Affiliate condominium scheme. Partners, profits and experience of use.
All the pleasant time of the day, I write for the first time on Habr, so I apologize in advance for any flaws.
I would like to share our experience in the affiliate business model, tell how it is with us, what it means and get feedback. First about us. We are a start-up company engaged in the sale, implementation and maintenance of configurations on the 1C8 platform. The number at the moment - 8 people. Faced (like many firms) with the need to retain the best professionals, increase personal and collective responsibility for the results of activities and came to the following:
The company now has 3 levels on which to work.
The levels describe the status in the company and the payroll system, but not functional responsibilities.
Whatever an employee is engaged in - coding, staging, implementation, etc., he is always at one of the levels.
Level 1 Probationary Period (IC)
')
Labor remuneration system:
• An employee who is on the IP receives only the amount specified upon admission to the IP.
• This amount is ALWAYS lower than the salary that employees receive at the second level.
• At this level there are no bonuses and bonuses.
Opportunities:
• There is no opportunity to go on vacation.
• Regardless of the level of professionalism, work in the company starts from level 1.
• At this level, learn to work. This is not only the study of software company 1C, but also learning to interact with employees of the company, with its corporate spirit.
Stay Time:
• Duration of IP depends on the quality of work.
• Partners are interviewed who have come into contact with an employee on IP at work and provided that Partners give good - the employee moves to level 2.
• The shortest IS is 2 weeks. The longest is 3 months. Then either up or to the side, that is, the employee leaves the organization.
Level 2 Candidate Term (CC)
Labor remuneration system:
• A staff member at this level receives a salary agreed with the Partners when transferring from IP to COP.
• The amount of salary reflects the average salary in the organization at the moment for this specialization.
• An employee may receive a higher salary than the average for the firm, if he will be considered for special services.
Opportunities:
• At level 2, the specialist becomes a full-fledged employee.
• The employee's salary at the COP will be increased for each certificate received from 1C for passing various tests and exams.
• An employee may be paid a one-time bonus, the amount of which depends on the project and on the Partners who will vote for the amount of the bonus.
Stay Time:
• The time spent at the COP depends on the professionalism of the work and the decision to connect part of their professional life with our organization.
• According to a specialist, a meeting will be held where all Partners will vote for your admission of an employee to the Firm’s Partners.
• The shortest COP - 6 months of work. The term may be reduced due to the special merit, or in view of the sharp expansion of the company. The longest COP is 2 years. Then either up or to the side.
Level 3 Partnership
Labor remuneration system:
• The amount of wages of partners consists of 2 parts:
1. salary
2. partnership reward, calculated as part of the profits of the organization.
• The amount of salary reflects the average salary in the organization at the moment for this specialization.
• In the event that an organization works at a loss, the amount of the wages of the Partners decreases in proportion to the losses of the company.
Opportunities:
• The highest level of responsibility and the highest level of remuneration.
• Ability to directly influence the strategic and tactical decisions about the company.
• Ability to influence the level of remuneration of employees in the organization.
• The ability to influence the costs borne by the organization.
Stay Time:
• The time spent at the partner level is not limited by anything other than the desire of the Partner and the general meeting of all Partners.
The procedure for calculating partnership remuneration
Calculation of profit organization
• Profit is the entire amount of cash received from Clients per month minus all expenses of the organization.
• Costs include rent, vendors, office, meals, employee salaries (including Partners), taxes, etc.
Calculation of the amount of capital investments
• The amount of capital investment is 12% of the amount of profit.
• This amount is spent on the acquisition by the company of various assets.
• In sum, there is a part of the profits of each of the Partners. During the work of the Partner, its part is taken into account and is constantly summed up. After the Partner’s departure from the organization, the accumulated amount of assets is paid to him as compensation (in cash or property form).
• This is an analogue of the shares that the Partner can receive and accumulate during his work in the organization.
• When a Partner is dismissed, shares are redeemed from him by the firm.
