UNC CHARLOTTE PERSONNEL INFORMATION MEMORANDUM

PIM 56

Salary Adjustments for Career Banded Employees

DATED: December 1, 2006

Category:  Classification, Compensation, and Human Resources Information Systems

Contact:  Director of Classification, Compensation, and HRIS – ext. 2895

I. Career Banding Salary Administration

In the graded classification system, salaries are determined based on how many years and months of related education and experience an employee possesses. In career banding, compensation is based on position and employee competency levels and labor market rates for each occupational area. Competencies are knowledge, skills, and abilities that contribute to employees' success in their jobs. The new career band specifications identify the specific competencies needed to perform the work assigned. There are three competency levels in each band: Contributing (C), Journey (J), or Advanced (A).

II. Definitions

A. Pay Factors – There are four pay factors that must be considered in any career banding salary action request: Financial Resources (Funding Availability), Appropriate Market Rate, Internal Pay Alignment, and Required Competencies (F.A.I.R.)

B. Career Progression - Non-competitive movement within the pay range of a banded class to which an employee is assigned (Contributing, Journey, or Advanced)

III. Types of Salary Actions Under Career Banding

The following actions are predominantly focused on employees:

A. Career Progression - Competency level change within band – Employee movement from a lower competency level to a higher competency level within the same banded classification (C to J, J to A, etc.). The competency level of the position remains unchanged.

B. Career Progression - Competency level change within current competency level - Employee development in one or more areas of functional competency without a change in the overall competency level. A significant change in only one functional competency, or less extensive increases in multiple competencies, may be the basis for slight, incremental increases.

C. Career ProgressionMarket Adjustment – An increase to address a salary that is low relative to its respective market reference rate. Consideration for market adjustments are usually due to prior funding constraints that have not allowed increases to keep pace with the career progression and/or increased competencies of employees.

D. Career Progression - Retention Adjustment- Retention adjustments may be requested to maintain the employment of a ‘key’ employee who has received a similar job offer for a similar position external to the university or another North Carolina state agency or university. This bona fide written offer must provide evidence of greater compensation without increased responsibility.

E. Promotion - Movement of employee to another career band with a higher Journey Market Reference Rate than their currently assigned position through a competitive recruitment process administered by Employment and Staffing. No salary increase is required, but should be considered if appropriate based on Pay Factors.

F. Reassignment - Movement of an employee from one banded class to another with a lower Journey Market Reference Rate, occurring through re-organization. If employee’s current salary exceeds appropriate rate based on Pay Factors, and reassignment is not by employee choice, salary may be maintained, except the salary may not exceed the maximum of the class salary range. If the reassignment is by employee choice, the option to maintain salary above rate based on Pay Factors is not applicable.

The following actions are predominantly focused on positions in which an incumbent may be eligible for a salary adjustment as a result of position change:

G. Position Competency Level Change – A permanent competency level change in a position based on development of business need in the organization. A request for this type of action should be concurrent with an employee’s competency level change when the additional duties at a higher level of responsibility are supported by the demonstrated competencies of the employee.

H. Reallocation – Movement of a position’s role from one career band to another career band; for example, from an IT Technology Support Technician to an IT Technology Support Analyst.

IV. General Information

A. Career Progression salary adjustments may be awarded (but are not mandatory) to recognize an employee’s demonstrated change in one or more functional competencies. This change may or may not result in an advancement of the employee’s overall competency level (C, J, or A).

B. Competency Assessments should be reviewed twice a year in conjunction with the Performance Evaluation cycle (during interim review and annual evaluation) and should be revised when competency development or position change occurs.

C. Employees whose appointments are probationary, trainee, or temporary are not eligible for Career Progression salary adjustments based on competency assessment.

D. Employees placed in acting or interim positions may be eligible for a temporary salary adjustment. If the change in duties and responsibilities is for a specified period of time, the employee's salary will revert to the previous salary (plus any legislated increases) when the additional duties and responsibilities are removed.

E. Employees with active disciplinary actions are not eligible for Career Progression salary adjustments based on competency assessment.

