Copyright 2015 X Corp Solutions, Inc.

2015 Residency Conference

College of Graduate & Continuing Studies

Norwich University

Presented By:

Cesar Nader

President/CEO

X Corp Solutions, Inc.

Negotiating Salaries

&

Compensation Packages

Why Negotiate?

• CareerBuilder.com surveyed 875 hiring managers

and found that

• Over 60% of managers leave some room for offer

negotiation

• A SHRM survey found that 8 out of 10 recruiters are

willing to negotiate salary and benefits, yet only 33% of

applicants negotiate.

• Managers want to hear candidates explain why they're

worth more by highlighting specific accomplishments.

Key to every Career Transition

• Know your priorities:

• Salary

• Location

• Job Satisfaction

What is your “Need” Salary vs. “Want” Salary

How to Prepare

• Make Assessment of Your Skills and

Experience

• Evaluate the Overall Offer

• Make a Salary Negotiation Checklist

• Negotiate Compensation not Salary

• Be positive with the outcome

Make Assessment of

Your Skills and Experience

• What Do You Offer?

• Level of Experience (Years)

• Education (BS, MS, PhD)

• Special Training

• What Makes You Stand Out Compared with

Others?

• Professional Strengths

• Core Competencies

• Management Skills

https://info.aiaa.org/SC/YPC/YP%20News%20letter/News%20Letter%20Articles/YP%20Article%20-%20LAfflitto.pdf

2008 AIAA Survey

What You Are Worth

Evaluate the Overall Offer

• Base Salary

• Hiring or Signing Bonus

• Benefits package (ANSER example)

• Location

• Relocation Assistance

• Cost of Living Allowance

• Job Satisfaction (Opportunity for growth)

• Commute Time

• Company Discounts

Benefits Available to Analytic Services Inc.

Employees

401(a) Employer Funded Retirement Plan

Employer contribution = 5% during 1st year of service, with annual increases of 1% to the maximum of 10%

100% immediate vesting Employee-directed account with TIAA-CREF

403(b) Employee Funded Retirement Plan * Pretax or Roth, Employee-directed account with TIAA-CREF Pretax Employee-directed account with T. Rowe Price

Paid Time Off Accrual based on hours worked, with maximum of 15 days for first year One extra day per year of service, with maximum of 25 days per year

Paid Holidays 10 holidays per year – 6 scheduled & 4 “employee choice”

Work Schedules Opportunities, business need permitting, for flexible schedules such as a “9/80”

Medical Plans * Plan Choices of Aetna HMO, PPO or CDHP w/HSA

- See rates in Chart A

Dental Plans * MetLife Copay and Insured plans

- See rates in Chart B

Opt-out Credits (Employees & Retirees) Extra cash if not enrolled in medical and/or dental plans

- Requires proof of other coverage- See rates in Chart C

Medical & Dental Benefits for Retirees

Medical administered by Hartford, dental by MetLife

- Employer subsidized health/dental benefits for retirees and their spouse

- Retirees: Minimum age = 55, Minimum service = 10 years and age + service >= 70

Vision Insurance * Administered through Vision Benefits of America

- Standalone plan – 100% employee paid

Flexible Spending Accounts *

Employee contributions up to $2,500 each for medical and up to $5,000 for dependent care expenses

NOTE: Benefits are available to all full-time regular employees and are generally effective on the first day of active employment. Certain restrictions apply to employees with alternative work schedules, e.g., part-time, on-call, and those with a planned termination date. These summaries are also subject to the detailed provisions of the associated Plans.

Life Insurance Administered by MetLife

- 100% employer paid premiums- Three times annual salary up to $1,000,000- Matching Accidental Death & Dismemberment (AD & D)

Supplemental Life Insurance Administered by MetLife

- 100% employee paid premiums- Up to $500,000 for employee & up to $250,000 for spouse- Child rider available- Will Preparation - employees who enroll in Supplemental Life coverage are

eligible to complete or update wills for themselves or their spouses for free

Business Travel Accident Insurance 100% employer paid premiums $100,000 AD & D

Short-Term Disability (STD) Administered by MetLife

- 100% employer paid premiums- 100% of salary (up to $3,500/week) for 1st 8 weeks, 80% for next 6 weeks, 60%

for final 8 weeks

Administered by MetLife

- 50% employer & 50% employee paid premiums- Benefit coordinated with the end of STD- Pays 60% of salary (up to a $ 15,000 monthly maximum benefit) until age 65

Educational Assistance

Up to $5,250 for tuition & eligible expenses per school year, paid in advance Additional $2,000 interest-free loan available

Training and Development Employer paid seminars/non-degree courses available Annual employer contribution toward professional association membership

Long-Term Disability

*Employee contributions made on a pretax basis

Benefits Available to Analytic Services Inc.

Employees

Employee Assistance Program Administered through INOVA

- 100% employer paid- Available to employees & households for specified assistance with

personal, legal, and/or financial challenges

Computer Purchase Program

Up to $3,000 interest-free loan for hardware and software

Employer Paid Parking or SMARTRIP Benefits Paid parking or $120 per month SMARTTRIP

Employee Recognition Programs

Quarterly/annual recognition for excellence, published contributions

Associated monetary awards up to $5,000

United Buyers Services Discounted automobile purchases

Pentagon Federal Credit Union (PFCU) Employees are eligible to join the PFCU

Health Facilities Free fitness facilities in Shirlington, VA and Colorado Springs, CO Corporate discounts for The Energy Club, Shirlington, VA

Pet Insurance Provided through VPI http://www.petinsurance.com/affiliates/anser_npr

Additional Benefits Administered by MetLife

- Metdesk – free service which focuses on the financial concerns of families who have special needs children and/or dependents

