Presentation For Total Market-Based Compensation Management System Presented By HR Solutions LLC

Dear Prospective Client: This presentation contains an overview of the Total Market-Based Compensation Management System offered by HR Solutions LLC. It is a summary of the regulatory demands on your company and what we can do to ease the regulatory burden, keep you in compliance and, most importantly, ensure you have the tools to stay competitive. HR Solutions LLC enhances your pricing/proposal process by providing you with multiple surveys (up to 30), geographic differentials that allow you to bid the local labor rates, and a database that you can age to the date the proposal starts. We hope you find this presentation useful as you consider your company’s needs—particularly in the areas of compliance and pricing. We look forward to working with you. Sincerely, Jim Jutzin, SPHR VP HR Consulting Services HR Solutions LLC 703.298.5991

Total Market-Based Compensation Management System Program Overview

Regulatory Compliance What Does It Mean? A compliant plan must meet three external audits – DCAA, OFCCP and DOL/FLSA DCAA is concerned that the plan pays fair wages compared to the external market They define the external market as survey data OFCCP is concerned that the plan pays fair wages compared to internal equity Are your minorities paid in line with majorities? DOL/FLSA requires all employees are properly categorized as Exempt or Non-exempt

A compliant plan must meet three external audits – DCAA, OFCCP and DOL/FLSA

DCAA is concerned that the plan pays fair wages compared to the external market They define the external market as survey data

OFCCP is concerned that the plan pays fair wages compared to internal equity Are your minorities paid in line with majorities?

DOL/FLSA requires all employees are properly categorized as Exempt or Non-exempt

To Meet DCAA Concerns Need to show your pay is equitable to market, for all labor categories Must have multiple survey sources of peer companies and jobs Establish market-derived pay structure Establish grades, ranges, job descriptions Place staff in grades and compare to market To Meet OFCCP Concerns Place staff into grades that match their experience and education Compare females and minorities to non-minorities pay within grades Explain any pay deltas or make retroactive adjustments for 2 years on pay Regulatory Compliance What Do You Need to Do?

Need to show your pay is equitable to market, for all labor categories

Must have multiple survey sources of peer companies and jobs

Establish market-derived pay structure

Establish grades, ranges, job descriptions

Place staff in grades and compare to market

Place staff into grades that match their experience and education

Compare females and minorities to non-minorities pay within grades

Explain any pay deltas or make retroactive adjustments for 2 years on pay

Why Institute a Total Market-Based Compensation Program? Government Regulations require that you have a system that complies with 3 audit agencies, DCAA, OFCCP and DOL/FLSA Pricing/contracts need latest market pricing data Geographic pay deltas will ensure that your company pays and bids at the local market rate Common job titles, grade definitions and job codes will allow your company to find staff across all company business units for bidding, running reports on all levels of employees and compliance with the government regulations A common compensation program makes all new acquisitions immediately look like the rest of the corporation Managers will have a uniform guide, Salary Management Manual, to explain all facets of the comp program to their staff

Government Regulations require that you have a system that complies with 3 audit agencies, DCAA, OFCCP and DOL/FLSA

Pricing/contracts need latest market pricing data

Geographic pay deltas will ensure that your company pays and bids at the local market rate

Common job titles, grade definitions and job codes will allow your company to find staff across all company business units for bidding, running reports on all levels of employees and compliance with the government regulations

A common compensation program makes all new acquisitions immediately look like the rest of the corporation

Managers will have a uniform guide, Salary Management Manual, to explain all facets of the comp program to their staff

Major Steps to Develop a Total Market-Based Compensation Program Using multiple surveys, develop salary ranges for all office locations Create uniform job levels (salary grades) that map to survey and RFP definitions Establish career levels, job descriptions and job codes for all positions All employees are assigned new grades, titles and job codes A compa ratio (midpoint divided by salary) is determined for each employee Employees out of range are identified and a decision is made if adjustments are required Females and minorities are compared to non-minorities in all grades Exempt and Non-exempt status is finalized DCAA has traceable market data for all bids Managers are trained in the program

