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Baker Tilly recommends new SAFE classification and consolidated pay plan for Middletown; staff present three cost options
Summary
At a Feb. 9 workshop, Baker Tilly recommended that Middletown adopt the SAFE job‑evaluation system and a consolidated 26‑grade, seven‑step pay plan anchored at the midpoint. City HR gave three implementation cost estimates ranging from about $428,292 to $794,642 and said unions will have impact‑bargaining rights if the council approves the plan.
Baker Tilly consultants on Feb. 9 urged the City of Middletown to replace its three current pay plans with a single, consolidated pay structure and to adopt the SAFE job‑evaluation system to grade positions citywide.
Sarah Towne, senior consulting manager for Baker Tilly, told the Common Council the study combined employee position‑analysis questionnaires (PAQs), supervisor reviews and a market assessment of peer organizations to assign numeric SAFE scores and draft job descriptions. "Our job evaluation system called SAFE stands for systematic analysis and factor evaluation," Towne said, explaining the tool uses nine compensable factors — including education, experience, complexity and supervision — to compare positions internally.
The consultants said they took 154 of the city’s 184 positions to market and obtained sufficient benchmark matches for 135 positions. Towne summarized market findings, saying Middletown’s minimum salaries were, on average, about 7.1% below the market, midpoints about 0.6% below and maximums roughly 2.4% above market — a pattern the firm said creates recruitment pressure at entry levels even when top‑of‑range pay is competitive.
To address those gaps, Baker Tilly proposed a single pay plan with 26 grades and seven steps so the midpoint (step 4) could be clearly anchored to 100% of market averages. Towne said the consolidated plan uses an even 5% step differential and a 34% range spread to provide predictability: "It's more math than anything," she said, describing a regression approach to set the percentage between steps.
Justin Richardson, the city’s director of human resources, presented preliminary implementation cost estimates for three placement scenarios Baker Tilly modeled: Option 1 (place employees on the closest step without a pay decrease) — $428,292.17; Option 2 (place by years in role, defaulting to Option 1 if it would lower pay) — $754,926.30; and Option 3 (map current steps into the new seven‑step structure) — $794,642.08. Richardson emphasized those costs address base pay only and do not reduce any incumbent’s salary: "Baker Tilly does not recommend a salary decrease for any employee as a result of a study," he said.
City staff said the analysis covered 260 employees (including vacancies); of those, 8 employees would fall below a proposed new minimum, about 186 would fall within the new range and 66 currently earn more than the proposed new maximum and would be held harmless under the firm’s recommended approach.
Council members asked for additional breakdowns by bargaining group and for clarity on how up‑to‑date the market data is. Towne said the market snapshot was collected in 2023 and then "aged" about 6% to reflect conditions relevant to implementation in 2026. Council members requested that Baker Tilly and staff provide the per‑unit cost filters and a disaggregated estimate by bargaining unit before any final vote.
If the council approves a new classification and compensation system, staff and negotiators said the city will proceed to impact bargaining with affected unions to implement the plan and agree on an ongoing review process. The council adjourned after the presentation and Q&A.
Next steps: council consideration of tentative agreements (TAs) on the agenda and a possible vote to adopt the study will determine whether the city moves to impact bargaining and which implementation scenario to select.
