REQUEST FOR QUOTATION (RFQ) - UNDP Russia
REQUEST FOR QUOTATION (RFQ) - UNDP Russia
REQUEST FOR QUOTATION (RFQ) - UNDP Russia
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<strong>REQUEST</strong> <strong>FOR</strong> <strong>QUOTATION</strong> (<strong>RFQ</strong>)<br />
NAME & ADDRESS OF FIRM DATE: 27 September 2009<br />
REFERENCE:<br />
Provision of salary survey services for Service Contract<br />
holders in <strong>Russia</strong><br />
Dear Sir / Madam:<br />
United Nations Development Programme (<strong>UNDP</strong>) in the <strong>Russia</strong>n Federation invites you to submit your<br />
quotation for the provision of salary survey services for Service Contract holders in <strong>Russia</strong> according to the Terms<br />
of Reference attached herewith as Annex 1.<br />
Qualification Requirements:<br />
The successful offeror (either a company or an individual) should meet the following criteria:<br />
• Proven track of experience in the area of compensation and benefit for international organization.<br />
• Experience dealing with salary survey for non profit organizations will be an asset<br />
• Familiar with labor market issues in <strong>Russia</strong><br />
• Ability to work precise, fast and to the point;<br />
• Excellent writing English skills (native speaker or near-native speaker level)<br />
• Knowledge of local language would be an asset but it’s not mandatory<br />
• Familiarity with the <strong>UNDP</strong> regulations and experience within UN system would be an advantage.<br />
Payment under the contract will be output based and will be made upon satisfactory completion of the assignment.<br />
The work will be supervised by the <strong>UNDP</strong>/<strong>Russia</strong> HR Analyst.<br />
Submission of offers<br />
Offer should include following elements:<br />
• Technical offer of the solution<br />
• Company should prove experience in work on similar tasks<br />
• Indicate how many years of experience have your company/staff<br />
• References/contacts (pls. provide at least 3 organizations that employed your similar type of services).<br />
• Full cost estimate in USD and breakdown of related costs<br />
Rev Oct 2000 1
Please submit offers by 15 October 2009, 17:00 to the address:<br />
<strong>UNDP</strong> <strong>Russia</strong><br />
9 Leontyevsky Lane, Moscow 125009<br />
Or by e-mail: registry.ru@undp.org<br />
Or by fax: + 7 495 787 21 01<br />
Validity of proposal<br />
Offers have to be valid for 60 days.<br />
Evaluation criteria<br />
From the offers which are technically responsive, the offer with the lowest price will be awarded.<br />
Contact Person:<br />
Nelly Berezovskaya,<br />
Administrative Associate<br />
<strong>UNDP</strong>/<strong>Russia</strong><br />
nelly.berezovskaya@undp.org<br />
Rev Oct 2000 2
Annex I<br />
Call for applications/proposals and Terms of Reference<br />
Title:<br />
Location:<br />
Provision of salary survey services for Service Contract holders in<br />
<strong>Russia</strong><br />
<strong>UNDP</strong>, Moscow<br />
Duration 4 weeks, September-October 2009<br />
Background<br />
<strong>UNDP</strong> HQs has revised the service contract (SC) guidelines with effect from 1 January 2008. As<br />
part of the revision, a new remuneration methodology has been introduced. The basis of this new<br />
methodology is to make consistent approach in the pay levels for service contract holders with<br />
comparable work in the local labor market.<br />
<strong>UNDP</strong> <strong>Russia</strong> would like to implement the salary survey for Service Contract (SC) holders to<br />
adopt a more consistent and structured approach in setting and maintaining SC remuneration.<br />
Objectives<br />
1. To make a research at <strong>Russia</strong>n labor markets to define the list of organizations that could<br />
be considered as comparators for the SC Remuneration Survey. The final approval of the<br />
list of comparators will be made by <strong>UNDP</strong> <strong>Russia</strong>.<br />
2. To collect information, using prevailing survey questionnaire template (annex 3 of<br />
remuneration handbook attached), from the agreed list of comparators. The total number<br />
of comparators to be surveyed is ten: seven from the public sector and three from the<br />
private sector).<br />
3. To review the value of typical allowance and benefits offered by the comparators.<br />
4. To conduct survey interviews and matching of the benchmark jobs for the six service<br />
occupations across the eleven levels of responsibility typically found in a <strong>UNDP</strong> (page 6<br />
of the remuneration handbook attached). Benchmarking exercise should consider the job<br />
in the context of overall structure of organization, scope and depth of responsibilities,<br />
experience, training requirement and qualification for that particular job.<br />
5. To develop programme/tool for analysis of the collected data and its review from<br />
competitive market position perspective.<br />
6. To make recommendation on the salary scales with market position of 50 % percentile<br />
and establish the remuneration with target of the fiftieth percentile of the surveyed<br />
employers. The final remuneration scales should integrate into five broad bands (page 9<br />
of the remuneration handbook attached).<br />
7. To do matching process between actual service contract salaries/positions and new<br />
remuneration scale consisting of:<br />
• Aggregate TORs data to the band levels
• Smooth the raw band data to provide for an internally consistent yet market<br />
influenced progression between bands<br />
• Set the minimum/maximum span of remuneration for each band.<br />
8. To prepare final summary reports (internal - for <strong>UNDP</strong>; external - to be shared with the<br />
comparators in a confidential manner)<br />
Deliverables:<br />
- The internal summary report for <strong>UNDP</strong> consisting of :<br />
o Summary of data collected from the specific organizations showing TOR<br />
matches and the quantification of their remuneration package.<br />
o A table showing the average of all organizations by benchmarked TORs and the<br />
50 percentile remuneration.<br />
o A summary table of the comparators policy/practice on remuneration<br />
o Suggested salary scale as per <strong>UNDP</strong> methodology and user guide<br />
- Tool that will allow easy updates of data to be performed by the <strong>UNDP</strong>/<strong>Russia</strong> HR unit<br />
when carrying out further interim salary surveys<br />
- The external report for distribution to the comparators ensuring confidentiality of<br />
information from each employer.<br />
- The recommendation to <strong>UNDP</strong> on the integration of the existing SC salaries and<br />
positions to the revised SC remuneration.<br />
The work will be coordinated with the <strong>UNDP</strong>/<strong>Russia</strong> HR Analyst.
