Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10c
ACTION ITEM
Date of Meeting
November 12, 2024
DATE : October 31, 2024
TO: Stephen P. Metruck, Executive Director
FROM: Katie Gerard, Senior Human Resources Director
Kecia Reichstein, Human Resources Director—Total Rewards
SUBJECT: 2025 Salary and Benefits Program
ACTION REQUESTED
Request introduction of the Salary and Benefits Resolution No. 3831, amending the policy
directive for salaries and benefits for employees not covered by a collective bargaining
agreement established by Resolution No. 3823 and providing an effective date for all
amendments as of January 1, 2025.
Following this presentation and subsequent vote on introduction, staff will return to request
adoption of the Resolution on November 19, 2024.
EXECUTIVE SUMMARY
The Salary and Benefits Resolution is the Port Commission’s authorization of the pay and benefits
programs that are part of the Port’s overall Total Rewards package for non-represented
employees. RCW 53.08.170 requires the Port Commission to authorize pay and benefits for non-
represented employees by resolution. The Executive Director has the authorization to take
necessary action to make effective all terms, provisions, and conditions within the Salary and
Benefits Policy Directive. The Salary and Benefits Resolution establishes the pay ranges for non-
represented jobs, authorizes new and updates existing elements of the compensation program
and authorizes updates to benefits plans that comprise the overall benefits package offered to
non-represented Port employees. This introduction will highlight the recommended Non-
Represented Graded Salary Range Structure and the Executive Leadership Graded Salary Range
Structure, as well as recommended additions, deletions, and changes to the Salary and Benefits
Policy Directive that are contained in Resolution No. 3831, provided in the package for the 2025
Salary and Benefits Resolution.
JUSTIFICATION
The Salary and Benefits Policy Directive specifies the pay and benefits programs authorized by
the Port Commission, while the specifics of these programs are authorized by the Executive
Director and Senior Human Resource Director, and the administrative details are maintained in
COMMISSION AGENDA – Action Item No.10c Page 2 of 3
Meeting Date: November 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
Port policies and program guides. The Policy Directive also includes benefits offered to Port of
Seattle retirees and to Port Commissioners, as well as the specifics and administrative details of
these benefits. Updates to the program are designed to keep the authorized pay and benefits
plans current and ensure the Total Rewards package continues to support the attraction and
retention of employees with the talents and abilities necessary for the Port to achieve its mission,
vision, and goals.
This year’s recommendations include an adjustment to the Non-Represented Graded Salary
Range Structure and Executive Leadership Graded Salary Range Structure, in addition to some
other suggested recommendations.
DETAILS
The 2025 Salary and Benefits Resolution includes the following recommended updates.
Definitions
In Section 2, Definitions, we are recommending slightly adjusting the “Seasonal
Employee” and “Pay Equity” definition. “Seasonal Employee” will be modified from 6 months to
9 months duration within the definition. “Pay Equity” will be modified to compensating
employees similarly when they perform similar work, and that pay differences between
employees performing similar work can be explained by bona fide job-related factors that are
consistent with business necessity. This adjustment reflects the legal standard for pay equity
under Washington law. We are also recommending adding the definition “Similar Work
Experience” to be described the performance of the job requires similar skill, effort, and level of
responsibility, and the jobs are performed under similar working conditions.
Policy Establishing Jobs, Pay Grades, Graded Pay Range Structure, and Pay Rates
In Section 5.1.C, Non-represented and Executive Graded Salary Range Structures will be
updated. The Port’s goal is to have pay ranges for non-represented jobs reflect as closely as
possible the market pay rates for the Port’s non-represented jobs. This year our assessment
indicates that a 3.85% increase to the range structures will be necessary to maintain market
competitive pay ranges in 2025. When reviewing the range structures, we also take into
consideration the City of Seattle minimum wage and the Sea-Tac minimum wage. The City of
Seattle minimum wage will be $20.76 per hour and the SeaTac minimum will be $20.17 per hour
in 2025. In addition, each Graded Salary Range Structure will have the midpoint column
removed; this has been replaced by the Market Reference Point.
It is important to note that when the Port adjusts pay ranges, employees do not receive
corresponding increases to their pay rates. This is different from how many public employers
administer pay for their non-represented employees. Only employees whose pay is below the
new minimum of the pay range for their job will receive an automatic pay increase, and the
amount of increase will be just the amount necessary to bring employees’ pay to the minimum
of the range. With our recommended 3.85% increase to the range structures, we estimate that
COMMISSION AGENDA – Action Item No.10c Page 3 of 3
Meeting Date: November 12, 2024
Template revised June 27, 2019 (Diversity in Contracting).
119 employees will require an adjustment to bring them to the range minimum, with a cost of
$358,087. It is important to point out this estimate does not take into account any pay
adjustments due from the Compensation Project, which is anticipated to be implemented early
December and will impact the number of employees requiring the raise to minimum
adjustment.
Policy Regarding Benefit Programs Offered to Employees
In Section 5.2.C(2)(a), Retirement, we recommend removing this entire section as it is no longer
valid due to the Port’s Policy HR 8 and employees hired must be residents within the State of
Washington.
SUMMARY
The 2025 Salary and Benefits Resolution includes a few changes, mainly driven from our
Compensation Project recommendations. In addition to the changes noted here we regularly
review the language in the Salary and Benefits Policy Directive to identify more succinct ways to
describe programs and clearer language to use. This year is no different and in addition to the
recommended additions, deletions and updates we have identified several places where we will
be suggesting edits to the Salary and Benefits Policy Directive to clarify a point, remove
redundancy, or otherwise make the information clearer and easier to read.
FINANCIAL IMPLICATIONS
This year’s Salary and Benefits Resolution changes do have an impact on the Port’s payroll and
related costs. By adjusting the Non-Represented and Executive Graded Salary Structure, we
estimate 119 employees will need an adjustment to bring their base pay to the new
recommended pay range minimum at an estimated cost of $358,087. This analysis is prior to any
pay adjustments due from the Compensation Project.
ATTACHMENTS TO THIS REQUEST
(1) Draft Resolution No. 3831
(2) Exhibit A_2025 Schedule of Authorized Non-Represented Jobs
(3) Attachment A_2025 Non-Represented Graded Salary Range Structure
(4) Attachment B_2025 Executive Graded Salary Range Structure
(5) 2024 Pay Ranges for Non-Represented and Executive Jobs (for information only)
(6) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
