Standard Definitions
Organizational Definitions
Flexible Participation
Performance Percentage Definitions
Contract and Temporary Staffing Definitions
Standard Definitions
Candidate
A Candidate (or
Job Seeker) is a person who is interested in pursuing potential job
opportunities. The term would generally relate to one who is
capable of handling the given responsibilities of a certain defined
position within any client company (employer).
Organizational
Definitions
Team Member
Team Members are
individuals who have registered with Multigent as Associates.
First Team
The First Team is
made up of all the Associates an individual has directly sponsored.
Note: There is no
limitation to the number of Team Members one can sponsor in their
first Team
Associate
Network
The Associate
Network consists of the total number of Associates who are in your
first through your seventh teams.
Note: As with
your First Team, there is no limitation to the horizontal size to
any of these teams.
Placement Team
The Placement Team
consists of the Associates involved in each placement.
Sponsor
The Sponsor is the
Associate who presented the Multigent career and facilitated the
registration of the new Associate.
Note: Your Sponsor
will assist you in obtaining your objectives. If your sponsor
cannot help, their sponsor will help you, or they will locate
someone who can help.
Compensation
Definitions
Base Percentage (BP)
The fixed percentage
earned in commissions on generated revenues.
Commissions
Commissions equal
Generated Revenues (GR) multiplied by the Base Percentage (BP).
Confirmed Placement
(CP)
A
Confirmed Placement is when the Candidate accepts the Clients offer
and a start date is agreed upon.
Cumulative
Commissions (CC)
Cumulative
Commissions = (Personal + seven-team Associate Network Commissions)
Note If you have
earned commissions of $160,000 ($200,000 in Generated Revenues x
80%), and your first team Generated $500,000 in Revenues, your
Cumulative Commissions will be $185,000. This amount is equivalent
to $160,000 + $25,000 ($500,000 x 5%).
Exponential
Percentage (EP)
The Exponential
Percentage (EP) is calculated as follows: My Generated Revenues
divided by the Cumulative Commissions.
Generated Revenues
The Placement Fee
multiplied by the Performance Percentage
Liquidity
Placement fees
become liquid once the following two criteria have been met: (1)
The fee has been received, and (2) The Guarantee Period has expired.
Performance
Percentage
Each Associate
Role in the staffing process is assigned a Performance Percentage�.
The Performance Percentages are equitably proportioned and 80% (base
percentage) of the generated revenues are paid in commissions.
Placement Fee
The total amount
earned for staffing services rendered.
Placement Fee
Schedule
A chart showing the
standard percentages that should be charged for the staffing
services render.
Placement in Process
A potential placement, which has not yet been confirmed.
Team Revenue Sharing
Percentage
The percentage
earned in commissions on revenues produced across the seven-team
associate network.
Flexible Participation
You have the
flexibility to work part time while keeping a full-time
(non-competing company) job, or jump in and build the Multigent
business into a full-time career. You decide how much time you can
devote to developing your Multigent business. By selecting the
Associate Role(s) of the staffing process that best suit your skills
and availability. You will always be able to change your Associate
Role(s) based on the way you want to work.
Performance Percentage Definitions
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Enter perspective
candidate into the Applicant Tracking System (the �ATS�)
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Assist the Candidates in
completing their online Career Profile
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Review the registered
Candidate�s Career Profile
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Interview the candidate
and add additional information into the Candidate�s Career
Profile.
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Critique the candidate�s
resume and recommend enhancements
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Assist the candidate in
pre-qualifying their background as it relates to their
career objectives
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Provide the Candidate
with a brief �Multigent Business Model� orientation;
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Maintain contact with the
candidate as they update their Career Profile throughout
their career.
Or
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Creates a Candidate
account and enters the data relative to the perspective
Candidate Profile into the ATS.