General Conditions for Professional Services<br />
Annex II<br />
1. LEGAL STATUS<br />
The Contractor shall be considered as having the legal status of an independent contractor vis-à-vis <strong>UNDP</strong>. The<br />
Contractor's personnel and sub-contractors shall not be considered in any respect as being the employees or<br />
agents of <strong>UNDP</strong> or the United Nations.<br />
2. SOURCE OF INSTRUCTIONS<br />
The Contractor shall neither seek nor accept instructions from any authority external to <strong>UNDP</strong> in connection<br />
with the performance of its services under this Contract. The Contractor shall refrain from any action which<br />
may adversely affect <strong>UNDP</strong> or the United Nations and shall fulfil its commitments with the fullest regard to the<br />
interests of <strong>UNDP</strong>.<br />
3. CONTRACTOR'S RESPONSIBILITY <strong>FOR</strong> EMPLOYEES<br />
The Contractor shall be responsible for the professional and technical competence of its employees and will<br />
select, for work under this Contract, reliable individuals who will perform effectively in the implementation of<br />
this Contract, respect the local customs, and conform to a high standard of moral and ethical conduct.<br />
4. ASSIGNMENT<br />
The Contractor shall not assign, transfer, pledge or make other disposition of this Contract or any part thereof,<br />
or any of the Contractor's rights, claims or obligations under this Contract except with the prior written consent<br />
of <strong>UNDP</strong>.<br />
5. SUB-CONTRACTING<br />
In the event the Contractor requires the services of sub-contractors, the Contractor shall obtain the prior written<br />
approval and clearance of <strong>UNDP</strong> for all sub-contractors. The approval of <strong>UNDP</strong> of a sub-contractor shall not<br />
relieve the Contractor of any of its obligations under this Contract. The terms of any sub-contract shall be<br />
subject to and conform with the provisions of this Contract.<br />
6. OFFICIALS NOT TO BENEFIT<br />
The Contractor warrants that no official of <strong>UNDP</strong> or the United Nations has received or will be offered by the<br />
Contractor any direct or indirect benefit arising from this Contract or the award thereof. The Contractor agrees<br />
that breach of this provision is a breach of an essential term of this Contract.<br />
7. INDEMNIFICATION<br />
The Contractor shall indemnify, hold and save harmless, and defend, at its own expense, <strong>UNDP</strong>, its officials,<br />
agents, servants and employees from and against all suits, claims, demands, and liability of any nature or kind,<br />
including their costs and expenses, arising out of acts or omissions of the Contractor, or the Contractor's<br />
employees, officers, agents or sub-contractors, in the performance of this Contract. This provision shall extend,<br />
inter alia, to claims and liability in the nature of workmen's compensation, products liability and liability arising<br />
out of the use of patented inventions or devices, copyrighted material or other intellectual property by the<br />
1
Contractor, its employees, officers, agents, servants or sub-contractors. The obligations under this Article do not<br />
lapse upon termination of this Contract.<br />
8. INSURANCE AND LIABILITIES TO THIRD PARTIES<br />
8.1 The Contractor shall provide and thereafter maintain insurance against all risks in respect of<br />
its property and any equipment used for the execution of this Contract.<br />
8.2 The Contractor shall provide and thereafter maintain all appropriate workmen's<br />
compensation insurance, or its equivalent, with respect to its employees to cover claims for<br />
personal injury or death in connection with this Contract.<br />
8.3 The Contractor shall also provide and thereafter maintain liability insurance in an adequate<br />
amount to cover third party claims for death or bodily injury, or loss of or damage to<br />
property, arising from or in connection with the provision of services under this Contract or<br />
the operation of any vehicles, boats, airplanes or other equipment owned or leased by the<br />
Contractor or its agents, servants, employees or sub-contractors performing work or services<br />
in connection with this Contract.<br />
8.4 Except for the workmen's compensation insurance, the insurance policies under this Article<br />
shall:<br />
(i) Name <strong>UNDP</strong> as additional insured;<br />
(ii) Include a waiver of subrogation of the Contractor's rights to the insurance carrier against<br />
<strong>UNDP</strong>;<br />
(iii)Provide that <strong>UNDP</strong> shall receive thirty (30) days written notice from the insurers prior to<br />
any cancellation or change of coverage.<br />
8.5 The Contractor shall, upon request, provide <strong>UNDP</strong> with satisfactory evidence of<br />
the insurance required under this Article.<br />
9. ENCUMBRANCES/LIENS<br />
The Contractor shall not cause or permit any lien, attachment or other encumbrance by any person to be placed<br />
on file or to remain on file in any public office or on file with <strong>UNDP</strong> against any monies due or to become due<br />
for any work done or materials furnished under this Contract, or by reason of any other claim or demand against<br />
the Contractor.<br />
10. TITLE TO EQUIPMENT<br />
Title to any equipment and supplies that may be furnished by <strong>UNDP</strong> shall rest with <strong>UNDP</strong><br />
and any such equipment shall be returned to <strong>UNDP</strong> at the conclusion of this Contract or<br />
when no longer needed by the<br />
Contractor. Such equipment, when returned to <strong>UNDP</strong>, shall be in the same condition as when delivered to the<br />
Contractor, subject to normal wear and tear. The Contractor shall be liable to compensate <strong>UNDP</strong> for equipment<br />
determined to be damaged or degraded beyond normal wear and tear.<br />
11. COPYRIGHT, PATENTS AND OTHER PROPRIETARY RIGHTS<br />
2
<strong>UNDP</strong> shall be entitled to all intellectual property and other proprietary rights including but not limited to<br />
patents, copyrights, and trademarks, with regard to products, or documents and other materials which bear a<br />
direct relation to or are produced or prepared or collected in consequence of or in the course of the<br />
execution of this Contract. At the <strong>UNDP</strong>'s request, the Contractor shall take all necessary steps, execute all<br />
necessary documents and generally assist in securing such proprietary rights and transferring them to <strong>UNDP</strong> in<br />
compliance with the requirements of the applicable law.<br />
12. USE OF NAME, EMBLEM OR OFFICIAL SEAL OF <strong>UNDP</strong> OR THE UNITED<br />
NATIONS<br />
The Contractor shall not advertise or otherwise make public the fact that it is a Contractor with <strong>UNDP</strong>, nor shall<br />
the Contractor, in any manner whatsoever use the name, emblem or official seal of <strong>UNDP</strong> or the United<br />
Nations, or any abbreviation of the name of <strong>UNDP</strong> or the United Nations in connection with its business or<br />
otherwise.<br />
13. CONFIDENTIAL NATURE OF DOCUMENTS AND IN<strong>FOR</strong>MATION<br />
13.1 All maps, drawings, photographs, mosaics, plans, reports, recommendations, estimates,<br />
documents and all other data compiled by or received by the Contractor under this Contract<br />
shall be the property of <strong>UNDP</strong>, shall be treated as confidential and shall be delivered only to<br />
<strong>UNDP</strong> authorized officials on completion of work under this Contract.<br />
13.2 The Contractor may not communicate at any time to any other person, Government or<br />
authority external to <strong>UNDP</strong>, any information known to it by reason of its association with<br />
<strong>UNDP</strong> which has not been made public except with the authorization of <strong>UNDP</strong>; nor shall the<br />
Contractor at any time use such information to private advantage. These obligations do not<br />
lapse upon termination of this Contract.<br />
14. <strong>FOR</strong>CE MAJEURE; OTHER CHANGES IN CONDITIONS<br />
14.1 Force majeure, as used in this Article, means acts of God, war (whether declared or not),<br />
invasion, revolution, insurrection, or other acts of a similar nature or force which are beyond<br />
the control of the Parties.<br />
14.2 In the event of and as soon as possible after the occurrence of any cause constituting<br />
force majeure, the Contractor shall give notice and full particulars in writing to <strong>UNDP</strong>, of<br />
such occurrence or change if the Contractor is thereby rendered unable, wholly or in part, to<br />
perform its obligations and meet its responsibilities under this Contract. The Contractor shall<br />
also notify <strong>UNDP</strong> of any other changes in conditions or the occurrence of any event which<br />
interferes or threatens to interfere with its performance of this Contract. The notice shall<br />
include steps proposed by the Contractor to be taken including any reasonable alternative<br />
means for performance that is not prevented by force majeure. On receipt of the notice<br />
required under this Article, <strong>UNDP</strong> shall take such action as, in its sole discretion, it considers<br />
to be appropriate or necessary in the circumstances, including the granting to the Contractor<br />
of a reasonable extension of time in which to perform its obligations under this Contract.<br />
14.3 If the Contractor is rendered permanently unable, wholly, or in part, by reason of force<br />
majeure to perform its obligations and meet its responsibilities under this Contract, <strong>UNDP</strong><br />
shall have the right to suspend or terminate this Contract on the same terms and conditions as<br />
3
are provided for in Article 15, "Termination", except that the period of notice shall be seven<br />
(7) days instead of thirty (30) days.<br />
15. TERMINATION<br />
15.1 Either party may terminate this Contract for cause, in whole or in part, upon thirty days<br />
notice, in writing, to the other party. The initiation of arbitral proceedings in accordance with<br />
Article 16 "Settlement of Disputes" below shall not be deemed a termination of this Contract.<br />
15.2 <strong>UNDP</strong> reserves the right to terminate without cause this Contract at any time upon 15<br />
days prior written notice to the Contractor, in which case <strong>UNDP</strong> shall reimburse the<br />
Contractor for all reasonable costs incurred by the Contractor prior to receipt of the notice of<br />
termination.<br />
15.3 In the event of any termination by <strong>UNDP</strong> under this Article, no payment shall be due<br />
from <strong>UNDP</strong> to the Contractor except for work and services satisfactorily performed in<br />
conformity with the express terms of this Contract. The Contractor shall take immediate steps<br />
