SAO Audit Commission Briefing February 7, 2017 1 Employee Feedback Exempt employee comments regarding 40 hour work week •“Finally it has been my observation and from other colleagues comments, the changes that are being made…has brought morale to an all-time low in the sixteen years I have worked here.” •“…I joke with co-workers as that it would be nice to reduce my hours down to that…not getting compensated for those extra hours is unfair, and by no means will we able to hold on the talent we have...” •“People in my department are burned out as it is, please don’t give them another reason to go look somewhere else for employment (three key people plus one not so key person in my department have left within the last year), the jobs are out there. •“The bigger concern is the morale in the departments and how to ensure that leaders can lead a team of employees who are now upset with a decision that was made that is out of their leadership control, but as leaders must keep them motivated and happy.” 2 Operational Transitions Signif icant Changes in 2014 – 2015 •Two phases of large-scale organizational restructuring (Ex. Centers of Expertise) •Increase in the required work week hours for all, uncompensated hours for some •New leadership across multiple departments •Discussion of a new pay program •Introduction of a new benefit program •Move to a common performance review date •Formation of the Northwest Seaport Alliance 3 Benefit Achieved One-time payment •Swiftly addressed employee concerns •Did not add to fixed costs •611 of the 640 employees were retained •Total amount paid to employees who left in 2016 for reasons other than retirement = $190,230 4 Legal Review 5