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Statewide Classification & Compensation System Project

The state is replacing two outdated systems with one streamlined system. Employees are currently classified and compensated under two different systems: salary graded and career banded. The former has been in existence since 1949. The General Assembly, in 2013, directed the Office of State Human Resources to conduct a Statewide Compensation System Project to address the many challenges and inconsistencies created by having two systems. With the June 2018 implementation of the new Statewide Classification and Compensation System, we will have one modern, streamlined system.

Agency classification analysts, agency Human Resources professionals, and the Office of State Human Resources have worked together to reduce the number of state job classifications from about 2,300 to 1,400. Classifications were grouped into job families in a more logical and meaningful way. Job descriptions were updated and collected from all state agencies, using PeopleAdmin software tool, to accurately reflect work done by employees. Each position was assigned a job classification in the new system based on job descriptions and new job specifications.  Each state employee will receive a letter with their new classification in May 2018. 

See Frequently Asked Questions (FAQs) below the video.

 

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Frequently Asked Questions

Why is the Office of State Human Resources conducting the compensation project?

Why is the Office of State Human Resources conducting the compensation project?

We’re replacing two outdated systems with one modern, streamlined system. Employees are currently classified and compensated under two different systems: salary graded and career banded.  The former system has been in existence since 1949. The General Assembly directed OSHR to conduct a Statewide Compensation System study and as a result a project to address challenges created by having two systems. (Senate Bill 402, the Appropriations Act of 2013).

Why is it being implemented in 2018?

Why is it being implemented in 2018?

Implementation was initially scheduled for May 2016, but was delayed by legislation for implementation no earlier than February 1, 2017. SL 2017-57 directed OSHR to implement the system by June 30, 2018. The project was not implemented in 2017 due to the need for more thorough review and development of better job descriptions.

What were the findings or result of the compensation study?

What were the findings or result of the compensation study?

Findings of the study identified key challenges:

  • Employees are currently classified and compensated under two different systems, graded and banded, neither of which is ideal
  • 2,300 classifications, many of which were not reflective of current job duties
  • Job titles and definitions had not been updated for several decades
  • A cumbersome and outdated process for gathering and analyzing market data
  • Cumbersome and restrictive salary administration policies and procedures
  • Salary ranges and across the board increases were not aligned with the job market
  • Inequities of salary practices between the two systems
  • Narrow salary ranges that limit movement within the updated terminology and compensation review techniques (did not exist when the old system was created)
  • Updated terminology and compensation review techniques (did not exist when the old system was created)
What is the objective of the New Statewide Compensation Project?

What is the objective of the New Statewide Compensation Project?

To create one modern, streamlined compensation system with one set of governing policies. Two key principles should guide the state's compensation system:

  • Market Responsiveness
    • Recognize that labor market factors differ for specific jobs
    • Total compensation competitive within relevant labor markets
  • Equitable and Affordable Compensation
    • Maintain internal classification structure alignment
    • Align internal pay within occupational group
What has been done so far?

What has been done so far?

 

I am a state employee. What do I have to do?

I am a state employee. What do I have to do?

You will be notified of your new job classification and pay grade level as we draw closer to the June 2018 implementation for the new compensation structure. No action is required of you at this time.

Will my salary change?

Will my salary change?

  • No employee will experience a decrease in current salary. Employees will not lose money as a result of the new Statewide Classification and Compensation system.
  • Do not expect a pay increase. Only a very small percentage of employees will receive an increase to bring their salaries up to the new minimum salary level.
Will employees receive pay cuts?

Will employees receive pay cuts?

No. The employees of the State of North Carolina will not have their salaries cut as a part of this project. Even if an individual’s current salary is above the assigned salary range for their position, his or her salary will not be reduced.

Will I get a salary increase if my salary is below the salary ranges for my position?

Will I get a salary increase if my salary is below the salary ranges for my position?

Employees will receive an increase in cases where their salaries are below the new minimum salary level, if funding is available.

Is the intent to eliminate positions?

Is the intent to eliminate positions?

No. The state will not be eliminating positions as part of this project. This is not a staffing or efficiency study; it focuses on classification and compensation of positions.

How was my position’s job classification determined?

How was my position’s job classification determined?

This was a multi-step and thorough process using multiple methods of information gathering. Job descriptions were entered by your agency representatives. OSHR and agency classification consultants then met to review duties, responsibilities, tasks and authority level. Following these discussions, your position was allocated to a job classification in the new system.

What will the salary structure look like?

What will the salary structure look like?

The salary structure will be based on salary ranges, which will be applied to all current and future positions. The ranges will be wide enough to account for differing skill levels and experience.

I have more questions. Whom should I call?

I have more questions. Whom should I call?

Your agency HR office will be providing additional information to employees as we transition to the new system. Please contact your agency HR office with any questions you may have.

What are the next steps?

What are the next steps?

The Implementation phase will come next which will mean moving all state agency positions and employees – graded and banded – to newly developed classifications within one consolidated and market-based structure. To reach that goal, the following will occur: