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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

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