FairWorx

Why do we need an alternate business model for consulting?

The consulting industry is increasingly shifting towards a gig economy model. More and more consultants prefer to work as freelancers, or have to take the freelancing route as consulting firms reduce their head counts to control costs.

There are many advantages to being freelancers or contingent workers, but there are also drawbacks to working in this “solo career” mode. This includes: difficulty in starting as freelancers, identifying opportunities continuously, losing personal connections / sense of belonging to a team, self and professional development.

From the client’s perspective, there are also challenges to utilize freelance consultants / contingent workers effectively, including: difficulty in identifying the right talent in the market, maintaining continuity of services, and dealing with performance issues. 

We see an opportunity to create a formal organization to address these challenges and add value for both the freelancers/contingent workers and the clients.

What is the Cooperative Model?

A cooperative business model (the co-op) is a structure where the business is owned and operated by its members. Unlike most business structures today, where ownership is concentrated in the hands of a few shareholders, cooperatives empower their members to collectively own and control the enterprise. This democratic structure ensures that decisions are made collectively and profits are shared equitably among members.

Indonesia’s established cooperative model provides a solid foundation for FairWorx. Clear laws and regulations govern cooperative operations.

It is a for profit organization conducting economic activity. The members put in the capital needed to run the business and receive the economic benefits of working together in the coop. The coop charges management fees on contracts between clients and the coop and uses it to conduct the coop’s activities. Any extra margin at the end of the fiscal year will be distributed back to the members in proportion to the contribution that they have made to the coop.

All members have equal voting rights in determining the direction of the cooperative and electing its leadership.

Why adopt the Cooperative model for Consulting?

Traditionally, the cooperative model has been primarily used for small businesses and non-knowledge-intensive industries in Indonesia. There is very little information about applying this model for consulting / knowledge worker segment.

We believe that the co-op model is also a great match for consulting / knowledge worker because:

• This model encourages collaboration among members, in fact the success of the co-op will depend on how the members can collaborate to be more productive.
• In this model, the members do not lose ownership of their creation. They can share it to increase its value, but they will always be able to benefit from their own creation.
• Members has more control to balance their own work and life
• Its non-capitalistic nature opens the opportunity to support those with little financial strength to grow both professionally and financially based on their personal competencies and capabilities

Our Objectives

The objectives for founding FairWorx are:

1. Provide services to members to develop themselves and grow in their profession
2. Provide services to clients to fulfill their needs through services delivered by the members and the wider network of the co-op’s partners
3. Facilitate productive collaboration among members and the wider co-op partner network
4. Vehicle to share and develop knowledge and information that is trusted and beneficial to members in an ethical and responsible manner
5. Contribute to the society in the effort to improve welfare and social justice

Our Principles

As a co-op we adopt the co-op principles defined by International Cooperative Alliance:

1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training, and information
6. Cooperation among cooperatives
7. Concern for community

As our work will be based on information and knowledge, we add to the above another important principle:

• Respect for privacy, confidentiality and intellectual property

Our values

We adopt these values in forming this co-op:

• Collaboration: we believe working together is better than working individually.
• Inclusion: we welcome every individuals with the same vision regardless of background
• Integrity: trust is the basis of all relationships
• Innovation: our job is to come up with ways to solve problems and implement them effectively
• Sustainability: we want to contribute to the society for the long run

Members

Membership is open and voluntary. People who might benefit by joining this co-op include:

• Existing freelancers / contingent workers
• Those who are currently out of traditional job
• Pensioners who still want to be productive
• Academicians
• Fresh graduates
• Students
• Consultants working in traditional firms
• End clients

Each profile above may benefit from the co-op in different ways depending on their particular need and situation. In some cases we will need to manage the potential of conflict of interest through clarity and transparency.