[foundation-board] Modelling employment costs

[Becky Hogge]

On 29 August 2011 20:18, Jason Kitcat <jason.kitcat at okfn.org> wrote:
>
> On 25 Aug 2011, at 18:46, Becky Hogge wrote:
>> On 23 August 2011 00:17, Jason Kitcat <jason.kitcat at okfn.org> wrote:
>>>> On 22 Aug 2011, at 19:49, Jordan S Hatcher wrote:
>>>> * It looks like the models are based around the employment costs equivalent to maintaining paying people the same day rate, except as salary.  Typically being employed reflects a decrease in gross earnings per day over being a consultant due to the other advantages one gets as an employee (statutory leave, maternity/paternity leave, etc).  Do you have any thoughts on this difference in your model and how we might do budgeting here?
>>>
>>> Most on my proposed list are on pretty low wages anyway e.g. Lucy and Kat. Jonathan and I are on roughly £35k pro rata and would be justified in seeking that in a salaried position.
>>
>> I think Jordan has a point here, Jason - without factoring in some of
>> the added benefits into a salary reduction, we're giving everyone
>> automatic pay rises. Also, my hunch is those are generous salaries for
>> this sector - I'd like to see you working from some more data on
>> equivalent positions in small NGOs/non-profits.
>
> I'd beg to differ. Most people will be in take-home-pay terms worse off. As employees they will pay more national insurance so like-for-like their monthly cash in hand will be lower as employees than as self-employed contractors. OKF will also be worse off as we will have to pay employer's NI.

Ah, I hadn't realised you were factoring the Employer NICs into the
35K figure. Apologies. Are Employee NICs higher than NICs paid by
self-employed people, or are you assuming that those who are currently
self-employed are not paying their voluntary NICs?
>
> Of course staff will have more rights like paid holiday, parental leave, sick pay etc which is hard to quantify - we currently have very low sickness absences and I don't see that changing. People work for OKF out of passion more than anything else!
>
> Most of ORG's staff, who are all salaried, are in the £30-37k range apart from one part-time finance person and one events person who is a first-jobber.

Interesting - that's changed since my time (back then we lived in a
shoebox in the middle of the road, wrapped in newspaper, and we were
lucky for it etc). I don't want to take this part of the discussion
too far, as I said before, but aren't some of the folk on your list
also first jobbers?

Becky