Calculating the amount of equal remuneration
• 40% of the amount of profit minus the amount of capital investments are divided by the total number of Partners.
• Under this item, the remuneration of each Partner is increased by exactly the same amount.
The calculation of the amount of remuneration for the years of work
• 60% of the amount of profit minus the amount of capital investments are divided by the total number of years worked by employees as Partners.
• We get the so-called SVP - Cost of Partnership Time.
• Further, the SVP is multiplied by the number of years that the employee has worked in the organization as a Partner.
• Under this item, the remuneration of each of the Partners is increased by an unequal amount and the highest reward is received by the oldest Partner.
• The maximum number of years the SVP can multiply is 20 years.
Economic implications of affiliate scheme
In general terms, the economic consequences of the introduction of the partnership model can be described as an increase in economic maturity and consciousness. Like any company whose core is technical specialists, the company pays a lot of attention to technical issues and very little to strategic development issues, the economics of the firm, as well as marketing and advertising. After the introduction of the partnership, the focus of attention was primarily on the economics of the company. All partners became aware of their contribution to the total cash flow at the company, the picture of the formation of salaries and costs was clearly clarified. As a result, along with technical issues in solving the tasks of the Client, the issue of cost and profitability of the project is always considered.
Before the introduction of the affiliate model, expenses were chaotic and not always fixed. After the introduction of the partnership, all costs are accurately recorded, and capital investments are discussed at the general meeting of the Partners.
Moral and ethical consequences
Increased employee attention to each other
Lack of remuneration for individual performance indicators increased the number of consultations between employees with each other. The coders independently introduced a system for accumulating knowledge and keeping a history of their work for Clients. Partners keep a sharp eye on who and how much money the company makes. There were no conflicts on this basis, but a couple of times the situation was seriously investigated.
Increase loyalty to the company
In the months when the organization worked at a loss and the remuneration of the Partners decreased, all Partners continued to work actively and openly announced at the general meeting that they were ready to do everything they could to increase profits.
I would like to share our experience in the affiliate business model, tell how it is with us, what it means and get feedback. First about us. We are a start-up company engaged in the sale, implementation and maintenance of configurations on the 1C8 platform. The number at the moment - 8 people. Faced (like many firms) with the need to retain the best professionals, increase personal and collective responsibility for the results of activities and came to the following:
The company now has 3 levels on which to work.
The levels describe the status in the company and the payroll system, but not functional responsibilities.
Whatever an employee is engaged in - coding, staging, implementation, etc., he is always at one of the levels.
Level 1 Probationary Period (IC)
')
Labor remuneration system:
• An employee who is on the IP receives only the amount specified upon admission to the IP.
• This amount is ALWAYS lower than the salary that employees receive at the second level.
• At this level there are no bonuses and bonuses.
Opportunities:
• There is no opportunity to go on vacation.
• Regardless of the level of professionalism, work in the company starts from level 1.
• At this level, learn to work. This is not only the study of software company 1C, but also learning to interact with employees of the company, with its corporate spirit.
Stay Time:
• Duration of IP depends on the quality of work.
• Partners are interviewed who have come into contact with an employee on IP at work and provided that Partners give good - the employee moves to level 2.
• The shortest IS is 2 weeks. The longest is 3 months. Then either up or to the side, that is, the employee leaves the organization.
Level 2 Candidate Term (CC)
Labor remuneration system:
• A staff member at this level receives a salary agreed with the Partners when transferring from IP to COP.
• The amount of salary reflects the average salary in the organization at the moment for this specialization.
• An employee may receive a higher salary than the average for the firm, if he will be considered for special services.
Opportunities:
• At level 2, the specialist becomes a full-fledged employee.
• The employee's salary at the COP will be increased for each certificate received from 1C for passing various tests and exams.
• An employee may be paid a one-time bonus, the amount of which depends on the project and on the Partners who will vote for the amount of the bonus.
