Career Banding in North Carolina and UNC General Administration

North Carolina’s 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 1950’s

North Carolina’s 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

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

Why Change to Career Banding Salary Flexibility: Allows for quicker reaction to labor market fluctuations Bases salaries on performance, skills, and competencies of employees

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

North Carolina’s 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)

North Carolina’s 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

North Carolina’s Career Banding Compensation System 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 proficiency on the job

North Carolina’s 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

North Carolina’s 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

North Carolina’s 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)

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

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

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

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

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

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

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