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NC Department of Health and Human Services
Division of Human Resources

Classification and Compensation

Position Classification


Position Classification is a way in which an organization can fairly compensate its employees. In a classification system, a job hierarchy is created and then used to administer pay to employees. In DHHS there are three classification systems used to classify jobs.

  • The graded system (known as the North Carolina Job Evaluation system)
  • Career Banding system
  • 115C Educator system

Regardless of the system, the duties and responsibilities of a job as defined in a job description are analyzed to determine the most appropriate job classification in the hierarchy. Each job in the hierarchy is assigned a salary grade or band which defines the pay range associated with that level of work. It is important to have this hierarchy because it groups similar jobs into grades/bands and forms the foundation of the pay system. It also helps determine the internal equity among positions and groups of positions.

When classifying a job, the job description is analyzed to identify the most appropriate class that best defines the level and type of work performed.  A new position is classified based on the projected role, and existing positions can be reclassified if the job duties change enough to warrant a new classification.  Job descriptions are the foundation for classification and they are also helpful for organizing the work and identifying the knowledge and skills needed to accomplish the mission of the organization. Job descriptions also provide a basis for recruiting, compensating, training, and assessing employees.

Helpful Hints

A classification study or review is done when a new position is being established or when an existing position is changing enough to warrant a reclassification.

Each division, facility and school within DHHS has a human resources staff member that can assist with the classification process. They in turn work with the central Human Resources office for final classification decisions. Ready NC Connect NC