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OSBM Career Banding System An Introduction for Employees October 2008.

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1 OSBM Career Banding System An Introduction for Employees October 2008

2 Agenda Brief overview of career-banding Competencies & Career Development Performance Management & Competency Assessments Recruitment & Selection EEO

3 Career-Banding Breaking down of classes into more generic titles Wider pay ranges and more defined career paths Pay movement is based on the development of competencies (knowledge, skills, and behaviors) People focused v. Position focused North Carolina State Government

4 Career-Banding Features  Introduces new concepts of pay: above market, at market, and below market  Does away with restrictive salary rules and promotes appropriate pay based on contribution and market  Gives managers more decision-making flexibility and accountability for pay decisions and spending  Pay is managed to the Journey Market Rate versus the Salary Grade Maximum

5 Career-banding OSP’s SYSTEM GOALS: To base employee pay on level of contribution and labor market information To simplify the administrative process To delegate compensation decisions to managers and to hold them accountable To encourage employees to develop those skills necessary for the organization to succeed

6 Features Class Structure:  Employees classified into banded classes within Job Families where career paths are identified and career development is emphasized  All banded classes within the job family have unique journey market rates (JMR)  OSBM can vary from the journey market rate within limits based on their unique labor market

7 Employee’s Role Responsible for career self-management Develop competencies and skills that are valued by the organization Contribute to the accomplishment of the organization’s mission through continued demonstration of competencies and skills

8 Management’s Role Develop competencies and skills that are valued by the the organization Competency assessment Use the Pay Factors in determining and managing employees’ pay Make pay decisions based on business needs of the organization Document pay decisions Advise employees on career development Recruitment & Selection

9 Human Resources Role Orient employees Implement Career-banding (Competencies) Evaluate the need for Market Reference Rates Train and consult with managers on compensation issues Monitor the management of pay

10 Job Families with Approved Bands

11 Banded Classifications Band Job Family / Branch / Band Administrative/Managerial Administrative Support Administrative Support Associate Administrative Support Specialist Administrative Support Supervisor Executive Assistant

12 Competencies Competencies are a set of behaviors which include knowledge, skills, and attributes Developing competencies increases the level of contribution or work of an employee An increase in competencies can be used as a basis for an increase in pay person-based job-based Correlate to person-based pay rather than job-based pay

13 Competencies Contributing Competencies: knowledge, skills and successful work behaviors, minimally necessary to perform a job from entry up to journey (no more trainees) Journey Competencies: fully applied body of knowledge, skills, and successful work behavior required Advanced Competencies: the highest or broadest scope of knowledge, skills, and work behavior required in the banded class

14 Career Development Wider Bands + Salary Flexibility =  Opportunities for employee growth within same position Competencies should be linked to training opportunities to enhance career growth Level Changes

15 Career Development Promotions are considered: movement to another banded class with a higher JMR, a level change (per OSP 5/2008)

16 Pay Philosophy Competitive Pay will reinforce high standards and positively impact the state’s ability to:  Recruit, retain and develop qualified, motivated, and diverse workforce  Promote proven successful work behaviors  Emphasize competencies and demonstrated skills and abilities on the job

17 Pay Philosophy Key Principles: Salaries shall be at or about the journey market rate for employees who regularly exhibit successful work behaviors at the journey level determined for the class. Salaries may exceed the journey market rate only for employees who regularly exhibit successful work behaviors beyond those identified at the journey level.

18 $21,218 $167,774 Administrative and Managerial Job Family Pay Band Social/Clinical Assistant $31,933$44,080$38,000 Journey Market Rate Social/Clinical Research Specialist $41,743 $63,153 Journey Market Rate $51,344 Banded Compensation System Administrative and Managerial Job Family

19 Performance Competency Evaluations Assessments tools & techniques and

20 Performance Evaluations & Competency Assessments Cycle Dates  November 1 – October 31  Recommendations for salary adjustments and level changes (subject to funding availability) are effective January 1 Work Plan expectations written at the “good” level Competencies benchmarked at the journey level

21 Performance Evaluations Evaluation of Key Roles and Responsibilities includes goals and performance expectations Incorporates past practice: includes planning discussion, interim, and final evaluation meetings Still provide an overall rating (BG, G, VG, O) What You Did

22 Competency Assessment Replaces “dimensions” on form Standardizes the criteria for review for each band Identifies “critical competencies” for successful performance of the job Assess the level for each competency defined How You Did It

23 Competency Assessment “Critical” Competencies have been identified for each band Managers agreed on critical competencies to increase consistency in rating across sections This system stresses movement along the band v. traditional “quick promotions”

