The Basics Physicians need to learn to read between the lines of compensation plans to determine their true value. Covered in FPM Quiz Kent J. Moore M any organizations that employ family physicians offer compensation packages that include a base salary plus bonuses or other incentive pay. Understanding incentive plans can help you safeguard your financial future, and finding the right compensation package can increase your sense of job security and satisfaction. Here's what to consider as you evaluate various incentive packages. Carrot vs. stick.
Most incentive systems have either a positive or a negative structure.
A positive structure rewards you if you meet or exceed your goals but doesn't penalize you for not reaching them, whereas a negative structure does. The withhold is the most common negative incentive. Part of your compensation is withheld until the end of each accounting period. If you achieve your goals, you receive the withheld pay. If not, you may receive only part of the withhold or none at all.