Becker County adopts updated compensation policy that moves regraded employees to next step with 1.5% minimum increase

Becker County commissioners voted to adopt a revised compensation policy that specifies how employees will be placed on the pay scale after a position is regraded following a market review.

Human resources staff recommended moving regraded employees into the new grade at the next-closest step and giving them a minimum 1.5% increase. "My recommendation here is to move them into the new grade with a 1.5% at least a 1.5% increase and place them on the next closest step," the presenter told the board during the Human Resources agenda item.

The policy applies to the group of classifications reviewed by DDA this cycle; staff said the proposal covers 11 positions and estimated the difference in county cost is about $12,000 under the recommended approach versus roughly $48,000 under an alternative that would keep employees on their current step within the new grade.

Commissioners debated the trade-offs. Some said holding an employee's step to preserve years of service feels fair to long-tenured employees; others said the county must guard against market drift that can make vacancies harder to fill and cause bigger budget adjustments later. Several suggested a separate leadership-pay or merit-pay approach for department heads to avoid disadvantaging incumbents when a new hire is brought in at a higher lane.

Human resources staff acknowledged the complexity and said leadership-pay proposals could be developed as a follow-up to the policy change. Multiple commissioners asked for guidance on how leadership pay would be defined and implemented.

After discussion, a motion to approve the compensation policy as presented passed on a voice vote. Commissioners directed staff to return with options for leadership pay and to continue monitoring budget impacts and recruitment outcomes.

What happens next: the policy is in place and staff will implement the step placements for the regraded positions; commissioners asked for a future review of leadership-pay options and for the personnel office to report back on cost and operational impacts.