Is The Grass Greener

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Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.
Is The Grass Greener? Dave Howe Lucas
Group Senior Partner Military Division
800-361-9317 x 810
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Why did you join?
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Serve your country
• Drive ships, fly airplanes, build stuff, practice
  your art/science
• Adventure / Travel / See the world
• Education or money for school
• Job Security

www.LucasGroup.com
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What are former military saying?
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• We asked former military personnel what they
  missed most in their new civilian job...
• Leadership Opportunities (cited by 30)
• Benefits (tax advantage, NEX, leave) (19)
• Camaraderie and teamwork (17)
• Unique experiences / travel (10)
• Job security (8)
• Job satisfaction / greater purpose (7)

www.LucasGroup.com
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What are former military saying?
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• What they like about their new civilian job...
• Family stability and QOL (53)
• Control over location (31)
• Performance based compensation (17)
• Compensation (16)

www.LucasGroup.com
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Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Pay
• and Compensation
• Compare Apples to Apples

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Tax Advantage
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Tax break
• The additional income that the service members
  retain because allowances, such as BAH and BAS,
  are not subject to federal income tax.
• Tax advantage
• The additional civilian income that service
  members would have to earn to give them the same
  after-tax income they would receive if their
  non-taxable allowances were subject to federal
  income tax.
• (This is dependent upon tax bracket (federal
  income, social security, and medicare), marital
  status, and number of dependents.)
• Bottom line
• Evaluate total monetary compensation not just
  pay when making monetary compensation
  comparisons.

www.LucasGroup.com
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Additional Benefits
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Healthcare
• Retirement
• Leave/Vacation
• Commissary, Exchange and MWR
• Education

www.LucasGroup.com
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Average Monthly Insurance Premiums
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.
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Annual Insurance Deductible
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Premium costs are widely used to gauge health
  plan affordability, but
• Other expenses can also take big bites out of
  workers' wallets.
• In 2007, the average family-plan deductible
  ranged from 759 in health maintenance
  organization plans to 3,596 in high-deductible
  health plans.
• Copayments for office visits with doctors in the
  health plan's network ranged from 18 to 30 on
  average, depending on the type of plan.

www.LucasGroup.com
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Types of Retirement Plans
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Defined Contribution
• Popular since 1980s as 401(k) (Thrift Savings
  plans in Govt.)
• Benefit depends on contribution and investments
• Contributions are pre-tax lowering taxable
  income
• Employers typically supplement your funds
• You control investments
• You determine withdrawal amounts during
  retirement
• Trends show private sector moving towards defined
  contribution plans

• Defined Benefit
• Employer-paid pension plan
• Benefit is set based on earnings and years of
  service
• Use has declined to about 25 of employers
• Employer/fund manager makes all decisions
  affecting funds
• Many plans face significant funding and
  investment challenges
• Navy has defined benefit pension plan with
  optional Thrift Savings Plan (TSP)

www.LucasGroup.com
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Retirement Pension
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• As a Civilian, you would have to accrue 879,243
  at the time of retirement to receive a comparable
  payout
• Investment 19,213 annually _at_ 8.00 for 20 years
  

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Leave and Vacation
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.
Private Sector

• Average number of paid vacation days ranges from
  9.6 for one year of service to 20.3 for 20 years
  of service
• Average of 9 paid holidays
• Sick leave varies
• Trend towards use of Paid Time Off (PTO) banks

www.LucasGroup.com
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Exchange and Commissary
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.
Does not include additional savings from
avoidance of sales tax, which exchanges do not
charge.
Sources www.navy-nex.com, based on April 2007
by independent research firm in 8 market
areas www.commissaries.com, based on Oct 2006
USDA figures
www.LucasGroup.com
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Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.
The 2008 Job Market
www.LucasGroup.com
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Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.
Industry 2008 Projection
Automotive Cool Banking -  Cold Commercial
Aerospace - Neutral Construction (Commercial)
Warm Construction (Residential) - Cold Consulting
- Neutral Defense - Warm Electronics - Cool Food
-  Warm Info Tech -  Neutral Insurance
- Neutral Medical - Hot Power - Hot Retail -
Neutral Semiconductors - Cool Telecommunications
- Cool
www.LucasGroup.com
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What Companies Look For
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Academics
• Military Record
• Specific Experience
• Appearance/Presentation/Poise
• Personality/Attitude

