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Comparing Upwork vs. Toptal for Hiring Remote Developers for Startups
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Comparing Upwork vs. Toptal for Hiring Remote Developers for Startups

You’re about to launch a project and need quality developers. The big question is, where do you hire from? Is it Upwork? Toptal? Or another platform?

The answer comes down to your budget, timeline, or requiring specialized skills. Let’s break down how both Upwork and Toptal work so you can choose the right one for your project.

About Upwork

Upwork is one the most popular freelance platforms, with over 12 million freelancers. It operates on a marketplace model, where freelancers create profiles showcasing their expertise, portfolio, and rates. Clients can browse these profiles, review proposals, and choose the best match for their needs. 

How to hire a developer from Upwork

Upwork has 3 membership plans for clients: Marketplace, Business Plus, and Enterprise. 

The Marketplace plan is great for starters who don’t have specific requirements and are okay with handling the search and interview process themselves.

Here’s how hiring works with the Marketplace plan:

  1. Sign up for an account on Upwork.
  2. Write and post your job description.
  3. Decide if the project will be fixed-price or hourly.
  4. Review proposals from developers and interview those you’re interested in.
  5. Review the terms of the job, and if satisfied, make payment into Upwork’s  Escrow account.
  6. Hire the freelancer and get your project started.

The Business Plus and Enterprise plans are for businesses that need more platform support in hiring talent. You get benefits like access to pre-vetted talent and 24/7 customer support.

The hiring process is a bit different with these plans:

  1. Sign up and set up your account.
  2. Fill out a form stating project requirements, like skills, duration, and experience level.
  3. Browse a shortlist of qualified engineers that match your specs. 
  4. Choose your dev and start working with them right away. 

Project Catalog

Upwork has also introduced a Fiverr-style Project Catalog, where freelancers set up defined projects that clients can buy at fixed prices. Here’s how it works:

  1. Browse through the various project categories. 
  2. Select “Purchase Project” when you find a project you’re interested in.
  3. Receive your project by a set deadline. Review, approve, and pay.

Upwork’s vetting process

Upwork doesn’t have a clear vetting process since it is a generalist platform. Screening is only done to confirm the identity of freelancers. To assess the quality, you have to vet the developer yourself. You can do this by checking their ratings and reviewing their resumes and portfolios to see if they’re good enough. 

However, Upwork has recently introduced an "expert-vetted" program that allows clients on Upwork’s Enterprise plan to identify top talent. The program is by invitation and involves a 30-minute vetting interview with Upwork’s talent recruiters.

The interview is a technical test of the freelancer’s capabilities and a soft skills test to assess their communication skills. 

Upwork pricing

Upwork software developers charge between $20 and $100+ per hour. Upwork then charges service fees on the developer’s rate or “Project Catalog” projects, depending on your membership plan.

  • Marketplace Plan = 8%
  • Business Plus = 10%
  • Enterprise = Custom. Contact sales for an estimate.

For the Marketplace Plan, in addition to the service fee, Upwork charges a $14.99 Contract Initiation Fee for each new contract you start with a freelancer. 

Payment Methods

Upwork accepts the following payment methods:

  1. Credit card: Visa, Discover, Mastercard, American Express, Diners Club, and Diners Club International, as well as prepaid cards.
  2. PayPal
  3. Venmo
  4. Bank account (ACH): This option is exclusive to U.S. residents.

Upwork Client Reviews

Upwork has a 4.6 star rating on G2. There are complaints about Upwork’s high service fees and hidden fees. This client had to pay a verification fee as an enterprise customer, but this is not disclosed on Upwork’s website. 

This client was pleased with the talent options available.

Ratan wasn’t too happy with the hiring costs and Upwork’s customer support. 

Upwork pros and cons

Pros

  • Large talent pool
  • You can review the portfolios and resumes of developers
  • Find talent in multiple technologies

Cons

  • Hiring speed is entirely up to you.
  • Lack of pricing transparency as some costs are hidden.
  • No formal vetting process, so finding quality devs can take time.
  • Devs divide their time for multiple projects, affecting their commitment to your project. 

About Toptal

Toptal is a website that connects freelance developers to companies worldwide. The Toptal team screens freelancers and matches them to clients based on their skills and rates. Toptal is known for charging high hourly rates for projects. If you’re an enterprise company or scaling to that level, Toptal is a good option. 

How to hire a developer from Toptal

  1. Share your project details with a Toptal rep. Include info like skills needed and number of devs you want. 
  2. Within 5 days, Toptal presents a list of developers who best fit your project.
  3. You can interview the matched candidates to see who you prefer.
  4. Choose your dev and start working with them in a 2-week free trial.

Toptal’s vetting process

Here's how Toptal screens their developers:

  1. Toptal recruiters evaluate each candidate's English skills and personality to see if they can communicate well and act professionally.
  2. Candidates undergo technical tests to confirm their knowledge in their tech field.
  3. Candidates must complete a live coding test and technical interview with Toptal’s senior devs.
  4. Successful candidates at this stage receive a real-world project to complete within 3 weeks.
  5. Toptal adds the top 3% of successful candidates to their talent pool.

Toptal’s pricing

Developers at Toptal charge between $100 and $200+ hourly. Toptal also charges a $79 monthly subscription fee for their talent search services. This fee is separate from the developer’s rates.

Toptal Client Reviews

Toptal has a 4.7 rating on both G2 and Trustpilot, with many clients praising the quality of their talent.

However, they could be more transparent with their pricing.

Toptal’s pros and cons 

Pros

  • Strict screening process.
  • 2 weeks no-risk free trial.
  • Devs are available in multiple tech stacks.

Cons

  • Expensive. 
  • The hiring process can take up to 3 weeks.

Upwork vs Toptal compared


Criteria Upwork Toptal
Time-to-hire 3 days to a month Within 3 weeks
Hourly rates for devs

$20 to $100

$100 to $200

Any other fees?

- $15 Contract Initiation Fee for each new contract with a developer


- 8-10+% service fee on all payments, depending on your plan

$79 monthly subscription
Pre-vetted developers?

Only in the Enterprise plan

Yes
Free trial?

No

2 weeks
Customer support options Email, in-app chat, account manager for Enterprise users Email, phone call
Can I hire multiple developers? Only if you post separate job listings  Yes
Can I change developers? No, you have to cancel the contract and start over Yes, but you’ll incur a fee if it’s after your trial period

If you want a budget-friendly option for a small project and don’t mind spending time sifting through profiles, Upwork is a solid choice. However, for startups, time is often limited. While Toptal is more expensive, it saves you time by pre-screening and filtering talent. If you have the budget and need high-quality developers, Toptal is a good option.

If you want an alternative that allows you to hire developers for React projects, ReactSquad is the best choice. We’re a marketplace of vetted React developers for SaaS startups. 

Hire senior React developers at affordable rates
  • Qualified, senior developers with 5+ years of experience
  • Affordable and transparent pricing at $75/hour
  • Get matched with a developer in 48 hours
Let’s talk about your project
Hire reliable React Developers without breaking the bank
  • zero-risk replacement guarantee
  • flexible monthly payments
  • 7-day free trial
Match me with a dev
About the Author
Nikolas Chapoupis
CEO
I'm Nikolas, CEO of ReactSquad. Jan Hesters and I started this company after struggling to find skilled developers in our previous startup. Now I'm committed to helping SaaS companies scale by matching them with senior React developers in less than 48 hours.

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