Background

UNDP Office in São Tomé uses a broadband remuneration system for its Service Contract Holders. Individuals contracted under SC modality are considered as local personnel and not UN staff members. Therefore, they are not covered by UN Staff Regulations and Rules.  
The Service Contract remuneration system and salary scales are distinctly different than UN staff salaries in purpose, design, comparator labour market and percentile within targeted labour market. The SC remuneration system is designed to provide for wide remuneration ranges which support flexibility in engagement and movement through service quality evaluation measures.
 
Engagement of personnel using the SC modality is not intended to support extended employment, nor create a career track.  Individuals hired under Service Contracts are typically engaged only by UNDP for the duration of a project, and are therefore expected to return to the national labour market at the conclusion of the project or when the function is no longer required by the project.
    
The basis for the establishment of conditions of service for SC holders is the corresponding local labour market and must be consistent with prevailing levels of pay for similar services, similar contract conditions and comparable work in the local labour market.  It is therefore necessary to gather information on local conditions of employment in a structured manner to support construction of SC remuneration scales.  In keeping with the objective of simplicity, SC remuneration scales must be designed to be comprehensive, inclusive of the value of typical allowances and benefits that are found in the local labour market.  The objective here is not to manage separate allowances and benefits for SC holders.  Rather, the value of these should be included in the remuneration scales such that these scales are broadly competitive with the total remuneration values for the desired market position.

Given this, the remuneration package under the SC is set at the gross level and may include an additional lump sum for participation in national social insurance programmes that are mandatory. The process for establishing Service Contract remuneration scale must be simple and transparent.  The contents succeeding section of this TOR aimed at providing structural guidance that will make the process straight forward and consistent across duty stations in a more structured approach.  

The UNDP office in São Tomé would like to update the current remunerations of Service Contract holders in accordance with the set standards and procedures in the UNDP Handbook on Setting Remuneration for Service Contract Personnel herein referred to as Annex A.
In this context, UNDP would like to engage the services of a reputable and technically qualified individual consultant with extensive expertise in labour market analyses, management and organizational development to undertake the salary survey process. UNDP therefore hereby solicits proposals from interested companies to conduct a salary survey and support UNDP in establishing a revised and reasonable salary scale for SC holders based on the latest prevailing market rates and in accordance with the procedures provided in Annex A.

The UNDP office in São Tomé has 23 Service contract holders and this amount is expected to remain constant in coming years. The last salary survey was done in 2012 with the scale promulgated on 1 Mars 2013.

Objectives

In accordance with the established UNDP policies governing Service Contracts (see Annex B); and based on the established UNDP methodology described in the Handbook on Setting Remuneration for Service Contract Personnel (Annex A), and existing SC salary scale; the selected  individual consultant will conduct an independent survey for the purpose of updating the current salary scale for its Service Contract holders in line with the prevailing local market rates for similar work of comparable quality, complexity and difficulty.
Upon completion of the survey, the results will be shared with other UN agencies applying similar contractual modalities to reach a consensus on the optimum rates that should be applied to SC holders.

The revised SC salary scales once updated will have to be maintained by doing yearly salary surveys. It is expected that the individual consultant may also carry out the salary updates for years 2018 and 2019, if the salary survey methodology remains unchanged and satisfactory performance.
 

Duties and Responsibilities

Scope of Assignment

The UNDP office in São Tomé will provide a list of comparators to the individual consultant. The individual consultant guided by the requirements of the Handbook shall, review and suggest to UNDP the employers which may be considered as comparators, for the purpose of establishing SC remuneration. The list of comparators shall be subjected to final approval by UNDP. The comparator employers recommended must meet the criteria specified in the Handbook. A list of 12 comparators will be retained from which data will be collected. Thereafter upon analysis of remuneration data from these comparators, UNDP will select between 6 to 10 comparators for the salary scale construction.

Where the comparators are partners of UNDP, or known to UNDP, including other UN agencies, UNDP shall assist the selected individual consultant in determining the right contact persons in order to carry out the survey.  However, knowledge of the local market and the ability to identify and reach out to appropriate comparator employers is a critical deliverable of the selected vendor.  