- MetLife Advice – specialist to help beneficiaries foresee and resolve many ofthe issues they may face during a sensitive time

NOTE: Benefits are available to all full-time regular employees and are generally effective on the first day of active employment. Certain restrictions apply to employees with alternative work schedules, e.g., part-time, on-call, and those with a planned termination date. These summaries are also subject to the detailed provisions of the associated Plans.

works, & extraordinary

Chart A: CY2013 Medical Coverage Plan

Chart B: CY2013 Dental Coverage Plan

Chart C: CY2013 Opt-Out Credits (Available with proof of coverage)

Plan Semi-monthly

Employee

Semi-monthly

Analytic Services

HMO Individual 0.00 202.58+child(ren) 87.91 300.88

+spouse 101.78 348.28family 139.61 476.89

PPO Individual 70.28 202.58+child(ren) 222.88 300.88

+spouse 258.02 348.28family 353.63 476.89

CDHP

/HSA

Individual 0.00 188.90+22.50+child(ren) 87.03 275.57+32.50

+spouse 100.74 319.00+35.00family 138.00 436.98+45.00

Plan Semi-monthly

Employee

Semi-monthly

Analytic Services

Copay Individual 0.00 11.35+child(ren) 6.19 21.93

+spouse 5.68 20.13family 9.33 33.07

Insured Individual 9.67 11.35+child(ren) 23.59 21.93

+spouse 21.48 20.13family 32.72 33.07

Plan Annual Payments

Analytic Services

Medical/Dental 650.00/130.00

Make a Salary Negotiation Checklist

Small Company #1 Medium Company #1 Medium Company #2 Small Company #2 Large Company #1 Medium Company #3 Large Company #2 Large Company #3

Title

Base Pay $150,000.00 $155,000.00 $150,000.00 $162,500.00 $150,000.00 $172,000.00 $140,000.00 $130,000.00

Variable Pay

(Revenue Based)

1% of Gross Revenue

(~$100,000.00) $50,000.00 None $12,500.00 None None

7% of Base exceed target

($10,000.00) None

Incentive Bonus None

$50,000.00 per

(WPPL/ECCS/Ku BW) $52,500.00 $20,000.00-$25,000.00 25% of Base ($37,500) Discretionary (~10K) 25% of Base ($35,000.00) Minimal

Re-Lo/Signing

Bonus $30,000.00

$30,000.00+$10,000.00 tax

free $30,000.00 $25,000.00 $30,000.00 $18,000.00 $30,000.00 $10,000.00+move expenses

Stock Options None

25,000 Shares

($40,000.00 per year) None None None 500 Shares (~17K) None None

401(K) Matching

5% Employee/4% Company

match

Match 40% of employee

contribution Match up to 4% None ($16,500.00/year) Match up to 6% Match up to 5% Match up to 4.5% $14,500.00 match per year

Company Equity

Stock % Based on Performance None None

300 Units vest over 4 years

($20,000.00 currently) None None None None

Vacation 3 Weeks 3 Weeks 3 Weeks 15 Days 4 Weeks 3 Weeks 3 Weeks 23 Days

Estimated Annual

Income: $250,000.00 $245,000.00 $202,500.00 $200,000.00 $187,500.00 $176,000.00 $175,000.00 $130,000.00

Retirement

Income: $48,400.00 $48,400.00 $48,400.00 $48,400.00 $48,400.00 $48,400.00 $48,400.00 $48,400.00 Total Estimated

Income After

Taxes $191,000.00 $185,000.00 $161,000.00 $159,000.00 $151,000.00 $144,000.00 $143,000.00 $123,000.00

Risk High Medium Medium High Low Low Low Low

Business Diversity Low Medium Medium Low High High High High

Family Time Medium Low Medium Medium High High Medium High

Promotions Low Medium Medium Low High High High Low

Location

Travel 20%-50% 25-30% 30% 50% 50% 50% 50% 20%

PROS

*hands on engineering

*less oversight and politics

*compensation grows

directly with revenue

*minimum status reporting

*work from home or office

*innovation *Projected

growth for 2010 is 15M,

2011 is 25M

*Good middle management

and sales staff

*Well known product lines

*Promotion opportunity

*Future pay and

compensation *Growth

pattern *Engineering

centric *Guaranteed 8% pay

raise in Feb 2011

*Diversity *Growth

pattern *Outstanding upper

management *Engineering

centric *Promotion

opportunity

*max flexibility

*minimal supervision *work

from home

*Good middle management

and sales staff

*Well known product lines

*Promotion opportunity

*Future pay and

compensation

*Engineering centric *Every

other Friday Off

*Well established company

*Diverse

commercial/government

business units *Low

stress company culture

*Good middle management

and sales staff

*Well known product lines

*Promotion opportunity

*Future pay and

compensation

*Solid engineers

*Engineering centric *Direct

MC/Army comm support

CONS

*promotion opportunities

limited

* no diversity, niche market,

limited customer base

*high risk *97%

Revenue from government

*Possible

micromanagement

*Possible reputation

problem *Office

politics

*Geo location *Not

well structured *No

product lines *No direct

link to Marine Corps

communications

*IA Business *Contingent

offer *no equipment or

product lines *Create

something out of nothing

*Pay and comp structure

*Limited growth *Minimal

impact *Office politics

*No incentive/bonus

structure

*Minimal impact potential

*Pay and comp structure

*Limited growth *Minimal

impact potential

*Office politics

*No performance bonuses

*No incentive structure

*No pay raises

*Very little promotion

opportunity

Negotiate Compensation not Salary

• Is there room for negotiating the base salary

• Can you get more money for less benefits

(military retirees

• Is the pay cut worth the career move

Questions