Tuesday, May 1, 2018

State Employees Notified of New Job Classification, Title as Statewide Compensation Project Moves Forward No state employees will earn less under the new system

May 1, 2018

*Update: The UNC System is not participating in the Statewide Compensation Project so its workforce will not be contacted about the status of job classification or title.*

Most state employees at agencies subject to the State Human Resources Act will receive notification this week of their new job classification and title as part of the Statewide Compensation Project. Some employees of the Department of Public Safety, the largest state agency with a workforce of more than 22,000 people, may not receive their notifications until next week.

A comprehensive overhaul of the current Classification and Compensation System, the legislatively mandated project began in 2014 and will be fully implemented in June. The University of North Carolina System is not participating in the new Class & Comp system.

Letters to affected employees will state that their salaries will not increase or decrease, except for those workers whose salaries fall below the minimum of the salary grade in the new system. The Office of State Human Resources (OSHR) projects that there is sufficient funding in the $7.8 million allotted by the General Assembly to bring about 4 percent of employees to the minimum for state-funded positions, retroactive to Feb. 1, 2018. Agencies will identify resources to address affected positions funded through non-appropriated funds.

Additionally, the new system will allow for greater flexibility in hiring of certain job classifications, such as correctional officers working for the Department of Public Safety. The current starting salary of $32,000 remains in place and will extend up to $34,000 for new correctional officers. OSHR will identify other similar opportunities across state government in coming months.

Salaries will not decrease

The current Class & Comp model was implemented in 1949 and is a system of salary grades with ranges. In 2007, about 30 percent of state employees were converted to a career-banded compensation system.

“Having two different compensation systems was inefficient and not reflective of the job market as a whole,” said OSHR Director Barbara Gibson. “This new system has several advantages compared to the previous process: It reflects modern job titles and fields; it replaces two older systems with one system; and it provides legislators and other state government leaders with better information to use to allocate state funding to help avoid employee turnover and increase retention.”

The new system was developed in consultation with Kenning Consulting, which has provided guidance to state governments, other public-sector entities and high-profile private organizations that have updated their Class & Comp systems to meet evolving marketplace needs. It ensures that no salaries will decrease and creates opportunities for better labor market equity over time.

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