The consultant shall collect the following information from each of these Comparators:

  • Job descriptions of the positions similar to those identified in the Handbook for the purpose of Job matching on the nature, complexities and responsibilities of each position of existing SC levels.
  • Collect and analyse the salary structures and associated benefits (including typical allowances and benefits package both monetary and non-monetary) of the selected comparators organizations for existing SC Job descriptions.
  • Summary information on the comparator employer (size, number of employees, length of time present in the location, etc. as specified in the Handbook).
  • A sample survey questionnaire is found at annex 3 in the Handbook on Setting Remuneration for Service Contract Personnel (Annex A).
  • The individual consultant shall present a draft analysis report to UNDP and make recommendations on the proposed salary scale.  Taking into consideration other UN agencies’ scales for similar contractual (non-staff member) modalities.
  • The individual consultant shall prepare a Final Report, incorporating comments from UNDP, containing all of the items listed in Section VI below.
  • The consultant shall maintain complete confidentiality of all data and documents provided by selected comparator employers and by that of UNDP.  Data from comparator employers will be shared with UNDP only and without organization name designation.
  • The individual consultant shall keep UNDP informed of it communications with the comparators and provide regular update on status of the process.
  • The consultant may be asked to carry out a salary surveys with the selected comparators in 2018 and 2019 for the purpose of updating the salary scale, in the event that the salary survey methodology remains unchanged and satisfactory performance.

Deliverables

Based on the established UNDP Handbook on Setting Remuneration for Service Contract Personnel and within the time frame specified, the individual consultant is expected to submit a report which includes, but not limited to, the following outputs:

  • A work plan as to how the survey will be conducted, major milestones and tasks and deliverables dates.
  • Details and Summary of data collected from the Comparators showing TOR matches and the evaluation of their remu
  • The Minimum and Maximum Remuneration values of all job matches obtained from the comparators.
  • A report on final survey findings with comparison and analysis of the survey results, recommendations related to remuneration packages.
  • A summary table of Comparators practices on remunerations compared to UNDP Service Contract salary scale.
  • A proposal with options for a revised remunerations scale for SC holders as set out in the UNDP Handbook on Setting Remuneration for Service Contract Personnel (options at the 40th, 50th and 60th Percentile levels).
  • All completed questionnaires together with relevant salary scales and all relevant documentations and correspondences received from the respective comparators.
  • As and when required by UNDP, the individual shall conduct a presentation of the process and the results to any relevant audience that UNDP may organize.

Institutional Arrangement

The work of the consultant that will be engaged shall be supervised by the UNDP Operations Manager in close collaboration with the UNDP Head of the São Tomé Unit.  As such, submission of the individual’s reports shall be coursed through them. The confirmation of acceptability of report contents, the authorization of disbursement of payment, and evaluation of performance shall all be undertaken by these UNDP personnel.

The UNDP Operations Manager and the Head of the São Tomé may bring in other parties within UNDP or the UN system to assist in the review of the outputs, as and when deemed necessary.

Location:

  • Homebased (option 1).

or

  • On site and homebased (option 2).

Method:         

  • Options 1: Remote Survey
  • Option 2: On site survey

Expected Duration of Assignment

The task is expected to be completed within two (2) weeks from the date of signing of the contract.
For 2018 and 2019, the salary surveys may be conducted with already selected comparators and is expected to take one week per year. The salary survey is expected to be held during the month of June 2017.

The LTA (Individual Contract) will be for one year, renewable up to 3 years upon satisfactory performance.

Duty Station

Option 1
The selected individual consultant shall not be required to be present at UNDP office, and may work in its own office. The survey is conducted remotely, and phone interview carried out with a total of 12 employers. Thereafter UNDP will select between 6 to 10 comparators for constructing the salary scale.

Option 2
The selected individual consultant shall conduct preliminary preparations from its office and conduct a face-to-face interview and job matching with a total of 12 employers. Thereafter UNDP will select between 6 to 10 comparators for constructing the salary scale.

 

 

Competencies

Competencies and Critical Success Factors

The below listed competencies and skills are essential for the assignment.

  • Demonstrates/safeguards ethics and integrity;
  • Very good communication and inter-personal skills;
  • Committed and result- oriented;
  • Respectful of other’s cultures;
  • Positive approach and attention to details;
  • Ability to render consulting services in the most professional, effective and efficient manner;
  • Familiarity with the UNDP rules and regulations and experience within UN system for similar surveys would be an added advantage.

