Overview ofOverview of

Salary AdministrationSalary Administration

Career Banding Salary Career Banding Salary AdministrationAdministration

Objectives:Objectives: Understand content of new policies Understand content of new policies Understand DHHS Pay GuidelinesUnderstand DHHS Pay Guidelines Practice how to place employees in pay rangePractice how to place employees in pay range Review Aggregate Leveling FormReview Aggregate Leveling Form Review Salary Decision WorksheetReview Salary Decision Worksheet Understand new definitionsUnderstand new definitions Practice processing salary decision worksheetsPractice processing salary decision worksheets Understand how to consult with management on Understand how to consult with management on

pay issuespay issues Practice consulting model using role playPractice consulting model using role play

Operating in Dual SystemsOperating in Dual Systems

Current policies apply to positions in pay gradesCurrent policies apply to positions in pay grades Career Banding policies apply to positions which Career Banding policies apply to positions which

have been “banded”have been “banded” Positions will convert to banding gradually over Positions will convert to banding gradually over

the next several yearsthe next several years Eventually all positions will be convertedEventually all positions will be converted Until that time, we will operate in dual systemsUntil that time, we will operate in dual systems Need to know both systems and how they differNeed to know both systems and how they differ

New Salary Administration PoliciesNew Salary Administration Policiesfor Career Bandingfor Career Banding

Focus on Roles and ResponsibilitiesFocus on Roles and Responsibilities Have New DefinitionsHave New Definitions Emphasize career developmentEmphasize career development Require using the Four Pay FactorsRequire using the Four Pay Factors Include a Pay Dispute Review ProcessInclude a Pay Dispute Review Process

Competency ProfileCompetency Profile

Uses the state class specification to customize for Uses the state class specification to customize for our agencyour agency

Includes input from focus groupsIncludes input from focus groups Includes the role summary for the class Includes the role summary for the class Describes the competencies at the C, J and A Describes the competencies at the C, J and A

levelslevels Includes the minimum T&EIncludes the minimum T&E Used by managers to assess competency levels Used by managers to assess competency levels

for employees and new hiresfor employees and new hires Provides a direct relationship between Provides a direct relationship between

competency level and paycompetency level and pay

DHHS Pay Guidelines

min maxCRRJMR

ARR

Fully demonstratesC level competencies

Fully demonstratesJ level competencies

Fully demonstratesA level competencies

New hires or employeeswho do not possess ordemonstrate all of the C level competencies

New hires or employeeswho demonstrate some of the C level competencies and someof the J level competencies

New hires or employeeswho demonstrate some of theJ level competencies and someof the A level competencies

Employees who demonstrateall of the A level competenciesand may be demonstratingsome higher level banded class competencies

DHHS Pay Band Placement Guidelines

min maxCRRJMR

ARR

Fully demonstratesC level competencies

Fully demonstratesJ level competencies

Fully demonstratesA level competencies

New hires or employeeswho do not possess ordemonstrate all of the Clevel competencies

New hires or employeeswho demonstrate some of the Clevel competencies and some of the J level competencies

New hires or employeeswho demonstrate some of theJ level competencies and someof the A level competencies

Employees who demonstrateall of the A level competencies and perform some higher level banded class competencies

Business & Technology Applications Analyst

$37,000 $48,750$58,500 $70,200 $87,000

Collapsed 6 old classification titles into this pay band ranging frompay grade 74 to pay grade 78

The minimum of pay grade 74 is $39,623The midpoint of pay grade 76 is $54,766The maximum of pay grade 78 is $74,945

What’s Different

Every classification will have a title and associated schematic code Five digitsBegins with number “1” - example “12205”

Each title will have a minimum, maximum, CRR, JMR and ARR

No pay “grades” – NG used for all banding pay grades

Pay relationships between job families is much different than current pay grades

Journey Market Rates are used to determine promotions, demotions and reassignments

In-Range Policy is not used in Career Banding

Salaries for employees are based on pay guidelines and pay factors

No pay formulas or calculations are used to set pay

“FAIR” PAY FACTORS

Financial Resources - the amount of funding that a manager has available when making pay decisions.

Appropriate Market Rate - the market rate applicable to the functional competencies demonstrated by the employee

Internal Pay Alignment - the consistent alignment of salaries for employees who demonstrate similar required competencies in the same banded class within a work unit or organization.

