The partner organisations in the Community of Cooperation of Bread for All (BfA) are cfd, Connexio, DM - échange et mission,

Horyzon, International Blue Cross (IBC), Mission 21, Mission Evangélique Braille (MEB), Service de Missions et d’Entraide (SME),

the Swiss Salvation Army Foundation and TearFund.

Community of Cooperation (KoGe) of Bread for All (BfA) and Partner Organisations

Good Governance Working Group

Good Governance in Human Resources Practical Guideline

Daniela Tanno www.danielatanno.ch

Albert Schnyder www.albertschnyder.ch

Lucerne, 15 September 2017 / finalised after the workshop on 26 September2017

1

Contents

Human Resources Management: why? .................................................................................................... 2

The personnel process ............................................................................................................................. 3

Personnel planning and recruitment .................................................................................................... 4

Remuneration, social insurance and additional compensation/benefits ............................................... 5

Personnel development ....................................................................................................................... 6

Termination of employment ................................................................................................................ 7

Management issues: personnel policy and personnel management ......................................................... 8

Support services: personnel and payroll administration, personnel controlling ........................................ 9

Support for employees ............................................................................................................................ 9

Communication with employees .............................................................................................................. 9

Dealing with volunteers ......................................................................................................................... 10

Risks in HRM .......................................................................................................................................... 11

Annex I: Checklist for a simple self-test of Good Governance in HRM - introduction ............................... 13

Annex I: Checklist for a simple self-test of Good Governance in HRM ..................................................... 14

Annex II: The personnel process (model) ................................................................................................ 15

Annex III: Recommendations on implementing the 'Good Governance in HRM Guideline' ..................... 16

2

Human Resources Management: why?

NPOs are service organisations. Their most important asset consists of their employees (whether paid or

voluntary) – all the more so because they often identify greatly with the humanitarian activities and have

a strong personal commitment. Personnel management (Human Resources Management, or HRM) is

therefore the key factor that determines an organisation's ability to carry out its remit successfully.

In order to gain an overview of HRM, the standard approach is to take the personnel process as the ba-

sis, together with its sub-steps and overall conditions. Transparent personnel processes foster identifica-

tion and create trust as well as providing security and certainty.

This Practical Guideline is primarily addressed to those in positions of responsibility in South NPOs and

their counterparts in the North NPOs. Its objectives are as follows:

• management bodies, managers, and both paid and voluntary staff of NPOs who are operationally

active and are not HRM specialists should become familiar with the key points of HRM;

• managers should become more attentive to HRM issues and should make necessary decisions

promptly, as appropriate to each situation and target group;

• managers as well as paid and voluntary staff of NPOs should be made aware of risks in HRM and

should have instruments at their disposal to deal with these risks.

This Practical Guideline on Good Governance in HRM provides the basis for more extensive measures

and offerings in HRM.

3

The personnel process

The personnel process (shown in blue in the chart) comprises the individual steps starting with the deci-

sion to fill a position, through the actual period of employment until the employee's departure from the

organisation.

The personnel process is embedded within the overall conditions and management issues (in green).

These primarily include the status of the personnel policy in the respective institution or project on the

ground, as well as personnel management issues and support services (which include personnel and pay-

roll administration, also personnel controlling).

Key prerequisites for successful HRM include attentive assistance for employees (shown in the chart as

'Support for employees' and 'Communication with employees'). Support and communication provide the

link between the personnel processes and the employees' concerns.

4

Personnel process

Personnel planning and recruitment

Personnel planning: what does it involve?

In the medium and long terms, personnel planning ensures that the right people are available at the

right time in the right places for the projects and tasks to be undertaken. It entails planning the human

resources required (percentages of full-time posts) and defining the requirements for training and pro-

fessional experience. The relevant information is very frequently contained in the project budgets al-

ready. This applies equally to paid employees and volunteers.

Checklist:

• Is personnel planning in place? (Needs assessment; periodic review of job profiles)

• Who is responsible for personnel planning?

