CareerBanding Salary Administration Monitoring

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Career-Banding Salary Administration / Monitoring

• CBI
• May, 2006

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Career-Banding Salary Administration

• Pay Structure
• Salary Policy and Guidelines
• How to Determine Salary with Various Actions

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Career-Banding Pay Structure

• Job Family / Branch / Class
• - Class Salary Range (Minimum Maximum)
• Contributing Reference Rate (CRR)
• Journey Market Rate (JMR)
• Advanced Reference Rate (ARR)
• Example Administrative Support Associate
• 20,117 23,478 27,000 31,050
  39,600
• Min CRR JMR ARR Max

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Policy

• Competencies - Knowledge, skills, abilities and
  behaviors that employees need to successfully do
  their job must be demonstrated on the job
  measured according to standards set by the
  organization, and required of the job based on
  the organizations need
• Three levels Contributing, Journey, Advanced

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Policy

• Salary Determination
• Contributing competency level pay below JMR,
  but not below minimum of class salary range
• Journey competency level pay within JMR
  guidelines
• Advanced competency level pay above JMR, but
  not above maximum of class salary range

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Policy 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.

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Applying Pay Factors to Determine Salary

• Considering organizational needs, assess
  employees competencies and determine competency
  level
• Consider market rate relevant to employees
  competency level and determine an applicable rate
  or range of pay for employee
• Review Market Index (MI) of other employees with
  similar competencies and decide on an appropriate
  salary
• Consider funding and advertised salary limits

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Salary Determination Guidelines

• MI within 10 (90 110) of market reference rate
  for competency level is considered at market.
  Example
• 20,000 40,000
• MIN CRR JMR ARR
  MAX
• 22,200
  27,000 33,000
• -/10 (20,200-24,420) (24,545-29,700)
  (30,000-36,300)
• Journey employee with salary of 25,000 has MI
  of 92 which may be appropriate, particularly if
  some competencies are less than journey level.

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Salary Determination Guidelines

• Internal A/U procedures may allow different
  market guidelines within the - / 10 of market
  rate for different roles within a class
• Example Facility Maintenance
  Technician-Mechanical Trades Class will include
  Plumbers and Electricians
• Market data may indicate that one is typically
  paid higher. A/U may set a higher target for
  that role, but must be within 10 of the
  statewide market rate.

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Pay Based on Competencies

Competency Evaluation Form
Contributing Journey
Advanced Comp A X Comp B X Comp C
X Overall X
Employees Pay
Career-Banded Class Rates
Min
Max
Journey Market Rate
Contributing Reference Rate
Advanced Reference Rate
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Pay Based on Competencies
Competency Evaluation Form
Contributing Journey
Advanced Comp A
X Comp B X Comp C X Overall X
Employees Pay
Career-Banded Class Rates
Max
Min
Journey Market Rate
Contributing Reference Rate
Advanced Reference Rate
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Pay Based on Competencies
Competency Evaluation Form
Contributing Journey
Advanced Comp A
X Comp B X
Comp C
X Overall X
Employees Pay
Career-Banded Class Rates
Max
Min
Journey Market Rate
Advanced Reference Rate
Contributing Reference Rate
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How to Determine Appropriate Salaries

• After initial allocation (title changes) only -
  prior to full implementation
• At time of full implementation
• After full implementation

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Determining Salary After Initial Allocation

• Prior to full implementation
• Salary increases are not granted except with
  actions resulting from recruitment.
• - Competency assessments are necessary to
  establish salaries for New Hires and other
  recruitment actions
• Currently this applies only for Police and IT

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Determining Salary at Full Implementation

• Salary may be maintained, but must not exceed max
  of class range
• Salary adjustment may be applicable if justified
  by Pay Factors
• - Competency level?
• - Market rate?
• - Internal pay alignment?
• - Funding?

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Determining Salary After Full Implementation

• New Hires /
• Reinstatements
• Promotions
• Reassignments
• Horizontal Transfers

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Determining Salaries After Full Implementation

• Revision of CB Class Range
• Revision of CB Class Market Rates
• Career-Progression Adjustments
• Demotions
• Transfers From Graded Classes

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New Hire or Reinstatement

• Apply Pay Factors.
• Reinstate from LWOP into same position at same
  salary unless a higher rate is justified as
  career progression adjustment.
• Reinstate after separation No requirement for
  salary to be same as previous rate if within 12
  months.
• Note Fairness between those separated and not
  separated is applicable through Internal Pay
  Alignment.

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Promotion

• Movement from one banded class to another with
  higher JMR
• Apply Pay Factors
• - 5 minimum increase does not apply
• - Can be within branch or between branches or job
  families
• Acting Promotion may be applicable if employee
  performs role of CB class with higher JMR

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Promotion Example

• Sam, Public Safety Officer, Advanced _at_ 40,300 is
  promoted to Public Safety Supervisor,
  Contributing _at_ 41,900 (4 increase MI 102)
• 
  CRR JMR ARR
• Public Safety Officer 29643 33200
  39176
• Public Safety Supv 41156 46095
  54392
• Employee Competencies as PS Supervisor C-5,
  J-0, A-0
• MI of other PS Supervisors with same level
  competencies
• 102 and 103

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Promotion Example

• Determine appropriate salary.
• Operations Systems Technician, Advanced _at_
  38,000 promoted to Operations Systems Analyst,
  Contributing
• Analyst Competencies C-7 J-0 A-0
• (Refer to Report No.2 and CP Pay Plan)

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Reassignment

• Movement from one banded class to another with
  lower JMR
• Apply Pay Factors
• If current salary exceeds appropriate rate
• - and action is not by employee choice, salary
  may be maintained except must not exceed max
• - and action is employee choice, salary must be
  reduced

