Travel Nursing Pay Package Comparison Strategy: Part 3
In Part 2 of this series we provided an example of a “blended hourly” rate comparison for travel nursing pay packages. In this blog post we’ll provide an example of a “total value” comparison for travel nursing pay packages. The total value comparison is bit more straightforward. Our goal here is determine the total value of the entire contract. To do so, we again begin with the number of weeks and hours per week to determine the total number of hours in the contract.
Travel nursing pay calculation: start with time
13 weeks
36 hours per week
3 months (13 weeks = 3 months)
468 total hours (13 weeks * 36 hours)
We also need to determine the total number of regular hours and the total number of overtime hours for the contract. Again, for the vast majority of contracts there will not be any contracted overtime hours.
Discover your next travel healthcare job on BluePipes!
However, in our example we do have contracted overtime hours because the contract is in California which mandates overtime to be paid after 8 hours in a day. The contract is for 3 12 hour shifts per week, totaling 36 hours per week.
Therefore, each week has 24 regular hours and 12 overtime hours. Multiply each figure by 13 weeks and we get a total of 312 regular hours, and 156 overtime hours for the entire contract. We are now ready to compute the total value of each contract.
Get the numbers and run your calculations
Agency 1’s offer:
1) Taxable Base Rate: $20/hour
2) Taxable Overtime Rate: $30/hour
3) Lodging Stipend (instead of company provided lodging): $2800/month
4) Meals and Incidental Expense Stipend: $350/week
5) Travel Stipend: $700
The last travel nursing job application you’ll ever need to complete.
6) License Reimbursement of $250 for new state license: $250
7) Overtime is paid after 8 regular hours in a day and 40 regular hours in a week.
Taxable Base Rate Total: ($20)*(312 regular hours) = $6240
Taxable Overtime Rate Total: ($30)*(156 overtime hours) = $4680
Lodging Stipend Total: ($2800)*(3 months) = $8400
M&IE Stipend Total: ($350)*(13 weeks) = $4550
Travel Stipend Total: $700
License Reimbursement Total: $250
Total Value of the Contract: $6260+$4680+$8400+$4550+$700+$250 = $24,840
Agency 2’s offer:
1) Taxable Base Rate: $30/hour
2) Taxable Overtime Rate: $45/hour
3) Lodging Stipend (instead of company provided lodging): $1500/month
4) Meals and Incidental Expense Stipend: $250/week
5) Travel Stipend: $500
6) License Reimbursement of $250 for new state license: $250
7) Overtime is paid after 8 regular hours in a day and 40 regular hours in a week.
Taxable Base Rate Total: ($30)*(312 regular hours) = $9360
Taxable Overtime Rate Total: ($45)*(156 overtime hours) = $7020
Lodging Stipend Total: ($1500)*(3 months) = $4500
M&IE Stipend Total: ($250)*(13 weeks) = $3250
Travel Stipend Total: $700
License Reimbursement Total: $250
Total Value of the Contract: $9360+$7020+$4500+$3250+$+$700+$250 = $25,080
Agency 3’s offer:
1) Taxable Base Rate: $24/hour
2) Taxable Overtime Rate: $36/hour
3) Lodging Stipend (instead of company provided lodging): $16/hour
4) Meals and Incidental Expense Stipend: $8/hour
5) Travel Stipend: $800
Negotiate travel nursing pay like a PRO with our free eBook.
6) License Reimbursement of $250 for new state license: $250
7) Overtime is paid after 8 regular hours in a day and 40 regular hours in a week.
Taxable Base Rate Total: ($24)*(312 regular hours) = $7488
Taxable Overtime Rate Total: ($36)*(156 overtime hours) = $5616
Lodging Stipend Total: ($16)*(468 hours) = $7488
M&IE Stipend Total: ($8)*(468 hours) = $3744
Travel Stipend Total: $700
License Reimbursement Total: $250
Total Value of the Contract: $7488+$5616+$7488+$3744+$+$700+$250 = $25,286
Surveying your calculations
As you can see, the Blended Hourly Rate and Total Value methods are the best ways to compare pay packages for the same hospital, or multiple hospitals within the same region. These methods allow you to make apples to apples comparisons by breaking every aspect of the pay package down to common denominators.
But what if you’re comparing pay packages for jobs that are in remotely different regions of the country? For example, let’s say you’re currently in Miami, Florida and you’re deciding between a travel nursing job in Tallahassee, Florida and a travel nursing job in Los Angeles, California. It’s going to cost you more to get to California. Housing may be more expensive in California, and the cost of living may be higher depending on your lifestyle choices.
Tired of filling out skills checklists? They’re free on BluePipes.
In this situation, many travel nurses rely simply on the weekly net pay offered by each job in an effort to determine which opportunity would be the most lucrative. The idea is that the costs involved are actually costs that you will truly incur. For example, traveling to California is going to be more expensive than traveling to Tallahassee from Miami. Therefore, who cares what the travel stipend is because it’s going to get soaked up by the cost of travel expenses.
Free travel healthcare resume builder.
Unfortunately, this logic is not sound. It’s true that it may work in some circumstances, but it’s still not the best way to determine which pay package is going to net you more money by the end of the contract. I still recommend breaking everything down with the Blended Hourly Rate or Total value method. A agency may provide a larger travel stipend than is required, or they may be offering something else that another agency is not offering. In any case, if you stick to your list of desired compensation components, and stick to the methods outlined here, you’ll ensure that you’re able to make true comparisons that will result in more pay for you.
My husband and I are preparing to take the step into travel nursing. thank you for the 3 articles helping us understand travel pay packages. It has been quite confusing but this has certainly helped!
Hey Angela,
I’m so glad to hear the articles were useful. I recommend scrolling through our Travel Nursing Pay category for more information. Also, we have some videos on youtube that a lot of people find helpful. And, you can get a free copy of our Travel Nurse Negotiation eBook by joining BluePipes through this link. If you’ve already joined, then go to bluepipes.com/ebook once your logged in. I hope this helps!
Is it possible to ask the recruiter what the package total hourly rate is and break it down as you would like after?
Thanks for the inquiry, Lisa. It’s possible. However, how the pay package is broken down will affect the package’s total hourly rate. This is because there are costs that vary depending on how much taxable vs non-taxable money the package is comprised of, most notably the employer’s portion of FICA taxes. I hope this helps!
What if an angency offers a taxable hourly rate and a tax free hourly rate and the amount “saved” within the tax free rate equals your lodging, meals and incidentals “stipend”???
Hey Teddy,
Thanks for the question! I’m a bit confused about what they mean by, “…the amount “saved” within the tax free rate equals your lodging, meals and incidentals “stipend”???”
Here are some considerations though: Sometimes, recruiters will talk about the “taxable equivalent” when discussing the tax-free portion of the pay package. They’re trying to provide an idea of what the pay package would be worth if you were comparing it to a taxable wage. I think this approach is confusing and I recommend not paying attention to it because you should really be comparing the offer to other offers, not permanent offers. I mention this because I’m wondering if that’s what they mean by, “…the amount saved with the tax free rate…”
I’m also wondering if perhaps they’re trying to say that they’re lumping the lodging and M&IE stipends together instead of quoting them separately. They may do this to simplify the presentation of the pay package. Again, I recommend having them break it down.
I always recommend getting the offer in writing. Have them put everything down in an email, including the hours per shift, hours per week, gross pay and estimated net (although you can calculate the estimated net pay on your own if you need to).
We hope this helps and we’re glad to offer more help if you can provide some further details on the issue.
Thanks!!