Using multiple surveys, develop salary ranges for all office locations

Create uniform job levels (salary grades) that map to survey and RFP definitions

Establish career levels, job descriptions and job codes for all positions

All employees are assigned new grades, titles and job codes

A compa ratio (midpoint divided by salary) is determined for each employee

Employees out of range are identified and a decision is made if adjustments are required

Females and minorities are compared to non-minorities in all grades

Exempt and Non-exempt status is finalized

DCAA has traceable market data for all bids

Managers are trained in the program

Benefits of Total Market-Based Compensation Management System DCAA Compliance will have multiple salary survey data. EEO Analysis can be done within grades to ensure compliance. FLSA Compliance Exempt and Non-exempt status will be correct. Geographical ranges will allow more accurate bidding and proposal efforts and actual hiring salary ranges. Recruiting will have current market data. Managers will be able to counsel employees on how they can advance and what the effect will be on employees’ pay. Employees will have career charts and job descriptions to allow them to see a defined future in the company. Acquisitions can now follow the corporate salary grade template from day one.

DCAA Compliance will have multiple salary survey data.

EEO Analysis can be done within grades to ensure compliance.

FLSA Compliance Exempt and Non-exempt status will be correct.

Geographical ranges will allow more accurate bidding and proposal efforts and actual hiring salary ranges.

Recruiting will have current market data.

Managers will be able to counsel employees on how they can advance and what the effect will be on employees’ pay.

Employees will have career charts and job descriptions to allow them to see a defined future in the company.

Acquisitions can now follow the corporate salary grade template from day one.

All jobs will have job code that will tie to employee, rate, range, title & location Pricing can establish actual average pay for job family, job title or entire grade Multiple job levels can be combined for greater pricing flexibility Labor categories may be bid with no incumbents, using market salary survey data GEO Survey Data Finder with City Differential and Aging Factor Tool provides current, multi-survey national labor rate information on jobs. Impact on Pricing/Contract Proposal Efforts

All jobs will have job code that will tie to employee, rate, range, title & location

Pricing can establish actual average pay for job family, job title or entire grade

Multiple job levels can be combined for greater pricing flexibility

Labor categories may be bid with no incumbents, using market salary survey data

GEO Survey Data Finder with City Differential and Aging Factor Tool provides current, multi-survey national labor rate information on jobs.

What Your Managers Will Learn The components of the new program How to manage compensation issues within a standard policy How to use job descriptions and career progression charts to conduct career development discussions with employees How to counsel employees on their pay How to correct historic pay problems How to use current total market data in recruiting How to determine correct job codes and salary grades for current and future employees How to perform FLSA Compliance – to ensure correct Exempt and Non-Exempt status How to perform EEO Analysis – within salary grade to ensure compliance What DCAA requires from a compensation system

The components of the new program

How to manage compensation issues within a standard policy

How to use job descriptions and career progression charts to conduct career development discussions with employees

How to counsel employees on their pay

How to correct historic pay problems

How to use current total market data in recruiting

How to determine correct job codes and salary grades for current and future employees

How to perform FLSA Compliance – to ensure correct Exempt and Non-Exempt status

How to perform EEO Analysis – within salary grade to ensure compliance

What DCAA requires from a compensation system

This concludes the Introductory Client Information Presentation . At HR Solutions LLC, for more than 200 companies, our service offering has provided the tools to: • Enable competitive bidding nationally • Ease the burden of regulatory compliance • Define, implement, and control compensation • Simplify HR employee administration To learn how we can specifically make a difference for your company, please contact: Jim Jutzin, SPHR VP HR Consulting Services HR Solutions LLC [email_address] 703.298.5991

At HR Solutions LLC, for more than 200 companies, our service offering has provided the tools to:

• Enable competitive bidding nationally

• Ease the burden of regulatory compliance

• Define, implement, and control compensation

• Simplify HR employee administration

To learn how we can specifically make a difference for your company, please contact:

Jim Jutzin, SPHR

VP HR Consulting Services

HR Solutions LLC

[email_address]

703.298.5991