Adviser Remuneration Framework

Explanatory Note
February 2011

The Adviser Remuneration Framework is a set of market-based, long and short term remuneration rates. AusAIDs Adviser Remuneration Framework has three main objectives: Market-tested competitive remuneration to ensure AusAID is not paying above market value for commercially contracted advisers. Consistency to remove the potential of over-paying advisers by capping remuneration and minimising scope for negotiation through a standardised remuneration scale. Value for money (VFM) to demonstrate VFM achieved from advisers by applying market-tested remuneration rates and an adviser performance assessment system.

AusAID-funded advisers provide technical and/or managerial expertise and advice on the strategic direction and/or implementation of the Australian aid program. Advisers may provide services to AusAID directly, or to one of the agencys development partners. This Remuneration Framework only applies to AusAID-funded advisers that are commercially contracted by AusAID directly, or through a managing contractor. These are organisations that have a commercial contract with AusAID to deliver services which may include to source, recruit and manage the performance of individual advisers on behalf of the Australian aid program. The Framework does NOT apply to: Australian government officials (including those in advisory roles) engaged through employment contracts on Australian Public Service terms and conditions. Advisers procured and engaged by partner governments, bilateral or multilateral organisations, using these agencies own procurement processes. Humanitarian and emergency response personnel, volunteers and grant recipients. Under the Framework, there are four factors which determine adviser remuneration: Duration of engagement (whether the adviser is long-term or short-term). The type of expertise required for the activity (the professional discipline sought). The level of responsibility attached to the adviser (there are four job levels in the Framework). The advisers credentials/CV/past performance record (these determine at which pay point in the remuneration range an adviser is paid).

An advisers fee must remain within the remuneration ranges established in the Framework. These ranges are set out in Annexes 4 and 5. In principle, the remuneration rate offered should not exceed the market reference point (MRP). The MRP is the competitive position for each professional discipline and job level. These are set out in Annexes 2 and 3. Paypoints above the MRP represent premium rates which may be offered for scarce skills or outstanding and verifiable performance records. Positions which require premium rates to attract suitable candidates, or the offering of a premium rate to a candidate, require a justifiable business case and the approval of a First Assistant Director General. All design documentation and Terms of Reference that involve long and short-term adviser positions must specify the discipline category and job level required (for each adviser
1

position) and must disclose the relevant remuneration range at advertising. All Requests for Quotations/Proposals/Tenders must comply with the Framework for adviser positions. Performance is a key aspect of ensuring effectiveness and value for money. The Framework is linked to AusAIDs contractor performance policy and procedures. Short-term advisers (engaged for less than 6 consecutive months) are not entitled to benefits in addition to their remuneration, but all work-related expenses will be reimbursed at cost. Long-term advisers (engaged for more than consecutive 6 months) may be eligible for the following additional benefits: Mobility Allowance: intended to address cost of living differences and other impacts associated with taking up a position in a country other than an advisers home country. This allowance is calculated as a percentage of salary, depending on whether the adviser is accompanied or unaccompanied. This allowance is paid at AusAIDs discretion, and is dependent on the provision of appropriate evidence that the adviser does not usually reside in the country where they will be required to work. Special Location Allowance: this is a country-specific income supplement for locations specified by AusAID in its conditions for overseas service. Eligible locations are currently Baghdad, Kabul, Oruzgan Province, Islamabad, Pakistan and remote localities outside capital cities as determined by AusAID. All work-related expenses will be charged at cost on a reimbursable basis.

How to use the Framework: 1. 2. 3. 4. 5. Determine whether a short term (< 6 consecutive months) or long term (> 6 consecutive months) advisory input is needed Identify the expertise the professional discipline required (Annex 2) Identify the level of responsibility the job level the adviser will have (Annex 3) Examine the candidates CV and any past contractor performance assessments/references Use the Remuneration Tables (Annexes 4 and 5) to determine the appropriate fee rate for the preferred candidate this should fall between the Entry Rate and the Market Reference Point (MRP) the MRP is the competitive point for each discipline and job level. The approval of the appropriate AusAID First Assistant Director General is required to negotiate a rate above the MRP.

