The search for top freelance talent can be daunting. Companies need assurance that the professionals they hire possess the requisite skills and can deliver quality work consistently. Toptal stands out in the freelance marketplace by promising to connect businesses with the top 3% of freelancers. But how exactly does the Toptal recruitment process work, and is it truly effective? Drawing from our experience reviewing thousands of technical candidates across Latin America, this article breaks down how the Toptal recruitment process works and compares it with Teilur Talent’s transparent, experience-driven approach to remote hiring.
What is Toptal?
Toptal is a freelance talent marketplace that claims to have a rigorous vetting process, accepting only the top 3% of freelancer applicants. This does not necessarily mean that they hire the top 3% of the world’s talent but more so that they accept less than 3% of the applications they get.
Toptal initially started as a platform for freelance software engineers but has since expanded to include designers, financial experts, product managers, and project managers. The name "Toptal" is derived from "top talent," reflecting their focus on providing skilled freelancers to companies worldwide.
Understanding the Toptal Business Model
Toptal operates as a middleman, connecting organizations with freelancers. Their business model involves charging clients directly for the duration of the freelance engagement, deducting a commission fee, and then paying the freelancers a predetermined amount. This structure allows freelancers to set their hourly rates based on factors such as location and experience. However, the breakdown of these costs are not shared, neither on their website nor with clients or freelancers. Toptal's significant investment in marketing, branding, and sales contributes to its high fees, aiming to ensure a broad reach and comprehensive service.
One of the most debated aspects of Toptal’s business model is its pricing structure, which is not publicly disclosed and makes it difficult for clients to understand how much of the rate goes to the freelancer versus Toptal’s commission.
Steps in the Toptal Recruitment Process
Timed Skills Test
The first step in the Toptal recruitment process is a timed skills test. This test is designed to be challenging and has a strict time limit. According to publicly available information and user feedback, a large majority of applicants — reportedly around nine out of ten — do not pass this stage, setting a high bar for those who move forward.
Video Call Interview
Next, candidates participate in a video call interview. This step assesses their English proficiency and soft skills, such as communication and interaction abilities. The interviewer evaluates whether the candidate can clearly understand and be understood, an essential skill for remote work.
Simulated Project
Candidates who pass the interview are given a simulated project. This is a real-world task that must be completed within a specific timeframe, usually around 30 work hours. This stage tests the candidate's ability to deliver quality work under realistic conditions.
Screen Sharing Testing
In the final step, candidates perform tasks while sharing their screens with an evaluator. This allows the evaluator to assess their speed, accuracy, and problem-solving creativity in real-time.Only those who excel at all these stages are accepted into the Toptal network — a process Toptal describes as selecting roughly the top 3% of applicants.
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.
Disadvantages of Toptal recruitment process
High Costs
One of the biggest drawbacks of Toptal is its cost. Freelancers on Toptal command higher rates compared to other platforms, which can be a significant barrier for startups and small businesses. The initial deposit of $500, which is either applied to the first payment or refunded if the project does not proceed, adds to the expense.
Customer Support Issues
Some clients have reported poor experiences with Toptal’s customer support. Complaints include condescending attitudes and a lack of transparency until after project specifications are submitted. This can be frustrating for clients looking for quick and straightforward information. Until you create an account and submit your project specifications, there is limited information available about the talent pool. Essentially, unlike many other sites, you cannot immediately browse the freelancer marketplace.
Inflexible Hiring Contracts
Toptal typically structures contracts on a weekly basis — most often for part-time (around 20 hours) or full-time (around 40 hours) engagements — which can limit flexibility for shorter projects. This can be a disadvantage for companies needing freelancers for minor tasks or short-term projects.
Turnover Rates
Teilur Talent boasts a turnover rate of less than 15%, significantly lower than the industry average. This is a testament to their commitment to fair compensation and transparency, which helps retain top talent for longer periods.
Conclusion for Toptal recruiting and staffing
The Toptal recruitment process is thorough and effective in ensuring that only the best freelancers are available for hire. However, the high costs and inflexible contracts may not suit every business. Alternatives like Teilur Talent offer more transparent pricing and equitable arrangements, making them a viable option for companies seeking top remote talent without the hefty price tag. Whether you choose Toptal, a recruiting and staffing company for freelancers, or another platform, understanding the recruitment process and the benefits and drawbacks of each option is crucial for making an informed decision.
Looking to build your remote team in Latin America without hidden fees or inflated markups?
At Teilur Talent, our Transparent Rate Pricing model ensures you know exactly where every dollar goes — with at least 80% of the rate going directly to the talent. This means fair pay, full visibility, and stronger long-term partnerships that drive real growth. We connect you with vetted, English-proficient professionals in Marketing, tech and business ops who are ready to scale your operations seamlessly and cost-effectively.
If you’re ready to experience a smarter way to hire, click here to schedule a free consultation with us.