Note: This
is generally accomplished with the assistance of a resume
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Search, contact and pre-qualify the prospective
candidate(s)
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the match in the ATS
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Refer the candidate to the Placement Agent
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Enter the job lead in the ATS
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Secure a valid job
opening from the Client
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Enter a full description
of the job opening into the ATS
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Serves as a liaison
between the Client and the Placement Agent
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Validate the completed
Job Posting with the person who submitted it
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Enter additional Job
Description information into the ATS
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Critique the Job
Description and recommend enhancements/solutions
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Facilitate the hiring
process
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Confirm first, second,
and third interviews
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Debrief all parties after
each interview
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Negotiate fee, contract,
terms, guarantees, starting salaries, bonus, benefits and
similar job-related items
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Finalize the Candidate�s
placement with the Client
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Contract and
Temporary Staffing Definitions
Alternative
Staffing
Another term for
�interim/contingent staffing,� encompasses all nontraditional work
arrangements other than direct full-time (permanent) employment, in
addition to: contractors, temporaries, consultants, self-employed,
independent contractors and part-time workers.
Back Office
A skilled
back-office sustains the front office by managing all of the
administrative duties and payroll capacities of a contract
placement. Administrative duties comprise of all the legal
contracts, insurance requirements, employee forms, paperwork, etc.
The payroll capacities encompass all funding, taxes, unemployment,
workers� compensation, etc.
Bill Rate
The per hour rate
that Multigent charges an employer.
Buy-out
Agreement
See �Conversion Fee
Agreement.�
Clerical
This is the largest
portion of the temporary help industry.
Pertains to secretaries, typists, word processors,
general office clerks, data entry, and other lower-level office
personnel.
Client Company
Company accepting labor from �Contractors� employed by a �Staffing
Company.�
COBRA
Legislation enacted
in 1986 obligating employers with in excess of 20 employees to
render continuation of health care coverage in the occurrence that
an employee is terminated or experiences an explanatory life event.
The employer deducting taxes benefits by sponsoring employee
benefits and is the employer to emulate for COBRA obligations, as
legislation is a piece of the ERISA tax law.
Common-law
Rules
Defined as �the law of a country or state, based on custom, usage
and the decisions and opinions of law courts.�
Common-law codes are conventional tests used to ascertain an
employee or independent contractor�s status. A �common-law�
employer possesses the authority to guide and manage an employee as
to the ultimate results and as to the details of when, where and how
the work is to be done.
Contingent
Staffing
Pliable reserve of
labor sustaining a core of permanent employees
peripheral non-core functions at the same time as periods of
increased demand.
Contingent
Workers
Encompasses all non-traditional labor dealings other than direct
full-time employment workers including: contractors, temporaries,
consultants, self-employed, independent contractors, and part-time
workers.
Contracting
Triangular
employment relationship where a �Staffing Company� provides
�Contractors� to a �Client Company� for a precise function and
duration, at a stipulated hourly rate.
Contractor
Employee of �Staffing Company� supplying services to a �Client
Company� under the day-to-day direction of the Client.
Conversion Fee
Installment fee procured by the Job Agent when the Client Company
employs the contractor permanently.
Conversion fee is on top of the hourly fee obtained during the
period of the contract.
Conversion Fee
Agreement
Fee schedule between the Staffing Firm and Client Company covering
the fee payable, if the contractor is working perpetually by Client
Company.
You should have a conversion fee agreement for every contracting
placement. The pecuniary details of every placement vary. An
independent agreement for each contractor you place is indispensable
to safeguard yourself.
Core
Employment
Permanent, �traditional� employees possessing the crucial skills
essential to an organization�s lasting existence.
These employees lead the company�s strategies for the future. Core
employees are surrounded by a malleable group of contingent workers
performing non-core work.
Employee
Benefits
A type of employee compensation, in addition to normal pay.
Some employee benefits are obligatory by law. These include social
security, unemployment, and workers compensation. Employers sponsor
other employee benefits voluntarily. It is customary to discuss
health-care, life insurance, retirement, or other welfare benefits
in this context.
ERISA
Acronym for the Employment Retirement Income Security Act.
A federal law-managing pension and welfare employee benefit
package. Establishes guidelines for these
programs. A group
of intricate and comprehensive laws governing employee benefits.
Fidelity Bond
Insulates an insured business against dishonest acts including
embezzlement, forgery and theft perpetrated by employees.
