For international contractors

Wholebeing mixes for international contractors

Context

During the journey to reinvent euforia in 2017, some tensions came up around the international independent contractors requested monthly rates. To address these tensions, we did an interest based negotiation (minutes here) and came up with the following process.

Process description

International independent contractors fill out an adapted wholebeing sheet (model here) that gives more clarity and transparency on the following elements:

• Costs incurred by being independent contractor

• Net amount received on a monthly basis, with PPP adjustment to be able to compare to Swiss salaries for employees

• Comparison element by indicating what a local, same size non profit organization would pay for a similar position (though this element is not the key to determining the monthly rate, as in case local job market offers very precarious salary levels euforia does not want to encourage this)

• Increased understanding of the local reality international contractors face, through explanations of what they “give up” and what is cool & advantageous for them.

• Integrated approach for wholebeing as with other employees (with vacation, training budget, sabbaticals etc.), which is not normally done with independent contractors (in non-euforia work places) but that we feel important to integrate them as team members, same as with swiss based people.

Following this, there are 2 scenarios:

1. If your PPP adjusted monthly net income corresponding to the fees requested is equivalent (or less) to the swiss based available salary, then the wholebeing mix is approved along with the swiss based employees mix. The process stops here.

2. If the PPP adjusted monthly net income is higher than a swiss based available salary, then the independent contractor must make a proposal on loomio (step 3).

3. Proposal on loomio:

   1. Proposal presented by independent contractor on loomio with link to wholebeing mix. He/she sends a request for “temperature check” and comments to employees, giving a few days/week to reflect.

   2. Finance wizards review the comments and temperature check and make a counter proposal to the independent contractor if deemed necessary.

   3. The independent contractor takes into account feedback by employees and the finance wizards’ counter proposal (if applicable) and makes a new final offer and requests a vote on it on loomio (giving a few days/week).

   4. Employees vote, if the majority agrees then the proposal is accepted. If the majority does not agree, then the proposal is rejected.

Also, please keep in mind the following: a pretty standard rule about cross-border freelance services (at least between Switzerland and the European union double-check if your own country is not part of the latter), is that your invoice is exempt from Value-added taxes in your country BUT are then charged to the receiving entity (i.e euforia pays 8% VAT to the Swiss authority on the total amount of your invoices). There are exceptions however, according to the nature of your services, namely if they are assimilated to a training. VAT won’t apply in such cases.

So please let your finance skipper role know about this, it’s important.