Required Competencies - the functional competencies and associated levels that are required based on organizational business need and demonstrated on the job. This pay factor considers:

• Minimum qualifications for class• Knowledge, skills, abilities and behaviors• Related education and experience• Duties and responsibilities• Training, certifications, and licenses

SALARY DETERMINATION

Office of State Personnel Career Banding Policy states:

Contributing: Salaries for employees with contributing competencies should be below the journey market rate guidelines, as established by

OSP, but not below the minimum of the class pay range.

Journey: Salaries for employees with journey competencies should be within the journey market rate guidelines, unless business needs

(budget) prevent this.

Advanced: Salaries for employees with advanced competencies should be above the journey market rate guidelines, unless business needs (budget) prevent this. Salaries must not exceed maximum of

the class pay range.

Competency AssessmentCompetency AssessmentExisting EmployeeExisting Employee

Supervisor assesses each employee at the Supervisor assesses each employee at the C, J or A level C, J or A level

Supervisor uses the profile to determine Supervisor uses the profile to determine the levelthe level

Assessments are conducted at roll-over Assessments are conducted at roll-over and annuallyand annually

Assessments will coincide with PM cycleAssessments will coincide with PM cycle Supervisor completes the Aggregate Supervisor completes the Aggregate

Leveling Form to record individual Leveling Form to record individual competenciescompetencies

Aggregate Leveling Form is sent with Aggregate Leveling Form is sent with salary decision worksheet as back-upsalary decision worksheet as back-up

HR enters the level on the 105 screenHR enters the level on the 105 screen

Competency AssessmentCompetency AssessmentNew HireNew Hire

Supervisor completes an initial review for Supervisor completes an initial review for new hire and records on aggregate leveling new hire and records on aggregate leveling formform

Pay for new hire is set using the guidelines Pay for new hire is set using the guidelines and pay factorsand pay factors

HR enters the initial competency level on HR enters the initial competency level on the 105the 105

At the end of probationary period, At the end of probationary period, supervisor completes a full competency supervisor completes a full competency assessment and makes competency or assessment and makes competency or salary adjustments if neededsalary adjustments if needed

Employee’s revised level is entered in the Employee’s revised level is entered in the 105 screen if applicable105 screen if applicable

Aggregate Leveling FormAggregate Leveling Form

Provides a summary of competencies for Provides a summary of competencies for a work unita work unit

The supervisor is responsible for The supervisor is responsible for recording and maintaining the recording and maintaining the information for their work unitinformation for their work unit

The supervisor attaches this form to the The supervisor attaches this form to the salary decision worksheet when making salary decision worksheet when making salary changes to any employeesalary changes to any employee

DHHS Pay Band Placement Guidelines

min maxCRRJMR

ARR

Fully demonstratesC level competencies

Fully demonstratesJ level competencies

Fully demonstratesA level competencies

New hires or employeeswho do not possess ordemonstrate all of the Clevel competencies

New hires or employeeswho demonstrate some of the Clevel competencies and some of the J level competencies

New hires or employeeswho demonstrate some of theJ level competencies and someof the A level competencies

Employees who demonstrateall of the A level competencies and perform some higher level banded class competencies

Business & Technology Applications Analyst

$37,000 $48,750$58,500 $70,200 $87,000

Gary GoogleJane Yahoo Rob Router

On the Aggregate Leveling Form, identify the overall competency level for these three employees. Then determine where in the band they should be paid. Discuss in your group.

What happens when employee crosses into What happens when employee crosses into a banded class and . . .?a banded class and . . .?

Their salary exceeds the maximum of the Their salary exceeds the maximum of the classclass

Their salary is below the minimum of the Their salary is below the minimum of the classclass

They are paid higher than their assessed They are paid higher than their assessed competency levelcompetency level

They are paid lower than their assessed They are paid lower than their assessed levellevel

Salary Decision WorksheetSalary Decision Worksheet

Used to document pay decisionsUsed to document pay decisions New HireNew Hire Promotion Promotion DemotionDemotion Grade-Band Transfer Grade-Band Transfer Probationary to PermanentProbationary to Permanent Reassignment Reassignment Horizontal TransferHorizontal Transfer Competency IncreaseCompetency Increase RetentionRetention Labor Market Labor Market Competency Level ChangeCompetency Level Change

