ITEM NO:

7d supp_____

DATE OF
MEETING: June 28, 2011_

Total Rewards Philosophy
 What is total rewards

 Advantages of a total rewards philosophy
 Total rewards model
 Elements of the total rewards model
 Developing the total rewards philosophy
 Next Steps

What is Total Rewards
 Historically, total comp was pay + benefits
(health care, pension, time off)

 Currently, total rewards has expanded to include
a broader array of programs
 Total rewards programs vary by organization,
and so do total rewards definitions

Total Rewards Philosophy - Advantages
 Broad definition - applies to all employee groups,

facilitates consistency
 Flexible - guides decisions through all business
phases and economic times
 Strategic method for attracting, retaining, and
motivating employees to engage in achieving Port
goals
 Consistent framework for holistically managing the
array of total rewards

Advantages - continued
 Connected to other topics
 Salary and Benefits Resolution
 Collective bargaining agreements
 Payroll related budget discussions

 Beneficial in multiple areas
 Strategic Planning
 Audits
 Managing pay and benefit programs
 Labor contract negotiations
 Internal and external communications

Modeling Total Rewards
 Total rewards packages vary by employer
 Important to model the organizations package

 Models visually represent the package
 Models facilitate communication to employees,
and prospective employees
 Based on the organization's
 Mission
 Values and culture
 People and business strategies

Total Rewards Model

Business Strategy
People Strategy
Culture and Values
Organizational Mission

Other Intangibles

Recognition

Learning & Development

Benefits

Pay

Attraction / Retention and Motivation

Elements of Total Rewards
 Pay
 Base pay
 Base pay increases

 Benefits
 Port funded, fully or partially
 Employee funded
 Mandated

 Learning and Development
 Learning calendar
 Leadership development programs
 Seminars, conferences, external training

opportunities

Elements - continued
 Recognition
 Service awards
 Retirement recognition
 Other recognition

 Other Intangibles
 Opportunity for public service
 Opportunity for community involvement
 Work location
 Interesting work
 Employee networks

Developing a Total Rewards
Philosophy
 Model the current total rewards package
 Information about future work
 Information about what total rewards will
attract, motivate and retain now and in the

future
 Information about how total rewards will attract,
motivate and retain now and in the future
 Together this will inform a total rewards
philosophy

Next Steps
 Gap analysis - how does current total rewards
model compare to the philosophy

 Strategies and plan for aligning total rewards
programs with the philosophy
 Depending on the number and size of the gaps this

could be a 3 to 5 year process

 Future Commission briefings as work progresses

Questions?