Identifier
Created
Classification
Origin
04THEHAGUE1687
2004-07-06 14:46:00
UNCLASSIFIED
Embassy The Hague
Cable title:  

LES: CY 2005 COMPENSATION QUESTIONNAIRE

Tags:  AFSN AMGT KSEP KICA 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 THE HAGUE 001687 

SIPDIS

FOR HR/OE/CMD - SALLY CINTRON
ALSO FOR EUR/EX/PMO - JOHN HIGI
FRANKFURT FOR RSC/HR

E.O. 12958:N/A
TAGS: AFSN AMGT KSEP KICA
SUBJECT: LES: CY 2005 COMPENSATION QUESTIONNAIRE

REF: STATE 093410

UNCLAS SECTION 01 OF 03 THE HAGUE 001687

SIPDIS

FOR HR/OE/CMD - SALLY CINTRON
ALSO FOR EUR/EX/PMO - JOHN HIGI
FRANKFURT FOR RSC/HR

E.O. 12958:N/A
TAGS: AFSN AMGT KSEP KICA
SUBJECT: LES: CY 2005 COMPENSATION QUESTIONNAIRE

REF: STATE 093410


1. Summary. This is Post's response to compensation
questionnaire requested in ref telegram. The answers are
keyed to questions from paragraph two to five. This cable
is cleared by all Agencies with locally engaged staff. End
Summary.
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2. Questionnaire

A. Desired Labor Market Position

A1.For posts that use Watson Wyatt or other similar market
position based commercial data for wage setting purposes:

What is post management's desired market position percentile
for each grade level?

Post's desired labor market position for FSN compensation is
at the 75th percentile for all grades. While Post is fully
aware that it is very difficult to reach the desired level,
it believes that bringing the salaries to a competitive
position in the labor market will ensure continued ability
to attract and retain qualified LE staff. Unfortunately,
even our most recent wage increases, implemented on May 16,
2004, bring post's overall average market position to the
62nd percentile only.
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A2. N/A
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A3. N/A
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A4. Does Post need any new upward or downward Exception
Rate Ranges?

Post intends to request upward Exception Rate Range for job
series 1800, particularly grades 9-11. A separate cable
will be forwarded.
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B. Recruitment/Retention Needs.

B1. Did post receive an adequate number of qualified outside
applicants to fill vacancies in CY 03?

a) Yes
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B2. Please provide a summary of the type of job and job
applicant reasons for refusing offers of employment.


d) One offer was declined by our first choice for the
position of Computer Management Assistant because subject
enjoys a 35% Dutch tax rebate under the Expatriates tax
ruling. Two years ago, same offer was rejected for this
reason.

One of the required qualifications is that a person must
have worked for a multinational for at least two and a half
years, and is assigned to the Netherlands because of job

rotation. To qualify, the employee must have special
expertise, scarce on the Dutch labor market, and the
following criteria are decisive for determining scarcity:
--the required education
--the required experience
--the level of the Dutch salary vs that for the same job in
the expatriate's country of origin.

The Embassy while not falling under the normal multinational
business platform, does however, encounter the same problem
as any other employers in the Netherlands.

We have contacted the local tax office and have been given a
contact to approach at the Ministry of Finance to qualify as
potential employer with the same kind of needs. All three
incumbents of positions in the ISC unit are non-Dutch
citizens. All three could, in principle, qualify for this
privilege.

-------------- --------------

B3. Is the salary range shown on vacancy announcements?

No. It is not prevailing practice to list salary ranges in
job advertisements. Post, however, has an open policy to
provide compensation information to any potential applicant.
During job interviews, we routinely discuss all aspects of
compensation, including basic salary.
-------------- --------------

B4. How many employees separated from post employment
during CY 2003?

