By Brian Thornton, Division Vice President of Recruiting
For healthcare professionals, navigating various employment options—contract, permanent, and travel roles—can be both a flexible and rewarding approach to career building. Each role type has unique income opportunities and benefits that, when optimized, can significantly enhance your earning potential. Whether you’re a seasoned locum tenens physician, an adventure-seeking travel nurse, or a physical therapist filling a permanent shift, these tips can help you maximize your income and advance your financial goals.
1. Understanding the Benefits of Contract and Travel Roles
Contract Positions
Contract roles can offer higher hourly wages than traditional permanent positions. Healthcare facilities often provide these opportunities to fill temporary gaps in their workforce, allowing you to negotiate a competitive pay rate. Contract positions can also come with added perks, like flexible schedules and the freedom to take on multiple contracts if you want to increase your income further.
Travel Assignments
Travel roles provide an exciting way to earn more while exploring different parts of the country. Many travel healthcare assignments come with generous stipends for housing, food, and other expenses. If you’re strategic about budgeting these stipends, they can translate into extra take-home income. Furthermore, since travel positions are in high demand, pay rates are often higher than those for equivalent local roles, making it possible to boost your income significantly while gaining new experiences.
2. Negotiating Your Pay and Benefits
Whether in a contract, travel, or permanent role, negotiation is crucial. Here are some key components to discuss with recruiters or hiring managers:
- Pay Rates: Research the going rate for similar positions in your location or the area where you’ll be traveling. Websites like Glassdoor or the Bureau of Labor Statistics can provide valuable insights.
- Stipends and Reimbursements: Many travel roles offer stipends for housing, meals, and incidentals. Be sure to clarify whether these are included in your package and how much they will cover.
- Completion Bonuses: Some facilities or agencies offer completion bonuses for contract roles or travel assignments. This can be a great way to add an extra boost to your income, especially if the contract length is flexible.
- Total Compensation: Even if one of part of the compensation package – like the pay rate – doesn’t feel high enough, we always suggest comparing and negotiating the entire package. Sometimes there is wiggle room to negotiate on one area but not in another.
3. Travel Reimbursements & Allowances: Understanding the Unique Differences Between Nursing and Locum Tenens
When working in a travel role, many agencies offer allowances for various expenses like meal expenses, travel expenses, and more. These benefits are intended to offset costs associated with temporary relocation and can be an essential part of your income strategy. It’s crucial to distinguish between how stipends, allowances, and reimbursements are handled for nursing professionals versus Locum Tenens providers. To get the most from your reimbursements, consider the following:
- For Nursing Professionals: Housing stipends are typically based on the GSA max rates and are provided pretax. It’s important to note that these stipends are meant to cover housing costs, and the idea of “pocketing the rest” doesn’t apply, as these are strictly for covering necessary expenses. Meals and incidentals are also frequently included as part of nursing compensation packages.
- For Locum Tenens Providers: In contrast, Locums professionals are often reimbursed on a per-receipt basis, which means they submit expenses like housing and travel for approval and reimbursement. While some clients may provide an allowance, it would not typically be referred to as a stipend. Additionally, meals are rarely included in Locum Tenens arrangements, making it essential to understand the nuances of your specific contract.
To maximize your earning potential in your specific situation—or for any specific—you can always reach out to your recruiter and/or team at All Medical! We love to help our healthcare professionals increase earnings to the highest possible degree.
And, read more on our blog if you want to learn more about hidden benefits of travel contracting. Or to know if travel nursing is the right position for you.
4. Tax Tips for Healthcare Professionals
Being informed about tax deductions and benefits is essential to maximizing income. Contract and travel roles offer several tax advantages that traditional employees may not have access to. Here are some tax tips for healthcare professionals:
- Travel Deductions: If you’re in a travel role, certain travel expenses may be tax-deductible, such as mileage, meals, and lodging costs. Consult with a tax advisor who understands healthcare travel to ensure you take full advantage of these deductions.
