ITEM NO: 7a_supp______ 
DATE OF MEETING: June 04, 2013

Topics 
Background  how the Total Rewards philosophy was
defined 
Definitions 
Total Rewards Philosophy Principles 
Gap Analysis and Work Plans 
Conclusion

Total Rewards Philosophy

Background 
Total Rewards Philosophy Definition Process 
Team of HRD and LR employees with the CFAO led by an
external consultant thoroughly researched existing state 
Examined existing documents, programs and plans 
Interviews with Port Executives about demands and needs of
the future 
Department director focus groups on role of Total Rewards in
retention, attraction and engagement 
Inventoried Total Rewards plans and programs 
Categorized plans and programs 
Defined "Total Rewards" and categories 
Total Rewards philosophy is the outcome

Total Rewards Definition 
Total Rewards at the Port of Seattle includes 
Everything of value that Port employees and their
families receive and have available to them as a result
of their contribution to the Port's mission

Total Rewards Philosophy  
Overarching Principles 
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

Total Rewards Philosophy  
Core Principles 
Pay is the cash employees receive in exchange for the work
they perform 
Pay should be at market average 
Pay increases should be market competitive 
Similar pay for similar work is important

Total Rewards Philosophy  
Core Principles 
Benefits are the plans and programs that enhance employee
well-being 
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 disability 
Employees should share in the cost of their healthcare

Total Rewards Philosophy  
Core Principles 
Learning and Development includes opportunities for employees to
expand their experience, knowledge, skills and adaptability in a
constantly changing work environment; opportunities may be formal or
informal, required or voluntary, Port/profession-specific, or more
broadly based 
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

Total Rewards Philosophy  
Core Principles 
Recognition is an acknowledgement of employee
contributions, commitment and efforts toward Port
endeavors and achievements. Recognition may be individual
or team-based, formal or informal, tangible or intangible 
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

Total Rewards Philosophy  
Core Principles 
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 
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

Gap Analysis Summary 
Overall, most plans and programs are well aligned with the
Total Rewards philosophy 
Pay is well aligned for non-union employees with the
exception of the current Foreign Language Premium policy 
Work plans include reviewing the Foreign Language
Premium policy to identify needed changes and the
ongoing analysis of union pay programs as union labor
agreements come open for negotiation.

Gap Analysis Summary 
Current benefits plans are quite well aligned with the Total
Rewards philosophy with some notable exceptions 
Not all union groups share in the cost of their health
coverage 
Employee cost sharing on Port sponsored medical plans is
noticeably less than market median in most areas

Gap Analysis-Medical Plans 
2013 Port Sponsored
Type of Cost      2012 Market Median 
Plan 
Deductible  Employee
$500             $350 
Only 
Deductible  Family
$1500            $1050 
Maximum 
Out of pocket maximum
$2000            $1000 
Employee Only 
Out of pocket maximum
$6000            $3000 
Family 
Coinsurance           20%             10% 
Employee Only
5.6%             4.4% 
Premium % 
Full Family Premium %       24.4%            11.0%

Gap Analysis Summary 
Work plans to address gaps between current benefit offerings
and the philosophy include 
Developing a healthcare strategy to begin moving Port-
sponsored medical plans closer to market, slow the
healthcare rate increase, and to address the upcoming
impacts of the Affordable Care Act 
Union benefit plans will continue to be compared to the
philosophy and healthcare strategy (once completed) and
results of the comparisons incorporated into negotiations

Gap Analysis Summary 
Learning and Development overall is quite well aligned
with the philosophy though opportunities to better align
the program do exist 
Support and funding for employee development is not
consistent and many represented employees do not
receive regular performance feedback or have written
development plans 
Port staff is working to incorporate these opportunities
into ongoing work plans

Gap Analysis Summary 
Current recognition programs are well aligned with the Total
Rewards philosophy and opportunities exist to strengthen
the Port's recognition program. 
Recognition is not consistent or prevalent throughout the
Port and the current Employee Recognition policy lacks
clarity and guidance for managers 
Work is underway to revise the Employee Recognition
policy and develop a Recognition Program document that
provides needed clarity, guidance, and tools

Gap Analysis Summary 
Port Experience includes a wide range of programs, activities
and celebrations that are currently well aligned with the Total
Rewards philosophy. 
Opportunities exist to identify ways to make the offerings
in this category more available to employees working at
different locations and on different shifts 
Exploring these opportunities is an ongoing aspect of work
plans

Conclusion 
The Total Rewards philosophy 
Flows from the Port's mission, vision, values, culture and
business strategy 
Supports a holistic view of all that comprises Total Rewards
at the Port 
Provides consistent and integrated guidance for managing
Total Rewards 
Is long term, but will need to be periodically reviewed as
the Port's business and the environment we operate in
changes

Questions