USAID Localization Partner Landscape and Market Compensation Assessment.pdf

LOCALIZATION PARTNER

LANDSCAPE AND MARKET

COMPENSATION SURVEY

INITIAL FINDINGS PRESENTATION &

DISCUSSION

OBJECTIVES

Conduct a Partner Landscape Assessment

Conduct a market compensation survey analysis of local organizations

Objective 1: Conduct a Partner Landscape Assessment

Identify Local Organizations

Categorization by Sector / Location

Geography, Reach, Expertise

Analyze capacity of the organization

Finance, MEL, CLA, Partner Landscape Assessment

Conduct a Market Compensation Survey Analysis

Identify Local Organizations

Analyze & compare compensation data3 Tiers of salary scales and comparison afec INGOs

Formulation of recommendations

The big ask…what would be a good salary.

Market Compensation Assessment

METHODOLOGY

Identify respondents – partner landscape

● Call for information in DR Congo media and platforms to NGOs and CSOs to go to an online registration platform.

● Consult various humanitarian forums including OCHA, the START NETWORK, the Charter for Change (C4C) platform, humanitarian clusters, the CCONAT, the FONAHD, RHONA.

● Interested NGOs/CSOs register their information on an online platform.

● Follow up on data completion through the IES call center.

Identify respondents – Market compensation

● Select at least 40% of NGOs who responded to the landscape survey to respond to Market Compensation questions.

● Organizational, logistical, and financial capacities of the 590 organizations were assessed, and a score from 0 to 28 was assigned to each.

● Organizations with a score of at least 16/28 were selected for the remuneration survey, indicating acceptable capacity comparable to some international organizations.

● 2% of organizations scored between 5 and 9, 37% scored between 10 and 15, 45% scored between 16 and 19, and 17% scored between 20 and 28.

● COMPARE TO COMPENSATION PACKAGE DATA ON INGOs

Limitations ● ALL DATA ARE SELF-REPORTED

● ‘DESIRABLE’ RESPONSES?

PARTNER LANDSCAPE

FINDINGS ● IDENTIFYING LOCAL PARTNERS

● GEOGRAPHIC DISTRIBUTION

● TECHNICAL SECTOR

● FUNDING

● STAFFING AND CAPACITY

DISTRIBUTION OF RESPONDENTS

TECHNICAL SECTORS

4 out of 5 organizations work with Vulnerable

People

85%

FUNDING

1000+ OTHER

(SMALL)

DONORS

TOP

Increased funding for DRG projects

Democratic transition of power

New CDCS 2020-

FUNDING - Annual Funding

2 out of 3 organizations:

<100K/year

67%

FUNDING - Financial stability

3 out of 4 organizations:

inadequate budget

75%

STAFFING & CAPACITY

9 out of 10 organizations:

less than 50 staff

90%

STAFFING - Gender in leadership

2 out of 3 organizations:

majority of decision makers are women

64%

STAFFING - Youth in leadership

1 out of 3 organizations:

decision makers young people

33%

STAFFING - HR Policies

STAFFING - HR Policies

STAFFING - Specialized staff

FINANCIAL CAPACITY - Independent audits

FINANCIAL CAPACITY - pre-financing

4 out of 5 organizations can pre-finance up to

US$ 50K

85%

MARKET COMPENSATION

FINDINGS ● BASE SALARY

● FRINGE BENEFITS

● SALARY SCALES

Market compensation survey – base salary

DRC Guaranteed interprofessional minimum wage

Qualification Unskilled Semi-skilled Skilled Qualified Highly qualified

Maximum spread coeff. 100 133 206 488 1000

Minimum daily FC FrCD 7,025 FrCD 9,343 FrCD 14,472 FrCD 34,282 FrCD 70,250

Minimum monthly FC FrCD 154,550 FrCD 205,546 FrCD 318,384 FrCD 754,204 FrCD 1,545,500

