Introduction
 Who is the Guide for?   |   Objective of the Guide?   |   How to use this Guide? 
Defining Your Business
 Understanding Your Market   |   Assessing Your Institution   |   Defining Your Strategies 
Managing Your Institution
 Business Planning   |   Implementing: Key Areas   |   Controlling 
Delivering Your Programmes
 Programme Planning   |   Delivering Key Areas   |   Evaluating 
CD Map
Useful links
Worksheets
 - Intellectual property  
 - Internet Marketing  
 - Quality & Accreditation  
 - Partnership Agreements  
 - Human Resources  
     -Recruiting
     -Compensation
     -Performance Appraisals
     -Staff Development
Description
Tips
Examples
Worksheets

Compensation in terms of salary is a trade off between what the individual expects as reward for his or her work and what the institution can afford. There is, of course, a level below which it will be impossible (and also irresponsible) to find someone with the appropriate qualification, motivation and experience.

Newly created and smaller institutions can normally not afford to employ and compensate their trainers, consultants or developers on a permanent basis. Mostly, trainers, consultants and researchers are independent contractors who get paid on accomplishment of a predefined job either on a daily rate, hourly rate or lump sum basis. Generally, independent contractors are like entrepreneurs responsible to pay all taxes and other contributions (e.g. health schemes, accident insurance, unemployment insurance) out of their gross income.

Inevitably some full-time staff will need to be recruited to manage the institution's administration and to provide a "personal" contact for inquiries and responses. The recruitment of staff incurs fixed costs for the institution which means that the management board must be clear about how those costs are going to be covered by revenues at least six months into the future.

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