Career Banding Policy

Human Resources Policy HR 08 05

A. Purpose: To establish a process to compensate employees who are assigned to career banded classifications at a level that promotes successful work behavior which contributes to the university’s mission and business strategies, emphasizes demonstrated competencies that are linked to organizational goals, reinforces high standards of performance, and maintains the labor market competitiveness necessary to recruit, retain and develop a competent and diverse work force. Section J of this policy provides definitions that are helpful in gaining a better understanding of this new policy.

B. Scope: Employees subject to the State Personnel Act (SPA), with permanent, time-limited permanent, trainee, or probationary appointments that are in career banded positions.

C. Policy: It is the policy of The University of North Carolina at Pembroke that career banding administration and guidelines will be applied consistently, to ensure fair and equitable treatment for career opportunity and compensation for all employees, through consistent application of the career banding policy and guidelines. In all cases, the university must consider Pay Factors and provisions of this policy to ensure proper documentation of salary decisions and assurance that equity is maintained. Salaries will be determined in compliance with Office of State Personnel policies and UNCP Salary Administration Policy.

D. Responsibilities

The Chancellor and Vice Chancellors are responsible for determining overall priorities concerning all salary administration programs and assuring that the career banding program is conducted in a fair and consistent manner.

Responsible Person/Financial Managers (RP/FM), in consultation with Human Resources, are responsible for communicating career banding to employees by ensuring employees attendance at related HR training, identifying appropriate role competencies and applying pay factors, as listed in the compensation section of this plan, for equitable determination of employee salary recommendations in compliance with UNCP Salary Administration Policy.

RP/FM are accountable for:

• consistent application of the career banding concepts,
• evaluation of employee’s initial and continuing level of competency through the establishment of career development plans,
• coaching employees with the goal of enhancing each employee’s contribution to the department’s success at the highest level allowed by the business plan,
• documenting pay recommendations annually or upon attainment of demonstrated competencies,
• evaluation of employee’s competencies upon entrance into any career banded position to determine competency level,
• evaluation of employee’s competencies during the annual performance review or upon attainment of demonstrated competencies.

The above responsibilities are noted as expectations on the RP/FM’s annual performance evaluation.

Employees, in conjunction with the RP/FM, will establish work plans that are based on the duties outlined in the job description as well as being relevant to the mission and goals of the university. Employees will assume responsibility for:

• career self-management in developing competencies,
• enhancing skills and educational level valued by the university
• contributing to the success of the organization through continued demonstration of those competencies to advance in the pay band,
• attending related training sessions, meetings, informal sessions, etc. that provide explanation of the career banding program,
• assuming the responsibility for the review process, which begins with direct notification to the immediate RP/FM and then may proceed through the chain of supervision, as needed. Additional review information is defined in Section H of this policy and in the Salary Administration Policy.

The Director of Human Resources/EEO/AA Officer is responsible to ensure that the program is administered on a non-discriminatory basis and all necessary components are in place for an effective program.

Human Resources is responsible for administering the career banding policy in conjunction with salary administration policies, providing consultation and oversight of all program areas including communication, employee and manager training, and program evaluation. Career banding training will become a part of the required “core” training program for staff development. Human Resources will ensure through the administration of the performance management program, that career development guidelines are provided and consistent use of pay factors in making compensation recommendations are used.

E. Human Resources Department

The Personnel Analyst for Classification and Compensation will serve as the Career Banding Administrator. The administrator will oversee the career banding program, ensuring that the necessary components, effective communication, training, evaluation, accountability, and equal opportunity are in place for an effective program. The Career Banding Administrator will provide continuing technical support for managers on making salary recommendations.

The Staff Development Specialist will provide the initial training to managers in career banding salary administration as an introduction to implementation within their area. As changes occur within career banding and as new managers are hired/appointed, the Staff Development Specialist will provide training.

Human Resources (HR) will administer the following provisions regarding career banding salary decisions or other career banding responsibilities by a RP/FM:

• Determining if employees have been provided opportunities for development and advancement

• Determining if pay factors have been applied properly and consistently in compliance with the plan

• Determining if the career banding concept has been communicated through HR training opportunities to employees in areas where career banding has been implemented

• Ensuring that The University of North Carolina at Pembroke does not engage in unlawful discrimination

• Ensuring that performance management and review procedures are available to address concerns about equitable opportunities for development and advancement

• Tracking dispute resolutions resulting from career banding salary decisions

• Conducting periodic self-assessments of the career banding program

Human Resources will report results of the career banding program self-assessments to the Chancellor, respective Vice Chancellors and Office of State Personnel (OSP) at least annually, more often if required. Detailed information will be released to OSP for monitoring purposes as requested.