Completed by the manager and sent to HRCompleted by the manager and sent to HR

PMD105 PD-105 DIRECT ENTRY REV/PRIOR: N ATTACHED FORMS: 1 OF 1 SOCIAL SECURITY NO: 222 33 4444 EMPLOYEE NAME: EFFECTIVE DATE: __ __ __ POSITION NUMBER: _ EOD (NEW HIRE) _ DEMOTION-POS CHG _ IN RNGE-LEVEL **CAREER-BAND** _ RE-INSTATEMENT _ DEMOTION-CLASS _ IN RNGE-VARIETY _ APPOINTMENT CHG _ DEMOTION-SALARY _ IN RNGE-EQUITY _ GRADE-BAND TRANS _ APPT EXTENSION _ RE-ASSIGNMENT _ IN RNGE-RETENTN _ CP-COMP/SKILL _ PT HOURS CHANGE _ SER INCREASE _ IN RNGE-TURNOVER _ CP-RETENTION_ HORZ/LATRL TRANS _ REALL-GEO DIFF _ IN RNGE-OTHER _ CP-LABOR MKT _ PROMOTION _ SALARY ADJUST _ CANCEL IN RANGE _ CP-COMP LVL CHG _ PRO INC-AFT EFF _ SAL ADJ-RETENTN _ NAME CHANGE _ ACTING PROMOTION _ SAL ADJ-TRAINEE _ SSN CHANGE _ ACTING PROM CANC _ TRAINEE REALL _ COLA _ REALLOCATION UP _ SAL ADJ-LEAD WRK _ CGRA _ REAL INC-AFT EFF _ SAL ADJ-CAN LEAD _ CANCEL COLA/CGRA _ REALL DOWN _ RANGE REVISION _ EPA SUPPL PYMNT _ REALL HORIZONTAL _ RR INC-AFTER EFF _ EPA TITLE CHANGE _ REALL-WK AGAINST _ TITLE CHANGE _ REMARKS ONLY ___ OTHER NEXT ACTION ___ SSN ___ __ ____ POS NO ____ ____ ____ ___ USER ___ ___ HIT ENTER AFTER CHOOSING A PD-105 ACTION. PF9 KEY = DIRECT ENTRY MAIN MENU

PD-105 DIRECT ENTRY

DEPT/UNIV: GREAT NC UNIVERSITY DATE PREPARED: 11 13 03 PAYROLL UNIT: ACTION: GRADE-BAND TRANSFER EFFECTIVE DATE: 07 01 03 TEXT: 1 IMAGES: N LAST NAME FIRST MIDDLE SOC SEC NO. DOB CITIZEN M/S DOE JOHN M 222 22 2222 05 01 73 N CHG: _______ ___ __ N SCHEM CLASSIFICATION TITLE SALARY MKT-IDX COMP W/H POSITION NUMBER 06040 POLICE OFFICER I 32625 63 +MP S 5530 0000 0044 444 CHG: 15830 PUBLIC SAFETY OFFICER 34256 99 C S ____ ____ ____ ___ APPT TYPE: PERMANENT FULL-TIME HRS/WK MTHS/YR TEMPORARY DURATION X PERM _ PROB _ TRNE _ TMLD | X FT | 40 | 12.0 | DAYS WKS MTHS _ TEMP _ INT _ RET _ STU | _ PT | __ | | CHG: __ DAYS __ WKS __ MTHS REMARKS: ________________________________________ HCP VET EDU RACE SEX OVER- _ SAL _ CRED _ APT _ INCR _ ACT _ OVRL _ EQV NO N 6 W M RIDES: _BUD _ DUAL _ SCH _ SPCL _ STP _ OTHR _ DTE CHG: ___ ___ ___ ___ ___ *** FORM HISTORY *** NEXT ACTION _____ SSN ______ ____ _______ POS NO _____ _____ _____ ____ USER ____ ____

PF8=POS/BUD INFO; PF11=TEXT; PF17=ACTION LIST; PF18=FHS LIST; PF10=PMDLIST

SOC CodesSOC Codes

Standard Occupational Classification code Standard Occupational Classification code Federal government standardFederal government standard Defined in the Dictionary of Occupational Defined in the Dictionary of Occupational

