Do you think something like this would be sufficient?
create table lala (employeeID int, colx int)
insert into lala values (1001, null)
insert into lala values (1001, 7)
insert into lala values (1001, 8)
insert into lala values (1002, null)
insert into lala values (1002, 7)
insert into lala values (1002, 9)
insert into lala values (1002, 10)
insert into lala values (1003, 11)
insert into lala values (1004, null)
insert into lala values (1005, 12)
insert into lala values (1005, 20)
insert into lala values (1005, 21)
insert into lala values (1005, 22)
insert into lala values (1006, 24)
insert into lala values (1006, null)
-- Now you can define a second table to do the job:
create table #lala2 (employeeID int, colx int, inc int identity(1, 1))
insert into #lala2 (employeeID, colx)
select employeeID, colx from lala
order by colx desc
delete from #lala2
where exists (select 1
from #lala2 maxinc
where maxinc.employeeID = lala2.employeeID
and maxinc.inc > lala2.inc)
delete from lala
insert into lala select employeeID, colx from #lala2
drop table #lala2