• Which standards and requirements are in place for personnel planning? (Project budget; staff

establishment plan and staff budget for the NPO)

• Who approves personnel planning?

Personnel recruitment: what does it involve?

Personnel recruitment comprises all activities related to the selection of a new employee.

Checklist

• Is there a post description for every position? Is it up to date?

o Content of a post description: job title; objectives and description of responsibilities; require-

ments (training and professional experience; integration within the organisation (see the

organisation chart); superior/line manager; deputisation

• How are positions advertised?

o How is correctly targeted advertising of positions ensured? Which media are used?

o How is it ensured that neither too few nor too many applications are received?

o Which medium can be used to reach potential applicants?

o Is transparency of the process ensured?

• Are applications sorted according to categories (A = matches the profile very well; B = can be

considered; C = cannot be considered)?

• Are tests carried out to check basic skills?

• Are employment interviews conducted according to a guideline? Are the participants defined?

Are references obtained?

• Who makes the decision to take on an employee?

• Is there an onboarding programme (welcome package) for the first day or week of work?

• Does every employee have an employment contract?

• Is there a probationary period? (duration, end, transfer to regular employment)

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Personnel process

Remuneration, social insurance and additional compensation/benefits

What is involved?

The employees make their time available and the employer compensates them for this in monetary

form. This means: permanent employees receive salaries in cash.

Checklist for pay

• Do those responsible have an idea of what pay is envisaged for which job? Is there a salary/pay-

roll system? – In practice, its design often depends on the size of the organisation. Principle: for

about 10 or more employees, an explicit payroll system should be in place, with defined pay

bands.

• Who has the final decision on determining pay? (dual control principle)

• Are salaries paid regularly according to the conditions of employment?

• Are salary regulations in place? The salary regulations define the classification criteria as well as

additional parameters such as pay bands, procedures for classification and increases in the em-

ployee's experience level. If desired, the salary regulations also ensure the necessary transpar-

ency as regards remuneration.

• Are the requirements specified in the project budget and the empirical figures taken into

account in connection with salaries?

Social security contributions and benefits in addition to the salary are paid (on the one hand) because

they are stipulated by law and (on the other) because they correspond to the NPO's personnel policy.

The purpose of this additional compensation is to cover risks such as inflation/cost of living increases,

accidents, illnesses, disability, death, family, old age/retirement or unemployment. In addition, such pay-

ments may take the form of benefits in order to make employers more attractive or enable them to hold

their own on the market.

Checklist for additional compensation/benefits

• Are there definitions of the additional compensation/benefits?

• Are the following in place:

o cost-of-living allowance: how much? When are adjustments made? Based on which criteria?

o retirement benefits

o family and/or child allowances (government / occupational)

o accident and health insurance

o benefits in case of disability and death

o leave for: deaths, births, moving house, etc.

o bonuses for exceptional performance

o seniority gifts

• Are the specific statutory requirements of the country of service known, and are they met? For

example: severance payments on termination of employment.

6

Personnel process

Personnel development

What does it involve?

Another aspect of an attentive approach to employee relations is that the employer should be familiar

with the employees' requirements for development and change, and should accommodate them in

accordance with the organisation's objectives. This achieves the following goals:

• employees receive regular assessments of their current situation

• employees' ongoing professional development is planned and implemented

• measures to foster personal career development keep good employees in the organisation and

reduce the personnel turnover rate

• employees' opportunities on the labour market remain intact or may even be improved. This is

all the more important because employment is limited to the duration of a project in most cases.

Checklist for personnel development

• Do employee interviews take place, with an assessment of the employee's situation?

During an employee interview, superiors and employees discuss the employee's performance,

commitment and attitude. For this purpose, they compare the target and actual situation on the

basis of the job description; they identify strengths and potentials for improvement, and define

the next steps in personal development. The employee interview follows a well-structured guide-

line.

• Is provision made in the employee interview for feedback to the superior (line manager)?

• Is there provision for feedback from the superior independently of the employee interview?

