Classification and Compensation

The Classification and Compensation Group supports current University managers, supervisors, and employees.  They approve the establishment of new positions and evaluate existing positions. The Group also provides consulting and advisement to managers on:

• organizational structure
• evaluation of work and classification assigned to positions that are Subject to the Human Resources Act of North Carolina (SHRA), and Exempt from the Human Resources Act of North Carolina (EHRA)
• compensation issues

As the needs of departments change and positions evolve, this Group assists current employees by providing necessary information for making career growth decisions. 

Each UNC System institution has limited authority to develop policies and procedures, consistent with the following, that are specific to their institution. As such, the Classification and Compensation Group at App State are guided by:

• The Fair Labor Standards Act (FLSA) administered by the U. S. Department of Labor
• North Carolina General Statute 126, the Human Resources Act of North Carolina administered by the Office of State Human Resources (OSHR)
• The Career Banding classification system for SHRA employees administered by OSHR
• The University of North Carolina System Policy Manual administered by the UNC System Office

The classification and compensation process is initiated when a new position is created, or a "job study" is initiated to review an existing position. Because business needs, positions, and employees evolve over time, substantial changes in an employee's duties, responsibilities, or competencies (knowledge, skills, or abilities), may mean that the employee's position needs to be reviewed for a modification , reclassification, or salary increase.  Follow the steps below to request a job study. 

1. The employee and/or supervisor reviews the existing position in AppState Careers 
2. The employee and supervisor meet to discuss and identify changes in the essential job duties
3. The supervisor contacts the Classification and Compensation Group (Cindy Harper at 828-262-6487 or harperce@appstate.edu) to schedule a review
4. The Classification and Compensation Group conducts the job study and advises the supervisor of the next steps

This section provides step-by-step guidance on how to: request, create, view, and modify EHRA and SHRA position descriptions. 

A classification and compensation philosophy explains the "why" behind employee pay and creates a framework for consistency. The classification and compensation philosophy for the UNC System is not merit based (also known as pay-for-performance defined as compensation or a raise in pay based on a set of criteria set by the employer). Rather, it is based on the Pay Factors listed below:

• Financial Resources -The amount of funding that a manager or organization has available when making pay decisions; University business need (budget).
• Appropriate Market Rate - The market rate applicable to the functional competencies demonstrated by the employee.
• Job Requirements - The functional competencies and associated levels that are required based on organizational business need and subsequently demonstrated on the job by the employee including:
  1. 1. Minimum qualifications for class
     2. Knowledge, skills, and abilities
     3. Related education and experience
     4. Duties and responsibilities
     5. Training, certifications, and licenses
• Internal Pay Alignment - The consistent alignment of salaries among employees who demonstrate similar required competencies in the same banded class within a work unit or organization; equity; current salary and total compensation.

As a State entity, the institutions in the UNC System are subject to the North Carolina Human Resources Act and its various provisions. Based on principal job functions, some App State positions are Subject to the HR Act (SHRA), while others are Exempt from the HR Act (EHRA). Positions are classified as SHRA and covered under policies and procedures established by the State Human Resources Commission and the Office of State Human Resources (OSHR) unless they meet the criteria for EHRA positions.

EHRA positions are unique to the the UNC System and must meet criteria outlined in two broad categories below:

• Instructional, Research and Information Technology (IRIT) which are further divided into various subcategories based on job function.
• Senior Academic and Administrative Officers (SAAO) Tier I and Tier II which have multiple job titles and functional characteristics that define eligibility. 

SHRA positions are common throughout North Carolina Agencies and the UNC System. The NC classification system for SHRA positions includes about 1,400 job titles designed to ensure that positions are classified appropriately and consistently. Job classification, also referred to as job evaluation, is a process used to objectively evaluate job descriptions belonging to a "job family" in terms of compensable factors to determine the pay grade for each job. Those compensable factors include:

• the variety, complexity and scope of work performed,
• the level of decision-making, communications, nature of supervision given/received, and
• required education, experience, knowledge, skills, and abilities. 

The SHRA job evaluation process is based strictly on the minimum requirements and essential duties and responsibilities of a job and not on the experience or level of performance of an individual in a job. App State is responsible for ensuring compliance with OSHR policies, programs and pay plans, including making equitable, consistent and legally defensible decisions regarding position classifications and individual employee salary management. Pay decisions are the responsibility of individual Universities within the Career Banding policy and guidelines.  In all cases, University management must consider the Pay Factors (listed above) and provisions of their Salary Administration Plan. 

Cindy Harper, Associate Director of Classification and Compensation
Areas of Expertise: SHRA and EHRA 
Office of Human Resources · 330 University Hall Drive · Boone, NC  28608
(828) 262-6487  harperce@appstate.edu

Cindy Day, Classification and Compensation Specialist
Office of Human Resources · 330 University Hall Drive · Boone, NC  28608
(828) 262-6481  daycl@appstate.edu

Asia Sutriasa, Classification and Compensation Specialist
Office of Human Resources · 330 University Hall Drive · Boone, NC  28608
(828) 262-6483  sutriasaje@appstat.edu