Mavericks Salary Model Breakdown
The salary model is what sets Mavericks apart from mainstream software consultancies. It has raised questions, concerns, worries and doubts, so let’s unravel the whole salary model. See the breakdown in Finnish here.
70% of the invoicing generated by the consultant is used to pay the consultant’s salary. This excludes holidays and personnel expenses, the rest is paid as salary. This means that the holiday compensation and the bonus holiday pay are paid according to the average salary for the current holiday season. For example, let’s set the Mavericks compensation calculator to 158h for billable hours per month, and 100€ for the hourly rate. Both, by the way, are fully achievable readings. The calculation will look like this:
Monthly invoicing 15,800
Mavericks’ share 4740
Consultant’s share 11,060
Salaried holiday 800.98
Holiday pay 400.49
Side expenses 1,848.43
Gross salary 8,009.85
The 8009,85€ would the monthly salary when there are no absences. The gross salary to be paid is 50.7% of the consultant’s invoicing. The holiday and sick leave periods are paid according to average earnings (basic salary + commission). Roughly speaking, if you invoice an average of 8000€ / month when you are fully employed, you will also receive the same salary when you are ill or on holiday. This means that short sick leaves or annual holidays do not reduce one’s income but in practice income behaves the same way as when raising a fixed monthly salary. Of course, one also gets extra money for their holiday (bonus holiday pay) as we have in the habit in Finland.
Mavericks’ business model also allows paying various revenue based bonuses. The “company’s” share is 30%, which is spent for paying outsourced administrative services, occupational health services, tools and other purchased services. Sales and recruitment commissions are also paid from that 30%. This simply means that when a consultant sells a gig to themselves or another Mavericks consultant, they are the seller and is then entitled to a sales commission for the gig.
We’re constantly looking for new Software Professionals to join our team – are you the next Maverick? Get in touch and we’ll tell you more!