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Remuneration

The Company Perspective

People receive renumeration at ka in one of two ways from the point of view of the company:

Truly Variable Cost (TVC)	These are people who are paid either; for each unit of time expended, perhaps in hours, days, weeks or months, or per deliverable.	This suits people who are: Independent contractors or companies in their own right. Interested to set themselves up as independent contractors or business owners. Interested in joining ka but want to try us out first to see what it is like to work with us. People who ka may consider hiring but want to try out first before making a long term commitment. People are only employed when ka has a paying job and they are only paid for effort spent on a paying job. Each contractor is responsible for complying with statutory laws in terms of workers compensation insurance, taxation, superannuation and other government regulated provident funds and so forth.
Operating Expense (OE)	These are permanent staff, paid an annual salary.	This has the advantage of greater security because compensation is completely decoupled from the company revenue stream. People are paid regardless of whether they are currently engaged in a paying job. Additionally, all staff qualify for and receive the POOGI Bonus, described below.

Truly Variable Cost (TVC)

These are people who are paid either;

for each unit of time expended, perhaps in hours, days, weeks or months, or
per deliverable.

This suits people who are:

Independent contractors or companies in their own right.
Interested to set themselves up as independent contractors or business owners.
Interested in joining ka but want to try us out first to see what it is like to work with us.
People who ka may consider hiring but want to try out first before making a long term commitment.

People are only employed when ka has a paying job and they are only paid for effort spent on a paying job.

Each contractor is responsible for complying with statutory laws in terms of workers compensation insurance, taxation, superannuation and other government regulated provident funds and so forth.

Operating Expense (OE)

These are permanent staff, paid an annual salary.

This has the advantage of greater security because compensation is completely decoupled from the company revenue stream. People are paid regardless of whether they are currently engaged in a paying job.

Additionally, all staff qualify for and receive the POOGI Bonus, described below.

These are simply compensation models. Beyond monetary compensation, all people involved with ka are treated in the same respectful manner and are welcome to avail themselves of company resources as they are available, for the purposes of conducting ka business.

In either case, a single remuneration amount forms the basis of the financial relationship between ka and each person and this amount is representative of the total outgoings from ka to that person, inclusive of all statutory taxes and allowances.

The View of the People

Who pays who? Do companies pay people or do people pay companies?

For a person working for an employment agency or under a similar arrangement in which a person is outsourced to work within a customer's business, it is the person who has the capability to earn money. The agency had the opportunity and the agency's people have a short term capability to make the job placement, but beyond that the agency has no ongoing capability, whatsoever, to actually perform the work!

It is the person themselves, by using their own capability and knowledge, by risking their own credibility, by putting their own professionalism on the line, by their own personal exertion who actually earns the revenue. The agency is utterly incapable of earning that same revenue.

The agency usually believes the person works for them and are part of their company. They believe the money the person earns belongs to the company. They delude themselves into believing that they (the company) earnt that revenue and not the person. They don't value the person so highly and believe they are lucky to get whatever they are given. Their business model is based upon an invalid assumption. The assumption that it is the person who works for them.

At ka, we realise that people are capable, not businesses. When a person is working for a customer on behalf of ka, that person pays ka. ka does not pay that person. We find opportunities, and there is a cost to doing so and we need to generate some throughput to pay for that cost, but "we", as a business, have no ongoing capability at all to do that work. Only the person does. So, the person is being paid, not us. We require the person pay us a small commission for finding that position for them and to go on finding more positions for them and people like them. The reality is we both benefit from each other, but the degree of effort is weighted nearly completely to the person's side and away from the company. Isn't that the reality?

So, if your agency is arrogantly taking too much of the money that should be in your pocket because they assume you work for them, why don't you stop working for them and get us to work for you?

TVC People

If you are employed as TVC, you receive the full amount ka receives for your efforts from the client, less an opportunity cost payment which you make to ka. There are a further two options in terms of an agency fee rate that ka charges:

10% per transaction	Decoupled Invoicing	This allows you to bill us at regularly agreed periods, regardless of whether the client has paid us for your time or not. We bear the financial burden incurred by the time difference between our regular payment to you and the receipt of customer payments from our trade debtors account. Depending upon the cost of money to us, it can take from 12 to 15 billing periods (months?) until we are no longer funding your payments from previous earnings.
2.5% per transaction	Coupled Invoicing	This is where you don't get paid until we do. There is no carrying cost to us. Our fee is only designed to recover some opportunity management costs by contributing throughput to administrative OE.

10% per transaction

Decoupled Invoicing

This allows you to bill us at regularly agreed periods, regardless of whether the client has paid us for your time or not.

We bear the financial burden incurred by the time difference between our regular payment to you and the receipt of customer payments from our trade debtors account. Depending upon the cost of money to us, it can take from 12 to 15 billing periods (months?) until we are no longer funding your payments from previous earnings.

2.5% per transaction

Coupled Invoicing

This is where you don't get paid until we do. There is no carrying cost to us. Our fee is only designed to recover some opportunity management costs by contributing throughput to administrative OE.

If you can wait to receive your payment until we receive it from the customer then you pay us very little overhead with Coupled Invoicing. To transition onto this program you only have to be able to make it through one pay period, the first, without receiving any payments. After that you get paid every period just as normal.

OE People

If you are an operating expense to the company, your cost is fixed and completely decoupled from throughput generation. Also you qualify for and receive the POOGI Bonus, the ka BonusPlan.

Topic revision: r3 - 09 Nov 2010 - 05:28:53 - DavidPaspa

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