Annex 1 Remuneration scenarios Annex 2 Discipline categories Annex 3 Job level descriptions Annex 4 Remuneration tables for short-term advisers Annex 5 Remuneration tables for long-term advisers

Annex 1 Remuneration Scenarios

Scenario 1 an Education adviser for the Government of Papua New Guinea AusAID has approved a Government of Papua New Guinea request to fund and engage an adviser for 12 months to provide in-line support to the Department of Education, to assist with the development of a new primary school curriculum. AusAID and the Government of PNG have jointly developed Terms of Reference (TOR) for the position. Requirements include up to 10 years of international experience in curriculum development, combined with practical teaching experience and a strong understanding of development issues in the Pacific as they relate to primary education. The TOR is finalised by matching the requirement to the applicable remuneration range in AusAIDs Adviser Remuneration Framework. In accordance with the Framework, experience of up to 10 years is classified as a Job Level 2. Education expertise is classified as discipline group B. The adviser will be engaged for more than 6 months and so is classified as long-term. Based on these criteria, the remuneration range for this position is $8,061 $10,076 per month (which represents the entry rate to the market reference point), plus applicable allowances. This remuneration range must be disclosed in the TOR at advertising. It is decided that the adviser will be engaged through an existing AusAID-funded Support Facility. The Facility Manager (a managing contractor) is tasked with sourcing and engaging the adviser. The TOR are advertised in local and international media. Once a preferred candidate has been identified, the final remuneration pay-point within the advertised range will be determined based on the candidates CV and any past performance ratings. The candidate has not worked previously for AusAID and so does not have a past performance record. However the candidate has provided AusAID (as requested by the activity manager) with positive referee reports from work with other donors. The candidate has 15 years of relevant experience. While this exceeds the stated requirements, there is strong and healthy competition for this role so it is difficult to justify premium rates. The remuneration offer made to this candidate should therefore not exceed the market reference point of $10,076 per month. The preferred candidate will be relocating from the UK, but will not be bringing family. An offer is made to this candidate of $10,076 per month remuneration, plus a mobility allowance of $1,569 per month (at the unaccompanied rate). Relocation expenses and rental costs in PNG will be reimbursed at cost up to the limits outlined in the Framework. On completion of the assignment, the Facility Manager must complete an adviser performance assessment and register it with AusAID in line with the Contractor Performance Assessment Policy.

Scenario 2 A Health Adviser for the Government of Indonesia

AusAID has completed a design for a new health sector activity in Indonesia. The estimated value of this activity is $45 million over 3 years and it is decided that AusAID will conduct an open tender process to identify an organisation appropriate to deliver the activity. Of the core advisory positions identified in the design, one - Development Specialist HIV and AIDS requires more than 10 years experience in HIV and AIDS prevention to provide technical advice and managerial expertise to the Indonesian Ministry of Health. In line with the Adviser Remuneration Framework, this position is classified as a Job Level 3; professional discipline group B; and as the adviser will be engaged for more than 6 months is classified as a long-term position. Accordingly, the remuneration range for this position is $10,412 $13,015 per month (which represents the entry rate to the market reference point) plus applicable allowances. This remuneration information replicated for all of the core advisory positions identified in the design is included in AusAIDs Request for Tender. AusAID receives a number of bids for the activity, each of which nominates a core team of personnel including a Development Specialist HIV and AIDS. The preferred tenderer has included in their bid an escalation factor of 3% on all advisers remuneration over the three year course of the contract, which AusAID accepts as reasonable. AusAID accepts this bid, with the contract finalisation subject to the preferred tenderer negotiating contracts with the core advisory team that accord with the Adviser Remuneration Framework. The preferred tenderers candidate for the position of Development Specialist HIV and AIDS is an Indonesian national, currently based in Aceh, who would need to relocate to Jakarta where the head project office will be located in order to implement the activity. Although the adviser is an Indonesian national, she has been selected for this position through an open international tender process. The Adviser Remuneration Framework should therefore be applied to determine the advisers final remuneration. The advisers CV indicates that she has 15 years experience in public health, including a masters degree from an internationally recognised institution. On this basis, it would be appropriate to offer the candidate a remuneration rate of $13,015 per month, which represents the market reference point for this remuneration range. The remuneration will increase at the fixed rate of 3% per year, as nominated by the tenderer in its financial proposal. Because the adviser resides in the country where the work will be undertaken, no mobility allowance is payable. However, because the adviser is currently based in a different province and needs to relocate to Jakarta, AusAID agrees to reimbursement of relocation expenses (including housing costs up to the limit specified by AusAID) at cost.

