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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
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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