Minimum daily USD $2.8 $3.7 $5.8 $13.7 $28.1

Minimum monthly USD $61.8 $82.2 $127.4 $301.7 $618.2

DÉCRET n° 18/017 portant fixation du salaire minimum interprofessionnel garanti, des allocations familiales minima et de la contre-valeur du logement (J.O.RDC., 1er juin 2018, n° 11, col. 47)

Market compensation survey – fringe benefits

Monetary Benefits:

• Paid Annual Leave

• Paid National holidays

• Occasional Vacation

• Paid Sick Leave

• Paid Maternity Leave

• Benefits for Disability / Work Injuries

• Housing allowance

• Employer contribution to social security system

• Transport allowances,

• Child benefits

Non-Monetary Benefits:

• Weekly Rest Periods

• Job Safety & Job preservation

• Medical Treatment

• Leave of Absence for Maternity

• Breastfeeding breaks

Benefit Respondents

Travel expenses (mission expenses) 85.71 %

Transportation allowance 57.59 %

Health care insurance for employees 55.36 %

Family allowances 48.21 %

Housing allowance / accommodation in kind 41.52 %

End-of-year (13th month of salary) for employees 36.61%

School fees for the children of employees 24.55%

Market compensation survey – salary scales

The big ask …

What would be a “...fair, sustainable, competitive, non-distorting salary scale…”?

What is a fair salary?

Defining a fair salary depends on various factors:

• Market Rates - this is what we tried to determine …

• Inflation and Market Trends

• Location

• Benefits (obligatory/discretionary)

• Equal Pay for Equal Work

• Skills and Experience

• Education and Training

• Responsibilities and Scope

Legal framework

Market defined

Employee/Job dependent

Market rates …

• Job Title including education, skills & experience required: This we know

• Scarcity of Skills – Hard to determine at this point

• Competitor Analysis – the Birches Market Compensation Report

• Salary Surveys – that is what we did

• Labor law – determines obligatory and optional benefits

• Location - as well as inflation and economic conditions

• Company Size

Market rates … Cost of Living

Source: Cost of Living in the DR Congo (Updated: November 06, 2023)

KINSHASA $1,000.00 % CHEAPER KINSHASA $1,000.00 % CHEAPER

Bukavu $742.00 74.20% Boma $816.00 81.60%

Kindu $748.00 74.80% Mbandaka $826.00 82.60%

Kalemie $749.00 74.90% Kikwit $835.00 83.50%

Bunia $750.00 75.00% Kisangani $862.00 86.20%

Butembo $751.00 75.10% Tshikapa $896.00 89.60%

Beni $752.00 75.20% Kolwezi $925.00 92.50%

Uvira $781.00 78.10% Kananga $934.00 93.40%

Mbanza-Ngungu $806.00 80.60% Mbuji-Mayi $962.00 96.20%

Isiro $813.00 81.30% Lubumbashi $963.00 96.30%

Goma $839.00 83.90% https://livingcost.org/cost/dr-congo

The final calculation… POSITION SURVEY AVG COEFF. MIN COEFF. MAX MIN/MAX Min Salary Max Salary

Country director $3,230.27 651 1,000 1.54 $2,102.91 $4,962.01

Sr Program Manager $2,020.13 651 1,000 1.54 $1,315.11 $3,103.12

Project Manager $1,893.85 651 1,000 1.54 $1,232.90 $2,909.14

Expert Staff $1,279.82 651 1,000 1.54 $833.17 $1,965.94

Finance Manager $1,388.61 651 1,000 1.54 $903.99 $2,133.04

HR Manager $1,307.80 366 488 1.33 $980.85 $1,743.73

Logistics / Operations $1,227.07 366 488 1.33 $920.30 $1,636.10

Entry-level staff $987.87 366 488 1.33 $740.90 $1,317.16

Driver $799.67 237 317 1.34 $597.86 $1,069.60

The final graph …

Observations, questions … jverheyden@socha.net