F. Career Banding Implementation and Funding Goals

The effective date for implementing the Career Banding Salary Administration Plan is August 1, 2005. Upon implementation, an overview of the plan will be presented to all affected staff members during formal group meetings. In addition, all supervisors and managers will be required to attend training on how to effectively apply the career banding guidelines. To ensure fairness for all SPA employees during the initial career banding implementation period, UNCP will maintain current salary administration related policies. These policies use a centralized funding and compensation model for statewide range revisions and special entry rates for positions, promotions, new hire salaries, reclassifications, career banding salary adjustments and in-range increases. Salary administration policies may be adjusted once salary reserves and budget strategies have been identified by executive officers.

During implementation, the RP/FM will recommend assignments of all affected employees to the appropriate career band based on current classification. Determinations will then be made specific to each employee based upon competencies at the approved level (contributing, journey, advanced) and the appropriate salaries based on the pay factors.

G. Compensation

The compensation structure for a career band job family is defined in the appropriate NC Career-Banding Pay Plan.

1. Pay Factors

Pay factors will be applied equitably. Pay factor evaluation will occur with each action as defined in this policy: New Hire, Promotion, Reassignment, Demotion, Competency Assessment, Career Banding Salary Adjustment, Career Progression Market or Salary Adjustment, Grade-Band Transfer. Pay Factors include:

• University or department business need
• Availability of funding
• Minimum qualifications for class
• Knowledge, skills and competencies
• Related education and experience
• Duties and responsibilities
• Training, certifications and licenses
• Journey market rate guidelines/Market reference rate/and related market information
• Market dynamics
• Internal pay alignment (equity)
• Current salary and total compensation

Pay factor evaluation will also occur with the following situations to determine if salary adjustment may be warranted:

• Attainment and demonstrated use of competencies or skills within the same class
• Recognition of low employee salaries in relation to average market rate or market reference rate

2. Career Banding Personnel Actions

• Current Employees:

After initial band and competency level designation, employees will be considered for future salary adjustments based on advancement/achievement and after consideration of the pay factors. Evaluation of competencies will occur during the interim review and annual performance appraisal periods, or at such time that the employee status changes as to warrant a salary adjustment recommendation. RP/FM may recommend adjustments of any dollar amount of the employee’s current annual salary not to exceed the maximum of the pay band. Appropriate justification must accompany the request for approval. Justification should include information regarding the following: the development of higher-level competencies, the attainment of additional knowledge and skills, assuming additional duties defined as other duties with greater complexity, a higher level of responsibility, and greater consequences of error, etc., job change and/or internal equity concerns.
Salary adjustments will normally be awarded with the effective date of June 1.

• Career Progression Adjustment – Advancement (within level or band salary adjustment):

Salary adjustments may be awarded (but are not guaranteed) to recognize progression through the competency structure, the assumption of additional duties and responsibilities, and/or market factors. Salary adjustment recommendations shall be determined after consideration of all pay factors.

• Demotion/Reassignment:

A demotion is a change in employment status due to disciplinary action resulting in employee movement from one banded class to another with a lower journey market rate, or reduction in salary within the same class. A reassignment is employee movement, due to organizational needs or employee/employer agreement, from one banded class to another, with a lower journey market rate or to a different position within the same class.

Salary shall be determined after consideration of all pay factors. When the employee's current salary falls within the range of the lower band, it may remain the same or be reduced to any salary in the lower range. Exception: when an employee is promoted or reallocated upward and subsequently demoted, reassigned, or reallocated downward to any lower band within one year, the following shall apply:

o If to the same band level before the promotion or advancement, the salary shall revert to the salary being paid before the promotion or advancement, plus any increases that would have been given had that promotion not occurred, i.e. legislative salary increase.

o If to a pay band lower than held before the promotion or advancement occurred, the salary shall not exceed the maximum of the pay band.

o If to a position within the same pay band, but at a different level, the salary may be reduced to any amount within the pay range established for the pay band, or it may remain the same except the salary may not be below the minimum of the pay range for that band.

o If a demotion or reassignment is made to a position within the same pay band, the employee automatically qualifies. However, if a demotion or reassignment is made to a different pay band or job family, the employee must meet the minimum education and experience requirements, or their equivalent, as set forth in the band specification.