Stay Time:
• The time spent at the COP depends on the professionalism of the work and the decision to connect part of their professional life with our organization.
• According to a specialist, a meeting will be held where all Partners will vote for your admission of an employee to the Firm’s Partners.
• The shortest COP - 6 months of work. The term may be reduced due to the special merit, or in view of the sharp expansion of the company. The longest COP is 2 years. Then either up or to the side.
Level 3 Partnership
Labor remuneration system:
• The amount of wages of partners consists of 2 parts:
1. salary
2. partnership reward, calculated as part of the profits of the organization.
• The amount of salary reflects the average salary in the organization at the moment for this specialization.
• In the event that an organization works at a loss, the amount of the wages of the Partners decreases in proportion to the losses of the company.
Opportunities:
• The highest level of responsibility and the highest level of remuneration.
• Ability to directly influence the strategic and tactical decisions about the company.
• Ability to influence the level of remuneration of employees in the organization.
• The ability to influence the costs borne by the organization.
Stay Time:
• The time spent at the partner level is not limited by anything other than the desire of the Partner and the general meeting of all Partners.
The procedure for calculating partnership remuneration
Calculation of profit organization
• Profit is the entire amount of cash received from Clients per month minus all expenses of the organization.
• Costs include rent, vendors, office, meals, employee salaries (including Partners), taxes, etc.
Calculation of the amount of capital investments
• The amount of capital investment is 12% of the amount of profit.
• This amount is spent on the acquisition by the company of various assets.
• In sum, there is a part of the profits of each of the Partners. During the work of the Partner, its part is taken into account and is constantly summed up. After the Partner’s departure from the organization, the accumulated amount of assets is paid to him as compensation (in cash or property form).
• This is an analogue of the shares that the Partner can receive and accumulate during his work in the organization.
• When a Partner is dismissed, shares are redeemed from him by the firm.
Calculating the amount of equal remuneration
• 40% of the amount of profit minus the amount of capital investments are divided by the total number of Partners.
• Under this item, the remuneration of each Partner is increased by exactly the same amount.
The calculation of the amount of remuneration for the years of work
• 60% of the amount of profit minus the amount of capital investments are divided by the total number of years worked by employees as Partners.
• We get the so-called SVP - Cost of Partnership Time.
• Further, the SVP is multiplied by the number of years that the employee has worked in the organization as a Partner.
• Under this item, the remuneration of each of the Partners is increased by an unequal amount and the highest reward is received by the oldest Partner.
• The maximum number of years the SVP can multiply is 20 years.
Economic implications of affiliate scheme
In general terms, the economic consequences of the introduction of the partnership model can be described as an increase in economic maturity and consciousness. Like any company whose core is technical specialists, the company pays a lot of attention to technical issues and very little to strategic development issues, the economics of the firm, as well as marketing and advertising. After the introduction of the partnership, the focus of attention was primarily on the economics of the company. All partners became aware of their contribution to the total cash flow at the company, the picture of the formation of salaries and costs was clearly clarified. As a result, along with technical issues in solving the tasks of the Client, the issue of cost and profitability of the project is always considered.
Before the introduction of the affiliate model, expenses were chaotic and not always fixed. After the introduction of the partnership, all costs are accurately recorded, and capital investments are discussed at the general meeting of the Partners.
Moral and ethical consequences
Increased employee attention to each other
Lack of remuneration for individual performance indicators increased the number of consultations between employees with each other. The coders independently introduced a system for accumulating knowledge and keeping a history of their work for Clients. Partners keep a sharp eye on who and how much money the company makes. There were no conflicts on this basis, but a couple of times the situation was seriously investigated.
Increase loyalty to the company
In the months when the organization worked at a loss and the remuneration of the Partners decreased, all Partners continued to work actively and openly announced at the general meeting that they were ready to do everything they could to increase profits.
Source: https://habr.com/ru/post/37099/
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