I was talking to a 4th-year veterinary student recently, and he was telling me about the starting salaries his friends were signing on for with their first jobs. Figures in the $150,000 range were not uncommon. [I’ve heard anecdotally about salaries hitting $200,000 for new grads in some metropolitan areas]. This may not sound like a shocking amount of money for a veterinarian to make in a year, but we’re talking about graduates who have zero experience working as doctors and who presumably would like some support and mentorship from their fellow clinicians as they grow.
A few weeks ago, one of my friends who owns a veterinary practice mentioned to me her frustration about not being able to afford to hire a new graduate veterinarian. She said “I know practices are throwing a lot of money at new grads, and there’s no way I can match it. I don’t know how I’m going to hire now or in the future.” I have heard this concern voiced many times in the last few years.
We are living through a period of unprecedented change in our profession. Never before has money flowed into veterinary medicine the way it is coming in now, and that money is making a lot of things quite wonky. I think a lot of people are starting to believe that this “magical money” will become the new normal in our industry and that the old rules of economics have gone out the window for good. Well, at the risk of being the child who points out the emperor having no clothes, I think it’s important to state the truth that seems to be getting lost: Eventually, the numbers have to work.
Business is challenging… but it’s not complicated. You have to spend money to make money. Ultimately, you need to make more money than you spend. If you do this, you get to keep going. If you do not, you go out of business. Sometimes companies are able to go a LONG time without making more than they spend, but eventually… the numbers have to work.
I do not blame any veterinarian for being smart and negotiating when it comes to his or her salary. What I’m about to say is not a condemnation of anyone. In fact, I respect people who are willing to see opportunities in a time of change and take them. That said, the flow of money into our profession is not charity. It’s an investment, and the people behind it intend to get a nice ROI on their money.
In the last few years, we have seen businesses that were willing to spend tons of cash to buy up practices. Now those practices are willing to spend tons of cash to staff the practices they bought. These decisions are not being made for any reason other than the belief in an even greater upside in the coming years. One way or another, the wild spending phase we are seeing is going to end and the “where’s our return on investment?” phase will begin.
When that happens, veterinarians are going to be asked to account for the salaries they have agreed to. The strings in our contracts will be pulled tight. After all, there is no world where a venture capitalist is going to lose money paying a veterinarian’s salary over the long term and be fine with it. As the “where’s our return on investment?” phase approaches, I think it’s important to remind both veterinarians and practice leaders of a few things:
- If it looks too good to be true, it probably is — Be wary of any agreement that doesn’t seem to make sense for both parties, even if you appear to be benefiting.
- Money is important, but so are other things — Workplace culture, developmental opportunities, and work-life balance all matter… a lot.
- Times change — This is a once-in-a-lifetime period of change in the profession. Don’t expect it to last much longer.
To my new graduate friend: I hope you’ll find a job that offers you a good salary which you will be able to grow to support. More importantly, I hope you will end up in a place that fills your cup, appreciates you, and develops you to be the person and doctor that you aspire to be.
To my practice owner friend: I hope you hang in there and continue to do all you can to make your practice a great place to work and visit. I hope you recognize all that you would have to offer the right young doctor, and that you keep pushing to make your practice one that can support new doctors and staff members going forward. I have faith that the right person will eventually cross your path.
It’s an exciting time to be in veterinary medicine, and there are so many opportunities coming from the radical changes in our industry. Whether you are thrilled about the opportunities being offered or terrified of the shifting landscape, I hope you’ll try to keep at least this one thing in mind: Eventually, the numbers have to work.
