Clay County moves toward new pay plan after classification and compensation study; implementation planned for April

County human-resources officials and McGrath consultants presented the findings of a countywide classification and compensation study at the March 27 commission meeting and the commission gave staff consensus to begin the implementation steps and draft required policies.

McGrath findings and recommendations

McGrath senior consultant Malena Halverson Mays told commissioners the study reviewed more than 250 position questionnaires, conducted market benchmarking against comparable local jurisdictions and developed a new pay structure. Key findings included:

- Average tenure in the organization is relatively high (about nine years), but 76% of employees have been in their current position less than five years. - Market benchmarking showed many positions pay below market at current minimums and midpoints; about half of positions were outside market competitive ranges depending on the metric used. - The consultant recommended moving from the county’s existing 14 pay grades to 23 pay grades and adopting a step-based progression of 20 steps (2% step increments) anchored at the market midpoint; a separate 24/7 step schedule (14 steps at 3% increments) was proposed for sheriff and juvenile services roles that face higher market pressures.

Cost and implementation

McGrath estimated the immediate budget impact to implement the placement and initial step adjustments at approximately $1.2 million (the consultant described that number as the delta required to align ranges to the market; staff later discussed broader implementation scenarios and noted that pushing employees farther into ranges could raise longer-term costs). County staff said funds for initial implementation were budgeted in the 2025 personnel budget and that the county can proceed without a separate appropriation.

Policy and maintenance

Consultants recommended policies to standardize hiring ranges, promotions, demotions, transfer and reclassification procedures, and an annual market review. Under the proposed model, employees would receive a market adjustment (COLA or market update) and an annual step increase tied to adequate performance. The consultant also proposed a “legacy lane” to hold existing employees whose pay exceeds the new maximum until they attrit while preventing new hires from entering that lane.

Commission direction and next steps

Commissioners asked detailed questions about ranges, total compensation, health insurance, recruitment and turnover. While several commissioners said they prefer the county aim above the 50th percentile over time, the consultant recommended the commission adopt the 50th percentile as the initial target and use annual market updates and policies to move higher if desired.

The commission gave consensus for staff to prepare the implementing policies and return with formal adoption options. County administration said it would present policy language and final implementation schedules within two to three weeks and aimed to apply new placements and initial step adjustments to payroll with an April effective date if adopted.

Ending

Commissioners and staff praised the HR team and the consultants for the months-long study. Several commissioners said the propose plan is a necessary step toward modernizing county compensation while recognizing future budget and design choices remain.