to terminate the work and services in a prompt and orderly manner and to minimize losses<br />
and further expenditures.<br />
15.4 Should the Contractor be adjudged bankrupt, or be liquidated or become insolvent, or<br />
should the Contractor make an assignment for the benefit of its creditors, or should a<br />
Receiver be appointed on account of the insolvency of the Contractor, <strong>UNDP</strong> may, without<br />
prejudice to any other right or remedy it may have, terminate this Contract forthwith. The<br />
Contractor shall immediately inform <strong>UNDP</strong> of the occurrence of any of the above events.<br />
16. SETTLEMENT OF DISPUTES<br />
16.1. Amicable Settlement<br />
The Parties shall use their best efforts to settle amicably any dispute, controversy or claim<br />
arising out of, or relating to this Contract or the breach, termination or invalidity thereof.<br />
Where the parties wish to seek such an amicable settlement through conciliation, the<br />
conciliation shall take place in accordance with the UNCITRAL<br />
Conciliation Rules then obtaining, or according to such other procedure as may be agreed<br />
between the parties.<br />
16.2. Arbitration<br />
Unless, any such dispute, controversy or claim between the Parties arising out of or relating<br />
to this Contract or the breach, termination or invalidity thereof is settled amicably under the<br />
preceding paragraph of this Article within sixty (60) days after receipt by one Party of the<br />
other Party's request for such amicable settlement, such<br />
4
dispute, controversy or claim shall be referred by either Party to arbitration in accordance<br />
with the UNCITRAL Arbitration Rules then obtaining, including its provisions on applicable<br />
law. The arbitral tribunal shall have no authority to award punitive damages. The Parties<br />
shall be bound by any arbitration award rendered as a<br />
result of such arbitration as the final adjudication of any such controversy, claim or dispute.<br />
PRIVILEGES AND IMMUNITIES<br />
Nothing in or relating to this Contract shall be deemed a waiver, express or implied, of any of the privileges and<br />
immunities of the United Nations, including its subsidiary organs.<br />
TAX EXEMPTION<br />
18.1 Section 7 of the Convention on the Privileges and Immunities of the United Nations<br />
provides, inter-alia, that the United Nations, including its subsidiary organs, is exempt from<br />
all direct taxes, except charges for public utility services, and is exempt from customs duties<br />
and charges of a similar nature in respect of articles imported or exported for its official use.<br />
In the event any governmental authority refuses to recognize the United Nations exemption<br />
from such taxes, duties or charges, the Contractor shall immediately consult with <strong>UNDP</strong> to<br />
determine a mutually acceptable procedure.<br />
18.2 Accordingly, the Contractor authorizes <strong>UNDP</strong> to deduct from the Contractor's invoice<br />
any amount representing such taxes, duties or charges, unless the Contractor has consulted<br />
with <strong>UNDP</strong> before the payment thereof and <strong>UNDP</strong> has, in each instance, specifically<br />
authorized the Contractor to pay such taxes, duties or charges under protest. In that event, the<br />
Contractor shall provide <strong>UNDP</strong> with written evidence that payment of such taxes, duties or<br />
charges has been made and appropriately authorized.<br />
19 CHILD LABOUR<br />
19.1 The Contractor represents and warrants that neither it, nor any of its suppliers is engaged in any practice<br />
inconsistent with the rights set forth in the Convention on the Rights of the Child, including Article 32 thereof,<br />
which, inter alia, requires that a child shall be protected from performing any work that is likely to be hazardous<br />
or to interfere with the child's education, or to be harmful to the child's health or physical mental, spiritual,<br />
moral or social development.<br />
19.2 Any breach of this representation and warranty shall entitle <strong>UNDP</strong> to terminate this Contract immediately upon<br />
notice to the Contractor, at no cost to <strong>UNDP</strong>.<br />
MINES<br />
20.1 The Contractor represents and warrants that neither it nor any of its suppliers is actively and<br />
directly engaged in patent activities, development, assembly, production, trade or<br />
manufacture of mines or in such activities in respect of components primarily utilized in the<br />
manufacture of Mines. The term "Mines" means those devices defined in Article 2,<br />
Paragraphs 1, 4 and 5 of Protocol II annexed to the Convention on Prohibitions and<br />
Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed to Be<br />
Excessively Injurious or to Have Indiscriminate Effects of 1980.<br />
5
20.2 Any breach of this representation and warranty shall entitle <strong>UNDP</strong> to terminate this Contract<br />
immediately upon notice to the Contractor, without any liability for termination charges or<br />
any other liability of any kind of <strong>UNDP</strong>.<br />
OBSERVANCE OF THE LAW<br />
The Contractor shall comply with all laws, ordinances, rules, and regulations bearing upon the performance of<br />
its obligations under the terms of this Contract.<br />
AUTHORITY TO MODIFY<br />
No modification or change in this Contract, no waiver of any of its provisions or any additional contractual<br />
relationship of any kind with the Contractor shall be valid and enforceable against <strong>UNDP</strong> unless provided by<br />
an amendment to this Contract signed by the authorized official of <strong>UNDP</strong>.<br />
6
FINAL DRAFT<br />
United Nations Development Programme<br />
Handbook on Setting Remuneration<br />
for Service Contract Personnel<br />
Office of Human Resources<br />
Bureau of Management
Table of Contents<br />
A. Introduction ......................................................................................................................... 3<br />
HQ support and monitoring mechanisms .............................................................................. 3<br />
No Link with UN National Salary Scales and Conditions of Service ..................................... 4<br />
Approaching the Market ........................................................................................................ 4<br />
Public Sector Focus .............................................................................................................. 4<br />
B. The Desired Market Position .............................................................................................. 5<br />
C. Benchmark Terms of Reference ........................................................................................ 6<br />
D. Data Collection and Analysis ............................................................................................. 6<br />
Data Collection Methods ....................................................................................................... 6<br />
Quantification of Salaries and Benefits ................................................................................. 7<br />
Matching Terms of Reference ............................................................................................... 7<br />
E. Designing the Remuneration System ............................................................................... 8<br />
Broadband Options ............................................................................................................... 8<br />
Setting the Remuneration Scale ........................................................................................... 9<br />
F. Promulgation and Maintenance ....................................................................................... 10<br />
Setting the Effective Date.................................................................................................... 10<br />
Ageing Salary Data ............................................................................................................. 10<br />
Integration into Payroll ........................................................................................................ 10<br />
Managing Pay for Performance .......................................................................................... 11<br />
Reporting back to Organizations ......................................................................................... 12<br />
Updating Survey Data ......................................................................................................... 12<br />
Special Measures ............................................................................................................... 13<br />
G. Transitional Measures ...................................................................................................... 13<br />
Where the new SC remuneration scale is lower than current SC remuneration ................. 14<br />
Typical Integration from current to new Service Contract remuneration ............................. 14<br />
Where the new SC remuneration scale is significantly higher than the existing SC<br />
remuneration ........................................................................................................................... 14<br />
Annex 1: List of Sample Organizations that should be considered for SC Remuneration<br />
Surveys ................................................................................................................................... 15<br />
Annex 2: Service Contract Survey Benchmark Thumbnail TORs ..................................... 16<br />
1. Development Project Management ............................................................................. 16<br />
2. Information Technology ............................................................................................... 17<br />
3. General Administration ................................................................................................ 18<br />
4. Human Resources – general norm is SC at support level in this service area ........... 19<br />
5. Finance and Accounting .............................................................................................. 20<br />
6. Team Assistants/Secretaries ....................................................................................... 21<br />
Annex 3: Sample Survey Questionnaire ........................................................................... 22<br />
Annex 4: Terms of Reference Summary Sheet ................................................................. 25<br />
Annex 5: Sample Service Contract Remuneration Structure ............................................ 27<br />
2
A. Introduction<br />
The Service Contract (SC) modality, as specified in the HR User Guide, is intended to<br />
support the engagement of personnel to service development projects and to provide non-core<br />
