PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA              Item No.      6g 
ACTION ITEM             Date of Meeting    June 25, 2013 

DATE:    June 14, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Tammy Woodard, Assistant HRD Director  Total Rewards 
SUBJECT:  Proposed Motion Adopting the Total Rewards Philosophy 

ACTION REQUESTED 
Request Commission approval of a motion adopting the Total Rewards Philosophy, which
includes Overarching and Core Principles that guide management and administration of
everything of value that the Port makes available to employees and their families as a result of
their contributions to the Port's mission, including pay, benefits, learning and development,
recognition, and participation in the Port experience. 
SYNOPSIS 
Since early 2011 Port staff has been working to define, communicate and implement a Total
Rewards philosophy to holistically guide the management and administration of the individual
plans and programs that make up the overall Total Rewards package. The philosophy also helps
employees understand the full extent of the Total Rewards package that is available to them
because they choose to work at the Port. The Total Rewards philosophy is a set of principles that
define the desired state of the five categories of Total Rewards at the Port  Pay, Benefits,
Learning and Development, Recognition and the Port Experience.  Overarching Principles 
provide guidance to the entire Total Rewards package while Core Principles provide specific
guidance to each of the Total Rewards categories. 
BACKGROUND 
Most organizations have a Total Rewards Philosophy although it may not be purposefully
defined or communicated, and it may not be consistently used to guide management and
administration of plans and program or to communicate Total Rewards to current and potential
employees.
There are benefits to a documented and communicated Total Rewards philosophy.  These
benefits include having a framework for holistically managing and administering the plans and
programs that make up Total Rewards at the Port, and providing a tool to support engaging,
retaining and attracting employees with the talents necessary for the Port to achieve its goals and
objectives by helping current, and potential, employees understand all that the Port makes

Template revised May 30, 2013.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 14, 2013 
Page 2 of 4 
available to them in exchange for their choice to work at the Port and contribute to the Port's
success.
In early 2011, Port staff began the process of defining and documenting a Total Rewards
Philosophy for the Port. A group of Human Resources and Development (HRD) and Labor
Relations (LR) staff together with the Chief Financial and Administrative Officer worked with
an external consultant to accomplish this. The process began with a thorough exami nation of
existing Port documents, plans and programs. Individual interviews with the Chief Executive
Officer and members of the Executive Team were conducted to learn their thoughts on future
challenges, opportunities and staffing needs for the Port. Department directors were also invited
to focus groups to share their thoughts on how the existing Total Rewards package facilitated or
detracted from employee attraction, retention, and engagement.  The document review and
themes from both the interviews and focus groups formed the basis of the Total Rewards
Philosophy. 
What is Total Rewards? 
Just as no two organizations are exactly the same, total rewards definitions vary from one
organization to the next so they can reflect the mission, values, and culture of each organization.
Total Rewards were defined along with the Total Rewards philosophy. The Port's definition of
Total Rewards is: 
Everything of value that employees and their families receive and have available to them
as a result of their contribution to the Port's mission. 
The plans and programs that make up the Total Rewards package at the Port fall into five
categories: 
Pay is the cash employees receive in exchange for the work they perform. 
Benefits are the plans and programs that enhance employee well-being. 
Learning and Development includes opportunities for employees to expand their experience,
knowledge, skills and adaptability in a constantly changing work environment.  These
opportunities may be formal or informal, required or voluntary, port/profession-specific, or
more broadly based. 
Recognition is an acknowledgment of employee contributions, commitment, and efforts
toward Port endeavors and achievements. Recognition may be individual or team-based,
formal or informal, tangible or intangible. 
The Port Experience includes programs and activities that recognize Port employees'
passion, creativity and motivation; are reflective of the Port's mission and values, and create
pride in working for an organization that honors individuality and diversity of employees and
the surrounding community. 
What is a Total Rewards Philosophy?

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 14, 2013 
Page 3 of 4 
A Total Rewards Philosophy specifies what is important to consider when designing and
delivering the Total Rewards package and differs from a strategy,  which specifies how
something will be achieved. The Philosophy flows from the organization's values and supports
the organization's mission. The Philosophy is, ideally, flexible enough to guide decisions about
the Total Rewards package through a wide variety of economic environments and changing
regulatory requirements and also provides sufficient specificity to guide on-going management
of plans and programs within the overall package. 
What is the Port's Total Rewards Philosophy? 
The Port's Total Rewards Philosophy is comprised of two sets of principles.  Overarching
Principles provide guidance for managing and administering all Total Rewards plans and
programs. Core Principles are unique to each category of Total Rewards and provide additional
guidance for managing and administering plans and programs within each category. 
The Overarching Principles of the Port's Total Rewards Philosophy are: 
Mission, Values and Strategy  Total Rewards must reflect and support the Port's mission,
values and long-term business strategy, nurture our unique culture and grow our business. 
Employees  Total Rewards must support employees performing their best, as well as their
growth and well-being. 
Sustainability  Total Rewards must be managed in a fiscally responsible way that is
sustainable over time, and Total Rewards decisions must recognize the financial impact on
our organization, customers and community. 
Inclusiveness  Total Rewards must be applied fairly and consistently among all employees
to support one organization working to accomplish overall Port goals. 
The Core Principles for each of the Total Rewards categories are: 
Pay 
Pay should be at market average. 
Pay increases should be market competitive. 
Similar pay for similar work is important. 
Benefits 
The total benefits package should be slightly better than market average. 
Benefits offerings should provide choices to meet diverse employee needs at different life
stages. 
Employees should take an active role in understanding and utilizing their benefits
responsibly. 
The benefits package should provide at least a minimum level of financial security in the
event of a disability. 
Employees should share in the cost of their healthcare.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 14, 2013 
Page 4 of 4 

Learning and Development 
Employees should have access to a range of learning and development activities to increase
their capability to serve the Port's needs. 
Employees and the Port share responsibility for employee development. 
Employees should receive regular performance feedback. 
Employees should have written development plans that are reviewed at least annually. 
Leaders should model their support for learning and development through their own
development activities. 
Recognition 
Employee and team accomplishments should be regularly recognized. 
Recognition should be meaningful to those being recognized. 
Employee tenure should be recognized. 
Retiree contributions to the Port should be acknowledged. 
Port Experience 
The Port values the varied perspectives and ideas that come from a diverse workforce. 
The Port offers programs and activities that promote health, safety and preparedness on and
off the job. 
The Port recognizes our unique position as an entrepreneurial enterprise within a public
sector environment. 
The Port recognizes that work-life balance is important for employees and the organization. 
Working at the Port provides opportunities for both public and community service. 
It is important to recognize the balance that the principles of the Total Rewards Philosophy
require and acknowledge that maintaining this balance may, at times, be difficult.  This is
particularly true within the Core Pay Principles where the philosophy refers to both internal and
external equity as important. It is also true with the Overarching Principle of sustainability
(fiscally responsible and sustainable over time) and the Core Pay and Benefits Principles (pay at
market and total benefits package slightly better than market average) where providing a Total
Rewards package that compares with the market in the stated ways may be not be financially
sustainable. 
ATTACHMENTS TO THIS REQUEST 
Total Rewards Philosophy Commission Motion 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 28, 2011  Commission Briefing  Total Rewards Philosophy. 
November 1, 2011  Commission Briefing  Total Rewards Philosophy. 
June 4, 2013  Commission Briefing  Total Rewards Philosophy.