The Empowered Employee Compensation Model is the new workplace compensation model associated with the Income Reengineering Vision. As illustrated, the EECM consist of the following income resources and benefits:
- Primary Income Resources:
Productivity Based Compensation (immediate)
Residual Income Equity Benefits
- Supplemental Compensation/Benefits:
Wages/salaries (temp to zero)
Virtual Bond Distributions
Private Retirement plans
As a workplace compensation model, Empowered Employee Compensation Model (EECM) encourages employees to run their own business under the roof of an employer and get the best of both worlds:
- The income, ownership, profitability and flexibility associated with running a profitable business;
- WITHOUT losing the financial security and guaranteed steady monthly paycheck piece of mind normally associated with a steady job.
Under the EECM, financial security and the guaranteed steady monthly paycheck piece of mind normally associated with steady employment will be provided by the wealth building benefits of the virtual income machines (i..e. virtual wages, virtual dividends, virtual bonds and virtual stocks), not traditional hourly wages and salaries.
The bottom line: under the EECM, people show up for work to build wealth, not just to earn a paycheck to paycheck living. Let’s take a look at each resource associated with the Empowered Employee Compensation Model (EECM).
Productivity Based Compensation
Here, empowered employees are paid a negotiated amount daily, weekly, monthly or yearly linked directly to the professional services they provide to their employer. They are paid based on daily production, not a predetermined wage or salary; nor is it linked to company sales or profits. It’s hard dollars linked to what empowered employees do on a daily basis.
For example, if you work as an administrative assistance, you may get paid based on how many administrative duties you carryout per day, whatever those duties may be. If you are a factory worker, you are paid based on how many units your station produces. If you are a design engineer, you get paid as you complete predetermined milestones in the design process. If you are a manager, you get paid based on predetermined milestones linked to project completion or linked to the productivity of your department.
As you can see, this is hard dollars linked to what empowered employees do on a daily basis. The actual compensation will obviously be negotiable between empowered employees and employers. This said, individuals may choose to waive this productivity based compensation altogether in lieu of more considerations with ownership equity and residual income equity benefits discussed below.
This is a highly customizable compensation resource that will vary per company, per project and it can be extremely lucrative for empowered employees and employers when deployed properly. This compensation resource also promotes innovation and creativity in the workplace as employees seek to empower themselves with more tasks and responsibility and take it among themselves to increase their individual productivity and efficiency. In other words, instead of waiting around for a promotion or raise, empowered employees have real time, daily control over their income.
This benefit promotes worker ownership where empowered employees can invest initially (using the supplemental wealth building benefits of the model) as well as a percentage of their productivity based compensation back into the company. This benefit is maximized with enterprises that are 100% owned by the founders and participating empowered employees as opposed to a company that?s owned by the public via publically distributed stock. This is referred to as an EECM enterprise. Within an EECM enterprise, empowered employees can invest in and build ownership equity in consort with the growth and expansion of the enterprise while he or she work there without having the value of their stock diluted with public ownership.
If empowered employees decide to leave an EECM enterprise, he/she will have to “cash out” and take the cash with them. This is required to insure the EECM enterprises can continue to maximize 100% worker-ownership provision. Empowered employees can then take their cash/equity and re-invest it in their next empowered employee position. It’s like buying a house and building equity while you live there. Then, when ready, you sell it, take the equity and re-invest into another house:
- Note 1: The Income Reengineering Process will spin off thousands of EECM enterprises which are 100% owned by the originating entrepreneurs and participating empowered employees;
- Note 2: The virtual income machines will insure EECM enterprises can raise unlimited capital without going into debt and without violating 100% ownership provisions
- Note 3: If publicly owned companies wish to hire empowered employees or convert existing employees into empowered employees, then, to institute 100% ownership provisions within the EECM, the empowered employees within that corporation will have to form an independent EECM subsidiary that’s 100% owned by empowered employees. The corporation will then legally and administratively outsource work to this EECM subsidiary. This can be done although the empowered employees still show for work in the same corporate facilities and inter-operate as traditional employees. The EECM subsidiary will then have the ability to control its income via increased productivity and each empowered employee can benefit from 100% ownership of that EECM subsidiary as well as the other productivity based compensation and residual income equity benefits. In addition, since the EECM enterprise can use the virtual income machines to raise capital, EECM subsidiaries represent a new source of capital for traditional companies.
Residual Income Equity Benefits
The Residual Income Equity Benefit is the movie star benefit. Regardless of whether an empowered employee is an accountant, engineer, office manager, administrative assistant or secretary, this benefit pays empowered employees a percentage of each and every sale made by the EECM enterprise or the EECM subsidiary (as negotiated with parent company), whether that sale is made over the internet, inside the office or over a retail counter. This benefit pays while individuals work for a given EECM enterprise or subsidiary and it can continue for some pre-determined and negotiated period of time even after empowered employees move on to another enterprise. It’s similar to how movie actors earn income each time a re-run plays.