services where outsourcing is not a viable and/or feasible option. Individuals engaged under<br />
the SC modality are considered as local contractors. The basis for the establishment of<br />
conditions of service for SC holders is therefore found in the local labour market and must be<br />
consistent with prevailing levels of pay for similar services and comparable work in the local<br />
labour market.<br />
SC holders are subject to all the provisions of local labour and tax law as applied to nationals<br />
generally. <strong>UNDP</strong> is not responsible for payment of tax on earnings or other taxes due on the<br />
remuneration of the SC, nor is <strong>UNDP</strong> responsible for reimbursement of taxes paid by SC<br />
holders in respect of earnings received under SC with <strong>UNDP</strong>. The payment of taxes is the sole<br />
responsibility of the individual under SC. In this regard, the remuneration package under the SC<br />
is set at the gross level and may include an additional lump sum for participation in national<br />
social insurance programmes that are mandatory in accordance with the <strong>UNDP</strong> User Guide .1<br />
<strong>UNDP</strong> country offices should be cognizant of the fact that engagement under the SC modality,<br />
while not necessarily short term, is not intended to support extended employment. Individuals<br />
hired under Service Contracts are expected to return to the national market at the conclusion of<br />
the project or when the non-core function is no longer required by the office. Therefore, while<br />
Service Contract conditions should be broadly competitive, in no instance should conditions<br />
lead the market or impede the movement of individuals into and out of this contracting modality.<br />
Finally, and most importantly, the process for establishing Service Contract remuneration must<br />
be simple and transparent. The guidelines presented in this handbook have been designed to<br />
meet this objective. This handbook, is intended to provide structural guidance that will make the<br />
process straight forward and consistent across duty stations while preserving the flexibility<br />
needed to be effective at the local level. Furthermore, since SC holders will be integrated into<br />
the global payroll system, it is necessary to adopt a more consistent and structured approach<br />
in setting and maintaining SC remuneration.<br />
The creation of Service Contract remuneration scales is a process and responsibility<br />
primarily managed by Country Offices. The Director of the <strong>UNDP</strong> Office of Human Resources<br />
(OHR) has therefore delegated to <strong>UNDP</strong> Resident Representatives full responsibility and<br />
accountability to collect and analyze data locally to create and update Service Contract<br />
remuneration scales in accordance with this Handbook. The Resident Representatives may<br />
delegate the responsibility for setting of SC remuneration to the “Responsible Officer”, who<br />
manages the planning and contracting of human resources necessary to meet the office goals,<br />
objectives and work plan. Country offices must report any significant engagement/retention<br />
issues regarding SCs which are linked to levels of remuneration.<br />
HQ support and monitoring mechanisms<br />
The OHR Headquarters unit responsible for compensation matters will provide technical<br />
advice and guidance to Country Offices in the setting of remuneration for SCs. The Regional<br />
Bureau will be responsible for ensuring the proper implementation of the guidelines for<br />
1 See <strong>UNDP</strong> Service Contract User Guide for guidelines regarding social insurance payments.<br />
3
establishing SC remuneration. Mechanisms for reporting on the setting of SC remuneration will<br />
be established by HQ on a periodic basis to ensure conformity with this Handbook.<br />
No Link with UN National Salary Scales and Conditions of Service<br />
There is no direct linkage in approach or amounts between SC remuneration and the UN<br />
salary scales for the staff series of contracts. As mentioned above, the objectives of contracting<br />
SCs, as part of the <strong>UNDP</strong> workforce are consistent with overall efforts to increase national<br />
development and strengthen technical capacity and expertise under national execution.<br />
Therefore, the SC is distinct in nature, with finite functions and limited services that are directly<br />
related to the execution of development projects or service areas that can be outsourced. This<br />
approach is considered by <strong>UNDP</strong> as a means of greater involvement of the national partners in<br />
the development process.<br />
To serve this purpose, the SC remuneration policy is distinct in the following areas:<br />
1. target market position (prevailing instead of best prevailing – 50 th vs. 75 th percentile)<br />
2. comparator sample (focusing on public instead of private sector employers)<br />
3. gross remuneration subject to national taxation<br />
4. enrolment in local social security schemes where available<br />
5. integrated remuneration system from junior support services through professional<br />
services organized in a broadband format<br />
6. no annual increments, all remuneration movement for individuals based only on revision<br />
of the remuneration scale.<br />
7. no retroactive adjustments in remuneration.<br />
These primary differences should be kept in mind by Country Offices while managing SC<br />
remuneration. The essential non-career, non-core character of SC services justifies these<br />
differences. SC holders must be made aware at the outset of engagement that such differences<br />
exist and the rationale for these differences.<br />
Approaching the Market<br />
Service Contract remuneration is based upon prevailing conditions found in the local<br />
labour market. It is therefore necessary to gather information on local conditions of<br />
employment in a structured manner to support construction of SC remuneration scales. In<br />
keeping with the objective of simplicity, SC remuneration scales must be designed to be<br />
comprehensive, inclusive of the value of typical allowances and benefits that are found in the<br />
local labour market. The objective here is not to manage separate allowances and benefits for<br />
SC holders. Rather, the value of these should be included in the remuneration scales such that<br />
these scales are broadly competitive with the total remuneration values for the 50th percentile of<br />
the local labour market.<br />
Public Sector Focus<br />
To ensure competitive remuneration packages for similar services in the local labour<br />
market and to facilitate the collection and updating of remuneration information, the target<br />
market for the SC has been defined as primarily drawn from the bilateral and NGO community.<br />
These are the organizations that engage personnel with profiles most closely similar to services<br />
4
included in the SC. Further these organizations usually maintain clear remuneration policies<br />
and structures that ensure a reasonably accurate alignment of data.<br />
Finally, <strong>UNDP</strong> seeks to base SC remuneration predominantly on prevailing conditions<br />
found amongst public sector and not for profit employers. While inclusion of private sector<br />
employers is anticipated to ensure coverage of the range of services included in the SC, private<br />
sector employers should constitute no more than one third of the employer sample. The<br />
inclusion of a private sector employer, as with other employers, is conditioned on the availability<br />
of clear and comprehensive information on remuneration packages offered. All employers from<br />
which data is sought should have established remuneration ranges which clearly distinguish pay<br />
for levels of responsibility.<br />
The survey model for collecting local market information anticipates a standard sample<br />
of ten employers. In very limited labour markets, that sample may be reduced to as few as six<br />
employers. In all instances no less than two thirds of the sample must be drawn from public/not<br />
for profit employers. This means seven public-sector employers for a ten employer sample and<br />
four public sector employers for a six employer sample. A list of suggested employers for<br />
inclusion in the sample is provided in Annex 1.<br />
Engaging organizations and employers to participate in SC surveys should be carried<br />
out on the basis of reciprocity; <strong>UNDP</strong> Country Offices must therefore emphasize the willingness<br />
to exchange information on remuneration and the commitment to confidentiality to encourage<br />
participation by outside organizations in the survey.<br />
B. The Desired Market Position<br />
In subsequent sections of the Handbook, guidelines are provided regarding benchmark<br />
terms of reference for services, data collection and analysis and the construction of the SC<br />
remuneration scale. It is recognized that within these procedures, Country Offices require<br />
flexibility in targeting a desired market position. While broadly the policy for establishing SC<br />
remuneration is to target the fiftieth percentile of the surveyed employers, Country Offices will<br />
have authority to adjust this market condition based upon the need to improve the performance<br />
of the SC remuneration system in the local market context.<br />
Within the principle of providing competitive remuneration packages that reference<br />
predominantly a public sector sample, Country Offices will have the latitude to set remuneration<br />
to fall from the fortieth to the sixtieth percentile of the data range collected. This market<br />
position must be set broadly for the entire remuneration scale and not be set band by band.<br />
The SC remuneration structure, addressed in Section F of this handbook, is designed<br />
again to provide great flexibility in setting the pay range to enable Country Offices to respond to<br />
changing market conditions. Where though the overall remuneration structure is not performing<br />
well, Country Offices should note these deficiencies and if necessary, seek additional guidance<br />
in collecting/analyzing local market information and adjusting the remuneration scale to improve<br />
its performance.<br />
5
C. Benchmark Terms of Reference<br />
A series of benchmark Terms of Reference (TOR) spanning the range of services from<br />
physical operations to substantive innovation in six occupations has been selected as the<br />
internal proxy for maintaining competitive SC remuneration. These TORs have been selected<br />
because they represent the services under SCs most frequently engaged by the UN system and<br />
because these TORs can be found and measured in most external labour markets. The<br />
benchmark TORs are by definition a representative sample and cannot reflect every possible<br />
