Dunn County human resources staff outlined a proposed overhaul of the county’s pay structure on July 16, asking the Executive Committee to forward a revised Human Resources code and a 2026 wage proposal to the board.

The proposal would remove the existing ordinance-mandated 11-step system and replace it with a manager-recommended structure administered under a Human Resources code. Under the plan, employees would receive a 2.25% market (cost-of-living) adjustment in 2026 and a performance component tied to an October rating: 0.50 percentage points for "meets expectations" and 1.00 percentage point for "exceeds expectations." Employees rated "needs improvement" in October would not receive a 2026 pay increase.

Why it matters: County staff said the fixed 11-step, 25-pay-grade design has reduced the board’s flexibility to calibrate annual wage increases and created compression between new hires and longer-tenured employees. Jenna, HR staff member, told the committee that the change is intended to allow the county to “adjust all of the variables” without changing the ordinance annually.

County staff also described a new, simpler performance management process intended to give employees regular feedback. Managers will be asked to hold at least four check-ins per year (around Jan. 1, April 1, July 1 and Oct. 1). The manager must complete a short check-in form within 45 days after Jan. 1 (by Feb. 15). The October rating will determine 2026 pay adjustments.

Jenna said departments have already received training and a managers’ guide explaining how to apply a core-values rubric—dedication, ethics, betterment, professionalism and collaboration—across diverse county roles. “We do recognize that a half a percent isn't a big difference,” she said, describing the 0.5-percentage-point spread between meeting and exceeding expectations as a cautious first-year step while managers gain calibration experience.

Committee members raised concerns about fairness, calibration and timing. Supervisor Kinnear asked whether the county board had flexibility to set raises outside the step system; staff replied that the current ordinance fixes the step amount and that removing the step language would restore flexibility. Supervisor Morehouse and others urged a larger spread between meeting and exceeding in later years to better reward high performers; Jenna said the county could propose a larger spread in future budget cycles once calibration data exist.

Staff presented fiscal context showing county wage and fringe costs rising from about $36 million in 2020 to roughly $49.3 million in 2025 and projecting nearly $62 million by 2030 if current trends continue. Under the proposal, total wage and fringe costs for 2026 were estimated at about $50.6 million, roughly $986,000 less than a continuation of the status-quo step-plus-COLA approach.

The committee did not take a formal vote on final ordinance language or the 2026 percentages during the meeting. Staff said the committee on administration and the full county board would still need to approve the Human Resources code and any chosen percentages. HR staff also said they will produce individualized compensation statements and host employee town halls after the budget is adopted and the final October ratings are complete.

Discussion, direction and next steps: Committee members were invited to offer amendments when the matter reaches the board. Staff said they will monitor rating distributions, review outliers between managers, and examine every "needs improvement" rating to confirm documentation and fairness before pay decisions are finalized.