Flexible
Staffing
Inclination in
American companies to have on staff a core of permanent employees
with skills necessary for a company to sustain encircled by a
adaptable ring of contingent staff to perform peripheral, non-core
functions. See also �balanced staffing,� �contingent staffing,� and
�just-in-time staffing.�
F.U.T.A.
Acronym for Federal Unemployment Tax Act.
�F.U.T.A.� is the payroll tax each employer is required to
compensate under this Act. This tax cannot be withheld from the
employee�s pay; it is solely the responsibility of the employer.
General
Employer
In shared employer
situations or court cases including multifarious employers, the
general employer is the original employer holding the employment
agreement with the employee. This is the employer with extensive
authority. The courts and administrative agencies distinguish the
general employer as the employer retaining the employee on the
payroll and contributing benefits and it�s accountable for the
long-term employment association. The borrowing or short-term
employer is called the special employer.
Independent
Contractor
An Independent
Contractor renders services to a company, but is not an employee of
that company. The company compensates the Independent Contractor
without withholding payroll taxes or paying the employer�s share of
payroll taxes. An Independent Contractor has the right to judge how
the work should be done and can employ others to help with or
complete the work. Independent Contractors are under concentrated
scrutiny from the IRS and states due to violations costing billions
of dollars of taxes.
Liability
Insurance
Insurance that
covers bodily injury or property damage to others, to third parties.
Margin
Price difference between the Client Company bill rate and the
Contractor pay rate.
For example, if the hourly bill rate is $30.00 and the pay rate is
$20.00, the Margin is $10.00.
Markup
The percentage by
which the Client Company bill rate is greater than the Contractor
pay rate. For example, if the hourly bill rate is $30.00 and the
hourly pay rate is $20.00, the Markup is 50%.
Pay Rate
The per hour rate earned by a contractor.
Payrolling
A term mostly
encountered in the temporary guidance literature. Refers to
circumstances in which all or a fragment of a Client-customer�s
employees are on the payroll of a staffing firm but working at the
Client-customer�s location. The Client Company may want to select
or converse with the employees due to safety or experience
qualifying factors, but they do not want the record keeping
responsibilities which go along with payroll and withholding. Most
often, a Multigent Independent Associate does not search out a
payroll candidate.
Payroll Taxes
Employers are
designated as representatives of the government, to withhold
federal, state and local income taxes from employee�s wages. These
obligations are extremely regulated and come with harsh penalization
if they are done incorrectly.
Outsourcing
Fundamental
outsourcing involves the Client Company employing a complete
department staffed by the employees of a staffing company. Services
may be performed on or off the Client company property. See also
�Vendor on Premises.�
S.U.I.
Acronym for State Unemployment Insurance.
Each state decrees a payroll tax from the employer for unemployment
benefits. The tax ranges from 1% to more than 5% of every dollar of
payroll. The employer is required to pay the tax; it may not be
subtracted from the employee�s wages.
Technical
Contracting
Contracting positions including engineers, systems analysts,
drafters, designers, programmer analysts and technical writers.
Traditional
Employment
New phrase referring to permanent employment.
Non-traditional jobs are the contingency positions.
Unemployment Insurance
Government sponsored
safeguard-assisting employees who have been laid off or even
relinquish their position for reasons beyond their control. The
unemployment stipend is distributed only for a few months. This
insurance is made up from a significant contribution on the part of
an employer as part of an employee�s gross wages.
Vendor on
Premises
Outsourcing
agreement involving a full-time staffing coordinator administering
an entire outsourcing process for the Client: interviewing, testing
and screening applicants, filing job assignments, distributing
payrolls, supplying on-site management of the department.
Virtual
Corporation
New term for
providing a minimal staff of core employees, supported by a group of
contingent staff.
W-2 vs. 1099MISC
At the year�s end,
employees receive a Form W-2 or a Form 1099MISC. An employee
receives a W-2 and all necessary payroll taxes are withheld through
the year. An independent contractor gets a 1099 and no payroll
taxes are deducted.
Workers�
Compensation
Companies are
obligated by law to acquire workers� compensation insurance for
their staff. This insurance supplies medical and other protection
for employees who sustain a job-related injury or illness. The
staffing company retains workers� compensation for their employees,
or arranges coverage from the subscriber.
