Terms of Reference (TOR) to Conduct Salary Scale Study

 

 

 

 

 

 

 

 

November 2024

 

NEP+

 

 

 

 

Contents

  1. Introduction and Background: 1
  2. Objectives of the Study: 1
  3. Scope of Work: 2
  4. Deliverables: 3
  5. Methodology: 3
  6. Consultant Qualifications: 4
  7. Timeline: 4

 

 

 

 

1. Introduction and Background:

Established in 2004, the Network of Networks of HIV Positive in Ethiopia (NEP+) is an umbrella organization operating throughout the country through 11 constituent regional networks; and the National Network of Positive Women Association in Ethiopia (NNPWE). At the grassroots level, NEP+ has 500+ member PLHIV associations which represent 200,000 PLHIVs. NEP+ envisions seeing an AIDS-free Ethiopia where the rights of PLHIV are respected with the mission of ensuring PLHIV and their families have access to quality and comprehensive health, psychosocial, legal, and economic services; their rights are respected, and communities lead the HIV response. NEP+ and its constituents operating at the grassroots level across the country have been playing a unique role in the national HIV response particularly, case finding, treatment adherence support, PMTCT, stigma &discrimination, human rights, community system strengthening, and community-led monitoring.

 

NEP+ and its regional networks have implemented programs that include capacity building, HIV/AIDS prevention, care and support such as psychosocial and nutrition, income generation activities, home-based care, adherence to ART, strategic information generation, and documentation. NEP+ programs have benefited hundreds of thousands of PLHIVs including the disadvantaged ones. Most of the beneficiaries were women.

 

NEP+ have often make use of available crucial manuals and guidelines that will facilitate and strengthen the overall all organizational and leadership development of the organization so as to meet its missions and accomplish its program interventions. The current salary paid to  its staff is not consider the recent payment rate of similar organizations  and living standard of the country as a result it is not able to hire qualified staff and the existing staffs are currently leaving the organization to get better salary.  In light of this, NEP+ wants to undertake a comprehensive salary scale study in order to evaluate its current salary structures to ensure internal equity, and improve overall staff benefit as well as their compensation strategy. This study will assist in making data-driven decisions regarding salary structures, benefits, and compensation policies. To achieve this, NEP+ intends to engage an experienced external consulting firm to carry out the study. The study will include an analysis of current salary scales, benchmarking against industry standards, and making recommendations for adjustments, if necessary.

 

2. Objectives of the Study:

 

The overall objective of the salary and benefits survey is aimed at assessing the external environment in order to understand how NEP+ compares to other agencies within the Ethiopian market for competent, high caliber staff, and establishment of a conducive and competitive work environment for staff through the development of a competitive salary and benefits scheme.

The specific objectives of the salary and Benefits Study are to:

  1. Analyze the Current Salary Structure:
    • Review and evaluate the current salary structure and compensation policies for all employee categories within NEP+
    • Assess internal equity, competitiveness, and alignment with the organization’s strategic goals.
  2. Benchmarking Against organization Standards:
    • Compare the organization’s salary scales to those of similar organizations in the same industry, region, and/or geographical area.
    • Identify any discrepancies between the organization’s pay levels and market benchmarks.
  3. Recommendations:
    • Develop and present recommendations for adjustments to salary structures, if necessary, to ensure competitiveness, equity, and alignment with best practices.
    • Provide suggestions for potential changes in salary bands, pay grades, or compensation policies to enhance employee satisfaction and retention.
  4. Report on Legal and Compliance Considerations:
    • Ensure that the current salary structure complies with local labor laws, regulations, and any relevant industry standards.
    • Advise on any legal or compliance issues related to compensation practices

3. Scope of Work:

The external consultant will be required to perform the following tasks:

