Toptal Vs. Upwork: Where to Hire Remote Developers

As our lives become increasingly digitalized, developers, DevOps, and software experts are in high demand. Even large corporations leverage remote talent to meet their business goals.

 

Hiring remote developers allows buusinesses to tap into a much broader talent pool, allowing them to select the best candidates in terms of skills, compatibility, and budget. So, where can you find remote developers for your business?

 

Various online platforms serve as talent marketplaces. In this post, we’ll explore and compare Toptal and Upwork to help you determine which the best option for you is. 

 

Toptal vs. Upwork: Introduction

 

What Is Toptal?

 

Toptal, which is short for “top talent,” is a remote work marketplace. It states that it only works with the world’s top 3% of freelance talent, which includes developers, designers, product and project managers, and other experts. 

 

Toptal pre-screens the developers that can use the platform, requiring them to successfully complete a skills review. This process can take up to five weeks. Once a remote professional is approved, they can start getting work. 

 

Meanwhile, clients on Toptal also need to undergo a vetting process. The platform reviews all applications from clients to ensure that they have the right expectations and intent to engage with remote talent on their platform. 

 

What Is Upwork?

 

Upwork is a freelance work marketplace that allows businesses and professionals to connect and collaborate on short- and long-term work projects. 

 

Clients can post jobs in Upwork’s talent marketplace and have freelancers and agencies apply to them. They can review the proposals, invite desired freelancers to their job, as well as use the services of Upwork’s talent scouts. Alternatively, they can buy services directly from the platform’s project catalog. 

 

Furthermore, Upwork also offers staffing services to large companies and corporations through its Upwork Enterprise Suite. As opposed to regular Upwork clients, Enterprise clients get access to the top 1% of talent. 

 

Toptal: Pros & Cons

 

Pros

 

Toptal offers companies that are looking for developers a range of advantages, such as:

 

1. Meticulous Screening Process

 

Toptal rigorously vets its remote developers and chooses only the most talented and passionate ones, doing the candidate screening process for you. The process involves various stages, such as English language and personality assessment, skills review, test assignment, and live screening. 

 

On top of that, Total’s developers need to ensure that they continuously deliver exceptional results to their clients. The platform states that it receives hundreds of applications monthly yet accepts fewer than 3% of them. So, you can expect only the most knowledgeable and experienced developers to work with you. 

 

2. High-Quality Talent

 

Since developers must pass multiple skills assessments before being able to work with clients, this reduces the possibility of low-quality talent joining the platform. 

 

While you may still be paired with a bad candidate, the chances of you being matched with one are lower than on other freelance work marketplaces that are using less stringent screening practices.

 

3. Hands-Off Hiring

 

Toptal’s internal team performs the talent search. Once you submit a project brief and specifications, they review profiles and suggest the most suitable candidates for your project. You only need to review the selected profiles and determine whether you are willing to work with the suggested remote developers. 

 

4. Satisfaction Guarantee

 

Toptal has a satisfaction guarantee. If you aren’t satisfied with the remote developer you got paired with and the work they provide, you can request a full refund. Moreover, the platform will pair you with another freelancer. 

 

Therefore, you can rest assured that you will only pay for work that you are happy with. In addition to that, once you select a freelancer, they have a trial period to prove themselves. If you aren’t satisfied before the trial period ends, you can choose to switch to another developer. 

 

Cons

 

Despite the advantages, there are also a number of drawbacks that may not make Toptal a good choice for certain businesses. 

 

1. High Price

 

Toptal is much more expensive than similar remote work marketplaces like Upwork. As a result, it may not be a cost-effective option for smaller businesses with tight budgets. 

 

Multiple Toptal’s past clients have remarked that the platform’s pricing strategy is not as transparent as it claims. On multiple occasions, clients have been charged significantly higher project costs than initially estimated. Many also believe that Toptal’s talent is overpriced and their expertise does not match the high prices that Toptal charges. 

 

Lastly, you need to provide a $500 deposit to initiate the talent search process, and it’s not guaranteed that you will find a suitable candidate. The platform, however, states that it will refund your deposit money if you choose not to move forward with the development process. 

 

2. Lengthy Hiring Process

 

Since Toptal’s internal team performs the hiring process, it can take up to three weeks to find the right remote developers for your project. Past clients have stated that on alternative freelance marketplaces like Upwork, they’ve been able to find talent and initiate the development process significantly faster. 

 

3. Specialized Talent

 

While Toptal boasts of recruiting the top 3% of remote talent, it only provides professionals in a few categories. They can be a great choice for specialized, complex projects but may not be a fit for everyone. Companies that need to hire less specialized talent may not have options or can be matched with expensive specialists. 

 

4. A Smaller Pool of Talent

 

Because of Toptal’s screening process, the platform has a fraction of available remote talent that other marketplaces have. Because of that, you may end up matched with a developer who is not as experienced or professional as you had expected. 

 

Furthermore, if you are not satisfied with the talent presented by the Toptal team, there may not be alternative candidates for you to choose from, an issue that various past clients have brought up. 

 

Upwork: Pros & Cons

 

Pros

 

Just like Toptal, Upwork also has advantages that clients can benefit from: 

 

1. A broad Pool of Talent

 

Upwork has a much broader talent pool than Toptal, providing you access to different skill and experience levels. You can find both more and less specialized talent. 

 

Moreover, you can also build a remote development team and get access to professionals other than developers. So, if you need copywriters and marketing professionals for your business, you can manage them all in the same place. 

 

2. Faster Hiring 

 

Hiring on Upwork is relatively straightforward. Once you post a job, freelancers can start applying immediately and depending on your project scope, you may be able to hire a developer on the same day. 

