move. Frankly, there can be “too many cooks in the kitchen.”
Second, communicate well and communicate often. This includes communication with everyone involved in the process, not just with candidates. Third, set timelines and deadlines. Yes, unexpected things do come up, but stick to your timeline as much as possible. And fourth, when you’ve settled on your top choice, make the offer! There is very little margin for error or time to waste, so don’t delay. Someone else may be trying to hire your top choice.
And that brings us to salary and compensation.
Caleb: This is the big one, isn’t it?
Stacy: Well, there are two reasons why it’s important. First, it is a major consideration for job seekers and candidates, although as we’ve been discussing, it’s far from the only consideration. And second, there is a tremendous supply of job openings and a tremendous demand for qualified candidates. As a result, the price of those candidates has risen dramatically, so much so that students are receiving multiple job offers with six-figure salaries before they even graduate. In our firm, we’ve seen salaries of up to $130K for new graduates and even some up to $150K. We have not seen a job offer for a veterinarian for less than $100K in almost two years, and new graduates are starting with an average salary of about $115K.
Caleb: And experienced veterinarians are commanding even more in starting salary, aren’t they?
Stacy: They are! Veterinarians with three or more years of experience are asking for and receiving salaries of $140K+ with production. And some Emergency veterinarians are asking for starting salaries of at least $200K before they will consider making a move. They say they can make more doing relief work, so to take a full time position it has to be worth their while. We have seen salary ranges as high as $300K in general practice for an experienced doctor in places like New York City.
And then you have to factor in the signing bonus.
Caleb: Have sign on bonuses become more common in the Veterinary profession?
Stacy: Yes, they certainly have. Some veterinarians will not even consider an offer unless it comes with a signing bonus. These bonuses are typically in the range of $10K to $20K, but they can exceed that amount if the candidate agrees to a multi-year commitment with the practice. I was involved with a situation within the past year in which a practice offered a veterinarian candidate a sign-on bonus of $50K. To illustrate how competitive the job market is, that candidate ultimately turned down the offer. We have seen multi-year sign-on and retention bonuses as high as $250K. There have been increases in ProSal in the offers being made, as well.
Caleb: Explain ProSal Stacy.
Stacy: ProSal is a combination of a guaranteed base salary, plus a percentage of the veterinarian’s production or how much revenue they produce for the organization. For example, in the past, I would see ProSal between 18% and 20% and now I’m seeing it between 20% and 22% and I recently saw an offer with a ProSal that was 25%. We are seeing more ProSal offers in the range of 22% 5o 25% recently. The reason for all of this is the Law of Supply and Demand.
Caleb: Stacy, what’s your advice for employers when it comes to compensation in an offer of employment?
Stacy: There are three numbers that an employer should know before making an offer.
The first number is the salary that the organization can afford to pay. The second number is the current market value for the position. This can be determined by finding out what other organizations are paying to fill similar positions. And the third number is the exact level of compensation needed to guarantee that your offer is accepted. If the organization is working with a recruiter or search consultant, the hiring manager should be able to get that number. If it’s not working with a recruiter, it might be more difficult to obtain a definite number.
Caleb: And if the hiring manager knows what the going rate is, the offer should include compensation that reflects that, correct?
Stacy: Yes, that is true. You never want to low-ball a candidate when recruiting veterinarians. First, you’ll turn the candidate off, and second, you’ll brand yourself as a low-ball organization. You run the risk that the candidate will carry this negative branding experience with them, and you never know who this candidate will speak with in the future. People know who pays well and who doesn’t.
To give an example, I had a client in the Midwest who wanted to make an offer to one of our candidates, and I told the hiring manager that the offer was too low and they would have to increase it. They said no, and the candidate rejected the offer and ended up taking an offer with this employer’s competitor. Afterwards, the hiring manager contacted me and admitted she made the mistake and wanted to make another, better offer to the candidate if it wasn’t too late. So I contacted about the offer, but the candidate said that she was a in a good situation with her new employer and did not want to entertain any other offers.
So you can’t make a low-ball offer and hope for the best. You have to make your very best offer or you won’t be able to successfully recruit and hire the candidate.
Caleb: Stacy, we’re just about out of time, so is there anything else that you’d like to add before we wrap up today’s podcast episode?
Stacy: Yes. I want to reminder people that the veterinarian shortage is not going to end soon. According to the Bureau of Labor Statistics, not only is the shortage going to continue, but it might get worse before the end of the decade. So employers must be prepared to make the changes they need to make to recruit veterinarians and also be prepared to keep those changes in place for the long haul.
Caleb: Stacy, thank you so much for joining us today and for all of this great information about recruiting veterinarians.
Stacy: You’re very welcome, Caleb, and thank you. It’s been my pleasure, and I look forward to our next episode of The Animal Health and Veterinary Employment Insider!
Caleb: Before we go today, if you are an Animal Health professional or Veterinarian, I want to encourage you to check out our Hot Animal Health Jobs and Veterinarian Jobs on The VET Recruiter website. If you are an employer hiring a veterinarian or Animal Health professional contact Stacy Pursell through The VET Recruiter website. Our website is www.thevetrecruiter.com Be sure to sign up for our newsletter while you are there. See you next time on The Animal Health and Veterinary Employment Insider.