Why Change to Career Banding by xjw19747


									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
• 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
• 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
• 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
• 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
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
• 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
• Train and consult with managers on compensation
• 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
• 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
• 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

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