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 TE
• 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
Whats 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
• Employees 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 ____
____

PF8POS/BUD INFO PF11TEXT PF17ACTION LIST
PF18FHS LIST PF10PMDLIST
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
  employees 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 employees 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
• OS 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 employees 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

• FROM TO
• 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 [phone]
• Please complete the training
  evaluation
• Thank You