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Reassignment Example

• John, Operations Systems Analyst, Contributing
  _at_ 43,500 reassigned to Operations Systems
  Technician, Advanced. Salary reduced to 38,000.
  (MI 101) due to equity (MI of other O S
  Technicians with same level competencies 101,
  100, 101)
• Technician Competencies C-0 J-0 A-7
• O S Analyst JMR51,000
• O S Tech JMR30,000, ARR37,500

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Reassignment Example

• Determine Appropriate Salary
• Business Technology Applications Analyst,
  Journey _at_ 59,000 reassigned through
  recruitment
• to Operations Systems Analyst, Advanced
• O S Analyst Competencies C-0 J-3 A-4
• (Refer to Report No.2 and CB Pay Plan)

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Horizontal Transfer

• Movement from one position to another in same
  banded class or movement to another banded class
  with same JMR
• Apply Pay Factors.
• If current salary exceeds appropriate rate
• - and action is not by employee choice, salary
  may be maintained except must not exceed max
• - and action is employee choice, salary must be
  reduced

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Horizontal Transfer Example

• Alice, Public Safety Officer, Journey, pos.
  521, _at_ 36000 (MI 108) transfers to
• Public Safety Officer, Advanced, pos 640 _at_
  37000 (MI 91) (3 salary increase)
  
• Competencies as PS Officer-Advanced C-0, J-1,
  A-4
• CRR JMR ARR
• Public Safety Officer 29643 33200 39176
• MI of other PS Officers with same level
  competencies 90, 91, 91

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Horizontal Transfer Example

• Operations Systems Analyst, Journey _at_ 55,600
  is recruited for vacant Operations Systems
  Analyst position
• Could 58,000 (MI94) be an appropriate salary?
• Competencies toward vacant role C-0 J-2 A-5
• (Refer to Report No.2 and CB Pay Plan)

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Revision of CB Class Range

• Change in class range (minimum and/or maximum)
• Salaries below minimum must be adjusted at least
  to new minimum
• Salaries within range may be adjusted as
  applicable through Career Progression Adjustment

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Revision of CB Class Market Rates

• Change in Contributing, Journey, Advanced Rates
  for banded class
• Salaries below the appropriate rate based on Pay
  Factors may be adjusted as applicable through
  Career Progression Adjustment

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Career-Progression Adjustments

• Salary adjustment within the salary range of the
  banded class. May be granted in conjunction with
  change in demonstrated competencies or as
  justified through labor market
• Ineligible if employee has active warning/
  disciplinary action or below good/ unsatisfactory
  rating

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Career-Progression Adjustments

• Due to Competencies
• One or more competencies is demonstrated at a
  higher level and current salary is less than
  appropriate rate considering Pay Factors.
  Overall competency level may or may not change.
• - Salary Eligibility Apply Pay Factors
• 1. Competency Level? 3. Internal
  pay alignment?
• 2. Market rate? 4.
  Funding?

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Career Progression-Competency Example

• Competency assessment indicates change in
  demonstrated competencies.
• From C-4 J-1 A-0 OverallC
• To C-3 J-2 A-0 OverallC
• Current salary 30,500. Requested salary
  31,800 which is equitable with other employees
  with same competencies.
• C
  J
• Mkt rates 30,000
  40,000
• - / 10 27,273-33,000
  36364-44,000

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Career-Progression Adjustments

• Due to Labor Market
• - Revision in class range
• - Revision in CRR, JMR, ARR
• - Limited funding has not allowed appropriate
  salary rate based on competencies
• - Establishment of A/U market reference rate
• Salary Eligibility Apply Pay Factors.
• Salary must be within range.

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Career Progression-Labor Market Example

• Revision in CB class market rates
• From CRR-30,000 JMR-40,000 ARR-50,000
• To CRR-30,600 JMR-40,800 ARR-51,000
• Three employees in class have Contributing
  competency level Emp 1 _at_30,000 (MI 100)
  C-4 J-0 A-0
• Emp 2 _at_31,200 (MI 104) C-3
  J-1 A-0
• Emp 3 _at_31,500 (MI 105) C-3
  J-1 A-0
• Some Options
• a) Increase all salaries to maintain MI for each
  employee
• b) No increases as all salaries are within 10 of
  CRR

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Demotion

• Demotion disciplinary action resulting in
  movement to class with lower JMR or reduction in
  salary within same class
• Salary eligibility
• - Must not exceed maximum of range
• - Must not be less than minimum of range
• - May be less than appropriate rate based on Pay
  Factors

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Retention Salary Adjustment

• Criteria
• - Employee is in a key role difficult to fill
  no other employees eligible for this role
• - Outside offer of higher salary for same level
  of work
• Approval is per existing agreements
• Salary eligibility May result in employees
  salary being above appropriate rate based on Pay
  Factors. Must not exceed max of range

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Transfer from Graded Class

• Result of recruitment
• Salary eligibility
• - Apply Pay Factors (Salary cannot be
  maintained unless justified through Pay Factors)
• - Salary grade equivalency (for position
  priority) is not relevant in determining salary

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Monitoring

• OSP monthly CB monitoring includes
• - Random review of CB actions with APU (approval
  PMIS update) by A/U
• Appropriate Salary Documentation must be
  provided concerning competencies if MI is lt90 or
  gt110
• Qualifications for CB class Application must be
  provided when applicable
• - Review of employees at each competency level
• - Review of employee market index data
• - Review may be expanded

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Monitoring

• A/U monitoring should include
• - Qualifications and salary decisions by managers
• - Review of MI data, competency level data
• - Salary increase of 20 within a year for an
  employee
• - Application of Pay Factors
• - Consistency with competency assessments
• - 80 analysis by class, competency level, race
  and gender within banded class as required by OSP
  EEO reporting