Scenario 3 A Senior Institutional Reform Adviser for the Government of Kiribati

The Government of Kiribati has requested AusAIDs assistance to restructure the publiclyowned shipping transport authority in order to improve its productivity. It is agreed that an initial feasibility study should be undertaken to examine all options, including privatisation. AusAID and the Government of Kiribati jointly draft the Terms of Reference (TOR) for this task, and agree that a very senior and experienced professional is required to conduct the study over a period of up to 60 days over a four month period. The Feasibility Study TOR specify that the adviser must have more than 20 years relevant experience with the management and reform of publicly-owned enterprises, and a solid knowledge of economic development in the Pacific. Under the Adviser Remuneration Framework this position is considered to be short-term, and falls under professional discipline D, Job Level 4. Initial market analysis indicates that the market for this expertise is limited and on the basis of this evidence the First Assistant Director General (FADG) approves advertising the position at a remuneration range of $774 $1161 per day (which represents the entry rate to the maximum rate payable, and for which FADG approval is required). AusAID receives a number of applications for this position, and submits them to a panel composed of AusAID representatives, an independent expert and the Government of Kiribati. The panel find that only one applicant fully meets the requirements of the role. This applicant also has a very good performance record with AusAID. Based on the panels recommendation, the program area makes a case to the FADG to approve an offer that falls within the premium rate range as advertised. The adviser will need to travel from Australia to Kiribati during the assignment. The adviser will be paid per diems; and accommodation, travel and any other work related expenses will be reimbursed in line with standard AusAID rates for short-term travel.

Scenario 4 A Pacific Region Health Advisory Facility

AusAID has approached the market to establish a Facility to provide health sector expertise to AusAIDs aid program in the Pacific region. The core Facility advisory team consists of a Facility Director and four long-term technical advisers. There are also three administrative positions. AusAIDs Request for Tender has included remuneration ranges for all core personnel (that is, all personnel except the three administrative roles) in line with the Adviser Remuneration Framework. After a competitive tender process a successful tenderer is identified, who is based in Sydney. The nominated Facility Director will be relocating from interstate while one of the technical advisers will relocate from overseas. Both are entitled to reasonable relocation expenses as agreed by AusAID to be reimbursed at cost. Mobility allowance is payable to the adviser relocating from overseas. No mobility allowance is payable to the Facility Director, who is relocating from within Australia.

Annex 2 Professional Discipline categories

General Administration and Corporate Services Administrative Services Contracting and purchasing Facilities/Travel Program Budgeting Administrative Services Printing/Graphics & Cartography Program Budgeting Human resources administration Financial management Public affairs and communication

Discipline Group A

Data and Information Services Documentation and Records Management Computers/Communications & Technical Support, incl: Hardware, software and training Web maintenance/Homepage design Accounting, Audit and Statistics Accounting Internal Audit Statistics

Agriculture/Rural Development Agricultural Extensions Agro Industry/Agribusiness Management Agronomy Fisheries Forestry Livestock Natural Resource Management Tree Crops Public Health Nutrition Nursing Occupational Health

Discipline Group B

Information Systems Communications Data Communications and Infrastructure, incl: Network administration Voice communications Systems software design & implementation Large scale data management - System design IT Engineering Logistics Education Education Training

Social and Political Science Gender/Women in Development Public sector management/public policy Social sciences/anthropology Social/Political sciences Sociology, incl: Gender Indigenous People Public Administration Resettlement/reconstruction Social Assessment & Participation Human Resources Development

Discipline Group C
Biological Sciences and Ecology Biological Sciences and ecology Biotechnology Environmental Management, incl: Assessment/Monitoring Biodiversity Climate change Waste Natural resources Pollution Project Management Country Operations Management Project monitoring, operations & evaluation Design Legal (General) Medicine (General) Engineering Architecture Chemistry Carbon market Clean development mechanisms Energy Environmental engineering Transportation, incl: Highways, Ports, Railway Water/Sanitation/Environmental Services, incl: Environmental Services Rural Water and Sanitation Sector Reform (Regulation and Policy) Urban water and sanitation, utility management Economics/financial analysis Economics/financial analysis, incl: Project feasibility study Sector study Econometrics modelling Environmental economics Fiscal International trade/Finance Labour economics/employment Macro-economics (including policy) Management accounting Micro-economics Monetary Poverty Procurement / Public Financial Management Industry Mining Geology Petroleum Gas Power Telecommunications

Discipline Group D
Finance and Investment (specialised) Banking Build Operate Transfer (sectoral/country level) Capital Markets Finance/Fund Management/Cofinance Guarantee/Insurance International trade Investment Public/Private Partnerships Sector Pricing/Tariffs Specialised Finance (insurance, social security, pension schemes) Legal (specialised) Deregulation Judicial Strengthening & Regulation Institutional reform Organisational planning and management Strategy development Private sector development and restructuring Private Sector Development/Privatisation Public enterprise management and restructuring

Annex 3 Job level descriptions

Level

Description

Indicative requirements Up to 5 years relevant experience in one or more professional disciplines, or equivalent combination of relevant education and experience. Theoretical base in subject area, with ability to translate theory into practice Thematic/regional knowledge (where required) 5 or more years relevant experience in one or more professional disciplines, or equivalent combination of relevant education and experience. Thorough knowledge of functional area, combining a broad grasp of relevant theory and principles Ability to participate in multi disciplinary teams and to work independently. Strong thematic/regional knowledge (where required) 10 or more years relevant experience in one or more professional disciplines, or equivalent combination of relevant education and experience. Strong theoretical base in subject area, with ability to translate theory into practice Leadership with ability to function as team leader and ability to coach and mentor more junior staff. Thematic/regional expertise (where required) 10 or more years professional experience or equivalent combination of education and experience. Outstanding theoretical base in subject area, with ability to conceptualise, design and implement major projects and to produce major/complex reports or studies. Outstanding thematic/regional expertise (where required) Demonstrated professional leadership and ability to lead a team of professionals and ability to coach and mentor more junior staff.