  1. Data Collection and Analysis:
    • Review current salary scales and compensation data within [Organization Name].
    • Conduct interviews and/or surveys with key HR personnel, department heads, and employees (if necessary) to gain insight into compensation practices.
    • Gather data from external sources (e.g., salary surveys, government reports, industry studies) to benchmark current salary scales against similar organizations.
  2. Salary Market Research:
    • Research and analyze salary data from relevant external sources (industry salary surveys, competitors, public sector data, etc.) for similar positions in the same market/geography.
    • Identify trends, differences, and gaps in salary scales within the industry or sector.
  3. Analysis and Reporting:
    • Analyze the data to assess the competitiveness and fairness of the current salary structure.
    • Prepare a detailed report summarizing findings, including:
      • Key observations regarding internal and external pay disparities.
      • An analysis of the organization’s position relative to industry benchmarks.
      • Recommendations for improvements or adjustments to the salary structure.
  4. Presentation and Consultation:
    • Present findings to senior leadership and relevant stakeholders within NEP+
    • Engage in consultations with HR and management to discuss findings and adjust recommendations as necessary.
  5. Final Deliverables:
    • A detailed written report that includes:
      • Overview of methodology.
      • Current salary structure analysis.
      • Benchmarking results.
      • Recommendations for adjustments to salary scales and compensation policies.
      • Legal compliance review.
    • A summary presentation for management team.
  6. Implementation Support (Optional):
    • If required, the consultant may assist in implementing the recommendations, which could include revising salary bands, designing new compensation policies, or providing tools for implementation.

4. Deliverables:

The consultant will provide the following deliverables during the course of the study:

  1. Inception Report:
    • A detailed plan for the study, including data collection methods, timeline, and milestones.
  2. Progress Updates:
    • Regular progress reports (weekly/bi-weekly) to ensure transparency and ongoing communication throughout the study.
  3. Draft Report:
    • A draft report that presents initial findings and recommendations, allowing for feedback from NEP+
  4. Final Report:
    • A comprehensive final report based on feedback from the draft version, with final recommendations and conclusions.
  5. Presentation to Management:
    • A PowerPoint presentation summarizing the key findings, analysis, and recommendations for senior leadership

5. Methodology:

The consultant is expected to use a combination of the following methods to carry out the study:

  • Document Review: Review of existing salary structure documents, compensation policies, and any other relevant internal documents.
  • Employee Surveys/Interviews: Conduct surveys or interviews with key internal stakeholders (HR, department heads, etc.).
  • Market Research: Use external benchmarking data from reputable industry sources (salary surveys, government data, etc.).
  • Comparative Analysis: Use statistical analysis to compare the organization’s salary scales with industry averages and best practices.
  • Legal and Compliance Review: Ensure that all recommendations comply with relevant local, national, and international labor laws.

6. Consultant Qualifications:

The selected consultant or consulting firm must meet the following qualifications:

  • Advanced university degree (BA/Master) in a relevant field, such as: Business Administration, Management, Economics, Development Studies, Natural Resource Management and the social sciences,
  • Minimum of 8 years of professional experience in the following areas, as a firm or experiences of conducting  Baseline studies and evaluations relevant to mentioned assignment
  • Proven expertise in compensation analysis and salary benchmarking.
  • Extensive experience in the industry/sector relevant to NEP+
  • Strong analytical skills with the ability to interpret complex data.
  • Experience in advising organizations on compensation strategies.
  • Familiarity with relevant labor laws and compliance issues.
  • Strong communication skills, both written and verbal, with the ability to present complex findings in an understandable way.

7. Timeline:

The study is expected to be completed within 4 weeks after agreement finalization with the following key milestones:

  1. Kick-off meeting and Inception Report submission: [November29/2024].
  2. Data collection and analysis phase: December 1st week
  3. Draft report submission: [December 2nd week].
  4. Feedback review and Final Report submission: [December 3rd week].
  5. Final presentation to senior management: [4th week of December].

 

  1. Budget source and Payment Terms:

The budget for this study is from Global Fund &Payments will be made in installments, as follows:

  • 20% upon signing the contract.
  • 40% upon submission of the draft report.
  • 40% upon delivery of the final report and presentation.

Any additional costs (e.g., travel expenses, data acquisition) will be reimbursed upon prior approval.

  1. Reporting and Supervision:

The consultant will report directly to NEP+ Executive Director. Frequent consultation is also expected from Finance and HR as well as MEAL Departments.  Regular updates will be required throughout the process to ensure alignment with the organization’s goals and timelines.

 

  1. Confidentiality:

The consultant is expected to maintain the confidentiality of all data and information shared by NEP+ and must sign a confidentiality agreement before starting the work.v