Transcript Why Change to Career Banding - University of North Carolina

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
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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