Career Banding in North Carolina and UNC General Administration

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Career Banding in North Carolina and UNC
General Administration
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North Carolinas Current Compensation System

• Current Operating Conditions
• 6,069 class titles to administer
• Manage pay to the current salary grade maximums
• Key occupations are in high demand and short
  supply
• Many competitors already administer market-based
  pay systems
• A changing global economy with dynamic markets
• Policies and rules from the 1950s

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North Carolinas Current Compensation System

• Problems With Current System
• Policies and rules are difficult to administer
• System is not responsive to changing labor
  markets
• Restrictive compensation rules
• Perception that hard work is not rewarded
• Poor performance and superior performance often
  are rewarded equally

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Why Change to Career Banding

• Broader Classifications
• Allow more flexibility to incorporate new
  functions and roles
• Provide dual career tracks for supervisory and
  technical employees
• Encourage ongoing skill development
• Promote teams and teamwork

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Why Change to Career Banding

• Salary Flexibility
• Allows for quicker reaction to labor market
  fluctuations
• Bases salaries on performance, skills, and
  competencies of employees

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Why Change to Career Banding

• Localized Management of Salary Plans
• Decreases turnaround time for salary increase
  decisions
• Allows quicker reaction to retention situations
• Provides a clearer administrative process for
  making and implementing pay decisions
• Provides consultation and analysis from HR to
  assist departments with classification and salary
  decisions

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North Carolinas Career Banding Compensation
System

• Career Banding Definition
• Collapsing classes into more generic titles
• Wider pay ranges with career paths
• Pay movement is based on competencies (knowledge,
  skills and behaviors)

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North Carolinas Career Banding Compensation
System

• System Goals
• To base employee pay on level of contribution and
  labor market information
• To simplify administrative processes
• To delegate compensation decisions to managers
  and hold them accountable
• To encourage employees to develop skills needed
  for the organization to succeed

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North Carolinas Career Banding Compensation
System

• Pay Philosophy
• Competitive pay will reinforce high standards and
  positively impact the states ability to
• Recruit, retain and develop qualified, motivated,
  and diverse workforce
• Promote proven successful work behaviors
• Emphasize competencies and demonstrated
  proficiency on the job

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North Carolinas Career Banding Compensation
System

• Pay Philosophy Key Principles
• Salaries shall be at or near the journey market
  rate (JMR) for employees who regularly exhibit
  successful work behaviors at the journey level
  determined for the class
• Salaries may exceed the JMR for employees who
  regularly exhibit successful work behaviors
  beyond those identified at the journey level

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North Carolinas Career Banding Compensation
System

• Features of the system
• Eliminates restrictive salary rules and promotes
  appropriate pay based on contributions and market
• Gives managers decision making flexibility and
  holds them accountable for pay decisions
• Pay is managed to the JMR vs Grade Maximum
• Introduces new concepts of pay Above market, at
  market, and below market

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North Carolinas Career Banding Compensation
System

• Class Structure of Career Banding
• Employees will be classified into banded classes
  within Job Families where career paths are
  identified and career development is emphasized
• Each banded class within the Job Family will have
  a unique journey market rate
• Organizations may vary from the journey market
  rate within limits based on unique labor market
  conditions (if approved by OSP)

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Career Banding Job Families

• Administrative and Managerial
• Information Technology
• Law Enforcement and Public Safety
• Information and Education
• Human Services
• Medical and Health
• Institutional Services
• Operations and Skilled Trades
• Engineering and Architecture
• Natural Resources and Scientific

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Office of State Personnel Role

• Lead and Manage the Career Banding process
• Establish job family structure and banded pay
  classes
• Establish market rates and salary guidelines
• Provide labor market information
• Monitor for fairness, effectiveness, and
  efficient use of funds
• Provide training and consultation

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GA Human Resources Role

• Communicate program throughout the organization
• Train and consult with managers on compensation
  issues
• Provide compensation and salary administration
  services and problem solving
• Monitor market rates (in conjunction with OSP)
• Monitor/audit compensation decisions
• Oversee the Dispute Resolution Process

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Dispute Resolution Process

• Allows employees to have salary adjustment
  decisions reconsidered by an official beyond the
  decision maker
• Salary decisions based on unavailability of
  funding are not eligible for consideration as a
  dispute

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Management Role

• During Implementation
• Assist HR with placing positions into banded
  classes (using crosswalk)
• Review existing competencies for value to the
  organization
• Assess competencies of employees
• Serve as content experts to review materials
• Help determine employee communication and
  training schedule

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Management Role

• Continuous Responsibilities
• Use pay factors to determine and manage
  employees pay
• Make pay decisions based on business needs of the
  organization
• Document pay decisions
• Advise employees on career development
  opportunities
• Recruit and select employees using competencies

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Employee Role

• Take responsibility for career development
• Actively participate in work planning/career
  development plans
• Develop competencies and skills that are valued
  and needed by the organization