Career Banding is a comprehensive classification, compensation, and career-development system developed by the Office of State Human Resources (OSHR) for positions and employees that are subject to the personnel act (SPA). This program is administered for NC State University by Human Resources. Career Banding links compensation, competency assessment, performance management, recruitment, and training and development. The integration of these areas serve to enhance recruitment and retention efforts as well as improve career advancement opportunities. Through Career Banding, it is the goal of NC State University to compensate its employees at a level that promotes successful work behavior and emphasizes demonstrating the competencies linked to job duties and organizational goals. Career Banding is a market-based program designed to support the salary competitiveness necessary to recruit, retain and develop a competent and diverse work force.
Career Banding Implementation
Human Resources Office Responsibilities
Dispute Resolution Process
Career Banding Compensation/Salary Administration
- Banded Ranges
- Effective Date
- Pay Factors
- Career Progression Adjustments
- Retention Adjustments
- Horizontal/Lateral Transfer
- Grade-Band Transfer
The Career Banding System utilizes salary ranges that merge related or similar occupational titles into a single banded title. The Career Banding System provides NC State with a more flexible compensation approach to address recruitment, compensation, and retention issues. There are three levels (Contributing, Journey, and Advanced) within each band. Career progression through the band is assessed in terms of developing competencies that are defined and demonstrated as increased knowledge, skills, and abilities that employees need to successfully perform their jobs. Supervisors and managers should consistently apply the Career Banding Salary Administration policy in order to compensate employees appropriately based on the development of higher level or new competencies as represented in the labor market for comparable work. However, salary increases are subject to the availability of departmental funds.
Human Resources is responsible for the day-to-day administration of the career banding program. They also provide training for managers, supervisors, and employees regarding the career banding program. Salaries are determined and awarded in compliance with the Office of State Personnel Career Banding Salary Administration Policy.
- Management is to ensure that the Career Banding concept is communicated to all employees.
- Supervisors are to establish work plans which can be used to guide and track the employee’s progress in achieving performance expectations. Supervisors are responsible for evaluating employees’ competencies during annual performance reviews and providing employee coaching with a goal of enhancing each employee's contribution to the organization's success.
- Managers and supervisors are to apply the pay factors correctly and equitably using the compensation guidelines outlined in this plan. Evaluation of competencies and pay factors will occur at the time of a personnel action as defined in policy (e.g., Within Level Adjustment, Competency Level Adjustment, Labor Market Adjustment).
- Employees, in conjunction with supervisors, are to review their work plans to ensure an understanding of the required competencies, work functions, and their relation to the mission and goals of the work unit.
- Employees may request clarification from their supervisors about the career banding program as needed.
By following the established Human Resources procedure for disputing performance pay issues, employees have the right to formally dispute certain career banding decisions. Decisions that are eligible for review under this plan must be based on one of the following:
- Amount of salary adjustment is perceived by the employee to have discriminatory impact.
- An awarded salary adjustment is not in compliance with the pay factors or pay policies.
Banded salary ranges are established and revised by the Office of State Human Resources. Labor market data is used to develop the statewide Range Minimums, Range Maximums, and the Reference Rates that correspond to the three competency levels (Contributing, Journey, Advanced). Where necessary, the University requests special Market Reference Rates that more specifically address the University’s labor market needs for certain occupational groups.
All actions shall be on a current basis.
The four pay factors are financial resources (budget availability), required competencies, market, and internal pay alignment, as described below. The pay factors are evaluated to make salary determinations associated with personnel actions (new hire, promotion, reallocation, career progression salary adjustments, retention salary adjustments, temporary salary adjustments, horizontal transfer, reassignment, demotion, or grade-band transfer).
Financial Resources: The amount of funding that a manager has available when making pay decisions. Salary increases are subject to the availability of departmental funds. Financial resources are allocated for salaries according to the organizational business need.
Required Competencies: The functional competencies and associated levels that are required based on organizational business need and subsequently demonstrated in the position by the employee. Salary increases are based on required competencies. This pay factor accounts for knowledge, skills, abilities, duties and responsibilities as documented in job descriptions or competency assessments. This factor also takes into account any relevant training, certification, and/or license.
Market: The market rate applicable to the functional competencies demonstrated by the employee. The current market dynamics for the occupation, geographic area, and/or industry are considered as a pay factor. Market reference rates are assessed and determined by the Office of State Personnel.