• Are the agreed development measures implemented, and is ongoing training offered?

o courses, training activities, retraining

o basic training, advanced training, continuing education

• Are employees' areas of responsibility reviewed regularly to enable further development? –

Keywords: develop appropriate task portfolios with adequate scope to act freely; job enlarge-

ment; job enrichment; job rotation.

7

Personnel process

Termination of employment

What does it involve?

There are various reasons for terminating employment:

• end of the project, or fixed-term employment contract

• retirement

• illness, disability and death

• termination by the employee

• termination by the employer: normal or without notice; release (leave of absence)

Checklist for termination of employment

• Are the country's specific statutory requirements known, and are they met?

• Are the requirements of personnel policy and / or the staff regulations met?

• Are the provisions of the employment contract respected?

• Is there a transparently defined process for terminations by the employer (warning, chance to

improve, manner of issuing notice of termination, notice periods, who decides?; release/leave of

absence, etc.)

• Do all employees receive an employment reference or confirmation of their employment?

8

General conditions

Management issues: personnel policy and personnel management

The personnel policy defines the basic principles for collaboration within the organisation as well as the

principles for conduct in dealings with external parties. As a result, everyone – within and outside the

organisation – knows what is expected of the employees (for example: rights and obligations; basic atti-

tudes/values such as fairness, transparency, respect for human rights) and what the employees can

expect of the organisation. In some cases, the personnel policy also defines the main principles of man-

agement.

The personnel policy provides the foundation for other important sets of regulations, such as:

• staff regulations, which also (in particular) include the conditions of employment, such as: salary,

working hours, employment contract for all employees, termination.

• salary regulations

• management principles

• codes of conduct (sexual harassment; corruption; protection of minors)

• expenses and travel regulations

Personnel management has two key components:

• organisation of work and operational planning

Organisation of work includes the organisation chart; basically, it defines the working proce-

dures, structures and process, whereas operational planning schedules the deployment of

employees in the short term. The purpose of both components is to ensure that the right people

are in the right location at the right time, and that they perform the remit of the organisation

(organisational unit).

• Management – the superior's responsibilities (Leadership; after Reinhard K. Sprenger, 2012)

o manage and lead the employees (communication; delegation and trust; develop and

challenge; identify and utilise employees' potential; self-management)

o organise collaboration

o resolve conflicts

o ensure strategic orientation and ability to cope with future requirements

o keep track of efficiency and effectiveness (thrifty approach to resources and scarce

'commodities'; customer mindset)

Checklist for personnel policy and personnel management

• Is there a policy that defines collaboration within and outside the organisation, the conduct of all

employees [corporate behaviour] and management?

• Are the conditions of employment stipulated in separate regulations or in a detailed employ-

ment contract?

• Are the necessary codes of conduct in place, is training provided on them and are they imple-

mented?

• Is there an organisation chart (for the entire organisation and its units)?

• Are there definitions of the management principles, as well as the superiors' rights and obligations?

9

General conditions

Support services: personnel and payroll administration, personnel controlling

Personnel administration comprises proper management of employees' files, payroll administration and

payroll accounting, including salary controlling. This function may be outsourced to external companies.

Personnel controlling comprises the staff establishment plan / personnel budget and staff placement

report / accounting for personnel costs and medium/long-term control of staff requirements.

Checklist for support services

• Is there a personnel file for every employee, and is it kept properly?

• Is data protection ensured (employees' rights of personality/privacy)?

• Is efficient payroll administration in place?

• Are salaries and additional benefits paid correctly and promptly?

• Are basic key figures about staff collected and used for control purposes?

Support for employees Support for employees goes beyond personnel administration, and comprises:

• assistance and advice for employees and managers as regards dealing with conflicts and other

difficult situations

• advice for employees and managers on implementing measures in connection with the

personnel process, e.g. regarding personnel development

Communication with employees Communication is more than information – but there can be no communication without adequate infor-

mation.

Communication proceeds in three directions: from top to bottom, from bottom to top, and sideways.