service under SCs if a streamlined and cost-effective approach to setting SC remuneration is to<br />
be maintained. The six occupations represented by the benchmark TORs are:<br />
1. Development Programme Management<br />
2. Information Technology<br />
3. General Administration<br />
4. Human Resources<br />
5. Finance and Accounting<br />
6. Team Assistants/Secretaries<br />
Please see Annex 2 for tables containing brief thumbnail descriptions of the SC benchmark<br />
TORs and their equivalent SC level.<br />
D. Data Collection and Analysis<br />
As described in previous sections of the Handbook, <strong>UNDP</strong> policy stipulates consistency<br />
with conditions for comparable services in the local labour market as the main basis for<br />
establishing SC remuneration. Therefore, data on local market rates must be accurately<br />
collected to ensure that remuneration levels are appropriate. This section outlines the basic<br />
approach that should be used by Country Offices.<br />
Data Collection Methods<br />
Approaches to data collection in remuneration surveys have evolved significantly in the<br />
last 10-15 years with the widespread adoption of new telecommunication and information<br />
technologies. HR professionals in the comparator market are typically asked to participate in<br />
several surveys each year and are becoming increasingly selective in the surveys they choose<br />
to participate in. Furthermore, with the implementation of corporate Enterprise Resource<br />
Platforms (ERPs) such as Peoplesoft, Oracle and SAP, many multinational corporations are<br />
consolidating their compensation expertise at the regional or global level. Therefore, while<br />
traditional methods of data collection involve face-to-face interviews with participating<br />
organizations at the local level, it may be necessary to adapt to more modern approaches<br />
aimed at reducing the burden on participating organizations while maintaining the accuracy of<br />
the data collected. These methods are described below:<br />
1. Pre-Interview Survey Questionnaire: A streamlined survey questionnaire may be sent<br />
to participating organizations to allow them to submit base data such as remuneraton<br />
scales and tables of benefits in advance of the survey interview. Even if organizations<br />
6
do not actually submit the data prior to the interview, this gives them an opportunity to<br />
prepare for the interview. A sample of this questionnaire is provided in Annex 3.<br />
2. Remote Survey Interviews: Survey interviews may be conducted by telephone. This<br />
can save a lot of time that would otherwise be spent traveling to and from organizations<br />
and completing increased security formalities adopted by many office buildings. Remote<br />
survey interviews may be necessitated by the fact that the compensation manager for a<br />
particular local market may actually be based at the organization’s regional or global<br />
service center located in another country.<br />
3. Application of Global TOR Matching Guidelines: Guidelines for establishing matches<br />
with SC benchmark TORs can be established for multinational organizations with<br />
classification systems implemented on a global or regional level.<br />
4. Preparation of Participant’s Reports: Providing good feedback to participating<br />
organizations is an integral part of securing the flow of data from year to year. The<br />
Country Office must ensure that reports sharing the results of the survey and allowing<br />
each employer to compare their data with the other participants in the survey are<br />
prepared and sent. It is of course critical that the reports be prepared to protect the<br />
confidential information of each participant. While each participant should be able to<br />
compare their data generally with that of the other participants, a participant should not<br />
be able to identify how much another particular participant is paying.<br />
While the use of pre-interview survey questionnaires is recommended to collect data prior to<br />
the interview, this questionnaire should not be used as a substitute to the interview. The<br />
Country Office should normally conduct an interview, either by telephone or in person, to<br />
confirm the data reported and to validate the TOR matches. In order to ensure consistency and<br />
reliability of data, the TOR matches must always be established by the Country Office and not<br />
by each participating employer.<br />
Quantification of Salaries and Benefits<br />
In order to simplify data collection and analysis, the remuneration at the midpoint for<br />
each TOR will serve as the single reference for ensuring appropriate SC remuneration. The<br />
midpoint remuneration is the midpoint or average of the minimum remuneration and the<br />
maximum remuneration. The minimum remuneration represents an organization’s minimum<br />
hiring rate while the maximum remuneration is the highest normally attainable remuneration<br />
within each organization’s TOR. For organizations that don’t have a structured remuneration<br />
scale or defined minimum and maximum remuneration levels, the organization’s average actual<br />
remuneration or market reference point for that TOR may be used. Quantification of benefits<br />
and allowances should be consistent with general practices in the salary survey industry.<br />
Matching Terms of Reference<br />
The single most important component of a reliable remuneration survey is accurate<br />
matching of TORs. Without accurate matching a remuneration survey is of limited value. It is<br />
therefore important that the individual collecting the data has a solid understanding of the<br />
benchmark TORs and of the progressions of services that they represent. The following four<br />
factors should be evaluated in establishing SC TOR matches: A sheet for recording matches<br />
for the benchmark TORs is provided in Annex 4.<br />
7
1. Structure: Understanding the structure of the organization is critical to<br />
establishing accurate TOR matches as each TOR must be examined in the<br />
context of the other functions it interacts with. Examining the roles of all the<br />
TORs in a functional team enables a more accurate evaluation of each<br />
individual TOR. External TOR at levels above and below the benchmark<br />
TORs should also be examined to determine context.<br />
2. Content: Scope and depth of responsibilities should be examined in order to<br />
measure the substantive contribution of each TOR. Examine whether the<br />
functions of a TOR typically fall under well-established guidelines or whether<br />
origination of new perspectives or approaches is required. The complexity of<br />
analytical functions performed should also be examined.<br />
3. Progression: While the organization structure and TOR content provide most<br />
of the information necessary to establish accurate TOR matches, experience<br />
and training requirements at various levels should also be examined in order<br />
to understand movement between the levels.<br />
4. Qualifications: Finally, identify any educational requirements or the degree<br />
of specialization that may be required in a particular field for each TOR. While<br />
educational requirements alone can not be used to establish TOR matches,<br />
this information can be useful as the last piece of this four-step approach. The<br />
importance or weight given to the qualifications required may also vary across<br />
occupations with higher weights given in more technical occupations, but<br />
generally speaking this factor has the least weight in determining a TOR<br />
match.<br />
E. Designing the Remuneration System<br />
The SC is intended to provide great flexibility in engaging and recognition for high quality<br />
services. The design of the remuneration system is based upon broad bands in an integrated<br />
remuneration structure. While data is collected for specific benchmark TORs as detailed in the<br />
previous section, this remuneration data is integrated into the SC remuneration system to<br />
provide for wide remuneration ranges which support flexibility in engagement and movement<br />
through service quality evaluation measures.<br />
Broadband Options<br />
To ensure comprehensive data collection, remuneration data as described in the<br />
previous section has been collected for six service occupations across the eleven levels of<br />
responsibility typically found in a <strong>UNDP</strong> development project and Country Office setting. The<br />
SC remuneration structure though will integrate remuneration into five broadbands. These<br />
broadbands are aligned against the standard TOR levels as illustrated in the table below.<br />
8
Contribution SC Levels Service Bands<br />
Value<br />
Substantive SC-11<br />
SB-5<br />
Innovation<br />
Adaptive SC-10<br />
Delivery<br />
Analytical SC-9 SB-4<br />
Basic<br />
Conceptual<br />
Comprehension<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process Support<br />
Specialized<br />
Process Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
Setting the Remuneration Scale<br />
This is essentially a three step process:<br />
SC-8<br />
SC-7<br />
SC-6<br />
SC-5<br />
SC-4<br />
SC-3<br />
SC-2<br />
SC-1<br />
SB-3<br />
SB-2<br />
SB-1<br />
1. aggregate individual TOR data to the band level,<br />
2. smooth the raw band data to provide for an internally consistent yet market influenced<br />
progression between bands;<br />
3. set the min/max span of remuneration for each band.<br />
The midpoint raw TOR data may be used to set raw band market references. Following<br />
the smoothing of the SC pay scale, the raw band data should be retained for future reference as<br />
a measure of changes in the comparator organizations. The initial point of departure in<br />
constructing the remuneration scale is to use the raw TOR data for the surveyed organizations<br />
targeted to the fiftieth percentile of the market.<br />
Since the SC remuneration system is broadbanded, it is not useful to provide global<br />
guidelines for the range of spans and differentials in levels which should guide construction.<br />
These ranges would need to be so wide as to provide little practical guidance.<br />
Once the remuneration scale has been developed, the Country Office should examine<br />
the utility of the scale from a resource and competitive market position perspective. If<br />
necessary, the raw job data market extract should be adjusted to a higher or lower market<br />
position to improve either the competitiveness or budgetary aspects of the scale.<br />
9
Finally, the SC remuneration scale should be established in local currency. Only when<br />
it is the practice of all of the surveyed organizations to denominate remuneration and make<br />
payments in a currency other than local currency should this be considered. However, to the<br />
extent possible, payment of remuneration should remain in local currency. If the remuneration<br />