Internal Pay Alignment: The consistent alignment of salaries among employees who demonstrate similar required competencies in the same banded class. This pay factor is a comprehensive assessment of employees’ salaries relative to each other based on career band, competency level, criticality of the job to the mission of the unit, and/or other organizational factors.
Career progression adjustments represent a salary adjustment within the salary range for the employee’s current career band. A career progression adjustment may be granted in conjunction with demonstrated competencies or as justified through labor market conditions.
Employees with active warnings or disciplinary actions or with overall below good or unsatisfactory performance ratings are not eligible for career progression adjustments based on competencies.
Salary adjustments may be awarded (but are not mandatory) to recognize progression through the competency structure or to compensate an employee for assuming additional duties and responsibilities Therefore, salary adjustments will be justified based on demonstrated competencies, knowledge, skills, abilities, magnitude of job change, internal equity, market conditions, and any other relevant factors.
Managers and supervisors provide documentation for salary recommendations (via PeopleAdmin), describing the relevance of pay factors to the decision. Justification should include information regarding business need, the development of higher level competencies, the application of additional knowledge and skills, and/or job changes.
- Within Level Adjustment: Employee has a salary adjustment without an overall competency level change. May result from a significant change in only one competency, or less extensive increases in multiple competencies.
- Competency Level Adjustment: Employee moves from a lower overall competency level to a higher overall competency level (e.g. Contributing to Journey level) within the same banded classification.
An adjustment or increase to a salary that is beneath the market reference rate established for the career banded classification assigned to the employee’s position.
Retention adjustments (not to exceed the range maximum) may be awarded to prevent turnover in critical positions. Retention adjustments may be needed to retain a key employee who is being actively recruited by another employer outside of the University, to counter an outside employment offer, or to address retention problems related to unique, critical, and unusual labor market conditions.
A promotion within the career banded system is defined as employee movement from one position to another in the same banded classification, with a higher competency level or employee movement from one position to another in a different banded classification with a higher journey market rate.
Promotions will be awarded through a competitive process to include posting of the vacancy, interview, and formal assessment procedures.
Promotional salaries will be determined based on the pay factors and may not exceed the maximum of the range. If employees are promoted from a lower band to a higher band, they must be paid at least at the minimum of the pay range. If funds are not available, an increase may be considered at a later date based on a future evaluation of the pay factors. However, any future adjustments must be made on a current, not retroactive, basis.
A horizontal transfer within the career banded system is defined as employee movement from one position to another within the same banded classification with the same competency level or movement from one position to another with a different classification with the same journey market rate. If a change is requested by the supervisory, salary is based on application of the pay factors and may not exceed the maximum of the range.
A reassignment within the career banded system is defined as follows:
- A position change or employee movement from one position to another with the same banded classification but with a lower competency level.
- A position change or employee movement from one position to another in a different banded classification with a lower market rate.
When an employee and/or position is reassigned, the employee’s salary is based on application of the pay factors and may not exceed the maximum of the newly assigned range. The salary may be reduced to any amount within the pay range of the newly assigned band or the salary may remain the same so long as it does not exceed the maximum of the lower pay range. If reassignment is by employee choice, the option to maintain salary above appropriate rate based on pay factors is not applicable.
A demotion within the career banded system is defined as a disciplinary action that results in employee movement from one banded position to another within the same banded classification but with a lower competency level; or employee movement from one banded classification to a different banded classification that has a lower market rate; or a reduction in salary within same banded class. Salary may be reduced, but not below the minimum of the band. If demotion results in movement to a lower banded range, salary must not exceed the maximum of the new range. Demotions are implemented in collaboration with the Employee Relations Department.
A reclassification, within the career banded system, is defined as the reassignment of a position/employee from one banded classification title to another banded classification title. Reclassifications are documented via the Career Banding Job Description form and submitted to the Classification and Compensation Department for review and approval. Salary is determined through application of pay factors.
A grade-band transfer occurs when an employee transfers from a classification with a salary grade to a banded classification, or vice-versa. Salaries that are below minimum of the banded range must be adjusted to minimum. Otherwise, the appropriate salary level for the individual will be based on an evaluation of the pay factors, and a salary adjustment may as applicable. Since all SPA positions in the UNC academic system are assigned to career bands, grade-band transfers would only occur if an employee transferred to the University from a state agency using the salary graded system.
Labor market data for positions statewide is established by OSHR using occupation-specific salary surveys. This data is used to establish the contributing reference rate, journey market reference rate (i.e., The average rate of pay for the journey level benchmark job for each band); and the advanced reference rate. Geographic-specific labor market data is also used, as appropriate, for NC State.