Travel Therapist Pay Rates - No simple answer

 

Every day we get calls from potential travelers who want to know what we’ll pay them.  Our answer is always the same; “it depends” - which is usually met with skepticism, and sometimes even with accusations that we are being evasive.  But the truth is, there are too many variables that go into the pay rate, and to simply quote a rate would be irresponsible.  Here’s why:

Our bill rates (what we get from the client) are pretty standard between travel companies, but different client’s and job’s rates can vary quite a bit.  Except for a very few exclusive relationships, healthcare facilities sign contracts with multiple staffing providers.  Some even send out a list of openings to dozens of therapy staffing companies on a regular basis, meaning that we all get the same jobs at the same time.  As a result, our bill rates will be similar (or even identical) for any given PT, OT, or SLP job.  For different clients (and sometimes even one client’s different jobs), rates can vary – but these different rates apply equally to every travel company.  In other words - for any given job, if you’re talking to two different staffing companies, the bill rate we receive for that job is probably identical.

Along with similar client bill rates, most companies operate with the very same limitations when negotiating your pay and benefits package for each particular job.  All staffing companies have to make some profit to stay in business and provide service and security to you.  There are 2 steps in this process – “Gross Profit” and “Net Profit”.  The formulas are:

1.        "Bill Rate - Pay Rate - Benefits - Travel and Housing Costs = Gross Profit” and

2.        “Gross Profit - Office Costs = Net Profit”

These formulas are the same for every company.  And while some travelers may think otherwise, here's the truth - most companies have a Net Profit of around 5%.

Back to the “variables” discussion.  At the beginning of the process we have variable bill rates, but all companies have pretty much the same rate for any particular job.  In the middle of the process, there are still more variables – the cost of housing, relocation, and allowable meal per diem, and other benefits like insurance, CE, or bonuses that you can negotiate.  And then you have the only variables that would change what “Company A” vs. “Company B” will be paying you after everything is added up – Office Costs.  Office costs include many things, but the biggest ones are insurance, rent, computers and phones, advertising, and recruiter commissions.  All are legitimate expenses, but they can be much higher for some companies than others.  For example, a company with only one, national office will have lower rent (and payroll) costs; advertising expenditures can vary wildly, and recruiter commissions can also vary quite a bit from company to company.

At Skipstone, we have very low office costs.  We do very little advertising, relying almost exclusively on word-of-mouth to attract new therapists.  Since we do only therapist staffing, we have only one office, and it's not very fancy.  Also, because we aren’t trying to become the biggest travel company, we have a very modest commission plan which emphasizes quality over quantity.  That means that, for us to reach our “Net Profit” goal of 5%, we need only to keep 15% to 20% of the Bill Rate, while other companies (especially the large, publicly traded ones) need to make around 25%.  Oh, and in case a big public company recruiter starts telling you about their “efficiencies” and “economies of scale”, go look at their SEC filings and you can see for yourself how they tout their 25% Gross Profit.  Remember, this is the part of the Bill Rate that doesn’t go to you!

So, here’s the bottom line on Pay Rates – no recruiter should give you more than a wide range of possible pay rates until they know which assignment you are considering and all the related variables are known.  To do so would be irresponsible at best - and deliberately misleading at worst.

Other things to consider:

·          Once you do have a specific assignment identified, don't worry which of your pockets the compensation falls into.  Try to add up and compare the total compensation including pay, benefits, housing, meals, etc.  If the recruiter is evasive about this, doesn't understand the numbers, or tells you that she isn't allowed to share them with you, run.

·          Not all benefits are as alike as the advertising suggests. Health insurance varies widely between companies.  Check this out thoroughly if it's important to you.  Likewise, 401(k) plans can vary widely.

·          Paid time off, sign on and completion bonuses often come at the expense of your hourly rate.  In other words, you may be waiting until the end of an assignment to get what you should have been getting every week.

·          Many benefits come with restrictions and "fine print".  Again, understand thoroughly what these are for things important to you.  If you need lots of CE, for example, make sure you don't have to wait until your one year anniversary for reimbursement. 

And finally, consider these non-financial questions:

·          Does my recruiter listen to me, return my calls, and answer my questions honestly?

·          Does this company specialize in PT, OT, and SLP staffing, or are they a general medical staffing company with only a small therapy group, or not even any full time commitment to therapy?

·          How experienced is my recruiter?

·          Do I feel unduly pressured to accept an assignment?

·          Will they submit me for jobs without my knowledge or permission?

·          What happens if something goes wrong?  Especially after hours?

·          Are payroll and reimbursements handled efficiently, accurately, and on time?

·          If I have a problem in the facility, will this company "be on my side"?

·          Does this company exhibit a high level of integrity? - Are they keeping promises, following through, solving problems fairly, carefully checking my background as well as the facility's, following IRS guidelines for housing and meals reimbursement, responsibly providing insurance and paying taxes?  Don't let anyone just "talk the talk"; check references - and keep your eyes open as you progress with each company to see if they "walk the walk".

While therapy staffing companies may look alike, we don't all act alike.  It’s all about trust.  Take the time to get to know us, because the intangibles can't be measured by a spreadsheet or delivered via a glossy brochure.  And most importantly, your recruiter IS the company for you.  He or she will be your lifeline as you embark on this adventure.

Happy Trails!