scale is denominated in a currency other than the local currency and paid in local currency, the<br />
UN prevailing operational rate of exchange must be applied. Payments of remuneration to SC<br />
holders in currencies other than local currency should be based upon documented evidence of<br />
similar practice by all of the surveyed employers and confirmation of legality by the appropriate<br />
national authorities.<br />
F. Promulgation and Maintenance<br />
Setting the Effective Date<br />
For effective management of project budgets, the promulgation and maintenance of SC<br />
remuneration scales are implemented prospectively. There is no retroactivity in setting the<br />
effective date of the SC remuneration scale, therefore in all cases the effective date of a revised<br />
SC remuneration scale can be no sooner than the first of the month following the completion of<br />
the data analysis and scale construction.<br />
Ageing Salary Data<br />
To ensure that SC remuneration scales are reflective of current market conditions,<br />
consideration should be given to “ageing” raw market data. The effective date of the<br />
comparator organization data will vary based upon organizational policies for adjusting<br />
remuneration. It is possible to examine trend information and estimate movement of a given<br />
market position from the date of the revision of an organization’s remuneration to the anticipated<br />
effective date of the SC revised remuneration scale.<br />
Through data ageing there is a mechanism for ensuring both that SC remuneration is<br />
kept competitive and that the remuneration management process does not create difficulties for<br />
payrolling and budgeting. Country offices also have the flexibility to promulgate updates in SC<br />
remuneration without data ageing, bearing in mind that there is no retroactivity and all<br />
remuneration scales must be issued with prospective effect.<br />
Integration into Payroll<br />
Through the Atlas system, <strong>UNDP</strong> has progressively integrated all financial and human<br />
resource functions. The introduction of these guidelines to support setting SC remuneration<br />
supports the integration of SCs into the global payroll system. The SC remuneration scales<br />
must therefore, be prepared in conformity with the structures presented in Annex 2. These<br />
scales need to identify minima, maxima and midpoints by pay band and need to be<br />
electronically exportable into the Atlas system. The Global payroll unit will provide instructions<br />
for the electronic formats of Service Contract pay scales to support integration into the payroll<br />
system.<br />
10
Managing Pay for Performance<br />
The Performance Bonus for individual Service Contract holders is governed entirely<br />
through service quality assessment. The decision to grant a Performance Bonus is not<br />
automatic or granted as an entitlement.<br />
During the Service Quality Evaluation process, the Supervisor of the SC holder: (i)<br />
makes a recommendation for a Performance Bonus, (ii) confirms that the individual has met all<br />
the contract objectives and (iii) confirms that the performance was more than satisfactory. In<br />
assessing the performance, Country Offices consider the quality of the individual’s services in<br />
comparison to the performance of other SC holders conducting similar services. The Resident<br />
Representative has sole discretion to approve recommendations for Performance Bonuses<br />
based on the Service Quality Evaluation and the availability of resources under the project.<br />
The Performance Bonus is a one time payment granted to a SC Holder at the end of a<br />
twelve month contract after the service quality assessment. The Performance Bonus is<br />
calculated as a percentage of 1 to 3% of the gross remuneration rate that was in effect at the<br />
time of the evaluation taking into consideration the level of quality of service performance.<br />
The following examples illustrate assessment of results and establishment of the<br />
appropriate percentage for a bonus :<br />
Example 1: Tangible contribution:<br />
Under the work plan, SC holder must design a MDG campaign in region X of the<br />
country, with the participation of NGOs X,Y,Z. As part of the TOR the SC holder must achieve<br />
an increased awareness in that region. The SC holder establishes an effective network in the<br />
region that results in the donor funding for the campaign, which was not foreseen in the plan,<br />
nor envisaged. This additional funding and donor presence increases visibility and contributes<br />
to the success of the campaign.<br />
The supervisor could conclude that this SC holder performed more than satisfactory and could<br />
conclude to recommend 1 -3 % bonus.<br />
Example 2: More than satisfactory contribution<br />
The SC expands MDG partnership network, implements effective communication<br />
tools, and demonstrates programme relevance, which enhances <strong>UNDP</strong>'s coordination role,<br />
resulting in securing additional resource streams from a critical donor.<br />
The supervisor could easily render this achievement as more than satisfactory, and,<br />
subject to the funding situation of the particular project the SC holder is working, may consider a<br />
performance bonus of 1 - 3 %.<br />
Example 3: Contribution Exceeding established ToR<br />
<strong>UNDP</strong> has a project on building social facilities first level health services in a disaster<br />
area, with OCHA funding in one country as part of its post-crisis interventions. The office hires<br />
11
a SC holder to supervise construction work. The Plan of work is to complete the supervisor on<br />
5 social facilities in region X and ensure completion of buildings for temporary acceptance.<br />
The SC holder, who is a construction engineer by profession, identifies a flaw in the floor<br />
tile construction in three sites and reports this to the contractor. The architect agrees and<br />
explains in detail how the designs were made and the SC holder concludes that in fact the<br />
mistake in construction was not due to flawed designs but due to misinterpretation of those<br />
designs. Under normal circumstances, this could be overlooked since there's a nuanced<br />
difference in the way the designs should have been interpreted in construction and only a<br />
trained eye could understand this. While the responsibility of the SC holder was strictly<br />
supervision of the construction sites, in this example he/she went beyond his/her area of<br />
responsibility and intervened which created a significant saving.<br />
The supervisor could conclude that this SC holder performed beyond expectations and<br />
could conclude to recommend 1 - 3 % bonus.<br />
Reporting back to Organizations<br />
Country offices should ensure that at the conclusion of a SC survey, participating<br />
organizations receive a summary report of findings. This report should include the following<br />
information:<br />
1. summary of data collected from the specific organization showing TOR matches and the<br />
valuation of their remuneration package;<br />
2. a table showing the average of all organizations by benchmark TOR and the fiftieth<br />
percentile remuneration;<br />
3. a summary table of organization practices on remuneration;<br />
4. the revised Service Contract remuneration scale.<br />
Updating Survey Data<br />
At the time of data collection for the SC remuneration survey, the periodicity of<br />
adjustment of surveyed organizations should be ascertained. SC remuneration scales should<br />
generally be updated annually. Data should be collected from comparator organizations at a<br />
time during the year following when a majority of these organizations revise remuneration<br />
packages. As noted above, this data should be aged to the anticipated prospective effective<br />
date.<br />
Only in rare instances should SC remuneration scales be updated more frequently than<br />
once per year. Such updating should take place only if all of the surveyed organizations have<br />
implemented more frequent updating as well.<br />
Again with each update of survey information, the Country Office should ensure that a<br />
report of the survey be provided to the participating organizations.<br />
12
Special Measures<br />
There are times where extreme economic or social events take place that disrupt the<br />
normal pattern of employer activity in a market. At these moments it may be necessary to take<br />
measures outside of the normal adjustment mechanisms in order to maintain an effective<br />
functioning remuneration system. Special measures are intended to provide short term partial<br />
relief during times of economic and social crisis. These measures are not intended to sustain<br />
fully purchasing power or to provide full economic insulation during periods of crisis. The<br />
measures are intended to be of short duration, typically no more than three months and in no<br />
instance longer than six months.<br />
In acute emergency and/or economic/social upheaval which has impacted the security of<br />
a country profoundly, temporary special measures may be applied. Such measures may<br />
warrant an adjustment to SC remuneration. SC holders are eligible to receive an allowance for<br />
working under hazardous conditions only when the Chairman of the International Civil Service<br />
Commission has approved the implementation of hazard pay for UN staff. Hazard Pay is<br />
typically authorized:<br />
• For duty stations where very hazardous conditions such as war or active hostilities<br />
prevail and where the evacuation of families and non-essential staff has taken place;<br />
• For duty stations where no evacuation has taken place, but in which staff are required to<br />
work in hazardous conditions such as war or where active hostilities prevail, including<br />
situations where staff are required to work on cross-border missions in hazardous areas;<br />
• Where the performance of functional medical requirements that directly expose staff to<br />
life-threatening diseases, such as severe acute respiratory syndrome (SARS) and the<br />
Ebola virus, in the course of the performance of their duties.<br />
Hazard pay is authorized for a limited period, normally up to three months at a time, subject to<br />
ongoing review, and is lifted when hazardous conditions are deemed to have abated. SC<br />
holders are eligible to receive hazard pay only on days that they are required to work and<br />
actually do so. The daily rate is obtained by dividing the annual amount (i.e. 25 percent of the<br />
net mid-point of the SC Band) by 365 days. In some situations it may be appropriate to<br />
incorporate such a component in the form of a bonus when setting the remuneration for SCs.<br />
However, any revision to the individual SC remuneration is only made upon extension of a<br />
contract or for new contracts. The SC must include a clause stipulating that this component is<br />
