Everyone's fair share
Another fundamental principle we have is that we want to pay well and above all fairly. We do this based on the Koodin salary model. In this chapter, we explain how this works for consultants.
The split
All consultants are entitled to 67.5% of the personal annual revenue they have generated. We call this the employee share of the revenue. From this employee share, all costs that are specifically related to you as a consultant are paid. For example, a laptop, certification, training, etc., etc..
The remaining part goes to Koodin. This covers all the costs of what we need to work comfortably and well. Think of sales, hiring new colleagues, the office, administration, and, for example, company outings.
The fixed salary
Since Koodin focuses exclusively on senior consultants, every consultant receives the same base salary. This has been set at €4,800 for a full-time position of 40 hours per week, excluding vacation pay and Koodin’s pension contribution. This salary serves as the base amount, and you will receive it regardless of whether you are billable or not.
Your salary is paid on the 23rd of each month. If the 23rd falls on a weekend, we will process the payment on the last working day before. This means you will never receive your salary later than the 23rd of the month.
The annual salary adjustment (whether and by how much salaries are increased on average) is determined by Koodin’s management. Individual raises are avoided; we believe that collective salary increases are more valuable. After all, everyone works towards the same goal, and we prefer to maintain fairness across the team.
How is that construction put together?
The monthly bonus vs the annual bonus
Then the second salary component, the bonus. We understand that it is nice to receive more money on a monthly basis, so we have divided the bonus structure into 2 categories: the monthly bonus and the annual bonus.
Monthly bonus
To simplify the somewhat complex model, we have a fixed model for how much bonus is paid out on a monthly basis. Much easier this way. This model has 3 variables:
How many hours are in the contract. Which means how many hours you ar eexpected to work in a week.
What hourly rate is applied.
How many weeks have actually been worked. The principle here is that a full month is worked. For convenience, we assume 4 weeks per month. If you take a week off, 75% of the monthly bonus will be paid out.
Year bonus
In addition to the monthly payments you receive, you (hopefully) also save a nice annual bonus. This will be paid out once the accounting for the year has been finalized. Only then will we truly know what the income and expenses have been.
The remaining amount will be paid out up to the limit of your employee portion of the personal annual turnover. We use the following formula:
Employee portion annual turnover - personal costs = annual bonus
By personal costs we mean among other things:
Salary
Vacation pay
Paid employer premiums
Paid bonus
Variable costs (e.g.: laptop and travel expenses)
Negative annual bonus
It is conceivable that the personal costs are higher than the employee's share of your personal annual revenue, for example, because you have been long-term non-billable due to illness. In this case, we want to ensure that there is no reason for stress to arise, and the negative remaining amount falls under the risk of Koodin. For clarity, no debt will be accrued when the year is financially closed.
Calculation example
Hourly rate
€ 90
€ 100
€ 110
Average revenue /month
16.800
Employee revenue share
11.340
Premiums
975
Base salary
4.800
Vacation pay
384
Pension contribution
274
Monthly bonus
2.453
Gross salary
€ 7.911
Personal monthly budget
49
Personal expenses refer to business costs that you incur yourself. For example, a new laptop, travel expenses, or a license for a specific program. You have control over this.
Amount saved for end bonus
€ 2.404
End bonus after 12 months
€ 28.848
Questions about this? Contact us.
Calculation example
We apply the pay-when-paid principle to bonus payments. This means the monthly bonus is only paid once the client has paid. Naturally, you won't have to wait for your base salary.
