Career Banding Salary Administration

Policy

It is the policy of the State to compensate its employees at a level that promotes successful work behavior, emphasizes demonstrated competencies that are linked to organizational goals, reinforces high standards of performance, and maintains the labor market competitiveness necessary to recruit, retain and develop a competent and diverse work force.

Agency Plan

Each agency is responsible for developing a Salary Administration Plan that ensures fair and equitable employee treatment through consistent application of career banding policy and guidelines.

Pay decisions are the responsibility of individual agencies with policy and guidelines. In all cases, agency management must consider Pay Factors and provisions of the agency's Salary Administration Plan. Agency management is responsible for documenting the salary decisions and assuring that equity is maintained.

Career Banding Terms

Competencies: Sets of knowledge, skills and work behaviors that contribute to a success in the job and to the organization's missions and business strategies.

Contributing Competencies: The span of knowledge, skill and successful work behavior minimally necessary to perform a job from entry up to the journey competencies recognized for the class.

Journey Competencies: Fully acquired knowledge, skills and successful work behavior demonstrated on the job that are beyond the contributing competencies.

Advanced Competencies: The highest or broadest scope of knowledge, skills, and work behavior demonstrated on the job which illustrates attained knowledge, skills, and competencies that are beyond journey competencies.

Salary Determination

Salaries for employees with contributing competencies should be below the journey market rate guidelines, as established by OSP, but not below the minimum of the class pay range.

Salaries for employees with journey competencies should be within the journey market rate guidelines, as established by OSP, unless business needs (budget) prevent this.

Salaries for employees with advanced competencies should be above the journey market rate guidelines, as established by OSP, unless business needs (budget) prevent this. Salaries must not exceed maximum of the class pay range.

Salaries paid as a result of recruiting shall not exceed a maximum amount published for recruitment in a vacancy announcement.

Salaries should be in accordance with the following provisions:

New Hire

Definition: Initial employment or reemployment of an individual to a position in a banded class.

Salary Eligibility: Salary shall be set considering all pay factors. Salary with reemployment from LWOP into previous position would be previous rate unless a higher rate is justified as a career progression adjustment.

Promotions

Definition: Employee movement from one banded class to another with a higher journey market rate.

Salary Eligibility: Salary shall be based on consideration of all pay factors. If employee's current salary exceeds appropriate rate based on pay factors, salary may be maintained.

Reassignment

Definition: Employee movement, due to organizational needs or employee/employer agreement, from one banded class to another with a lower journey market rate or to a different position with the same class.

Salary Eligibility: Salary shall be based on consideration of all pay factors. If employee's current salary exceeds appropriate rate based on pay factors, it may be maintained, except that it may not exceed the maximum of the class pay range.

Demotion

Definition: Change in employee status due to disciplinary action as outlined in Section 7 of the State Personnel Manual, resulting in: Employee movement from one banded class to another with a lower journey market rate, or reduction in salary within the same class.

Salary Eligibility: Considering all pay factors, salary may be adjusted to a lower rate within the range, or may be maintained unless it exceeds maximum of class pay range.

Career Progression Adjustment

Definition: A salary increase within the pay range of the banded class to which an employee is assigned.

Salary Eligibility: Salary shall be based on consideration of all pay factors. Employee must be performing satisfactorily.

Initial Salary Adjustment

This will be the procedure when a new career band is being established. A salary increase will be provided for positions where the market rate is higher than the current salary. The amount of the increase will be computed as a percentage of the difference between current and market salary. The percentage will be determined by availability of funds.

For example, if funds are available to provide a 20% increase:

The calculation is designed to close the gap between existing salary and market rate equally for every position.

If the adjusted salary does not equal the market rate, available funding and salaries will be evaluated once a year after the initial year to move the salaries closer to the market rate.

Annual Review of Salary

Positions will be reviewed annually to evaluate if a change within the band is justified. The review will be conducted as part of the Work Performance and Planning Review (WPPR). The supervisor can recommend an increase from 2% to 10%, with justification for increases greater than 2%.

The recommendation for an increase will be based on one or more of the pay factors listed below.

Pay Factors (from OSP policy model)

• Agency business need (budget)
  
  
• Minimum qualifications for class
  
  
• Knowledge, skills, and competencies
  
  
• Related education and experience
  
  
• Duties and responsibilities
  
  
• Training, certifications and licenses
  
  
• Journey market rate guidelines/market reference rate guidelines and related market information
  
  
• Market dynamics
  
  
• Internal pay alignment (equity)
  
  
• Current salary and total compensation