Introductory Client Information Presentation For Total

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Introductory Client Information
Presentation ForTotal Market-Based
Compensation Management SystemPresented
ByHR-3D/HR Solutions
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Dear Prospective ClientThis presentation
contains an overview of the Total Market-Based
Compensation Management System offered by
HR-3D/HR Solutions. It is a summary of the
regulatory demands on your company and what we
can do to ease the regulatory burden, help you
with compliance and most importantly, ensure you
have the tools you need to stay competitive.
HR-3D assists the pricing/proposal process by
providing 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
companys needsparticularly in the areas of
pricing and compliance. We look forward to
working with you.Sincerely,Jim Jutzin,
SPHRVP HR Consulting Serviceswww.HR-3D.comjim_at_h
r-3d.com703.298.5991
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Total Market-Based Compensation Management
System Executive Overview
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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

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Regulatory Compliance What is Required?
To Meet DCAA Concerns
To Meet OFCCP 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

• Place staff into grades that match their
  experience and education
• Compare females and minorities to non-minorities
  pay within grades using a 2K or 2 tipping point
  test
• Explain any pay deltas or make retroactive
  adjustments for 2 years on pay

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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

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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

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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.

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Impact on RFP Labor Category 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
• Survey Data Finder with City Differential and
  Aging Factor Tool provides current, multi-survey
  national labor rate information on jobs. (See
  next slide)

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Survey Data Finder With City Differential and
Aging Factor Proposal Tool (Example)
Drop down list of cities with adjusted labor rates
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Typical Surveys Used for Clients

• Hay Technical and Management
• Wyatt series of 6 survey reports
• Professional and Scientific
• Mid Management
• Management
• Senior Management
• Office and Clerical
• Production and Manufacturing
• Towers Perrin Professional and Technical
• HRA National Capital Area
• Western Management Government Contractors
• SIRS Technical and Management

• Washington Technical Personnel Forum
• Washington Technical Personnel Forum Executive
• Mercer series of 7 surveys
• Telecommunications
• Information Technology
• Finance Legal
• Computer Systems
• Human Resource
• Hot Skills for special needs
• Logistics
• Culpepper Operations Survey
• Culpepper Software Survey
• Radford Scientific and Technical Survey

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What the 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

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Client List (Partial) HR-3D/HR Solutions has
provided services to all the clients listed
below. This listing represents only a small
sampling of our client list--a diversified group
of companies by size and organizational type.
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This concludes the Introductory Client
Information Presentation.

• At HR-3D, 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
• www.HR-3D.com
• jim_at_hr-3d.com
• 703.298.5991