• In Range Adjustments:

The Career Banding Program replaces the In-Range Policy for salary adjustments for employees in career banded classifications.

• New Hires:

New employees possessing the minimum qualifications and competencies at the contributing level shall normally be paid at the minimum of the contributing band within the banded class. If the new employee possesses competencies and qualifications that are higher than the minimum standards, the salary may be established at a higher rate within the range assigned to the band and level. The pay factors, as stated in the plan, will be considered in determining the new employee’s salary. New hires that do not meet the minimum qualifications and competencies for the contributing level will be compensated below the contributing market reference rate.

• Pay Plan Change (Transfer):

If an employee transfers from a classification with a salary grade to a banded classification, or from a banded classification to a salary grade, a salary adjustment may or may not be awarded. The appropriate salary level for the individual will be determined by evaluating the employee’s current grade/band with the comparable roles and/or competencies of the graded/banded position. If it is determined that the new position is in a higher grade/band by using the Salary Grade Reference Inventory, a salary adjustment may be awarded. The amount of increase will be determined in the same manner as a promotion. A salary adjustment is not guaranteed. If it is determined that the current position and the new banded/graded position are at comparable rates and/or competency level, no increase will be awarded.

• Promotions:

Promotions will be awarded through a competitive process to include posting of the vacancy, interview, and formal assessment.

If employees are promoted from a lower band to a higher band, they must be paid at least at the minimum of the contributing level for their new role. If funds are not available, an increase may be considered at a later date based on a future evaluation of the pay factors. The future salary adjustment will be made on a current basis. Salaries will be determined based on the pay factors and may not exceed the maximum of the range.

• Processing Actions:

Affected departments and Human Resources will process salary adjustments using the system action reasons and codes designated by OSP.

3. Market Data:

The labor market rates for statewide career banded positions will be established by the Office of State Personnel using occupational specific surveys, and geographic specific labor market data, as appropriate, for the setting of the Market Referenced Rate. This will include viable recruitment areas as well as areas which we experience strong competition. Periodic adjustments in the market reference rate will be determined by OSP and adjustments in salaries based on changes in the market reference rate for a career banded positions will be made after applying all the pay factors and as priority funding is defined in the Salary Administration Policy.

H. Career Banding Procedures

1. Initiating Career Banding Actions

Career banding recommendations may be submitted at any time and will be reviewed as received with the opportunity for a salary adjustment annually in June. Recommendations must include the required justification documentation and be received in the Human Resources office by May 1 to be considered by the Salary Administration Committee. Incomplete submissions will be returned to the appropriate department. Late submissions will be held until the next review date.

a. Human Resources Initiatives
The Human Resources department may schedule organizational-wide, career band, occupational-group salary equity or labor market studies. The Chancellor and Vice Chancellors, supported by appropriate documentation demonstrating the need for the study will review Human Resources’ recommendations.

b. Departmental Initiatives

The request for a career banding salary adjustment may be initiated by the RP/FM or employee and is required to have the appropriate vice-chancellor approval. The RP/FM, in collaboration with the employee, will provide documentation for each salary adjustment recommendation, using the Career Banding Salary Recommendation Documentation form, by describing the relevance of pay factors to the recommendation and submitting the request, with supporting documentation, through the appropriate administrative channels to Human Resources. Each individual employee’s development of competencies, completion of training, and demonstration of applicable knowledge, skills, and abilities will determine progression through the career bands/competency levels. A salary adjustment recommendation is defined as a RP/FM’s proposal of the amount of pay that an employee may be granted after applying the pay factors.

Approvals required:

i. Department chair or director approval is required to initiate Career Banding Salary Adjustment requests from appropriate RP/FM.

ii. Vice Chancellor approval is required for all requests.

2. Career Banding Evaluation Process

a. Human Resources

Human Resources will coordinate the receipt of recommendations and conduct an initial review to ensure all required documentation and approvals have been received, coordinate the meeting schedule and prepare approval/denial documentation as necessary.

b. Career Banding Committee

The Career Banding Committee, made up of both supervisory and non-supervisory members who represent the divisional areas of the campus, will review implementation and operation of the career banding program, evaluate career banding recommendations for approval, and ensure employees are being treated fairly in opportunities for career development and compensation levels. Results of said evaluations will be presented to the Chancellor and Vice Chancellors.

c. Career Banding Approval Authority

The Chancellor, appropriate Vice Chancellor, and Human Resources Director will exercise final institutional approval authority for career banding actions based on documented established competency structures, salary equity, job changes, market reference rates, or labor market conditions.