- Maintain Tax Home: To qualify for tax-free stipends on housing and meals, you need to maintain a “tax home,” which is usually your primary residence. If you plan to work in various locations, consult a tax expert to avoid issues with tax-free reimbursements.
- Keep Track of Licensing and Continuing Education Costs: Expenses for maintaining your medical license or pursuing continuing education requirements are often tax-deductible. Keep detailed records of these expenses to claim them at tax time.
- Claim Job Search Expenses: If you’re moving for a new role, certain job search expenses may be deductible. Items like travel to interviews, resume preparation, and other job search-related expenses can add up and result in potential tax savings.
Exploring Permanent Roles with Income Potential
If you’re looking for stability, permanent positions can also offer considerable financial benefits. Here’s how to optimize your earnings in these roles:
- Negotiate for Sign-On Bonuses: Many healthcare organizations offer sign-on bonuses for permanent staff, especially in high-demand specialties. These bonuses can be significant and provide a boost to your annual income.
- Understand Your Benefits Package: Permanent roles often include robust benefits packages, covering health insurance, retirement plans, and tuition reimbursement. Evaluate the value of these benefits alongside your salary; they often translate to substantial financial savings.
- Take Advantage of Retirement Savings: Permanent employees often have access to employer-sponsored retirement plans, like a 401(k) with matching contributions. Taking advantage of these matches is essentially “free money,” and even a small contribution can compound over time.
- Additional Shifts: If your facility allows it, picking up extra shifts can be a straightforward way to increase your income without committing to a full-time contract role.
6. Optimize Income with Strategic Job Choices and Professional Development
Healthcare professionals in specialized fields often have higher earning potential. By strategically choosing your career path and focusing on in-demand specializations, you can significantly impact your income. Here are some ideas:
- Gain Specialized Certifications: Specialized roles like nurse anesthetists, surgical techs, or nurse practitioners often command higher wages. Pursuing certifications in these fields can make you more marketable and increase your pay scale.
- Focus on High-Demand Areas: Certain fields, such as oncology, geriatrics, and psychiatric nursing, are currently in high demand, which can lead to higher pay rates. Research the market demand for various specialties and consider training in these areas.
- Continuous Learning and Education: Many healthcare employers reward continuous education through increased pay or additional responsibilities. Pursuing advanced certifications or degrees can enhance your qualifications and open up higher-paying roles.
7. Build a Strong Relationship with Your Recruiter
If you’re working with a recruiter, leverage this relationship to ensure you’re being offered roles that match your income goals. Let your recruiter know if you’re seeking higher pay, more benefits, or specific types of opportunities. Recruiters often have insights into new positions, salary expectations, and industry trends that can help you make the most of your career choices. If you’d like to speak with an experienced recruiter who believes that exceptional healthcare starts with exceptional professionals, apply for a job or reach out to us here.
8. Consider Relocation for Higher-Paying Roles
Healthcare pay rates can vary significantly based on location. Some regions offer higher salaries for healthcare professionals due to cost of living or supply and demand. If you’re open to relocation, consider areas with higher pay rates, even if it’s for a contract or travel assignment. A short-term move can be financially beneficial, allowing you to gain valuable experience while maximizing your income.
Final Thoughts
Maximizing your income as a healthcare professional involves strategic planning, from selecting the right job type to negotiating benefits and understanding tax deductions. Whether you’re interested in locum tenens, contract work, travel therapy or travel nursing roles, or a permanent position, there are numerous ways to increase your earning potential.
By evaluating all available options, you can find the career path that aligns with your financial goals and lifestyle preferences. Remember, being proactive, building your skills, and staying informed about industry trends can make a substantial difference in your earning potential as a healthcare professional.
If working with a staffing agency seems like the right next step for you to find the best compensation, All Medical’s team of experienced recruiters make the process easy from interviewing to credentialing. Submit your resume to start a conversation today.
