Consultancy Services for Study of Human Resources Performance Assessment and Compensation for Public Service Agency (BLU) – Agency for International Development Cooperation Fund

1. Project Description

In order to strengthen the coordination and management of Government of Indonesia’s activities to help developing countries, the Government of Republic of Indonesia took its first step in 2010 to establish the National Coordination Team for South-South Cooperation (NCT) consisting of four ministries as the main pillars, i.e., Ministry of Finance, Ministry of Foreign Affairs, Ministry of State Secretariat, and Ministry of National Development Planning/Bappenas.

To better integrate and create a more efficient, effective, and transparent management of Indonesia SSC, GoI has agreed to establish a single agency to manage the international development cooperation fund by adopting the Public Service Agency (BLU) financial management model. This agency is designed to replace and enlarge the responsibility of the current NCT i.e. by adding the responsibility of managing the endowment fund allocated for Indonesia’s international development cooperation (including SSC) and the implementation of international development cooperation. As of other new agencies in general, the issue of human resource is an important aspect to address on the onset of an agency establishment as it is the key for the upcoming agency to effectively achieve its organizational objectives.

Accordingly, in 2017 the NCT supported by USAID/USIP 1 had the initiative to conduct a study on Human Resource Management Strategy for the BLU.  This study had, in fact, resulted in some recommendations related to the human resource documents/background studies that need to be developed for the institution, and of them is the background study on Performance Assessment and Compensation.

Considering the importance of the above-mentioned studies as well as following up our commitment to the NCT, USIP 1 is to conduct a procurement process for consultancy service to perform background study on the Performance Assessment and Compensation System for the upcoming single agency.


2. Expected Outputs

Recommendations for establishing the human resource performance assessment system for the BLU become available. The recommendations are consisting:

  1. Performance Management System:
  2. Prerequisites
  3. Performance Planning
  4. Performance Execution
  5. Performance Assessment (that allows employees to evaluate their peers besides the supervisors’ evaluation towards the performance of their staff under supervisory and vice versa)
  6. Performance Review
  7. Performance renewal and re-contracting
  8. Measuring Result & Behavior (percentage level of achievement based on the target plan)
  9. Format of Performance Appraisal (consisting the Key Performance Indicator and target to evaluate work performance and behavior)
  10. Format of Job Dialog (how to convey and discuss compensation, job status, or disciplinary decisions in order to provide feedback, counseling, and career planning).

Recommendations for determining the appropriate compensation based on the personnel performance become available.  The recommendations include:

  1. Job Grading & Job Pricing: According to the Cambridge Dictionary, Job Grading is the process of comparing jobs in an organization to measure levels of responsibility, often used for deciding levels of compensation. While job pricing is the process of assigning pay to jobs. (Milkovich et al., 2014)
  2. Reward structure: All remuneration in the form of cash, direct, or indirect goods provided to employees for the contribution of employees in achieving the goals or objectives of the organization.
  3. Salary Range: ­Range of salary form the lowest to the highest level from every job grade


3. Selection Criteria

  • Organizational experiences in developing Human Resource Management Strategy;
  • Experiences in developing Human Resource Management Strategy for government institutions;
  • Experiences in HR study for government institutions;
  • The consultant team should have at least 1 human resource management expert;
  • Team understanding of the scope of work that will be reflected in the response to the TOR and proposed research method;
  • Team experiences/understanding on South-South Cooperation
  • Experiences in developing HR study with government institutions can be a plus point.
  • Team experiences/involvement in Indonesia South-South Cooperation activity in similar topics is preferable.


4. Proposal Submission

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