Recommended Presentation of Proposals:

The Proposal shall be presented in the following manner:

  • Personal Curriculum Vitae highlighting the qualifications and experience that meet the minimum requirements stated in Section X above and at least three (3) references for similar work.
  • Duly completed Letter of Confirmation of Interest and Availability using the template provided by UNDP.
  • A brief methodology on how the work will be approached and conducted (1-2 pages only since the methodology is already described in the Annex). The options for the survey i.e. Option 1: remote survey and option 2: onsite survey should be elaborated.
  • The Financial Proposal containing the final and all-inclusive (professional fees, all envisaged travel costs, insurance, telecommunication cost etc.) total price offer for the full range of services required, broken down into all major cost components associated with the services. A price breakdown by comparators (i.e. price per comparator to be surveyed) should also be provided.
  • Financial proposal for (1) option 1: remote survey (2) option 2: onsite survey shall be submitted.
  • The total price shall be in a fixed lump-sum amount, and milestone payments corresponding to outputs shall be indicated in the proposal.
  • Price for updating the salary scale remotely for 2018 & 2019 to be provided.

Proposal Offer Process:

Please submit offers by 28 May 2017.
Validity of proposal: offers have to be valid for 60 days.

Criteria for Selection of the Best Offer:

  • The Combined Scoring method will be as follows:
    • Technical Evaluation will be weighted at a maximum of 70%, and
    • Financial Evaluation will be weighted a max of 30%;
  • Technical Evaluation criteria:
    • Criteria: Proven track record in the areas of compensation and benefit analysis, with experience working for international organization and good references with experience in conducting salary survey related tasks and familiarity with labor market issues. Max. Point: 30.
    • Criteria: Education and qualifications. Max. Point: 20.
    • Criteria: Methodology on how the work will be approached and conducted. Max. Point: 35.
    • Criteria: Familiarity with the UNDP rules and regulations and experience within UN system for similar surveys. Max. Point: 15.
    • Criteria: Total Max. Point: 100.

The individual consultant scoring 70% or above in the Technical Evaluation will be short-listed.

  • Financial Evaluation Criteria:
    • The financial offers will be evaluated giving the lowest price proposal 30 marks and marking the other more expensive proposals reverse proportionally to the cheapest offer.

Final Evaluation

The final scoring of short-listed candidates will take into account the technical Evaluation and the Financial Score:

  • Criteria: Technical score
    • Weight: 70%. Max. Point: 70.
  • Criteria: Financial score
    • Weight: 30%. Max. Point: 30.

The individual consultant ranking highest shall be selected.
   
Payment terms:

Payment under the contract will be based on deliverables as per below:

  • Deliverables: Draft report on survey findings and proposed salary scale at 40th, 50th and 60th percentiles with Minimum and Maximum Remuneration data for all jobs/level.
    • Estimated completion date: 30 June 2017.
    • Payment term: 30%.
  • Deliverables: Final report on survey finding with all deliverables submitted as per above,
    • Estimated completion date: 07 July 2017
    • Payment term: 70%.

Confidentiality:

It is highly expected from the selected individual consultant to maintain the highest level of confidentiality to the information provided before, during and after the completion of the assignment. The individual consultant shall practice highest standard of professional and ethical values and norms in providing this consultancy services.  

Links and Annexes to this TOR

  • Annex A UNDP Handbook on Setting Remuneration for Service Contract Personnel
  • Annex B UNDP Policies and Procedures Governing Service Contract
  • Annex C Current Service Contract Salary Scale for São Tomé shall be provided by the UNDP office upon signature of the contract.
  • Annex D Current Fixed Term Appointment (FTA) salary scale shall be provided by the UNDP office upon signature of the contract.
  • Annex E - Letter of confirmation of interest and availability and Submission of financial proposal
  • Annex F - P11
  • Annex G - Reference Check

Important Note:

Interested offerors above the age of 62: UNDP regulations require, at their own cost, to undergo a full medical examination including x-rays. Medical evaluation documentation does not need to be submitted with the other requested documents listed above, but will be requested should the candidate be chosen.

Interested offeror is required to submit application via UNDP jobsite system, because the application screening and evaluation will be done through UNDP jobsite system.

Please note that UNDP jobsite system allows only one uploading of application document, so please make sure that you merge all your documents into a single file. Your on-line applications submission will be acknowledged where an email address has been provided. If you do not receive an e-mail acknowledgement within 24 hours of submission, your application may not have been received. In such cases, please resubmit the application, if necessary.

UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence.

 

 

 

 

 

 

 

 

Required Skills and Experience

Required Skills and Experience

The successful offeror shall meet the following minimum criteria:

Education

  • The consultant assigned should have an advanced degree in management, human resources or related fields.

Experience

  • 5 years’ experience conducting salary survey related tasks and familiarity with labor market issues.
  • The individual consultant should have a proven track record in the areas of compensation and benefit analysis, preferably for international organization.

Language

  • The consultant should be fluent in English, excellent writing and presentation skills (all required reports shall be written in English).
  • Knowledge in French and/or Portuguese is required.