CareerBanding A Competency Based Human Resources System

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Career-Banding A Competency Based Human
Resources System

• Employee Orientation
• North Carolina State Government

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Competency-Based Human Resources System
Workforce Planning
Competencies
Compensation
Recruitment and Staffing
Training and Development
Performance Management Competency Assessment
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What is Career-Banding?

• Collapsing of classes into more generic titles
• Wider pay ranges
• Pay movement based on the development and
  demonstration of competencies (knowledge,
  skills, and abilities)
• Emphasis on career development

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Career-Banding Philosophy

• To positively impact the states ability to
• Promote proven successful work behaviors
• Emphasize competencies and demonstrated
  proficiency on the job
• Promote career development

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Career-Banding Features

• Introduces new concepts of pay above market, at
  market, and below market
• Eliminates restrictive salary rules and promotes
  appropriate pay based on contribution and market
• Gives management decision-making flexibility and
  assigns accountability for pay decisions and
  spending
• Pay is managed to the Journey Market Rate versus
  the Salary Grade Maximum
• Greater use of working titles

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Why the Change?

• Base employee pay on level of contribution and
  labor market information
• Simplify the administrative process for
  personnel and management
• More efficient response to changing labor market
  data
• Greater involvement by management in pay
  decisions
• Encourage employees to develop those skills
  necessary for the organization to succeed

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Old to New.

• GRADED SYSTEM
• Narrowly defined classes
• Many class levels
• Emphasis on classification
• Pay based on longevity
• Career growth thru promotion
• Budget at minimum
• Minimal budget planning for HR issues

• BANDED SYSTEM
• Broadly defined classes
• Few class levels
• Emphasis on pay/market
• Align salaries w/ market avg.
• Career growth in current pos.
• Budget at market adjust band as necessary
• Emphasis on advanced and continual budget
  planning

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Ten Job Families

• 1. Administrative and Managerial
• 2. Information Technology
• 3. Law Enforcement and Public Safety
• 4. Information and Education
• 5. Human Services
• 6. Medical and Health
• 7. Institutional Services
• 8. Operations and Skilled Trades
• 9. Engineering and Architecture
• 10. Natural Resources and Scientific

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Job Family Structure
Job Family Admin Mgr
Branch Admin Support
Banded Class Admin Support Associate
Banded Class Admin Support Specialist
Banded Class Admin Support Supervisor
Banded Class Executive Assistant
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Examples Graded to Banded System
Current Class Title Banded Title
Office Asst II V Process Asst II V Accounting
Clerk III
Admin Support Assoc
Admin Support Specialist
Accounting Tech I Accounting Clerk IV - V
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Broad Salary Ranges
Current Class Title Banded Title
Office Asst II V Grade 54, 57, 59, 61 20,112
35,412 Grade 57 20,955 - 30,276 Grade
59 22,426 - 32,689
Admin Support Assoc 20,112 - 39,600
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Example of a Pay Band Administrative
Managerial Job Family
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3 Step Process

• Blueprinting
• Identify branches and banded classes within Job
  Families
• Transition Work
• Develop concepts and competency profiles
  validate with agency/university focus groups
• Implementation
• Fine tune profiles for specific agency/university
  use
• Allocate graded positions to banded classes

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Who is affected when?

• It is planned that all jobs will be banded by
  2008.
• Info Technology and campus police classes were
  banded first.
• Several other banded concepts have been
  developed Research, Administrative Support,
  Facility Maintenance, Vehicle/Equipment Operation
  and Institutional Services.
• OSP is working to develop concepts for the
  remaining classes.

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Funding?

• Typically cost neutral on implementation
• Impact is assessed during market development
• Funded through redistribution of promotion,
  reallocation, in-range and other increases
  currently being awarded

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Competencies what are they?

• Sets of knowledge, skills, abilities and/or
  behaviors DEMONSTRATED ON THE JOB
• The attainment of competencies increases the
  potential level of work for an employee
• An increase in functional competencies which are
  needed by the organization, applied on the job,
  and necessitated by job change can be used as a
  basis for an increase in pay
• Pay based on competencies rather than longevity

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Competency Levels

• Contributing knowledge, skills, abilities and
  work behaviors minimally necessary to perform
  work in a banded class from entry up to journey
• Journey fully applied body of knowledge,
  skills, abilities and successful work behavior
  required for a banded class
• Advanced the highest or broadest scope of
  knowledge, skills, abilities and work behavior
  required in the banded class

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Types of Competencies

• Functional
• Behavioral

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Functional Competencies

• USED TO DETERMINE PAY
• Tied to demonstrated knowledge, skills, abilities
• Can be observed and measured
• Developed by Transition Teams and validated
  within A/U, both using focus groups
• Have DISTINCT Contributing, Journey, and Advanced
  levels established for roles within a banded
  classification
• Market related

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Functional Competencies
Examples

• Data Analysis
• Problem Solving
• Equipment Operation
• Leading Work Teams

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Behavioral Competencies

• Similar to Performance Evaluation Dimensions
  more behavior-based
• Not as closely tied to particular learned skills
  
• Not defined at all 3 levels
• Do NOT determine pay
• Examples initiative, creativity, integrity,
  resilience.