short term and is reviewed on a continuous basis and may be withdrawn when the conditions<br />
improve.<br />
G. Transitional Measures<br />
Implementation of these guidelines and the introduction of a more uniform approach in<br />
establishing SC remuneration will in many duty stations require transitional measures. The<br />
introduction of these guidelines is not intended to create significant disruptions in current SC<br />
remuneration practices. Where application of these guidelines results in a SC remuneration<br />
package that is significantly different from current rates of remuneration, transitional measures<br />
should be considered.<br />
13
Where the new SC remuneration scale is lower than current SC remuneration<br />
In such instances, the current remuneration rates should be frozen. Existing SC holders<br />
will retain their individual remuneration for current contract duration. Upon conclusion of<br />
contracts, new contracts should be issued with appropriate adjustments to remuneration.<br />
Flexibility for placement of existing SC holders in the appropriate pay range should be practiced<br />
to minimize the negative impact of the change in remuneration. (i.e. placement may be at the<br />
third quartile in the range if necessary)<br />
Where the gap between existing remuneration and the new SC remuneration scale is<br />
more than 10%, some consideration should be given to providing diminishing lumpsum<br />
differential payments for a period not to exceed 12 months into a new contract.<br />
Typical Integration from current to new Service Contract remuneration<br />
In most instances, integration from existing SC remuneration scales to the new<br />
remuneration scale should take place by integrating the individual SC holder at his/her current<br />
remuneration level in the point in the band closest to this amount. Placement in the band<br />
beyond its third quartile should be avoided if possible. Since all adjustment to remuneration for<br />
an individual SC holder is driven by results and separate from the movement of the<br />
remuneration scale, consideration of the movement of the new SC scale in comparison to the<br />
current scale should not be an issue.<br />
Where the new SC remuneration scale is significantly higher than the existing SC<br />
remuneration<br />
In cases where the new SC remuneration scale would result in increases in excess of<br />
twenty five percent or double the normal annual rate of movement in a country, whichever is<br />
lower, phasing in the new remuneration rates for existing staff should be considered. The new<br />
remuneration rates should be phased in over a period of not exceeding twenty four months.<br />
New SC holders should be placed for the most part in the lowest quartile of the appropriate<br />
band.<br />
14
Annex 1: List of Sample Organizations that should be considered for SC<br />
Remuneration Surveys<br />
Bilaterals/<br />
Embassies<br />
USAID/US<br />
Embassy<br />
DFID/UK Embassy<br />
CIDA/Canadian<br />
Embassy<br />
SMV/Dutch<br />
Embassy<br />
GTZ/German<br />
Embassy<br />
AUSAID/Australian<br />
Embassy<br />
Public/Not for Profit Sector<br />
International NGOs<br />
Organizations<br />
World Bank Save the<br />
Regional IFIs Children<br />
European Union ICRC<br />
CRS<br />
World Vision<br />
MSF<br />
Conservation<br />
Int’l<br />
IUCN<br />
Heifer Int’l<br />
RTI<br />
Other<br />
Ford<br />
Foundation<br />
Wellcome Trust<br />
Clinton<br />
Foundation<br />
Private Sector<br />
ABT Associates<br />
Chemonics<br />
Colgate/Palmolive<br />
Proctor & Gamble<br />
Unilever<br />
Exxon/Mobil<br />
Shell<br />
15
Annex 2: Service Contract Survey Benchmark Thumbnail TORs<br />
1. Development Project Management 2<br />
Contribution<br />
Value<br />
Substantive<br />
Innovation<br />
Adaptive<br />
Delivery<br />
SC Level<br />
SC-11<br />
SC-10<br />
Sample<br />
Service<br />
area<br />
Senior<br />
Project<br />
Officer<br />
Project<br />
Officer<br />
Analytical SC-9 Project<br />
Officer<br />
Basic<br />
Conceptual<br />
Comprehension<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process<br />
Support<br />
Specialized<br />
Process<br />
Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
SC-8<br />
SC-7<br />
SC-6<br />
SC-5<br />
SC-4<br />
SC-3<br />
SC-2<br />
SC-1<br />
Assistant<br />
Project<br />
Officer<br />
Sr.<br />
Programme<br />
Assistant<br />
Programme<br />
Assistant<br />
Sr.<br />
Programme<br />
Clerk<br />
Thumbnail TOR description<br />
Innovate development programme in a major sector of<br />
activity. Design project portfolios and promote<br />
organization’s capacity as a reliable partner with<br />
national counterparts. Ensure coordination of sectoral<br />
activities with broader country programme. Advocate<br />
on behalf of organization’s goals.<br />
Design sectoral programme initiatives to support<br />
broader country programme goals. Assess project<br />
proposals for relevance and coherence. Organize<br />
project execution consistent with programme<br />
objectives engaging national counterparts and building<br />
reputation for quality design and reliable delivery.<br />
Assess project proposals for quality and consistency.<br />
Identify project delivery issues and ensure effective<br />
coordination of project resources. Work closely with<br />
national counterparts to build cooperative relationships<br />
and establish the organization as an effective partner.<br />
Review project components, develop project resource<br />
profiles and timelines. Assess delivery issues and<br />
works with national counterparts to build common<br />
understanding and coordination on project activities.<br />
Oversee support activities in project implementation<br />
including procurement, recruitment and operations<br />
logistics. Assess support requirements against project<br />
objectives and operating environment.<br />
Prepare project financial statements and manage<br />
project budgets, monitoring expenditures against<br />
established allocations<br />
Organize statistical data on project implementation<br />
which supports transparent management of project<br />
resources. Support procurement and recruitment<br />
related project activities<br />
2 Please note that TORs below the SC5 level have been left blank intentionally as specialized functions in<br />
Development Project Management are not found at these levels.<br />
16
2. Information Technology 3<br />
Contribution<br />
Value<br />
Substantive<br />
Innovation<br />
Adaptive<br />
Delivery<br />
SC Level<br />
SC-11<br />
SC-10<br />
Sample<br />
Service<br />
area.<br />
Chief, IT<br />
Services<br />
IT<br />
Operations<br />
Specialist<br />
Analytical SC-9 Systems<br />
Analyst/Dev<br />
eloper<br />
Basic<br />
Conceptual<br />
Comprehension<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process<br />
Support<br />
Specialized<br />
Process<br />
Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
SC-8<br />
Systems/<br />
Analyst -<br />
Programmer<br />
Thumbnail TOR description<br />
Organize provision of integrated services covering<br />
system, hardware and software. Develop and sustain<br />
performance standards aligned with business cycles<br />
Oversee system integrity and operation, ensuring<br />
continual secure and stable operating environment.<br />
Promote accessibility and utility to user community<br />
Advise on system configuration to promote optimal use<br />
by individual users. Review current operations<br />
identifying areas where improved performance is<br />
needed.<br />
Analyze basic system design requirements, Write<br />
programme code and validate system functionality<br />
from development through production stage. Assess<br />
system performance against design specifications<br />
SC-7 Webmaster Oversee development and maintenance of web<br />
services and web platform. Advise on development of<br />
web portals for delivering information.<br />
SC-6 OTC Ensure operational services of network/hardware/<br />
software and advise users on basic access issues.<br />
SC-5<br />
SC-4<br />
SC-3<br />
SC-2<br />
SC-1<br />
Help Desk<br />
Asst<br />
Provide specific assistance with respect to network<br />
and software questions. Maintain overview of overall<br />
system performance<br />
3 Please note that TORs below the SC5 level have been left blank intentionally as specialized functions<br />
in Information Technology are not found at these levels.<br />
17
3. General Administration<br />
Contribution<br />
Value<br />
Substantive<br />
Innovation<br />
Adaptive<br />
Delivery<br />
SC Level<br />
SC-11<br />
SC-10<br />
Sample<br />
Service<br />
area<br />
Building<br />
Manager<br />
Admin.<br />
Services<br />
Specialist<br />
Analytical SC-9 Admin.<br />
Services<br />
Officer<br />
Basic<br />
Conceptual<br />
Comprehension<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process<br />
Support<br />
Specialized<br />
Process<br />
Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
SC-8<br />
SC-7<br />
SC-6<br />
SC-5<br />
Admin.<br />
Services<br />
Officer<br />
Sr. Admin.<br />
Assistant<br />
Admin.<br />
Assistant<br />
Sr. Admin.<br />
Clerk<br />
Thumbnail TOR description<br />
Oversee management of premises including<br />
contracted services, office supplies and procurement,<br />
layout and maintenance<br />
Advise on delivery of specialized administrative<br />
support related to procurement and or supply including<br />
service contracting and insurance related to office<br />
operations<br />
Analyze administrative service needs to support<br />
specific business operations encompassing travel,<br />
transport, supply and/or communication<br />
Compile/analyze data on admin services performance<br />
against organization need. Organize reporting<br />
systems on admin services delivery. Provide support<br />
in analysis of major service delivery programmes.<br />
Supervise provision of general administrative services.<br />
Oversee quality of service delivery related to<br />
timeliness and relevance to business needs. Advise<br />
management on service process adaptation and<br />
evolution<br />
Provide specialized process delivery in a specific<br />
administrative service, ensuring consistency and<br />
timeliness of delivery<br />
Review specific service needs against established<br />
procedures, process requests for servicing,<br />
anticipating timing and delivery issues<br />
SC-4 Admin. Clerk Review service needs in a relatively simple operational<br />
or procedural environment. Ensure consistency in<br />
delivery against established service standards<br />
SC-3 Sr. Driver Provide chauffeur services at the representational level<br />
including knowledge of travel, customs and protocol<br />
issues<br />
SC-2 Driver Provide chauffeur services<br />
SC-1 Messenger Support internal communications through movement<br />
and storage of documents, files and correspondence.<br />
Delivery hard copy documentation outside of the<br />