 

3. Affordable Pricing 

 

In comparison with Toptal, Upwork’s broader talent pool also offers you the chance to find remote developers that best fit your budget. 

 

Unlike Toptal, Upwork does not determine project pricing or developer rates. Upwork freelancers set their own rates based on their expertise and personal preference, and the platform charges them a percentage of everything they earn. 

 

As a result, you can set your desired hourly rates in your job descriptions and select candidates accordingly.

 

4. Simple Communication

 

Upwork’s messaging feature allows you to interview candidates, schedule meetings, and manage work and conversations within the same platform. While you absolutely can integrate communication tools like Slack into your workflow, it’s not actually necessary. 

 

5. Work Tracking Tools

 

You can hire remote developers on an hourly or milestone basis. Milestones allow you to break projects into smaller steps and release payments only when you are satisfied with the outcome. 

 

Upwork also has a time-tracking tool for hourly contracts. It allows remote developers to either use an automatic time tracking feature that captures a screenshot of their desktop in every 10-minute increment or log hours manually based on the tasks that they perform. 

 

6. Escrow Service for Payments

 

The Upwork platform manages payments. Instead of paying directly to freelancers, Upwork retains the money until a willing week is over in the case of an hourly contract or you approve a milestone in the case of a milestone contract. 

 

So, you have the right to review both hourly and milestone work before payment is submitted. Upwork also manages and resolves disputes in cases when developers and clients cannot reach an agreement. 

 

7. Review System

 

Both remote employees and clients can leave each other reviews as well as responses to said reviews. This offers transparency and can help future clients determine whether the talent they are considering has a proven record of successful projects.

 

Similarly, Upwork talent can determine whether or not they would like to work with a client based on the reviews they have received. 

 

Cons

 

While Upwork offers various benefits, there are also disadvantages to managing development projects through it:

 

1. Vetting Candidates

 

While Toptal’s internal team screens the candidates that sign up for the platform, Upwork only performs ID verification. 

 

Freelancers need to upload their official government IDs and have a video call with an Upwork support team representative, during which Upwork support verifies that the candidate is real, holds the uploaded document, and their image matches the image in the ID. After this process is completed, Upwork freelancers get an ID verification badge. 

 

Other than that, Upwork also does not guarantee that the information that freelancers provide on their profiles is accurate. Clients have come across freelancers using fake profile pictures, even with ID verification badges. While that does not mean candidates with fake pictures are bad, this still can severely damage their trust with a possible client. 

 

While Toptal manages the hiring process and chooses which candidates match clients’ requirements, this service is only available to Upwork’s Enterprise clients. 

 

The rest of the clients must review and assess remote developers by themselves. You can recruit a talent scout to seek candidates in your stead and invite them to apply to your job. However, the process of going through eligible candidates, screening, and interviewing them is your responsibility. 

 

2. Platform Fees 

 

Upwork charges clients 5% for each transaction. For example, if your freelancer has performed work worth $100, the platform will charge an additional 5% for performing this transaction. US-based clients who pay with a checking account can get a discounted fee of 3% for each transaction. 

 

Upwork fees are significantly steeper for freelancers, however. The platform retains 20% off all earnings for a client, and it gradually diminishes to 5% as their earnings with a client increase. 

 

You may also be subject to a VAT tax if you live within the EU. Therefore, it’s beneficial to consult with a local accountant to ensure that your information on Upwork is correct. 

 

3. Potentially Bad Candidates

 

On Upwork, remote workers can display their portfolios and qualifications and take tests that demonstrate their skill level. Nonetheless, bad hires and conflicts are not impossible, and unlike Toptal, Upwork does not guarantee satisfaction. 

 

4. No Satisfaction Guarantee

 

Upwork provides access to a broad talent pool, manages payments, and even helps you in the case of disputes. However, project outcomes are out of the platform’s control. You may be able to negotiate a refund with a remote developer. 

 

However, the developer must approve the refund for that to occur. If your developer spends several months on a project, and you realize that work has not been up to par, you’re unlikely to receive a refund for the entire project duration, even if mediation is initiated. Thus, it’s possible that you may need to hire someone else who would perform the work again. 

 

Toptal Vs. Upwork: Verdict 

 

Both Toptal and Upwork allow businesses to contract remote development talent. However, each remote work marketplace offers its unique advantages and drawbacks. 

 

Toptal is a suitable option for larger businesses that require specialized skills, have complex projects, work with higher budgets, and do not have the time to find and screen candidates. It offers high-quality talent and a satisfaction guarantee. 

 

However, Toptal can be expensive for many small and medium-sized businesses with limited budgets. It will take time to match you with the right candidates and requires a $500 deposit to initiate the talent scouting process. A number of prior clients have also complained that Toptal is overpriced and their talent can be average yet priced premium. 

 

On the other hand, Upwork provides access to a broad and affordable talent pool, has a much faster hiring process, and facilitates communication, interviews, time tracking, and payments. It’s great for clients with smaller or less complex projects. Clients and freelancers can receive and leave reviews, allowing others to assess what it’s like to work with them. 

 

Unfortunately, on Upwork, you will need to vet all candidates yourself, may end up hiring a bad apple, and do not have a satisfaction guarantee. 

 

Develop Your Project with Datrick’s Developers

 

Remote work marketplaces can be great places to find remote talent; however, hiring a dedicated remote team can help you move forward faster and more sustainably. You can benefit from working with an expert team that has well-established work processes and chemistry, transparent pricing, and unshakable integrity.

 

Schedule a complimentary call to discuss your project idea.