Why Toptal doesn't fit full-time hiring
Toptal is a freelance marketplace. Contractors are independent, often working multiple clients simultaneously, classified as 1099 (US) or independent contractors (EU). Converting a Toptal contractor to full-time runs into three problems:
- Toptal's contractor agreement typically restricts client conversion within 12–18 months
- Toptal's direct-hire fee is not published upfront, contrasting with transparent alternatives
- Many Toptal contractors prefer freelance and decline conversion
The four full-time alternatives
1. HighCircl (managed nearshore bench with hire-out option)
- Engineers EU-employed under HighCircl across 7 EU countries
- Buyout fee: 18% of annual gross, disclosed from start (industry norm 20–25%)
- Best for: EU product teams wanting flex-to-full-time path
2. Andela (managed marketplace, primarily LatAm + Africa)
- Engineers under Andela's employment umbrella
- Conversion-to-hire available
- Best for: US clients wanting LatAm or Africa pool
3. Mobsquad (direct-employment model)
- Engineers are full-time Mobsquad employees in Canada
- Can transfer to client employment with immigration support
- Best for: US clients wanting PST/EST timezone with immigration story
4. Build-Operate-Transfer providers
- Globant, Endava, Eastern European specialist BOT providers
- Build a team in-country, operate for 18–36 months, transfer to client
- Best for: long-term EU subsidiary strategy
Cost comparison for 1 senior engineer over 12 months
| Path | Year 1 cost | Conversion fee | Best for |
|---|---|---|---|
| HighCircl bench | ~$160k | 18% of annual gross (disclosed) | EU product teams |
| Andela bench | ~$170k | 1–2 months billing | US clients, LatAm pool |
| Mobsquad direct | ~$220k | transfer cost only | US PST/EST timezone |
| BOT (Globant) | ~$200k | ~€10k–€25k | EU subsidiary plan |
Decision shortcut
- EU product team, possible full-time later: HighCircl
- US client, LatAm timezone: Andela
- US client, US timezone, direct hire: Mobsquad
- EU subsidiary in 3 years: BOT
For HighCircl's full Toptal alternatives landscape, see /blog/toptal-alternatives.