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Functional Competency Assessment

• Management determines what knowledge, skills,
  abilities are needed
• Management determines the competency level of
  work
• How are competencies demonstrated on the job?
• How are they observed and tracked?
• Generally, if most competencies are contributing,
  overall level should be contributing

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Pay Based on Competencies
Competency Assessment 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 Assessment Form
Contributing Journey
Advanced Comp A
X Comp B X Comp C X Overall X
Employees Pay
Career-Banded Class Rates
Max
Min
Contributing Reference Rate
Journey Market Rate
Advanced Reference Rate
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Pay Based on Competencies
Competency Assessment Form
Contributing Journey
Advanced Comp A X Comp
B X
Comp C
X Overall
X

Employees Pay
Career-Banded Class Rates
Min
Max
Advanced Reference Rate
Journey Market Rate
Contributing Reference Rate
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Pay Factors

• Financial ResourcesThe amount of funding that a
  manager has available when making pay decisions.
• Appropriate Market RateThe market rate
  applicable to the functional competencies
  demonstrated by the employee.
• Internal Pay AlignmentThe consistent alignment
  of salaries for employees who demonstrate similar
  required competencies in the same banded class
  within a work unit or organization.
• Required CompetenciesThe functional competencies
  and associated levels that are required based on
  organizational business need and demonstrated on
  the job.

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Pay Factors

• 1. Financial Resources
• (1) Agency business need (budget)
• 2. Appropriate Market Rate
• (2) Journey market rate guidelines/market
  reference rate guidelines
• (3) Market dynamics
• 3. Internal Pay Alignment
• (4) Internal pay alignment (equity)
• (5) Current salary and total compensation
• 4. Required Competencies
• (6) Minimum qualifications for class
• (7) Knowledge, skills, and competencies
• (8) Related Education and experience
• (9) Duties and responsibilities
• (10) Training, certifications, and licenses

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Career Development

• What is the organizational need?
• What employee attributes could be developed to
  accomplish the above?
• What area(s) does employee wish to improve?
• Are these required of current position/work unit?
• Are training resources available within a
  reasonable time frame?

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Employees Role

• Take a greater responsibility for career
  management
• Develop competencies and skills that are valued
  by the organization
• Contribute to the accomplishment of the
  organizations mission through continued
  demonstration of competencies

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Good for the Employee.

• Rewards for competencies developed and
  demonstrated on the job
• Focus on achieving personal growth in competency
  rather than moving to higher grade
• More opportunity for salary increases as needed
  competencies are demonstrated
• Better opportunity to develop a career path
  within state government

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Managements Role

• Provide opportunities for employees to develop
  competencies and skills that are valued by the
  organization
• Assess employee competencies
• Apply the pay factors in determining and managing
  employees pay
• Base pay decisions on business needs of the
  organization
• Justify and document pay decisions ensuring
  fairness
• Advise employees on career development
  opportunities
• Recruit and select based on needed competencies

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Good for the Manager.

• Workforce planning to suit business needs
• Flexibility when recruiting and staffing
• Ability to better plan for training needs
• Budget planning is based on real market data
• Employees paid above/below market are obvious
• Compensation decisions are based on employees
  relative market value
• Responsible and accountable for pay decisions
• Focus on appropriate pay versus justifying a
  classification level

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HRs Role

• Orient management and employees
• Train and consult with managers on competency and
  compensation issues
• Guide management in implementing Career-Banding
• Evaluate changes in labor market
• Monitor the management of pay
• Establish and communicate a dispute resolution
  process

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OSPs Role (In conjunction with Agencies
and Universities)

• 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 to A/Us
• Monitor for fairness and consistency in Career
  Banding implementation
• Provide training and consultation

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Helpful Hints for Employees

• When completing an application be sure your work
  history includes examples of work demonstrating
  the required competencies posted.
• Co-create a meaningful work plan with your
  manager in order to enhance your abilities as
  they relate to the business need of the work unit.

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For More Information.

• Visit the OSP Website
• Talk with your manager or supervisor
• Contact your Human Resources Office
• Click here to link to some Frequently Asked
  Questions