Performs a variety of research and analytical tasks requiring independent initiative. However, the overall direction of the work is clearly defined and forms a component of a larger project. Work is performed under guidance. Contacts with counterparts predominantly at the administrative level.

Performs professional level analysis or research requiring technical skills and independent initiative within a well defined program of work. Works with limited supervision. Contacts with counterparts predominantly at a working level.

Provides informed technical or policy advice and or advises on complex program. Ability to coordinate contributions of other specialists to complete a joint project. Recognised as an expert in the field with appropriate academic qualifications and substantial professional experience. Contacts with counterparts predominantly at strategic/management level.

Acts as a senior adviser on major policy work or is responsible for leading complex projects/programs, usually involving the participation of one or more multidisciplinary teams. Strong academic background and or internationally recognised professional status in the field. Extensive relevant professional experience including at senior advisory or managerial levels. Contacts with counterparts predominantly at strategic/management level.

Annex 4 Short-term adviser remuneration tables

DisciplineGroupA
Job level 1 Entry rate 308 AUD - daily remuneration rates Years of relevant Years of relevant experience experience Up to 2 347 >2 to 5 MRP 385 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 462

408

Up to 5

459

>5 to 10

510

612

540

Up to 10

607

>10 to 15

674

809

618

Up to 15

696

>15

773

928

DisciplineGroupB
Job level 1 Entry rate 302 AUD - daily remuneration rates Years of relevant Years of relevant experience experience Up to 2 340 >2 to 5 MRP 378 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 454

436

Up to 5

490

>5 to 10

545

654

565

Up to 10

636

>10 to 15

707

848

649

Up to 15

730

>15

811

973

DisciplineGroupC
Job level 1 Entry rate 318 AUD - daily remuneration rates Years of relevant Years of relevant experience experience Up to 2 358 >2 to 5 MRP 398 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 478

433

Up to 5

487

>5 to 10

541

649

593

Up to 10

667

>10 to 15

742

890

682

Up to 15

768

>15

853

1024

DisciplineGroupD
Job level 1 Entry rate 354 AUD - daily remuneration rates Years of relevant Years of relevant experience experience Up to 2 399 >2 to 5 MRP 443 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 531

491

Up to 5

553

>5 to 10

614

737

679

Up to 10

764

>10 to 15

849

1018

774

Up to 15

871

>15

968

1161

Annex 5 Long-term adviser remuneration tables

DisciplineGroupA
Job level 1 Entry rate 5,658 AUD - monthly remuneration rates Years of relevant Years of relevant experience experience Up to 2 6,366 >2 to 5 MRP 7,073 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 8,488

7,482

Up to 5

8,418

>5 to 10

9,353

11,224

9,918

Up to 10

11,158

>10 to 15

12,398

14,878

11,322

Up to 15

12,737

>15

14,152

16,983

DisciplineGroupB
Job level 1 Entry rate 5,590 AUD - monthly remuneration rates Years of relevant Years of relevant experience experience Up to 2 6,289 >2 to 5 MRP 6,988 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 8,386

8,061

Up to 5

9,068

>5 to 10

10,076

12,091

10,412

Up to 10

11,714

>10 to 15

13,015

15,619

11,907

Up to 15

13,395

>15

14,883

17,860

DisciplineGroupC
Job level 1 Entry rate 5,887 AUD - monthly remuneration rates Years of relevant Years of relevant experience experience Up to 2 6,623 >2 to 5 Maximum 7,358 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 8,830

8,026

Up to 5

9,029

>5 to 10

10,032

12,039

10,946

Up to 10

12,314

>10 to 15

13,683

16,419

12,545

Up to 15

14,114

>15

15,682

18,818

DisciplineGroupD
Job level 1 Entry rate 6,601 AUD - monthly remuneration rates Years of relevant Years of relevant experience experience Up to 2 7,426 >2 to 5 MRP 8,251 for advisers with an outstanding performance history or for scarce skills Premium rates Maximum 9,901

9,156

Up to 5

10,301

>5 to 10

11,445

13,734

12,620

Up to 10

14,197

>10 to 15

15,774

18,929

14,335

Up to 15

16,127

>15

17,918

21,502