organization<br />
18
4. Human Resources 4<br />
Contribution<br />
Value<br />
Substantive<br />
Innovation<br />
SC Level Sample<br />
Service<br />
Area<br />
Thumbnail description<br />
SC-11 HR Advisor Manage service delivery platform or major policy<br />
component of HR Programme. Integration of use of<br />
technology with timely, appropriate service focus.<br />
Concentration on quality/responsiveness<br />
SC-10 HR<br />
Provide refined HR advice/service in provision of<br />
Adaptive<br />
Delivery<br />
Specialist<br />
Analytical SC-9 HR Services<br />
Analyst<br />
Basic<br />
Conceptual<br />
Comprehension<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process<br />
Support<br />
Specialized<br />
Process<br />
Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
SC-8<br />
SC-7<br />
SC-6<br />
HR Services<br />
Analyst<br />
Sr. HR<br />
Services<br />
Assistant<br />
HR Services<br />
Assistant<br />
substantive support to business process<br />
Provide dedicated HR Services in the areas of<br />
recruitment, entitlement administration or learning and<br />
development<br />
Support provision of HR Services through managing<br />
ERP datasets, analyzing service requests against<br />
existing policies, organizing data on workforce trends<br />
and service delivery performance<br />
Organization of integrated process delivery, optimizing<br />
use of technology, ensuring relevance and optimal<br />
utility to user community<br />
Provision of specialized process services in<br />
entitlement mgmt and contracting, promoting<br />
consistency and responsiveness to client community<br />
SC-5 HR Clerk Processing of entitlement/recruitment needs for client<br />
community with focus on timely response<br />
SC-4<br />
SC-3<br />
SC-2<br />
SC-1<br />
4 Please note that while service contracts serving in the area of Human Resources in <strong>UNDP</strong> projects do<br />
not typically exceed the SC-9 level, TORs at the SC-10 and SC-11 levels are included to allow for<br />
matching to those levels of responsibility in the external labour market if they exist. This allows for<br />
additional external data points to inform the establishment and maintenance of the SB-5 pay ranges.<br />
TORs below the SC5 level have been left blank intentionally as specialized functions in Human<br />
Resources are not found at these levels.<br />
19
5. Finance and Accounting 5<br />
Contribution<br />
Value<br />
Substantive<br />
Innovation<br />
Adaptive<br />
Delivery<br />
SC Level<br />
SC-11<br />
SC-10<br />
Sample<br />
Service<br />
Area<br />
Accounting<br />
/Financial<br />
Specialist<br />
Sr.<br />
Accountant<br />
Thumbnail TOR description<br />
Advise on accounting systems and policies to promote<br />
optimal and soundest use of financial resources,<br />
advise business units on financial management and<br />
promote awareness of financial management<br />
dimensions to business activities<br />
Provide specific accounting services to support<br />
business development and execution. Ensure timely<br />
adaptive services in sync with business needs. Advise<br />
managers on specific issues related to sound<br />
accounting principles<br />
Analytical SC-9 Accountant Analyze specific accounting issues related to business<br />
development and execution. Propose accounting<br />
services and processes to support sound financial<br />
management and responsive servicing<br />
Basic<br />
Conceptual<br />
Comprehension<br />
SC-8 Jr.<br />
Accountant<br />
Organize information on performance of accounting<br />
systems, monitor performance of accounting functions<br />
and provide oversight on delivery of accounting<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process<br />
Support<br />
Specialized<br />
Process<br />
Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
SC-7<br />
SC-6<br />
SC-5<br />
Sr. Accounts<br />
Assistant<br />
Accounts<br />
Asst<br />
Sr.<br />
Accounting<br />
Clerk<br />
services.<br />
Oversee management of accounting information<br />
systems, validate system integrity and ensure timely<br />
production of reports and accounting information.<br />
Prepare periodic financial reports, reconcile accounting<br />
information.<br />
Validate complex accounting transactions, ensure<br />
timely provision of services consistent with accounting<br />
procedures.<br />
SC-4 Bookkeeper Examine basic accounting transactions, ensure<br />
appropriate posting of accounting information.<br />
SC-3<br />
SC-2<br />
SC-1<br />
5 Please note that TORs below the SC4 level have been left blank intentionally as specialized functions in<br />
Finance and Accounting are not found at these levels.<br />
20
6. Team Assistants/Secretaries 6<br />
Contribution<br />
Value<br />
Substantive<br />
Innovation<br />
Adaptive<br />
Delivery<br />
Analytical<br />
SC Level<br />
SC-11<br />
SC-10<br />
SC-9<br />
Sample<br />
Service<br />
area<br />
Thumbnail TOR description<br />
Basic<br />
Conceptual<br />
Comprehension<br />
Integrated<br />
Service<br />
Execution<br />
Comprehensive<br />
Process<br />
Support<br />
Specialized<br />
Process<br />
Support<br />
Basic Process<br />
Support<br />
Repetitive<br />
Support<br />
Mechanical<br />
Operations<br />
Physical<br />
Operations<br />
SC-8<br />
SC-7<br />
SC-6<br />
SC-5<br />
Executive<br />
Assistant<br />
Provide confidential secretarial and administrative<br />
assistance at the representational and/or highest<br />
executive level. Communicate executive decisions<br />
and directions<br />
Sr. Secretary Provide secretarial and communication support to a<br />
large business unit, facilitating integration of<br />
communication and business activity with other units of<br />
the organization<br />
SC-4 Secretary Provide basic secretarial support to a small business<br />
service including text processing and information<br />
management<br />
SC-3 Clerk-Typist Manage information in both hard copy and electronic<br />
format. Facilitate distribution and retrieval of business<br />
information<br />
SC-2<br />
SC-1<br />
6 Please note that TORs above the SC6 level and below the SC3 level have been left blank intentionally<br />
as specialized functions for Team Assistants/Secretaries are not found at these levels.<br />
21
Annex 3: Sample Survey Questionnaire<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
7<br />
8<br />
9<br />
Salary Survey Advance Questionnaire<br />
Thank you for your participation! (Please see "Help" worksheet in this workbook for question-specific help. Please<br />
note that we are collecting information for locally-recruited staff only.) Please type your answers in the<br />
boxes highlighted in yellow.<br />
Background Documentation:<br />
A copy of the following documentation would be helpful if available:<br />
a. Salary Scale b. Organization Chart (macro level)<br />
c. Summary description of job responsibilities and competencies by grade level.<br />
d. Heirarchical list of job titles and grades by department or business unit.<br />
Survey Completed By:<br />
Name: Email: Fax:<br />
Job Title:<br />
Telephone:<br />
General Information:<br />
Company or Organization name:<br />
Country of location for which data is being provided:<br />
Office established in Country Since (Year):<br />
Total number of employees (regular, full-time employees only please):<br />
Are taxes withheld from payroll? (If no, please state if legally tax exempt or employee responsibility):<br />
Salary Scale:<br />
Effective date of salary scale:<br />
Standard working hours per week:<br />
Confirm salary scale based on multisector salary survey:<br />
Next anticipated salary scale review (date):<br />
10 General Benefits:<br />
Benefit Name<br />
Annual<br />
Amount (+<br />
currency if not<br />
local)<br />
Percentage of<br />
value taxable<br />
to employee?<br />
Eligible<br />
Jobs/Grades<br />
% Utilization<br />
(if
11 Car Benefits: (if car is leased, please indicate lease cost above in table provided for question 10)<br />
Car Make &<br />
Model<br />
Purchase<br />
Price (+<br />
currency if not<br />
local)<br />
Percentage of<br />
value taxable<br />
to employee?<br />
Eligible<br />
Grades<br />
% Utilization<br />
(if
18 Do you have a medical insurance plan or on-site medical clinic? (If no, skip to 17)<br />
i Insurance provided by (a.Private Company, b.Self-insured, or c. on-site clinic):<br />
ii Does medical insurance cover the employee's immediate family?<br />
iii Does medical insurance cover the employee's extended family?<br />
iv Percentage contribution employer:<br />
v Percentage contribution employee:<br />
vi Above contributions are a percentage of (a.base salary b.the insurance premium):<br />
a. If % of insurance premium, indicate average total premium amount for single employee:<br />
b. If % of insurance premium, indicate average total premium amount for married<br />
employee with 2 dependent children.<br />
vii Percentage reimbursement for Hospital care:<br />
viii Percentage reimbursement for Surgery care:<br />
ix Percentage reimbursement for General/Outpatient care:<br />
x Percentage reimbursement for Prescription Medicines:<br />
xi Percentage reimbursement for Eye care:<br />
xii Percentage reimbursement for Dental care:<br />
xiii Percentage reimbursement for Maternity care:<br />
xiv Ceiling on medical benefit (if any)<br />
xv Is the ceiling (a.per person, b.per family):<br />
xvi Is the ceiling (a.per year, b.per lifetime):<br />
19 Annual amount of allowance for dependent child: (if any)<br />
i Maximum number of children eligible for allowance:<br />
20 Annual amount of education assistance for dependent children (if any):<br />
i Maximum number of children eligible for assistance:<br />
21 Annual amount of dependent spouse allowance (if any):<br />
22 Annual Leave<br />
Please indicate working days of annual leave below where employer policy is more generous than the<br />
minimums prescribed by the Country's labour laws. (Where amounts are left blank, it will be assumed that<br />
the employer is following the minimum prescribed by law.)<br />
i Annual leave (vacation):<br />
ii Sick Leave (with full pay):<br />
iii Sick Leave (with partial pay):<br />
iv Maternity Leave:<br />
v Paternity Leave:<br />
vi Family-related leave:<br />
vii Bereavement Leave (to attend funerals):<br />
viii Other Leave:<br />
23 Other Notes/Comments:<br />
24
Annex 4: Terms of Reference Summary Sheet
Annex 5: Sample Service Contract Remuneration Structure<br />
<strong>UNDP</strong> Service Contract Remuneration Structure<br />
Kabul, Afghanistan<br />
Effective 1 January, 20XX<br />
Gross Remuneration, denominated in Afghanis (AFN)<br />
Min Q1 Mid Q3 Max<br />
SB-5 xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx<br />
SB-4 xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx<br />
SB-3 xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx<br />
SB-2 xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx<br />
SB-1 xx,xxx xx,xxx xx,xxx xx,xxx xx,xxx<br />
27