24 NORTH CAROLINA STATE GOVERNMENT Performance Management, Competency Assessment, and Career Development Plan Office of State Budget and Management Department/Division: Office of the Governor / Office of State Budget & ManagementSection: Cycle Year: Nov 1, 20___ to Oct. 31, 20___ Employee: Position Title: Supervisor: Position Title: Section Head (if applicable): Position Title: Initial Work Planning Discussion Supervisor Signature:Date: Employee Signature:Date: Interim Review Supervisor Signature:Date: Employee Signature:Date: Final Performance RatingFinal Competency Assessment U BG G VG OC J A Final Review Supervisor Signature:Date: Employee Signature:Date: Deputy Director for Budget Signature:Date: Deputy Director for Management Signature:Date: *Both deputy signatures are required on Management Team members’ evaluations The employee’s signature does not indicate agreement with the final overall evaluation. The signature only indicates that the instrument was discussed on the dates indicated.


26 Functional Competency Assessment Key Functional Competencies Critic al ExpectationsFinal ResultsLevel C J A Career Development Activities (include Supervisor and Employee responsibilities, and the Individual Training Plan): Final Competency Assessment: Contributing (C) Journey (J) Advanced (A)  Initial Work Planning Discussion InitialsInterim Review InitialsFinal Review Initials Supv:Emp:Date:Supv:Emp:Date:Supv:Emp:Date: Note: The employee’s initials do not indicate agreement with the evaluation. Initials only indicate that the instrument was discussed on the dates indicated.

27 Pay Factors Resources (financial) Appropriate Market Rate Internal Pay Alignment Required Competencies (demonstrated)

28 Titles Contributing Journey Advanced Analyst, Associate, Specialist, etc. Senior Principal OSPOSBM

29 Purpose of Postings Sell the job Attract Attract applicants who can do the job Provide information for applicants to use in determining whether to apply or not Use key competencies to screen applications and determine who to interview Justify and defend hiring decisions Recruitment and Selection

30 Define the Business Need Consider departmental goals and objectives Consider workforce planning needs Consider the availability of workers Consider funds available Recruitment and Selection

31 Training and Experience Requirements Basic requirement is the class minimum from the class specification Transition teams determine T&E guidelines for each competency level. These are optional. Agency/university determines which T&E pattern to use (overall decision by job family/branch) Best practice is to use only the class minimum as we are moving to a competency-based system Remember, must meet posted T&E (and minimum required, posted competencies) to be qualified

32 EEO in the Career-banded Environment Laws Related to the Administration of Pay: FLSA Equal Pay Act Title VII of the Civil Rights Act Civil Rights Act (1991) Age Discrimination Act Americans with Disabilities Act  Types of Pay Equity in a Career-Banded Environment: Internal Equity External Equity Individual Equity

33 Types of Discrimination Disparate Treatment Direct discrimination Unequal treatment Intentional Prejudiced actions Different standards for different groups  Disparate Impact Indirect discrimination Unequal consequences or results Unintentional Neutral actions Same standards but different consequences EEO in the Career-banded Environment

34 Internal Monitoring (Managers, HR, EAC) External Monitoring (OSP)

35 EEO in the Career-banded Environment Employee Advisory Committee  Required by OSP  Combined function with current EEO committee  Provide annual report to management and OSP (and as needed)

36 Employee Advisory Committee (EAC): The Employee Advisory Committee will not function as a separate entity, but will incorporate the EAC responsibilities as a component of the responsibilities held by the existing EEO Committee. The EAC responsibilities include reviewing career- banding activities and data collected to ensure consistency, fairness, and equity. The committee will submit a report of its findings annually to the State Budget Officer and Human Resources Director. Dispute Resolution and EEO

37 Employees with career status can have salary decisions reconsidered by the State Budget Officer. To be eligible, salary decisions must be based a promotion, reassignment, demotion, or career progression adjustment as defined in policy AND one of the following: Amount of salary adjustment is less than appropriate amount as determined through pay factors. No salary adjustment has been granted when application of pay factors would support an adjustment. Competencies have been inappropriately evaluated.

38 The Office will establish and adhere to a plan for distribution of limited funding for career-banding salary decisions to ensure fairness. Salary decisions that are restricted solely because of limited funding are eligible for dispute resolution consideration only if the plan is not followed. An employee must document the basis for salary reconsideration in a memorandum to OSBM Human Resources within 15 days of the salary decision notification to determine eligibility. Resolution must be completed within 60 days after documentation is submitted. Eligible reconsideration requests will be referred to the State Budget Officer for reconsideration. Written notice of reconsideration decision will be provided to the submitting employee for all reconsideration requests received. Salary decisions under the provisions of this policy cannot be grieved through the formal grievance procedures. Dispute Resolution and EEO


40 OSBM Career Banding System October 2008

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