www.LucasGroup.com
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MILITARY DIVISION 2007 SALARY SURVEY The
following salary survey includes data for
candidates placed by Lucas Groups Military
Division between October 1st, 2006 and September
30, 2007
REGION POSITION TYPE
AVERAGE SALARY
PACIFIC Engineering 73,978 (CA,OR,WA,HI) L
eadership/Management 72,231 Operations/Log
istics/Quality 71,404 Sales 87,641
Technician 48,398 CENTRAL
SW Consultant 83,333 (TX,OK,AR,LA, Engineerin
g 69,736 AZ, NM, NV) Leadership/Management
65,500 Operations/Logistics/Quality 64,2
84 Sales 76,064 Technician 46,
550
- Sales compensation includes base salary 30
for allowances, commissions performance bonuses
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MILITARY DIVISION 2007 SALARY SURVEY cont.
The following salary survey includes data for
candidates placed by Lucas Groups Military
Division between October 1st, 2006 and September
30, 2007
REGION POSITION TYPE
AVERAGE SALARY
MID-ATLANTIC Consultant 84,900 (DC,NC,VA,WV
, Engineering 83,361 MD,DE,PA) Leadership/Ma
nagement 69,496 Operations/Logistics/Quality
65,063 Sales 99,154 Technician
47,103 SOUTHEAST Consultant 83,750 (AL
,FL,GA,MS, Engineering 64,695 SC,TN) Leaders
hip/Management 65,467 Operations/Logistics/Q
uality 69,933 Sales 92,803
Technician
44,856
- Sales compensation includes base salary 30
for allowances, commissions performance bonuses
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MILITARY DIVISION 2007 SALARY SURVEY cont.
The following salary survey includes data for
candidates placed by Lucas Groups Military
Division between October 1st, 2006 and September
30, 2007
REGION POSITION
TYPE AVERAGE
SALARY
NORTHEAST Consultant 78,071 (NY,NJ,ME,NH, En
gineering 69,222 VT,MA,RI,CT) Leadership/Mana
gement 75,309 Operations/Logistics/Quality
62,998 Sales 85,447 Technician
53,365 Sr. Management 150,833 MIDWEST
ROCKIES Consultant 73,750 (OH,IN,MI,WI,MN,
Engineering 69,227 KY,ND,SD,KS,NE, Leadershi
p/Management 64,132
IA,IL,MO,CO,WY, Operations/Logistics
/Quality
65,937 UT,ID) Sales 78,378
Technician 45,252 OVERSEAS Leadership/Ma
nagement (Sr Management) 142,214 Operations/Lo
gistics/Quality 81,800 Sales
123,825 - Sales compensation includes
base salary 30 for allowances, commissions
performance bonuses
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Starting Salaries
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• For officers with leadership and BAs
• Management that pays a base in the 50s-70s
• Sales that pays a base in the 50s to 60s
• For officers with technical degrees and
  experience
• Technical Management that pays in the 70s-90s
• For technical enlisted (ET, EM, MM, etc.)
• Field service positions that pay a base in the
  40s and 50s
• For non-technical enlisted
• Operations and junior management that pays a base
  in the 30s

www.LucasGroup.com
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Base Salaries 2-5 years out
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Degreed officers with 5-10 years of service
• 70-250K (most are between 85-120K)
• and some are millionaires - What does that take?

www.LucasGroup.com
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HOW PRIVATE SECTOR PAY IS MANAGED
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• Starting salaries are based on supply, demand,
  individual credentials and experience
• Pay Raises
• Can vary significantly from year to year
• Determined by the economy and company profits
• Rarely across the board at a company
• Based on your performance and outcomes
• Bonuses Performance or Position-based

www.LucasGroup.com
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Final Thoughts
Atlanta - Chicago - Dallas - Denver - Honolulu -
Houston - Irvine - Los Angeles - New York -
Phoenix - San Diego - Washington D.C.

• ?
• Dave Howe
• 800-361-9317 x 810
• dhowe_at_lucasgroup.com

www.LucasGroup.com