Titles (DOT)Titles (DOT) Used on the PD-105 screenUsed on the PD-105 screen Assigned automatically at rolloverAssigned automatically at rollover Not assigned for other actions – must be Not assigned for other actions – must be

entered by HRentered by HR Will be providing you a reference chart – Will be providing you a reference chart –

OSP currently refining this processOSP currently refining this process

NEW HIRE NEW HIRE

New employeesNew employees Reinstatements from separationsReinstatements from separations Apply pay factorsApply pay factors

PROMOTIONPROMOTION

Transfer into class with higher journey market Transfer into class with higher journey market raterate

PD 105 “Promotion” PD 105 “Promotion” Journey market Journey market referencereference rate is not used to rate is not used to

determine a promotion determine a promotion Can be within or outside job family/branchCan be within or outside job family/branch No requirement for salary changeNo requirement for salary change Apply pay factorsApply pay factors Acting promotion is applicable if acting for a Acting promotion is applicable if acting for a

class with a higher journey market rateclass with a higher journey market rate

ExamplesExamples

Promotion: Public Safety Officer to Promotion: Public Safety Officer to Public Safety SupervisorPublic Safety Supervisor

Officer JMR = 38,800 Supervisor JMR = Officer JMR = 38,800 Supervisor JMR = 51,10051,100

Not a promotion: Broughton Public Not a promotion: Broughton Public Safety Officer, contributing to Cherry Safety Officer, contributing to Cherry Hospital Public Safety Officer, Hospital Public Safety Officer, Journey (Employee could still receive Journey (Employee could still receive an increase)an increase)

DEMOTIONDEMOTION

Disciplinary actionDisciplinary action(PD-105 “Demotion-Pos Chg”, “Demotion-Class”, (PD-105 “Demotion-Pos Chg”, “Demotion-Class”,

“Demotion-Salary”)“Demotion-Salary”) Position change: Disciplinary action resulting in Position change: Disciplinary action resulting in

employee assignment into a different position employee assignment into a different position with a lower journey market rate.with a lower journey market rate.

Class: Disciplinary action resulting in employee’s Class: Disciplinary action resulting in employee’s classification changing to a banded class with a classification changing to a banded class with a lower journey market rate. lower journey market rate.

Salary: Disciplinary action resulting in salary Salary: Disciplinary action resulting in salary reduction in the same positionreduction in the same position

GRADE-BAND TRANSFERGRADE-BAND TRANSFER

Employee movement between banded and graded Employee movement between banded and graded classes.classes.

(PD-105 : “Grade-Band Transfer”)(PD-105 : “Grade-Band Transfer”) At implementation – from grade to band, apply At implementation – from grade to band, apply

pay factorspay factors With recruitment – from grade to band, apply pay With recruitment – from grade to band, apply pay

factorsfactors Band to Grade: Salary is established by the New Band to Grade: Salary is established by the New

Appointments Policy for graded classesAppointments Policy for graded classes FR employees (teachers, etc.) treated as new FR employees (teachers, etc.) treated as new

hireshires

Probationary to PermanentProbationary to Permanent

3-9 months still applicable3-9 months still applicable Salary increase allowedSalary increase allowed Apply pay factorsApply pay factors

REASSIGNMENTREASSIGNMENT

Transfer into class with a lower journey market rate Transfer into class with a lower journey market rate (PD-105 “Reassignment”) (PD-105 “Reassignment”)

Not a disciplinary actionNot a disciplinary action Organizational changeOrganizational change Mutual agreementMutual agreement RecruitmentRecruitment Apply pay factorsApply pay factors An increase with this action is possibleAn increase with this action is possible If employee’s current salary exceeds appropriate If employee’s current salary exceeds appropriate

rate based on Pay Factors, it may be maintained rate based on Pay Factors, it may be maintained but cannot exceed the maximum of the class pay but cannot exceed the maximum of the class pay range for the new positionrange for the new position

ExampleExample

Reassignment: Business & Technology Reassignment: Business & Technology Application Analyst, journey level, Application Analyst, journey level, with salary of $59,500 transfers into with salary of $59,500 transfers into Operations & Analyst, posted at Operations & Analyst, posted at advanced level.advanced level.

