PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA – STAFF BRIEFING
Item No.
7a
Date of Meeting
November 1, 2011
DATE: October 25, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Dan Thomas, Chief Financial and Administrative Officer
Tammy Woodard, Sr. Manager, Total Rewards
SUBJECT: Briefing – Total Rewards Philosophy
SYNOPSIS:
Total rewards encompass all things employees value that is a result of their employee/employer
relationship with the Port. It includes five categories of plans or programs: pay, benefits, learning
and development, recognition, and culture/work experience. Following the June 2011 Commission
briefing Port staff gathered feedback from Port executives and department directors. This feedback
helped inform the principles that form the basis of the total rewards philosophy.
The principles of the total rewards philosophy include both overarching principles that apply to all
total rewards categories and principles unique to each of the five categories. The next steps in
implementing the total rewards philosophy is to perform a “gap analysis” where current plans and
programs will be assessed against the philosophy principles to identify the areas where there is a
“gap” between the plan or program and the philosophy. Identifying ways to close, and eventually
eliminate, these gaps will be incorporated into work plans for HRD and Labor Relations staff.
Along with the gap analysis, staff will be working to finalize the philosophy document and prepare
to implement, and communicate, the philosophy to Port employees.
INTRODUCTION:
Total rewards, at its broadest level, includes everything employees value that results from their
employee/employer relationship. Total rewards includes pay, health care, pension, learning and
development programs, availability of interesting work, the opportunity for public service, and
much more. The Port’s total rewards package is key to retaining, attracting, and motivating
employees to contribute to the Port’s mission, goals, and business objectives. As organizations are
unique, each organization that articulates its Total Rewards Philosophy defines total rewards in a
way that is specific to that organization. Similarly, total rewards models are unique to each
organization. Port staff, including executive leaders, have been working to define the Port’s Total
Rewards Philosophy that will guide strategic planning efforts around creating and sustaining a high
performance workforce, will support broader strategic planning efforts such as the Century Agenda,
and will provide a framework for managing and administering the components of the total rewards
package.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 25, 2011
Page 2 of 5
BACKGROUND:
In June we provided the first total rewards briefing. That briefing included a high level definition of
total rewards, information on the advantages of a total rewards philosophy, a summary of the
working draft total rewards model, and information on how the philosophy was being developed.
The briefing also outlined the next steps in the philosophy definition process.
Since the June briefing the total rewards team has affirmed the five categories of the Port’s total
rewards package as Pay, Benefits, Learning and Development, Recognition, and Work Experience
and Culture. The team has also worked with the Port’s executive leaders to affirm the key elements
of the philosophy.
KEY ELEMENTS OF THE TOTAL REWARDS PHILOSOPHY:
There are overarching principles that apply to the entire total rewards package and some that are
applicable to each of the categories. These principles will guide the work of the HRD and Labor
Relations staff in changing, adding or possibly deleting programs that comprise the Port’s total
rewards package.
Overarching Principles
The following five principles apply to the entire total rewards philosophy.
1. Total rewards at the Port should be aligned with the Port’s mission, vision, strategies and values.
2. The total rewards package should be fiscally responsible and sustainable while maintaining the
Port’s ability to respond to changing economic conditions.
3. Total rewards should support employees performing their best.
4. The total rewards philosophy applies to all Port employees and should be consistent and
equitable.
5. Market is defined the recruiting market for a job and includes both private and public
employers.
These principles will help ensure consistent administration of total rewards plans and programs,
support the long-term viability of the Port of Seattle, support employees working to achieve Port
goals and objectives, and support employees working together as one organization.
Pay Principles
There are three principles that will guide administration and management of the Port’s pay
programs. These principles are:
1. Pay will be targeted to market average.
2. Pay increases should be market competitive.
3. Similar pay for similar work is important.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 25, 2011
Page 3 of 5
These principles are important to enable the Port to attract, retain and engage employees who have
the skills and abilities needed to complete the Port’s work and will support both external
competitiveness and internal equity.
Benefits Principles
The Port’s benefits plans are diverse and the following five principles will guide how these plans
are managed and administered:
1. The benefits package will be slightly better than market average, and the health benefits will be
targeted between the 50
th
and 75
th
percentile.
2. The package will include choices to support diverse needs throughout employees’ lifecycles.
3. Employees should take an active role in understanding and utilizing their benefits.
4. The benefits package should provide at least a minimum level of financial security in the event
of the employee’s disability.
5. All employees should share in the cost of their health care.
These principles will guide administration of a benefits package that compares well to both public
and private employers, somewhat offsets pay or benefits elements that private sector employers
often offer, and facilitate employees understanding the value of their benefits and utilizing them
effectively.
Learning and Development Principles
The Port offers an array of learning and development opportunities to employees and five principles
will guide the opportunities that are offered as follows:
1. All employees should have access to a range of learning and development activities.
2. Employees and managers share responsibility for employee development.
3. All employees should have written development plans that are reviewed at least annually.
4. All employees should receive performance feedback at least annually.
5. Managers should model their support for learning and development through their own
development.
These principles will support employees developing skills that will support achievement of Port
goals and their engagement in ways that will help the Port being a high performing organization.
Recognition Principles
Recognition is an important aspect of the Port’s total rewards package that supports employees
being fully engaged in their work. The following four recognition principles will support employee
engagement:
1. Employee and team accomplishments should be regularly recognized.
2. Recognition should be meaningful to those being recognized.
3. Employee tenure should be recognized.
4. Retirees’ contributions to the Port should be acknowledged.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 25, 2011
Page 4 of 5
Work Experience and Culture Principles
The work experience and culture category of the total rewards package includes the aspects of
working at the Port of Seattle that are unique. Principles that support the unique aspects of working
at the Port will help the Port promote a unique work experience. The principles that will support
this category of the total rewards philosophy are as follows:
1. The Port values the varied perspectives and ideas that come from a diverse workforce.
2. The Port will offer programs and activities that promote health, safety and preparedness on and
off the job.
3. The Port will promote its unique position as an entrepreneurial enterprise within a public sector
environment.
4. The Port will support a culture that allows work-life balance for employees.
5. The Port will provide opportunities for public as well as community service.
6. Programs will create pride in the Port’s complex, diverse and interesting work.
NEXT STEPS:
The next steps in implementing the total rewards philosophy include comparing elements of the
current total rewards package to the principles that comprise the philosophy to identify gaps
between the current package and the philosophy. Identifying ways to close, and eventually
eliminate, these gaps will be incorporated into work plans for HRD and Labor Relations staff.
Experts in implementing and communicating total rewards philosophies will also be engaged to
assist the total rewards design team in developing a Port-specific visual model as well as the look
and feel, brand, for the total rewards philosophy and package. Once the total rewards model and
brand are developed, the philosophy will be implemented and communicated to current and
prospective employees.
CONCLUSION:
The total rewards philosophy will provide a holistic framework for updates, changes, additions, and
potentially replacements to current total rewards offerings. The principles that comprise the
philosophy will facilitate consistent management of the total rewards package, and will form the
basis for assessing the Port’s current total rewards package. Once the current package is assessed
the areas where changes are needed to bring the package into alignment with the philosophy will be
identified and plans can be developed to address the needed changes.
OTHER DOCUMENTS ASSOCIATED WITH THIS BRIEFING:
PowerPoint presentation.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS:
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
October 25, 2011
Page 5 of 5
June 28, 2011 the Commission was briefed on the Total Rewards Philosophy.
