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Andela Suspends Employees Monthly Salaries For Piecework Wages

[IMAGE: Andela]

The latest development from Andela indicates that company will start paying its employees work wages as opposed to monthly salaries. The software company is doing away with full time employment and is turning its employees into contractors who will be paid per gig. Employees who choose to remain full time will also be paid only when they are working.

“We announced last week that we would be allowing engineers to choose whether they wanted to continue as full-time employees or convert to contractors,” the company explained. Employees who choose to work on contract basis will have more flexibility and earn higher amounts compared to those who choose to remain full time.

Andela embarked on a series of job cuts since December 2019 and announced in May this year that it is going fully remote with the exception of one sales office in New York. The company has since absorbed more engineers on contract and urged the existing employees to opt for contract terms.

Read: Staff Confirm Closure of Andela Offices in Africa As Company Offsets Property

“As we started allowing engineers to apply to join the Andela network as contractors, one of the most common questions was whether existing engineers would be allowed to convert if they wanted to. We announced last week that we would be allowing engineers to choose whether they wanted to continue as full-time employees or convert to contractors,” the company explained.

“We will no longer be supporting a paid bench though, which means engineers will be paid when they are working, but not when they aren’t.”

It is safe to say that Andela has abandoned its original structure which saw them pick out and offer full time paid employment to the best talents in Africa who were also outsourced to global tech companies. The company now runs as a talent market place housing both employed and freelance engineers who get paid per gig. Employees who convert to contractors will also get to choose what projects they want to work on.

Read: Andela Lays Off 135 Staffers in Kenya and Three Other Locations

Andela maintains that “engagements are typically long term in either capacity – often as long as the average full-time engagement, so the experience for a developer working with a company through Andela will feel similar.”

Since inception, Andela has raised nearly $200 million in venture capital and claims to have trained more than 100,000 talented youth through programs such as the Andela Learning Community.

The company’s directors took pay cuts as they downsized their staff before selling off its equipment and closing its offices to go fully remote.

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Written by Vanessa Murrey

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