Career banding is a compensation management and position classification system. Career banded employees progress through a band by acquiring and demonstrating additional competencies (knowledge, skills, and abilities) based on the operational needs of the organization. A major benefit and goal of career banding is the increased ability to recruit, retain and develop a competent workforce. Career banding also enables compensation to be aligned with labor market pay rates relative to the competencies required in the position and demonstrated by the employee on the job.
How Is Employee Pay Determined In Career-Banding?
In career-banding, compensation is based on employee competency levels and labor market rates for each occupational area.
Competencies are knowledge, skills, and work behaviors that contribute to employees' success in their job. The new career-band specifications identify the specific competencies needed to perform the work assigned. There are three competency levels in each band. These are not performance levels.
Funds that traditionally supported salary adjustments resulting from reclassifications and in-range salary adjustments will be used for career-banding adjustments.
Within each band, employee salaries are determined by several factors.
- Budget and the availability of funding
- Market pay rates
- Minimum qualifications for the band
- Related education and experience
- Duties and responsibilities
- Specialized training, certifications and licenses
As competencies are developed through work experience, education, and training and are demonstrated (used) on the job, employees become eligible for salary adjustment consideration. Increases are subject to funding availability.
The career-banding program includes work planning and performance evaluation just like the current classification system. Work plans are developed and interim and annual reviews are conducted. Supervisors and employees work together to establish career development plans. If evaluation shows that employees have developed and demonstrated new or higher level competencies, they may be eligible for salary adjustment consideration. Refer to the Career-Banding Plan for details.