F. In career banding, there are no in-range adjustments. Career Progression salary adjustments recognize work being performed at a higher competency level.

V. Process

A. Responsibility of Requesting Dean, Director or Department Head

1. Review salaries of all similarly situated employees in the unit for internal equity compliance prior to initiating any salary action request.

2. Contact Classification, Compensation and HRIS staff to ensure the correct justification for a salary adjustment under career banding.

3. Deans, Directors, and Departments Heads must review and indicate support for any salary action requests by signing all required documentation.

B. Responsibility of Supervisor

1. Submit the following documentation to the appropriate Dean, Director, or Department Head for approval. This documentation (see below) is then forwarded to the division’s Vice Chancellor/Provost, for authorization; then sent to the Budget Office - Financial Services, for fiscal authorization. After funding is confirmed, the documentation is forwarded to Classification, Compensation and HRIS in Human Resources for review.

Every request requires the Budget Request to Establish or Modify a Position (BREMP, or Form BD101) which indicates funding is available, and states the reason(s) why the salary adjustment is being requested. This form is supported by other documentation as described below.

Note: Provision of available funding is not to be interpreted as approval of the salary adjustment request

a) Requests for career progression adjustments based on competency development:
In addition to the BREMP, submit a revised competency assessment (Section IV of the PCAC) highlighting changes in competency ratings which have occurred since the submission of the previous competency assessment.

b) Requests for career progression adjustments based on External Market Equity:
In addition to the BREMP, provide a listing of external competitors indicating the salary range for the position in question, the equivalent job title, and a contact person for each source on the list.

c) Requests for career progression adjustments based on Internal Equity:
In addition to the BREMP, provide a list of employees within the work unit indicating salary and competency level details that create an inequity with the subject employee’s salary. Managers are encouraged to ensure that similarly situated employees’ salaries do not exceed a 10% differential.

d) Requests for position competency level change, reallocation, or reassignment based on permanent business need for different or more advanced competencies:

In addition to the BREMP, submit the following documents for this action to be reviewed:

i. A revised, updated Position Description form (with the Americans With Disabilities Act checklist included) signed by the employee, the supervisor, and the department director.

ii. Current organizational chart approved by the department director that reflects:
(a) Position number, career band and approved competency levels of the positions.
(b) Pay grades and job title of non-banded SPA positions, and "EPA" for all others.

iii. Performance Management, Competency Assessment, and Career Development Form (PCAC) signed by the employee, the supervisor, and the department director with the following sections completed:

Section III: Performance Management Work Plan – Establishing work performance goals/expectations must be completed. The Annual Appraisal column should be left blank.

Section IV: Competency Assessment must be completed using specific examples of demonstrated competencies that have changed significantly and any methods of validating the competency rating.

Note that omission of any part of the required documents will delay review of the request.

2. Notify the affected employee(s) and explain the results of any salary adjustments and changes in competency expectations.

C. Responsibility of Human Resources Department

1. Notify the department and acknowledge when documentation is received. Actions cannot be reviewed until all required documentation has been submitted.

2. Conduct career band and competency analysis: Information compiled from the submitted documentation will be compared to career band specifications, competency profiles, and similarly situated employees. Changes in competencies must be based on demonstrated and not projected skills, knowledge or behavorial attributes. Human Resources will consult with supervisors in making compensation decisions.

3. Determine if pay factors have been applied appropriately and consistently in compliance with the career banding plan, found on the Human Resources website.

4. Communicate the career banding action decision to the department director via memorandum. The effective date of the action will be the effective date on the Budget request form (BREMP) or the date of the Budget Office’s signature, whichever is later. Personnel actions will not be made retroactive to a date earlier than the date budget approval is granted.

Questions regarding this Personnel Information Memorandum may be referred to Classification, Compensation, and HRIS staff.

Referenced Links:
Career Banding Policy, Office of State Personnel
Career Banding information, UNC Charlotte Human Resources website
Forms (BREMP, Position Description, PCAC)
Classification, Compensation, and HRIS Staff