IBS Smartcontracting
Smartcontracting is a form of work that sits between permanent employment and full freelancing. It is a popular arrangement, especially in the IT, marketing and overall consulting industries.
Smartcontracting in a nutshell:
- Permanently employed and yet free
- A fixed base salary every month
- You take vacation at your convenience, as long as you coordinate with the client and it fits into the schedule.
- Working without risk
How does Smartcontracting work at IBS?
- You get a base salary (e.g., €3,500 per month).
- You work for a client at an hourly rate (e.g., €90 per hour).
- You share part of your revenue with IBS as the employer; so-called overhead costs* and a profit percentage for the employer.
- In addition, you will receive fringe benefits in the form of a travel or lease budget, a telephone allowance and a fixed expense allowance.
- As a result, you can sometimes earn more than in salaried employment, without the uncertainty of freelancing.
(*) Overheads are 10% + 10% + 10%, where 10% for Sales & Marketing costs. 10% for Recruitment & Facility costs. 10% for Interim time & Management costs.
Advantages
- Fixed income and social securities (pension, vacation days, sick leave).
- Bonus structure: you benefit directly from your efforts with customers.
- No hassle with administration and acquisition, like freelancing.
Cons
- You are not 100% self-employed, so less freedom than as a self-employed person.
- You often have to put in hours with clients, and can’t just do your own projects.
- Variable income; based in part on the number of hours worked at the client.
