Overview of Salary Administration

1. Overview ofSalary Administration

2. Career Banding Salary Administration Objectives: • Understand content of new policies • Understand DHHS Pay Guidelines • Practice how to place employees in pay range • Review Aggregate Leveling Form • Review Salary Decision Worksheet • Understand new definitions • Practice processing salary decision worksheets • Understand how to consult with management on pay issues • Practice consulting model using role play

3. Operating in Dual Systems • Current policies apply to positions in pay grades • Career Banding policies apply to positions which have been “banded” • Positions will convert to banding gradually over the next several years • Eventually all positions will be converted • Until that time, we will operate in dual systems • Need to know both systems and how they differ

4. New Salary Administration Policiesfor Career Banding • Focus on Roles and Responsibilities • Have New Definitions • Emphasize career development • Require using the Four Pay Factors • Include a Pay Dispute Review Process

5. Competency Profile • Uses the state class specification to customize for our agency • Includes input from focus groups • Includes the role summary for the class • Describes the competencies at the C, J and A levels • Includes the minimum T&E • Used by managers to assess competency levels for employees and new hires • Provides a direct relationship between competency level and pay

6. DHHS Pay Guidelines Fully demonstrates C level competencies Fully demonstrates J level competencies Fully demonstrates A level competencies CRR ARR min max JMR New hires or employees who do not possess or demonstrate all of the C level competencies New hires or employees who demonstrate some of the J level competencies and some of the A level competencies New hires or employees who demonstrate some of the C level competencies and some of the J level competencies Employees who demonstrate all of the A level competencies and may be demonstrating some higher level banded class competencies

7. DHHS Pay Band Placement Guidelines Business & Technology Applications Analyst Fully demonstrates C level competencies Fully demonstrates J level competencies Fully demonstrates A level competencies CRR ARR min max JMR $37,000 $48,750 $70,200 $87,000 $58,500 New hires or employees who do not possess or demonstrate all of the C level competencies New hires or employees who demonstrate some of the C level competencies and some of the J level competencies New hires or employees who demonstrate some of the J level competencies and some of the A level competencies Employees who demonstrate all of the A level competencies and perform some higher level banded class competencies Collapsed 6 old classification titles into this pay band ranging from pay grade 74 to pay grade 78 The minimum of pay grade 74 is $39,623 The midpoint of pay grade 76 is $54,766 The maximum of pay grade 78 is $74,945

8. What’s Different • Every classification will have a title and associated schematic code • Five digits • Begins 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

9. “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

10. 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.

11. Competency AssessmentExisting Employee • Supervisor assesses each employee at the C, J or A level • Supervisor uses the profile to determine the level • Assessments are conducted at roll-over and annually • Assessments will coincide with PM cycle • Supervisor completes the Aggregate Leveling Form to record individual competencies • Aggregate Leveling Form is sent with salary decision worksheet as back-up • HR enters the level on the 105 screen

12. Competency AssessmentNew Hire • Supervisor completes an initial review for new hire and records on aggregate leveling form • Pay for new hire is set using the guidelines and pay factors • HR enters the initial competency level on the 105 • At the end of probationary period, supervisor completes a full competency assessment and makes competency or salary adjustments if needed • Employee’s revised level is entered in the 105 screen if applicable

13. Aggregate Leveling Form • Provides a summary of competencies for a work unit • The supervisor is responsible for recording and maintaining the information for their work unit • The supervisor attaches this form to the salary decision worksheet when making salary changes to any employee

14. DHHS Pay Band Placement Guidelines Business & Technology Applications Analyst Fully demonstrates C level competencies Fully demonstrates J level competencies Fully demonstrates A level competencies CRR ARR min max JMR $37,000 $48,750 $70,200 $87,000 $58,500 New hires or employees who do not possess or demonstrate all of the C level competencies New hires or employees who demonstrate some of the C level competencies and some of the J level competencies New hires or employees who demonstrate some of the J level competencies and some of the A level competencies Employees who demonstrate all of the A level competencies and perform some higher level banded class competencies 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. Gary Google Jane Yahoo Rob Router

15. What happens when employee crosses into a banded class and . . .? • Their salary exceeds the maximum of the class • Their salary is below the minimum of the class • They are paid higher than their assessed competency level • They are paid lower than their assessed level

16. Salary Decision Worksheet • Used to document pay decisions • New Hire • Promotion • Demotion • Grade-Band Transfer • Probationary to Permanent • Reassignment • Horizontal Transfer • Competency Increase • Retention • Labor Market • Competency Level Change • Completed by the manager and sent to HR