3. Review Process

Step 1: Department Level Review

The RP/FM makes the first determination as to forwarding an employee’s career banding request for approval(s) and/or to Human Resources for consideration. If the RP/FM denies the employee’s request at the department level, a denial letter must be provided to the employee within 10 days of the decision. A copy of the denial letter should also be provided to Human Resources.

Step 2: Employee Review

If the employee is not satisfied with the RP/FM decision to deny the employee's request, the competency assessment evaluation or the amount of salary increase awarded, the employee may file a written request to meet with the RP/FM to discuss the reason(s) for the action. Such a request must be made within 10 days of receipt of the related action. The purpose of the meeting may also be to discuss what direction the employee might need to take in order to improve the possibility for future career band or salary adjustments. The RP/FM will provide a written report to the employee within 10 working days following the meeting.

If the employee is not satisfied with the outcome of the meeting with the RP/FM and wishes to discuss this decision further, they may submit a written request to the Human Resources Director within 10 working days from the date the RP/FM report is received. The purpose of the request would be to have the decision reviewed.

Step 3: Human Resources Director

Upon receipt of such a request, the Human Resources Director has 15 working days to convene a meeting that may include the employee, the appropriate RP/FM, director, and vice chancellor. The purpose of such a meeting is to discuss the written request, review the competency evaluation and/or the amount of salary awarded. The Human Resources Director will record the decision of this meeting and share a written report with all parties participating within 10 working days.

Step 4: Chancellor

Should the employee wish to pursue this matter further, they may have 10 working days to request a meeting with the Chancellor. Upon review of all the information available pertaining to the matter and after meeting with the employee, the Chancellor shall render the final decision. The Chancellor will have 10 working days after the meeting to file a decision with all parties.

The University of North Carolina at Pembroke plan for distribution of limited funding in regard to salary decisions to ensure fairness is defined the Salary Administration Policy. Salary decisions that are restricted solely because of the limited funding are eligible for review consideration only if the plan is not followed.

Any disputes resulting from career banding will be tracked and independently reviewed by Human Resources and Office of State Personnel in accordance with the established process and time limits.

J. Definitions

Advanced Competencies: The highest or broadest scope of knowledge, skills, and work behavior demonstrated on the job, which illustrates attained knowledge, skills, and competencies that are beyond journey competencies.

Banded Classification Series: A group of banded classifications that represents the full range of work performed from entry level through the management level (ex: Law Enforcement).

Career Band Level Changes: A change in the level to which an employee is assigned within a banded class.

Career Progression Salary Adjustment: Salary adjustments awarded to recognize:

1) an employee’s progression through a pay range based on established competency structure;

2) assignment of additional duties and responsibilities’

3) realignment of banded classification salary ranges approved by OSP based on market conditions.

Competencies: Sets of knowledge, skills and work behaviors that contribute to success in the job and the organization’s mission and business strategies.

Contributing Competencies: The span of knowledge, skills and successful work behaviors minimally necessary to perform a job from entry up to journey competencies required for the class.
Demotion: Change in employee status due to a disciplinary action as resulting in employee movement from one banded class to another with a lower journey market rate, or reduction in salary within the same class.

Journey Competencies: Fully acquired knowledge, skills, and successful work behavior demonstrated on the job that is beyond the contributing competencies, but less than the competencies outlined in the advanced level.

Journey Market Rate: The average salary of competitors in the relevant labor market for a banded class as determined by comparisons of benchmark jobs.

Market Reference Rate: A market reference rate determined by comparing benchmark jobs to relevant local, state, or national market data that allows geographical market flexibility in establishing appropriate market relationships.

Pay Band: A broad pay range approved for use with the career banding program as determined by the Office of State Personnel. These bands will include contributing, journey, and advanced levels for each job family.

Pay Range: The actual range of pay (minimum to maximum) assigned to a band.

Reassignment: Employee movement, due to organizational needs or employee/employer agreement, from one banded class to another with a lower journey market rate or to a different position within the same class.

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