PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       7a 
STAFF BRIEFING             Date of Meeting    June 4, 2013 

DATE:    May 28, 2013 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Tammy Woodard, Assistant HRD Director  Total Rewards 
SUBJECT:  Briefing  Total Rewards Philosophy 
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. 
Once the Total Rewards philosophy was defined, the plans and programs that make up
the current Total Rewards package were compared to the Overarching and Core
Principles. Where gaps between the current Total Rewards and the principles of the
philosophy exist, work plans are being developed to address the gaps and move toward
alignment with the Total Rewards philosophy. The Commission will be asked to approve
the principles that make up the Total Rewards philosophy at a subsequent meeting. 

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 programs. A clearly defined and communicated Total
Rewards Philosophy assists the organization in retaining, attracting and engaging the
employees with the talents necessary for the Port to achieve its goals and objectives by
helping employees understand all that is available to them because of their employment
relationship with the Port.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 2 of 8 
In early 2011, Port staff began the process of defining and documenting a Total Rewards
Philosophy to holistically guide administration and management of the plans and
programs the Port makes available to employees in exchange for their contributions to the
Port's success. A group of Human Resources and Development (HRD) and Labor
Relations (LR) staff together with Chief Financial and Administrative Officer worked
with an external consultant to identify the Total Rewards philosophy. The process began
with a thorough examination 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. 
The philosophy definition was completed in late 2011 and the Commission was briefed
on the philosophy at the November 1, 2011 meeting. The philosophy was communicated
Port-wide in mid-2012 following slight edits to the wording and structure as
communication materials were being prepared.
Beginning in early 2012, Port staff began a comprehensive gap analysis where current
plans and programs were evaluated against the Total Rewards philosophy to identify gaps
and establish work plans to move the Total Rewards package into alignment with the
philosophy. This work is continuing, and full alignment will take least several more
years. 
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. At the Port we established the Total Rewards definition as part of the Total
Rewards philosophy definition process. 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.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 3 of 8 
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? 
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 following graphic illustrates how Total Rewards at the Port flows from the Mission,
Vision, Values, Culture and Business Strategy and how the five categories combine to
make up the entire package.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 4 of 8 
The Port's Total Rewards Philosophy is comprised of two sets of principles. 
Overarching Principles provide guidance to the management and administration of all
Total Rewards plans and programs. Core Principles are unique to each category of Total
Rewards and provide additional guidance to managing and administering plans and
programs within a specific 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 
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

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 5 of 8 
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 requires 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 Principles sustainability principle (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. 
Gap Analysis: 
Once the Total Rewards Philosophy definition work was completed, Port staff began
systematically reviewing current plans and programs against the Overarching and Core
Principles. This work was completed in 2012 and showed that most plans and programs
are well aligned with the Total Rewards Philosophy although there is room for
improvement in some areas and a few areas of misalignment do exist. The gap analysis
results provide input to HRD and LR work plans for 2013 and beyond. 
Highlights of the gap analysis include:
Pay  the non-union pay program is well aligned with the Total Rewards philosophy
except for the Foreign Language Premium policy which is very unique to the Port. Pay
for union groups will be compared to the Total Rewards philosophy pay principles as
collective bargaining agreements are open for negotiation and results of the comparison

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 6 of 8 
incorporated into negotiations. Port staff will be reviewing the Foreign Language
Premium policy and making a recommendation to ensure alignment with the philosophy. 
Benefits  benefits programs, overall, are well aligned with the Total Rewards
philosophy. There are, however, some notable exceptions. Not all employees covered by
union sponsored medical plans contribute to their premiums, and employees covered by
the Port sponsored medical plans pay noticeably less than market for medical coverage.
The following table shows how the one of the current Port medical plans compares to the
most recent survey data. 

2013 Port Sponsored
Type of Cost      2012 Market Median 
Plan 
Deductible  Employee
$500             $350 
Only 
Deductible  Family
$1500            $1050 
Maximum 
Out of pocket
maximum  Employee      $2000           $1000 
Only 
Out of pocket
$6000            $3000 
maximum  Family 
Coinsurance            20%              10% 
Employee Only
5.6%             4.4% 
Premium % 
Full Family Premium %       24.4%            11.0% 
Notes:
Market Data is from the 2012 Milliman Northwest Benefits Survey, 2013 survey data
is scheduled to be released by the end of June 
As with the gap analysis for pay, union sponsored medical plans will be compared to
the Total Rewards philosophy when collective bargaining agreements are open for
negotiation. 
Port staff is currently working to develop a healthcare strategy to begin moving Port
sponsored medical plans toward closer alignment with the market median, to slow health
care cost increases, and ensure the Port is well positioned to comply with the upcoming
requirements of the Patient Protection and Affordable Care Act. In addition, LR staff
began introducing employee premium sharing into collective bargaining agreements as
they come open for negotiation.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 7 of 8 
Learning and Development  the overall program is well aligned with the Total Rewards
philosophy and there are opportunities to improve alignment in a couple areas. Many
represented employees do not receive regular performance feedback, and most do not
have written development plans. Additionally, funding and support for employee
development is not consistent across the Port. Port staff addressing these areas in
ongoing work plans. 
Recognition  existing employee recognition programs are aligned with the Total
Rewards philosophy, yet recognition is not consistent, or common, and employee
recognition policies do not provide clear guidance on appropriate types of recognition or
the value of recognition. Port staff are working on a revised Employee Recognition
Policy to address these issues. 
Port Experience  the opportunities and offerings that make up the Port Experience
category of Total Rewards are often intangible and difficult to quantify. The gap analysis
in this area revealed that what exists is aligned with the philosophy and influences
employee engagement. There is, however, an opportunity to continue looking for ways
to make offerings in this category more available to employees working at our 
geographically dispersed locations and who work other than standard office hours.
Exploring these possibilities is an ongoing effort.

CONCLUSION: 
The principles of the Total Rewards philosophy provide ongoing guidance to Port staff in
managing and administering the plans and programs that make up the Port's Total
Rewards package. The philosophy, while recently defined and communicated, is based
on the Port's mission, vision, values and culture and therefore not significantly different
from the how plans and programs had been administered. The Overarching Principles of
the philosophy will help ensure a holistic approach to administering individual
components. The overall philosophy can help current and prospective employees
understand the total value of the all that is available to them because they choose to work
at the Port and it can help leaders and employees make connections between the Total
Rewards package and the Port's values. The philosophy has flexibility built in to it, but
as the Port and the environment it operates in changes it will be important to periodically
review the Total Rewards philosophy to ensure it remains current. 
OTHER DOCUMENTS ASSOCIATED WITH THIS BRIEFING: 
PowerPoint presentation. 
Total Rewards Philosophy document

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 28, 2013 
Page 8 of 8 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
June 28, 2011  Commission Briefing  Total Rewards Philosophy. 
November 1, 2011  Commission Briefing  Total Rewards Philosophy.