Wages/Salaries (Temp to Zero)
Under the EECM, wages and salaries are a temporary supplemental benefit, not a primary income source. Generally, a predetermined wage or salary will apply in a transitional scenario where employees are preparing to make the transition from wages to EECM compensation. Two transitional scenarios apply:
- Transitional Scenario #1: Employees are slowly using the IRBDN online system to paydown bills, build-up savings and generally building a financial foundation leading away from paycheck to paycheck dependence prior to converting to the EECM primary compensation; and/or
- Transitional Scenario #2: A newly launched EECM organization may want to start all empowered employees off with a base wage just to keep things simple while designing and preparing to implement their EECM compensation strategy. When ready, they will phase out the wage and replace it with the EECM primary resources
Other scenarios may arise, but these are the primary ones.
The virtual income machines conceptually represent what can be accomplished through large scale, peer to peer, internet centered collaboration among millions of individuals with a common mission or purpose. With this in mind, the virtual income machines are defined as follows:
The virtual income machines are highly unique and targeted crowdfunding solutions specifically designed to serve as a financial foundation to the primary income resources associated with the Empowered Employee Compensation Model (EECM). We use the word virtual simply because the virtual income machines are stitched together via an internet centered infrastructure while providing similar benefits as with traditional wages, stocks and bonds.
The central theme behind the virtual income machines is to bypass traditional stumbling blocks to capital posed by traditional banks and financial institutions toward providing resources to help individuals make a smooth transition into the EECM. You will see this attributes as you review each virtual income machine.
Now, details of the virtual income machines and the associated business systems are comprehensive and beyond the scope of this post . However, here’s a general outline of how the virtual income machines resources support the overall EECM concept:
- Virtual Wages: Virtual wages insures employees can get funds to pay down bills, build up savings and generally build a financial foundation leading away to paycheck to paycheck dependence in preparation for work at an EECM enterprise. No debt related credit checks, collateral or related issues apply. Once individuals submit a resume, interview and get a job within an EECM enterprise, he/she can secure the funds.
- Virtual Dividends: Virtual Dividends serve two primary purposes: 1) it insures EECM enterprises can raise capital without going into debt and without violating 100% ownership provisions associated with the EECM; and 2) it insures empowered employees will always have monthly income coming in from sources other than their primary resources. This serves as a diversification of income “safety net” which add to the safety net created by virtual wages;
- Virtual Bonds: Virtual Bonds serves as a supporting system or infrastructure to the virtual dividend environment;
- Virtual Stocks: Virtual stocks insures large, publicly owned companies and corporations can adequately facilitate, support, maintain and motivate the formation of internal EECM subsidiaries without comprising 100% ownership integrity of EECM subsidiaries and without compromising the ownership value of publicly held stock. In fact, because of the low overhead and productivity incentives built into the EECM, the value of stock shares associated with any publicly owned company will increase significantly as that company integrate EECM subsidiaries into operations.
Private Retirement Plans
The EECM is the antithesis to traditional workplace retirement benefits such a defined benefit plans, corporate pensions or 401ks. Under the model, people show up for work to build wealth, not for hourly wages/salaries or corporate benefits. The model idealized complete independence from traditional corporate benefits with a 100% focus on eliminating fixed cost that’s not associated with real time productivity and profits.
The key word is independence. Empowered employees will have the independence and freedom to move from one EECM enterprise to another without worrying about pensions and medical benefits. Pension plans will be private where individuals invest into their own retirement via ownership based compensation and private financial plans. This line of thinking is built into the EECM ownership based compensation model where, when an empowered employee leaves a company, he/she much cash out equity and reinvest in a new EECM enterprise and/or reinvest in some other investment. As a consequence, individuals are constantly building wealth through out their working life.
As you can see, the virtual income machines provide similar support to EECM enterprises and subsidiaries as traditional wages, dividends, bonds and stocks support traditional work and corporate finance infrastructure.
Group Medical Benefits
Medical benefits will be provided through large entrepreneurial associations. Think about it. Empowered employees are effectively entrepreneurs on the job. So, large national EECM entrepreneurial membership organizations will naturally form, segmented according to industries, professions, etc. These entrepreneurial organizations can easily provide extremely affordable group medical for their association members, thereby freeing up individual EECM enterprises from the expense.
Again, the EECM is about wealth building, flexibility and mobility where no one should be tied to any given company or enterprise for fear of losing their healthcare. This said, whatever the Affordable Care Act or “Obama Care” or any evolutionary derivative turns out to be, as the Income Reengineering process expands and EECM enterprise formation becomes a mainstream phenomenon, any government legislation can be modified to reflect the trends or the wishes of the general and business public via the election process.
Remember, EECM and the Income Reengineering process converts wage and benefit dependent employees into wealth building owners. Owners and wealth builders think different from wage-dependent employees. Therefore, if 80% of the workforce are wealth building owners instead of wage dependent employees, the political landscape will change dramatically.
Benefits to employers and the nation in general
Visit EECM Benefits to see how the EECM benefits employees, employers and the national interest at large.