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Henry County officials discuss employee compensation policy
County officials weigh seniority-based pay against performance-based incentives in conversations about new employee compensation policy
Southeast Iowa Union offers audio versions of articles using Instaread. Some words may be mispronounced.
Information from Southeast Iowa Today with John Bain’s recording of this meeting contributed to this article.
MT. PLEASANT — Henry County officials came together to discuss a new structured compensation system for county employees, aiming to ensure fair, consistent, and market-based pay across all departments. During the Jan. 30 Board of Supervisors meeting, Human Resource Director Paul Greufe outlined the proposed policy and pay matrix, sparking further conversation among department heads and elected officials about the best path forward.
The primary goal of the proposed system is to create a uniform pay structure that accounts for job responsibilities, experience, and market conditions.
“This will be the first of at least a couple meetings with the board,” Greufe said. “The policy just provides that general overview.”
Greufe explained that the process began with department heads updating job descriptions, which were then evaluated and scored based on specific criteria. The first proposal for the new compensation policy included structured pay grades and a step-based system for salary increases. Employees would move through the pay bands at predetermined intervals, with an example matrix showing steps at one, two, four, six, nine, 12, and 15 years.
A key element of the plan is its flexibility. If an employee or department head believes a job’s scoring was inaccurate, they can request a review. Additionally, the system would accommodate midyear adjustments for newly created positions.
“If there's a brand-new position that's never existed before in the county, department heads or elected officials can request that it be evaluated and placed on the matrix,” Greufe said.
One of the primary discussion points was whether salary progression should be based purely on seniority or incorporate performance-based incentives. Supervisor Steve Detrick raised concerns about subjectivity, asking whether elected officials have clear, objective goals for their employees.
Greufe acknowledged that while the proposed system is predominantly based on years of service, it allows supervisors to halt an employee’s progress if performance is lacking.
“If I brought in every county employee and said, ‘Raise your hand if you’re overpaid,’ nobody’s going to raise their hand,” he said, emphasizing the importance of a structured system.
Some department heads, including County Engineer Jake Hotchkiss, voiced support for a performance-based approach.
“I don’t want the long-term one. I'd rather do performance,” Hotchkiss said, noting that his department currently operates on a two-and-a-half-year training program before employees reach full pay.
Greufe explained that some counties have moved entirely to performance-based systems, where salary increases depend on performance evaluations rather than automatic step increases.
“If you perform really high, you get a bigger raise. If you don’t perform as high, you get a smaller raise,” he said.
However, he cautioned that implementing such a system requires consistent and well-documented performance reviews.
Another key discussion point was how cost-of-living adjustments (COLA) would factor into the new pay system. Greufe noted that adjustments would be based on the Consumer Price Index (CPI) to maintain employees’ purchasing power.
“If you went to the grocery store in 1984 and bought milk, cheese, and eggs, it would have cost you $100. If you buy those same exact items today, it would cost $292.53,” Greufe illustrated. “Those are real numbers.”
He emphasized that COLA adjustments ensure employees do not lose economic ground, but also warned that if the CPI decreases, salaries could technically be adjusted downward — though he acknowledged that such reductions are rarely implemented.
Sheriff Rich McNamee raised concerns about ensuring the new system complies with state-mandates related to pay for those in his department.
“For example, the top deputy in my office can make no more than 85% of my salary. So where does the matrix play in with the Iowa code?” he asked.
Greufe assured the board that the new pay structure would adhere to state laws, with salary caps incorporated into the matrix.
“The matrix would show that very thing — that the top of the range could not exceed that 85%,” he confirmed.
Supervisor Marc Lindeen emphasized the need for further evaluation before any final decisions are made.
“This is a lot of good information,” he said, noting that the board is seeking additional input from department heads before moving forward.
Greufe plans to meet with department heads next week to gather feedback and continue working toward a final, detailed version of a new pay matrix.
“I’ll start putting the real numbers together so you can see what that looks like,” he told the board. “Then you can look at it based on what’s shown here, see if it makes sense, and if you want to adjust it at that point.”
As discussions continue, Henry County officials aim to establish a compensation system that fairly rewards employees while maintaining fiscal responsibility. The Board of Supervisors will revisit the topic after additional data and department head feedback are reviewed.
Comments: AnnaMarie.Kruse@southeastiowaunion.com
Information from Southeast Iowa Today with John Bain’s recording of this meeting contributed to this article.
