Classification & Compensation

As a State entity, the University of North Carolina (UNC) system is subject to the State Human Resources Act. University positions are administered in accordance with the provisions and requirements of that Act and the positions covered by the Act are referred to as SHRA (Subject to the Human Resources Act) positions. Click here to find the comparison between SHRA and EHRA employees.

 SHRA positions are classified into banded classes based on competencies required for the position and demonstrated by the employee and the pay bands are based on labor market rates determined by the Office of State Human Resources for each banded class. The Classification and Compensation unit of the Office of Human Resources maintains the integrity of the State of North Carolina’s career banding program for SHRA employees, as well as the Department of Labor’s prescribed Fair Labor Standards Act regulations. Pay ranges are based on labor market rates determined by the UNC System Office in coordination with the Office of State Human Resources. Entry salaries for new employees are based on several factors, including employee training and experience, demonstrated employee competencies, the competencies required for positions, the market-based salary range for the banded class, available funding, and internal equity. Salary movement within pay bands may occur as a result of changes in labor market conditions, changes in the duties and responsibilities assigned to positions, equity, or increased competencies of the employee.

Common Terminologies for SHRA Positions:

Competency Levels – Each competency is further described in what one would see, hear, or measure when an employee is demonstrating proficiency – for that particular competency. Level of the position (C, J, A) is determined by the business needs of the organization. The Career-banding system in North Carolina has three competency levels. They are Contributing, Journey, and Advanced levels:

• Contributing –The span of knowledge, skills, and abilities minimally necessary to perform a job from entry up to the journey competencies recognized for the class. Contributing competencies generally describe what is also known as “entry-level,” at which minimally qualified employees typically function for their first few years of employment.
• Journey– Fully acquired knowledge, skills and abilities demonstrated on the jobs that are beyond the contributing competencies. Competency-based pay revolves around the journey level, and compensation for a banded class is built off of the journey level. This is generally the level at which competent, fully functioning, seasoned employees with experience beyond the minimum requirements should be compensated.
• Advanced– The highest or broadest scope of knowledge, skills, and abilities demonstrated on the jobs that are beyond journey competencies. Advanced competencies describe work that is above and beyond the journey-level work functions seen in a banded class, i.e. “senior-level.” It is expected that few employees in a banded class will reach the Advanced level, though most may reach the Journey level. Advanced-level competencies are typically rare and reserved for the most highly competent, uniquely skilled employees.

 Competency Profile –  Examples of demonstrated behaviors for each of the competencies for a banded classification, described at the Contributing, Journey, and Advanced levels, and the minimum training and experience level for the class.

Pay Factors – Also known as FAIR, these are the general parameters within which pay decisions must be made. The four pay factors are:

• Financial Resources- The amount of funding that a manager has available when making pay decisions.
• Appropriate Market Rate- The market rate applicable to the functional competencies demonstrated by the employee.
• 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.
• Required Competencies- The functional competencies and associated levels that are required based on organizational business need and subsequently demonstrated on the job by the employee.

 Target Rate: The rate determined by the organization’s Compensation Strategy. Fayetteville State University target rate is 90% or greater.

• Example: The Journey market rate for a Human Resources Specialist is $61,652. The department can pay no less than (90% of $55,487) for a position in this band and level.

Coming soon.

To request a position or salary action related to EPS, LEO, SAAO, or SHRA: (click PPA)

WHAT IS THE FAIR LABOR STANDARDS ACT (FLSA)?

The Fair Labor Standards Act establishes minimum wage, overtime pay, recordkeeping, and youth employment standards. The Office of State Human Resources (OSHR) policies, UNC System Office policy manual, and the University’s compensation policies and processes comply with the FLSA. 

WHAT DOES THE TERM “NON-EXEMPT” MEAN?

Non-exempt employees are covered by the overtime and recordkeeping provisions of the FLSA and are entitled to overtime pay if work exceeds 40 hours in one workweek. Overtime is paid at a premium of time and one-half of the employee’s regular hourly rate and compensated either in pay or in accrual of compensatory time. Human Resources is responsible for determining the exemption status for positions at Fayetteville State University (FSU) consistent with FLSA regulations. FSU will pay compensatory for hours worked in excess of 40 hours.

WHAT DOES THE TERM “EXEMPT” MEAN?

Exempt employees are not covered by the overtime provisions of the FLSA and are paid an agreed-upon amount for the whole job, regardless of the amount of time or effort required to complete the work. Exempt employees receive a set monthly salary regardless of the number of hours worked. Exempt employees do not record hours of work. 

WHAT IS MY EMPLOYEE CLASSIFICATION?

FSU SHRA employees are classified as SHRA Non-Exempt (SN) or SHRA Exempt (SE). 

Questions related to FLSA or employee classifications, please contact Classification and Compensation at classandcomp@uncfsu.edu

 For more information regarding FLSA, please visit the following link:  https://www.dol.gov/agencies/whd/flsa