Remote recruiting has become increasingly popular in recent years, especially in the tech industry. However, many remote recruiting companies lack transparency in their pricing, causing problems for both clients and developers. In this article, we will discuss why transparency in remote recruiting is important and the impact it can have on both parties.
Lack of Transparency in Pricing
Many traditional remote recruiting companies hide fees and markups, making it difficult for clients to understand the true cost of hiring a remote developer. This lack of transparency can also lead to developers being underpaid for their work, with the majority of the payment going to the recruiting company rather than the developer who is doing most of the work.
For example, a company may charge a client $8,000 per month for a front-end developer, but only pay the developer $4,000 per month and keep the rest as their fee. This creates distrust and resentment among developers, who feel undervalued and taken advantage of.
The Importance of Transparency
Transparency in remote recruiting is crucial for building trust and ensuring that all parties are fairly compensated for their work. When there is transparency in pricing, clients can have a better understanding of what they are paying for and how much of that payment is going to the developer. This can help build stronger relationships between clients and developers, as well as increase trust in the remote recruiting process.
For developers, transparency in pricing means they can feel more confident in their worth and know that they are being compensated fairly for their work. This can lead to higher job satisfaction and increased loyalty to the company they are working for.
Our thoughts on the pricing structure of Toptal
While it's not possible for us to find details about how much of what a client pays ultimately goes to a candidate, we believe clients looking for transparent and straightforward pricing may want to look at other alternatives.
Our opinion is that if they are charging a client more than $12,000 monthly for a developer, they should at the very least be giving $9,600 to the candidate, but it's likely that it's even less than that.
What Hiring Managers Should Ask Before Choosing a Talent Partner
Before partnering with any talent provider — whether Toptal, Teilur, or others — hiring managers should consider asking the following key questions:
- What percentage of the fee actually goes to the talent?
- Are replacement or satisfaction guarantees included in the contract?
- How are regional salary benchmarks determined?
- Is there full transparency in how rates are broken down?
- What is the long-term cost difference between hiring directly and through a platform?
These questions can help businesses make informed decisions and ensure that pricing aligns with both market realities and ethical compensation practices.
Conclusion
In conclusion, transparency in remote recruiting is crucial for building trust and ensuring that both clients and developers are fairly compensated for their work. Lack of transparency in pricing can lead to distrust, resentment, and undervaluing of developers' work. By promoting transparency in the remote recruiting industry, we can create a win-win situation for both clients and developers, leading to more successful projects and a stronger team.








