renewing a contract

NedRN · Oct 20, 2012

There are a couple ways to analyze the situation. One is that they are probably not going to pay you an additional travel subsidy, usually $500 or $600. So that is worth a buck an hour, or a completion bonus just to keep things on an even financial keel with the first assignment.

There is a lot of work that goes into getting you that first assignment that is zero work for any extensions. They had attract you through some kind of marketing, they had to talk to you on the phone for several hours in total answering questions and convincing you that they were a good agency and had good paying assignments, collect and collate all your information, from your work history to your health information, verify your knowledge base with testing, talk on the phone to you for several hours in total, verify your references, submit you to various hospitals, manage your interview, find housing for you, furnish housing, pay a housing deposit, turn on and pay for utilities (and likely pay a deposit as well), and set up your payroll. That's a lot of work!

So what is it worth? Should they now skate and rake in extra effective profits on a renewal, or should you share more equally? After all, you did the hard work at your agency's client facility and under their client's thumb to prove to their client that they chose the right agency. I think you deserve more for enhancing their reputation and making it possible for them to collect profits from their easy office chair. Only fair. But how much? And what is your Plan B if they turn you down?

You cannot negotiate from a position of strength unless you have a real Plan B and are prepared to follow through. Blustering and threatening are not good negotiating tactics, so you have to be diplomatic. Start easy and say you've proved your worth, and you want more (I'll leave the amount up to you, but suffice it to say that agencies reward their long term travelers routinely with the best assignments and more money). Next you tell them that you've received two better paying offers with these two agencies for assignments at x and y hospital - and this is true because you have prepared for this moment with both a Plan B and a Plan C. Perhaps even a Plan D - taking a few weeks off.

Personally, I would ask for at least $2 an hour more (in the absence of real facts about other travelers making more at your assignment hospital): one buck for the missed travel (no extra cost to the agency at all), and one or two bucks for loyalty. Your agency would be foolish not to take such a great deal to lock you in. Ask for even more if you extend for 6 months at one time.

Everyone has a different comfort level with asking for money, and of course everyone is basically uncomfortable with asking. Some travelers make considerably more than other travelers because they do their homework and they have learned how things work and what strings to pull. Others are happier with no negotiation and more power to them. I used to do sales before I became a nurse, and the only difference between the bad sales people and the top of the line is how often they ask for the sale (or the money). Much the same applies to travel nursing. But it is not just about whining to your recruiter about money, it is doing the work required for an effective negotiation. By the way, the recruiter is not your friend, he/she represents the agency. The agency profit margin takes a hit for every dollar more you make, and so does the recruiter's pay. Both can be direct hits or indirect.

Information is your friend, you can never have enough. So let me share something with you. A typical agency on a typical assignment makes about $5,000 gross profit on your work, or $20,000 a year. That is not net profit, but the money left over after paying all the direct traveler expenses. Traveler expenses include hourly pay plus FICA plus workers comp, plus unemployment, per diems, housing, and benefits. Out of the $5,000 that is left they have to pay for marketing, recruiters, benefits person, hospital contracts person, housing person, office rental, utilities, and something for the owner or stockholders. Not as profitable as you might think. But that $5,000 gross profit per assignment still gives you an idea of how much flexibility an agency has to negotiate with you. You work roughly 500 hours on one assignment, so 2 to 3 dollars an hour is certainly feasible. On high profit margin bill rates, it could be as much as $10 an hour and still leave the agency with a fair profit (depending on what the bill rate is and what their initial offer amounted to). Obviously, if you have more information about actual bill rates and costs, you can negotiate more effectively. But this gives you a taste of what is possible with enough experience and money - and effective professional skills.

You clearly have effective professional skills (or a hot specialty) since you have been asked to extend. This makes you worth more already without anything else needed to "sell" yourself. Just believe in yourself and handle the agency appropriately. You might blow it this time, or you may need more travel experience before you know what you are really worth and how marketable you are.

OK, so think all that over. Sorry about the long ramble here. I'm tired so I'll blame any incoherence on that. Good night.

Gracie_JRN · Oct 21, 2012

thank you ned for your response! I am learning a lot about the ins and outs here and the information you provided was helpful, i really appreciate it!

ChanceORiley27 · Jan 19, 2017

I really appreciate this post. It was EXACTLY the information I needed. Thank you!