BTA Analyst JMR = $58,500 BTA Analyst JMR = $58,500

O&S Analyst JMR = $51,000O&S Analyst JMR = $51,000

HORIZONTAL TRANSFERHORIZONTAL TRANSFER

Employee movement to a different Employee movement to a different position within the same career-position within the same career-banded classbanded class

(PD-105 “Horizontal/Lateral Transfer”)(PD-105 “Horizontal/Lateral Transfer”)

Example: Technology Support Tech Example: Technology Support Tech (Journey) transferring to a Technology (Journey) transferring to a Technology Support Tech (Advanced)Support Tech (Advanced)

CAREER PROGRESSION CAREER PROGRESSION ADJUSTMENTADJUSTMENT

Competencies/SkillsCompetencies/Skills

(PD-105 “CP-Comp/Skill”)(PD-105 “CP-Comp/Skill”) Greater competenciesGreater competencies Salary increaseSalary increase Overall competency level may changeOverall competency level may change PD-105 not necessary if no funding & no PD-105 not necessary if no funding & no

overall competency level changeoverall competency level change Employee has to be performing satisfactorilyEmployee has to be performing satisfactorily

CAREER PROGRESSION CAREER PROGRESSION ADJUSTMENT (continued)ADJUSTMENT (continued)

Competency level changeCompetency level change

(PD-105 “CP-Comp Lvl Chg”)(PD-105 “CP-Comp Lvl Chg”) Greater competenciesGreater competencies No salary changeNo salary change Overall competency level does changeOverall competency level does change No funding or current salary exceeds No funding or current salary exceeds

appropriate rateappropriate rate

CAREER PROGRESSION CAREER PROGRESSION ADJUSTMENT (continued)ADJUSTMENT (continued)

RetentionRetention(PD-105 CP-Retention)(PD-105 CP-Retention) A key employeeA key employee Outside of State Government (or non-SPA Outside of State Government (or non-SPA

employment offer)employment offer) Criteria is met to support a salary Criteria is met to support a salary

adjustment within the pay range of the adjustment within the pay range of the employee’s banded classemployee’s banded class

Apply pay factors in conjunction with the Apply pay factors in conjunction with the current criteriacurrent criteria

Labor MarketLabor Market(PD-105 “CP-Labor Mkt”)(PD-105 “CP-Labor Mkt”) Market rates adjusted after studyMarket rates adjusted after study Facility/Division/School establishment of Facility/Division/School establishment of

market reference ratesmarket reference rates Salary below appropriate rate with Salary below appropriate rate with

implementationimplementation Insufficient funding at time of career-Insufficient funding at time of career-

banding implementation to pay employee banding implementation to pay employee at appropriate rateat appropriate rate

CAREER PROGRESSION CAREER PROGRESSION ADJUSTMENT (continued):ADJUSTMENT (continued):

Your RoleYour Role

How do you think your role will change How do you think your role will change when you:when you:

Communicate with managementCommunicate with management Provide guidance and instructionProvide guidance and instruction Provide additional information Provide additional information Understand, communicate, and Understand, communicate, and

discuss optionsdiscuss options

Human Resources as Human Resources as ConsultantsConsultants

FROMFROM TOTO TransactionalTransactional StrategicStrategic Present focusPresent focus Future focusFuture focus ReactiveReactive ProactiveProactive “ “Approve”Approve” “Recommend”“Recommend” Track dataTrack data Forecast/PlanForecast/Plan

Future training to come:Future training to come: HR as a consultantHR as a consultant Using data to assist managers in making decisionsUsing data to assist managers in making decisions

PMIS, ATS, etc.PMIS, ATS, etc.

Consulting ModelConsulting Model

Discussions with ManagementDiscussions with Management

1.1. OpenOpen

2.2. ClarifyClarify

3.3. DiscussDiscuss

4.4. AgreeAgree

5.5. CloseClose

Practice the Consulting ModelPractice the Consulting Model

1.1. Review the scenario (from handout)Review the scenario (from handout)

2.2. Complete the discussion plannerComplete the discussion planner

3.3. Role Play with a partnerRole Play with a partner

4.4. Discuss as a group Discuss as a group

ResourcesResources

On-line Career Banding GuideOn-line Career Banding Guidehttp://www.dhhs.state.nc.us/humanresources/banding/http://www.dhhs.state.nc.us/humanresources/banding/

hrguide.htmlhrguide.html

DHHS Career Banding Team (919) 733-4344DHHS Career Banding Team (919) 733-4344

Please complete the training evaluationPlease complete the training evaluation

Thank YouThank You