It includes:

• feedback culture and drawing attention to the consequences of the employee interview

• proactive, fact-based behaviour, especially by managers

• internal and external communication

• team meetings and team development, also other forms of cooperation

• team events

Checklist for support and communication

• Do the employees have a point of contact in case of problems, conflicts or complaints?

• Are procedures and responsibilities defined for internal and external communication?

• Is there a crisis communication concept?

10

Dealing with volunteers

What is involved?

As a general rule, the same principles apply to the organisation of collaboration with volunteers as those

for permanent paid employees [professionals], as regards the personnel process as well as the overall

conditions.

The challenge here is to adapt these general rules to the needs of volunteers in a suitable manner and as

appropriate to the particular situation.

Another challenge is to enable conflict-free collaboration (as far as possible) between paid employees

and volunteers who have to carry out the same task.

Recommendation: create transparency.

In the selection procedure for volunteers (and also for paid employees), define the relevant arrange-

ments: for example, state in the service agreement that they will be working together with paid employ-

ees in the same function.

Two categories of volunteers should be differentiated here:

• International volunteers: they usually have a specific package from the organisation that sec-

onds them. This covers issues such as insurances, travel expenses, accommodation and food,

pocket money.

• Local volunteers who participate in a project or in the NPO. In their case, the NPO must define

which regulations and principles of the personnel policy also apply to them, and where adapta-

tions are required (possibly as part of a specific policy for volunteers).

Checklist for volunteers

• Is there a procedure for selecting volunteers? (personnel recruitment)

• Are volunteers given an introduction to their work?

• Do volunteers have a contact person who manages them?

• Do all volunteers have a service agreement?

• Which benefits in cash and kind do volunteers receive?

• Is it ensured that volunteers know and observe their rights and obligations, including (in

particular) compliance with codes of conduct?

• Do volunteers receive a confirmation of their service when they leave the organisation?

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Risks in HRM (This list is not exhaustive)

We follow the personnel process to identify risks in HRM.

Risks in

connection

with

What is involved? What should be done?

(preventive action, and

action after the risk

occurs)

Comments

Personnel

recruitment

Insufficient knowledge of

handling instruments and

procedures

Concepts, regulations;

training activities;

controlling

As a minimum,

individuals who are

involved with HRM

should be familiar with

the basic principles of

HRM.

Alternative: outsource

the entire HRM or parts

of it to an external

service provider.

Conscious or unconscious

preferential treatment of certain

individuals and groups of

individuals (nepotism)

Transparent processes Simple implementation:

include a clause in the

employment contract

stating that an

employee's relatives

are not employed, or

are not employed in the

same direct line.

During the

employment

Misconduct by employees, such

as sexual and sexist harassment,

corruption (active and passive),

abuse of minors, misappropria-

tion of the organisation's

property.

Bullying; physical and psychologi-

cal violence against employees.

Codes of conduct and

similar guidance to

prevent sexual and

sexist harassment,

abuse of minors,

corruption; regulations;

training; controlling

Possibly: set up an

independent

complaints unit

Note:

collaboration with law

enforcement agencies

and judicial authorities,

e.g. notification /

disclosure obligations,

court proceedings

12

Remuneration Unsystematic and opaque pay

structure; unforeseen extras and

additional payments.

Abuse of expenses and similar

additional compensation/

benefits.

Regulations;

transparent salary

system;

controlling;

sanctioning of

misconduct

Please note:

major donors require a

salary system and

recording of hours

worked.

Personnel

development

Abuse of personnel development

measures to grant extras and

privileges

Training regulations

Termination

of

employment

Failure to comply with the

planned procedures; threats

Clear procedures and

regulations which are

communicated

As a consequence:

drawn-out processes

that cost much time

and money

…..

Listing risks contributes towards raising awareness and in the best-case scenario, it reduces the risk

potential. It should be remembered that there is always a gap because of unknown risks (residual risk).

Not infrequently, the reason for next incident is to be found here.

This makes it important not only to take preventive action, but also to develop and train institutional

skills in dealing with risks that have arisen.

