Taking Stock of Business: Research and Remuneration
It was only a token amount, something to keep the workers happy (it’s a sole business) for working over the holiday period in my one man business. And to be fair, it was a long time coming because I had promised myself a bonus for the past 4 quarters but I never quite felt that I had enough in reserves to justify a “splurge”.
What struck me as odd was how little I actually received based on how much I had reserved for the bonus. After removing the superannuation contribution and PAYG tax, I was left with only 58% of my original amount. More interesting was that if I had been working for another business and was told how much I would get vs. how much was deposited in my bank account I would be screaming bloody murder!
But because this is my business and I know exactly how much it costs to doll out these bonuses then I conceded without much of a fuss. I recall way back when I was working for another recruitment business near the start of my career and they broke down my commission in exactly the same fashion.
What I was told at the time was that this was the cost of running a business.What I thought, perhaps a little naively was “Why can’t the company just cover my superannuation costs?” But what I didn’t realise (or want to think about) was that the money needed to actually come from somewhere. If not from me, then from some other consultant or revenue stream – You were right JB, I’m sorry!!
My point being is that if you’re an employer, it might help to bring some transparency to the real costs of running a business without rubbing it in their face like you’re doing them a favour by employing them. Employment should be a win-win venture for both parties.
If you’re a researcher and you’ve found it hard to reconcile how little you get paid by way of commission or bonus, especially when you’re comparing it to your consultant colleagues, then perhaps consider what role you’re playing in the business: Are you in a 100% support role? Who do you support? Do you have revenue targets? The closer you get to generating revenue, the more potential you have to earn. But this also means you might have to do some activities which you may not be so comfortable with…
What role do you play in your business and how are you remunerated (not how much)? Share your thoughts below!
Image by David Castillo Dominici (freedigitalphotos.net)