17. 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

18. 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

19. SOC Codes • Standard Occupational Classification code • Federal government standard • Defined in the Dictionary of Occupational Titles (DOT) • Used on the PD-105 screen • Assigned automatically at rollover • Not assigned for other actions – must be entered by HR • Will be providing you a reference chart – OSP currently refining this process

20. NEW HIRE • New employees • Reinstatements from separations • Apply pay factors

21. PROMOTION Transfer into class with higher journey market rate PD 105 “Promotion” • Journey market reference rate is not used to determine a promotion • Can be within or outside job family/branch • No requirement for salary change • Apply pay factors • Acting promotion is applicable if acting for a class with a higher journey market rate

22. Examples Promotion: Public Safety Officer to Public Safety Supervisor Officer JMR = 38,800 Supervisor JMR = 51,100 Not a promotion: Broughton Public Safety Officer, contributing to Cherry Hospital Public Safety Officer, Journey (Employee could still receive an increase)

23. DEMOTION Disciplinary action (PD-105 “Demotion-Pos Chg”, “Demotion-Class”, “Demotion-Salary”) • Position change: Disciplinary action resulting in employee assignment into a different position with a lower journey market rate. • Class: Disciplinary action resulting in employee’s classification changing to a banded class with a lower journey market rate. • Salary: Disciplinary action resulting in salary reduction in the same position

24. GRADE-BAND TRANSFER Employee movement between banded and graded classes. (PD-105 : “Grade-Band Transfer”) • At implementation – from grade to band, apply pay factors • With recruitment – from grade to band, apply pay factors • Band to Grade: Salary is established by the New Appointments Policy for graded classes • FR employees (teachers, etc.) treated as new hires

25. Probationary to Permanent • 3-9 months still applicable • Salary increase allowed • Apply pay factors

26. REASSIGNMENT Transfer into class with a lower journey market rate (PD-105 “Reassignment”) • Not a disciplinary action • Organizational change • Mutual agreement • Recruitment • Apply pay factors • An increase with this action is possible • If employee’s current salary exceeds appropriate rate based on Pay Factors, it may be maintained but cannot exceed the maximum of the class pay range for the new position

27. Example Reassignment: Business & Technology Application Analyst, journey level, with salary of $59,500 transfers into Operations & Analyst, posted at advanced level. BTA Analyst JMR = $58,500 O&S Analyst JMR = $51,000

28. HORIZONTAL TRANSFER Employee movement to a different position within the same career-banded class (PD-105 “Horizontal/Lateral Transfer”) Example: Technology Support Tech (Journey) transferring to a Technology Support Tech (Advanced)

29. CAREER PROGRESSION ADJUSTMENT Competencies/Skills (PD-105 “CP-Comp/Skill”) • Greater competencies • Salary increase • Overall competency level may change • PD-105 not necessary if no funding & no overall competency level change • Employee has to be performing satisfactorily

30. CAREER PROGRESSION ADJUSTMENT (continued) Competency level change (PD-105 “CP-Comp Lvl Chg”) • Greater competencies • No salary change • Overall competency level does change • No funding or current salary exceeds appropriate rate

31. CAREER PROGRESSION ADJUSTMENT (continued) Retention (PD-105 CP-Retention) • A key employee • Outside of State Government (or non-SPA employment offer) • Criteria is met to support a salary adjustment within the pay range of the employee’s banded class • Apply pay factors in conjunction with the current criteria

32. CAREER PROGRESSION ADJUSTMENT (continued): Labor Market (PD-105 “CP-Labor Mkt”) • Market rates adjusted after study • Facility/Division/School establishment of market reference rates • Salary below appropriate rate with implementation • Insufficient funding at time of career-banding implementation to pay employee at appropriate rate

33. Your Role How do you think your role will change when you: • Communicate with management • Provide guidance and instruction • Provide additional information • Understand, communicate, and discuss options

34. Human Resources as Consultants FROMTO Transactional Strategic Present focus Future focus Reactive Proactive “Approve” “Recommend” Track data Forecast/Plan Future training to come: • HR as a consultant • Using data to assist managers in making decisions • PMIS, ATS, etc.

35. Consulting Model Discussions with Management • Open • Clarify • Discuss • Agree • Close

36. Practice the Consulting Model • Review the scenario (from handout) • Complete the discussion planner • Role Play with a partner • Discuss as a group

37. Resources • On-line Career Banding Guide http://www.dhhs.state.nc.us/humanresources/banding/hrguide.html • DHHS Career Banding Team (919) 733-4344 Please complete the training evaluation Thank You