How to Negotiate A Travel Nurse Contract

How Do I Negotiate A Travel Nurse Contract?

There is not a lot of information out there about how to negotiate a travel nurse contract to receive a higher pay package as a travel nurse. In fact, when I’ve looked for information for myself, much of the information is given by the agencies themselves. Now tell me. Which agency is going to actually tell you how to decrease their profits? 

I’ve attempted to negotiate my rate on nearly every one of my contracts, and have only been met with a “no” one of those times (it was my first time trying). However, the more I learn about the travel nursing industry, and the more I practice my negotiation skills, the better I’ve become at negotiating various aspects of the pay package to significantly increase the overall weekly rate. 

I’d love to share my tips and advice with you so that you, too, may negotiate a travel nurse contract to receive the highest compensation possible.

Know The Components of a Travel Nurse Pay Package

When it comes to travel nurse pay packages, there are multiple components up for negotiation. First, of course, the hourly pay. Second, the beloved tax-free stipend covering lodging and meals. Additionally, there are sign-on bonuses, extension bonuses, travel reimbursements, licensing/certification reimbursements, and overtime pay. When offered a weekly rate from an agency, always ask for the pay package that outlines the exact numbers for each of these components. Once you know these numbers, that is when you can start pinpointing certain areas to negotiate. 

Here are two examples from two different agencies I’ve worked with . One is a brief, unofficial pay package offer while the other is part of an official contract and is more detailed.

Identify Competing Agencies Rates

Hospitals typically use two or more agencies to staff their units. If you see an opening through one agency, look to see if there are any other agencies working with that hospital and identify their rates. If there are competing agencies with higher rates, you can bring this information to your recruiter as leverage to increase your rate. 

I have done this personally when negotiating an extension contract. I simply asked my coworkers from another agency what their rates were, confirmed this with a recruiter from that agency who offered to match if I extended with them, brough this information up with my recruiter, and she was able to increase the weekly pay of the original offer by over $300/week, and over $4,000 for the 13-week contract. 

Utilize Competing Offers as Leverage

Even if you aren’t sure about competing rates at the same hospital, you can always search at hospitals in the surrounding area. If another agency offers a bit more (or even a similar rate) you can use that as leverage to negotiate. 

When I was searching for my current contract in Los Angeles, I was presented with two separate offers on the same day. Different agencies, different hospitals, different units, and even different areas in LA county. In fact, the offer at the hospital I had wanted more  already had a slightly higher pay rate. However, I still presented the competing offer to my recruiter who not only increased the weekly rate but added a sign-on bonus as well. 

Make Sure You Are Getting Paid the Full Tax-Free Stipend

Tax-free stipend amounts are federal and are set by the U.S. General Services Administration (GSA). They vary by location, and are higher in areas with higher costs of living, such as San Francisco or Los Angeles.

When reviewing a pay package, always check the GSA website to ensure you are getting the full stipend amount. Although an agency may lower the hourly rate in order to increase the stipend rate, you will still receive a higher weekly pay because the stipends are not taxed.

There is no reason an agency shouldn’t offer the full stipend. Don’t back down on this one. 

 Understand the Agencies Role and How They Are Compensated

Of course, when negotiating with an agency, you are ultimately lowering their overall profit. It’s important to understand how they are compensated so that they are not receiving too much (that should be going to you, the one working hard in the hospital!) but still getting their cut for connecting you to that hospital.

When hospitals are in need of travel nurses, they offer agencies a specific bill rate. With this bill rate, the agencies allocate what goes towards various expenses. This includes your (the travel nurses’ ) bill rate, your orientation costs, your onboarding costs, reimbursement costs, your benefits, and business overhead costs. 

If agencies are not able to negotiate a rate as high as you would like, consider those costs that they need to cover. However, you can use this knowledge to your advantage. For example, you can negotiate a higher weekly pay instead of receiving benefits. Or, if you are extending, you can ask for an extension bonus since the agency doesn’t need to cover your orientation costs again. 

Approach Your Recruiter With Confidence

When approaching your recruiter to negotiate a contract, be confident! Think for a minute or two about the twelve hour shifts you are putting in at the hospital. Think about all of those early mornings (or long nights if you are a night-shifter). Think about the physical and emotional impact of your job. Do you want your agency to be paid hundreds/thousands of dollars more when you are the one doing the dirty work. Yes, maybe your recruiter is a great person. And yes, agencies deserve their cut too for connecting you with that hospital. But at the end of the day, you are the one going into the hospital every day and you are the one who deserves that compensation. 

If you approach your recruiter with this mindset, I find it easier to have the confidence to negotiate a travel nurse contract. You got this. 

Once You Negotiate A Travel Nurse Contract, Accept The Offer and Celebrate

After you’ve approached your recruiter with confidence, and you’ve used up every last ounce of negotiating power you’ve identified, and you’ve (YAY) been offered a higher rate… take it! There are so many ways to negotiate, and you might wonder if there’s more you can do. Try not to let those thoughts diminish what you’ve done. If you are happy with a rate, accept the offer and for the love of God, celebrate. 

I’ve made it a tradition to celebrate every single time I sign a contract, extensions included. It takes guts to negotiate a travel nurse contract; be proud of yourself! You’re putting yourself out there, traveling to new places, entering new hospitals, and living your best life. That deserves celebration. 

If you have more questions about how to negotiate a travel nurse contract and want to contact me directly, you can leave a comment here or email me at [email protected]. I’m also working on starting an email newsletter so if you’d like to join the community let me know! I’m rooting for you 🙂

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