ANNEX 1 . 71 MI 3.4 Analysis Source document UNRWA has an established Staff performance management system (EPER). The Performance Assessment System at UNRWA is governed by its respective policies and procedures, with the work plan defined for each staff member at the beginning of the year and the performance assessed every 4 months against the assigned objectives. Whilst the performance management system is in place, it was last reviewed over 5 years ago and there are question as to whether it is fit for purpose for the agency in its current reality as it is not possible to ‘fail’ with limited consequence for a negative assessment and improvement plans are not consistently developed when poor performance noted. Performance is assessed using a three-point scale, which is considered to be insufficiently nuanced. Prior to 2016, use of the performance assessment system was high but compliance dropped-off over time and is now being pushed more strongly by HR with a 78 per cent completion rate in 2017. There is a rebuttal mechanism in place through which a staff member who has been rated ‘performance falls short of expectations’ has the opportunity to seek a formal review of the rating. A Strategic Outcome of the MTS 2016-21 is that ‘a strong culture of performance and accountability exists for UNRWA managers and staff’. In line with the MTS 2016-21, there is a performance compact between each Director and the CG. This was introduced in 2016 and includes the extent to which Directors have taken necessary action in relation to recommendations arising from audits, evaluations and inspections. There are 3 different levels of the EPER system; for levels 1-9, mid-management and senior management with objectives and accountability varied by level. 1, 6, 8, 11, 24, 25, 37, 60, 64, 65, 80, 81 UNRWA is committed (MTS 2016-21) to detailed workforce planning; with proactive forecasting of staffing and talent needs. The needs in terms of skills and experience vary by programme priority under the Medium Term Strategy and highlight that workforce needs analysis must be accompanied with managerial skills needs assessments. There is no evidence however of the extent to which such assessments are taking place and how this links with staff performance assessment. Strategic HR management is constrained by an environment in which it is very difficult to lay-off staff and at a time when (understandably) there is heightened anxiety amongst staff. The engagement of UNRWA’s workforce and unions on issues related to staff relations and conditions of service has grown considerably in recent years, in the context of reform-driven changes in roles and responsibilities for many staff, and of new wage-related demands from public sector workers throughout the Middle East, which have been exacerbated by recruitment freezes, redundancies and heightened pressure upon staff given the resource constrained environment. For contractors, a new policy has been approved which requires that the performance of Individual Service Providers (i.e., Consultants/ Contractors) must be evaluated and recorded upon the completion of services. Final payment is only made when the evaluation has been completed and signed by the Contracting Manager, stating that the entire work has been satisfactorily completed. MI 3.4 Evidence confidence High confidence