career banding in north carolina and unc general administration
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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 - PowerPoint PPT PresentationTRANSCRIPT
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Career Banding in North Carolina and
UNC General Administration
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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
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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
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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
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Why Change to Career Banding
Salary Flexibility:
• Allows for quicker reaction to labor market fluctuations
• Bases salaries on performance, skills, and competencies of employees
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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
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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)
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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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
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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
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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