A total of 8 employees.
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B5. Count employees only once under one of the following
categories or reasons for leaving so that the summary (h)
equals total number separated. Do not count employees
leaving one Embassy position for another, even if to another
USG agency.
a) obtain better employment (more senior position, better
advancement possibilities, better training, better working
conditions, better location)
b) obtain better salary (in a position with roughly the same
responsibilities). Please list employee's former position/
grade and available information on the employee's new
position and employer.
c) RIF
d) retirement and separation for age, whether voluntary or
involuntary
e) employee separated for cause or employee resigned in lieu
of
f) personal reason (family, relocation)
g) other (death)
h) total no. of separation (the total of a) through g)


a) none
b) 1 employee, a former Surveillance Guard, resigned to take
up better employment with an International Organization
where he also enjoys a tax free salary.
c) none
d) 1 retired, optionally, under CSR
e) 5 : 1 for breach of the code of ethics, 1 during
probationary for performance related reasons, 1 resigned
knowing he could be terminated if he does not improve in his
performance and behavior, 2 did not get their first
employment contract (personal services agreement) extended
for a second year due.
f) personal reason: 1 resigned to return to the U.S.
g) other: none
h) total number of separation: 8

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B. Current Staffing

C1. Total number of employees of all USG agencies paid under
the Local Compensation Plan, listed by grade level:

FSN-12: 0
FSN-11: 4
FSN-10: 11
FSN-9: 8
FSN-8: 14
FSN-7: 19
FSN-6: 15
FSN-5: 4
FSN-4: 32
FSN-3: 3
FSN-2: 0
Total: 110
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C2. Average step rate of employees by grade:

FSN-12: 0
FSN-11: 9
FSN-10: 8
FSN-9: 10
FSN-8: 8
FSN-7: 9
FSN-6: 6
FSN-5: 5
FSN-4: 7
FSN-3: 4
FSN-2: 0
Overall average: 8
-------------- --------------


D. Host Country Unemployment

D1. Is host country employment

a)moderate, or
b)high, or
c)low?

a) Moderate. Unemployment rate is moderately high, ranging
from 6.5 to 7 percent this year. This figure rose from last
year's rate of 5.3 percent. With a stagnant economy, there
were many layoffs in seasonal employment, such as in the
construction, painting, service and agricultural sectors.
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D2. Show job category where unemployment is high:
(list as many as apply):
a) blue collar
b) clerical
c) technical/professional
d) all of the above

a) Blue collar. Unemployment is particularly high amongst
unskilled blue collar workers. The most common limiting
factor is lack of proper education and training.
Men above 45 years of age are finding it difficult to find
jobs. Young people under 23 years with little or no working
experience, and those with no occupational training and
specialized education, are particularly affected. Women are
still able to find jobs in the traditionally feminized
sectors of health care and education.

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E. List names and agencies of official clearing on post
response to this message, including officials for each
consulate.

STATE Clyde L. Jardine Jr.
USDA/FAS Roger A. Wentzel
USDA/APHIS Roger A. Wenzel (in the absence of an APHIS
representative)
USDOC/FCS August Maffry
DOD/ODC Mark Rumohr
DOD/DAO Jeffrey Crews
NASA Michael Fawcett
ABMC Rodney Nybroten
AMCONGEN Michele Bond

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5. A. What is the name of the vendor managing the Mission's
current defined benefit retirement plan?

AEGON

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B. What is the current employer (USG) contribution rate?
What is the current employee contribution rate? Are
contributions calculated on basis salary? If something
other than basic salary is used, define.


Only the employee contribution is precisely defined in the
local retirement plan. It amounts to 7 percent of the
employee's total gross salary minus the fixed amount of the
annual old age State pension provided by the Dutch
Government.
The U.S. Government pays the balance of the costs and is
responsible to insure that contributions are sufficient to
fund the defined retirement benefits.

-------------- --------------


C. When was the most recent independent actuarial evaluation
performed to ensure that the defined benefit retirement plan
is actuarially sound? If it has been more than 3 years,
when is the next actuarial review scheduled to be performed?

There has been no previous independent actuarial review of
our retirement plan. Post has recently engaged an
independent actuary to review the soundness of our current
defined benefit plan and, also, to assist in clearing up
recent issues raised as a result of an unexpected and
enormous invoice received from the carrier for so-called
back-service payment.
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6. The above concludes Post response to questions asked and
related to this Mission.

SOBEL