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Annex I: Checklist for a simple self-test of Good Governance in HRM - introduction

The following checklist comprises selected items from the checklists contained in the document regard-

ing the individual HRM issues. It is suitable for use as a rough initial self-test.

The response grid:

• may follow a yes/no pattern, or

• the following four categories may be used:

o not available

o beginning to take shape

o available, but not fully implemented

o available and extensively implemented

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Annex I: Checklist for a simple self-test of Good Governance in HRM

Personnel planning:

• Is personnel planning in place? (needs assessment; periodic review of job profiles)

Personnel recruitment

• Is there a post description for every position? Is it up to date?

• How are positions advertised?

• Who makes the decision to take on an employee?

• Does every employee have an employment contract?

Pay

• Do those responsible have an idea of what pay is envisaged for which job?

• Who has the final decision on determining pay?

• Are salaries paid regularly according to the conditions of employment?

Additional compensation/benefits

• Are there definitions of the additional compensation/benefits?

Personnel development

• Do employee interviews take place, with an assessment of the employee's situation?

• Are the agreed development measures implemented, and is ongoing training offered?

Termination of employment

• Are the country's specific statutory requirements known, and are they met?

• Are the provisions of the employment contract respected?

• Do all employees receive an employment reference or confirmation of employment?

Personnel policy and personnel management

• Is there a policy that defines collaboration within and outside the organisation, the conduct of all

employees [corporate behaviour] and management?

• Are the necessary codes of conduct in place, is training provided on them and are they imple-

mented?

Support services

• Is there a personnel file for every employee, and is it kept properly?

• Are basic key figures about staff collected and used for control purposes?

Support and communication

• Are procedures and responsibilities defined for internal and external communication?

Volunteers

• Is there a procedure for selecting volunteers? (personnel recruitment)

• Are volunteers given an introduction to their work?

• Do volunteers have a contact person who manages them?

• Do all volunteers have a service agreement?

• Which benefits in cash and kind do volunteers receive?

15

Annex II: The personnel process (model)

16

Annex III: Recommendations on implementing the 'Good Governance in

HRM Guideline'

Basic principles

• Integrate implementation into usual dialogue regarding programmes and/or with partners.

• The Community of Cooperation could undertake to invite all member NPOs to draw up their

own HRM policy ('What do we expect of our partner organisations as regards HRM?') or to

incorporate Good Governance in HRM within a 'Policy for Partner Organisations' which already

exists or is to be developed.

Record the baseline

• Use monitoring visits and other vehicles such as regional meetings to draw up an initial basic as-

sessment together with your partner organisation; this provides a baseline so that both sides

can record the status quo together and develop a task list from it. You can use the checklist from

the Guideline for this purpose.

Vehicles and instruments for the ongoing development of HRM in the partner organisations

• Joint development of programmes and/or strategies, renewal of framework agreements with

partner organisations [accords de programme] and similar activities offer good opportunities for

defining objectives and tasks in connection with HRM so that agreement can be reached on

reviewing these objectives and tasks during the coming years.

• During your business trips or meetings in regions or at headquarters, reserve time windows to

deal with issues arising from HRM.

• Also make use of instruments such as project applications and budgets to define HRM issues.

• These HRM issues can then be differentiated in the relevant planning instruments [log-frames]

and converted into manageable goals.

• Assist the partner organisation with utilising internal vehicles and events such as departmental

and team meetings (as well as team development activities where appropriate) to explain HR

issues and specify them on the basis of practical examples and incidents.

• Motivate partner organisations to discuss sensitive HR issues regularly in suitable ways, or to

provide training on these issues.

Monitoring

• Use monitoring visits to review jointly decided measures aimed at developing and/or improving

HRM on the ground, as per the personnel process.

• Design the monitoring system so that you can add tips, hints and 'best practices' to the review

on the ground.

Call in expertise from third parties

• Peer consulting on HR issues with Responsible Project Officers of the NPO or region, or within

the Community of Cooperation

• Consult fellow Responsible Project Officers on specific cases

• Call on the advice of an HR specialist, within or outside the organisation