CONTINUOUS PERFORMANCE IMPROVEMENT

Our continuous performance improvement strategy is grounded in healthy discussions between an employee and their manager. We expect managers to engage with employees and advocate for the growth and development of their direct reports. We see this development as a partnership that begins with setting meaningful annual goals.

Salaried employees set annual goals in performance, developmental, and personal categories. Employees also track progress towards six key competency areas which reinforce our belief that it’s not enough to just accomplish your goals, but it’s how you accomplish those goals that matters. Managers provide formal feedback at least once a year to employees regarding their performance and progress towards their goals.

Employee performance is further calibrated across operating divisions and is finally reviewed by the executive team to ensure that performance measures were evaluated equitably across the organization. This annual process provides a framework from which managers and employees can collaborate to ensure that employees remain on a meaningful growth trajectory aligned with the needs of the organization.

EMPLOYEE DEVELOPMENT

Because we know our employee population is eager to continue to develop and grow their talents, we offer a wide array of training opportunities for employees to become more proficient in their current roles and grow their careers in preparation for larger, more advanced or developmental roles throughout the Company. Training is offered through a variety of mediums including classroom, in-house, or on-line to accommodate the diverse personal and professional needs of our employees as they move through their careers. Individual development is heavily supported through formal and informal on-the-job programs including paid apprenticeships and cross training. Employees are also encouraged to participate in a variety of cross-functional learning opportunities including safety audits, environmental audits, or capital installation projects. We believe there is no substitute for these diverse on-the-job learning opportunities and their ability to drive team member engagement.

We also recognize that not every employee is on the same development path and, therefore, we provide financial assistance through our tuition reimbursement program to employees whose career development path may require more formal continuing education. We may also cover travel related expenses to help employees attend training that may not otherwise be hosted in our rural communities.

As part of our commitment to developing talent, we participate in leadership training programs to build bench strength at the supervisor and management level. The leadership training brings together mill, timberlands, real estate, and corporate employees who have been newly hired or promoted and those individuals who are essential to developing future leaders. The multiday training modules include workshops on a wide range of issues such as leadership, conflict resolution, supervisory skills, and coaching tactics, and build a greater understanding of all the businesses within the Company. Employee engagement following the training has been very positive with employees feeling that interaction with executive leaders and peers strengthened their leadership network and that the skills they developed are directly applicable to the workplace challenges they face every day.

SUCCESSION PLANNING

Succession planning is critical to ensuring that we have the right people in the right position at the right time. We conduct annual succession planning meetings across the organization, starting with our local operations and rolling up to our division and corporate levels, including our executive team. This robust calibration process ensures that we review all employees and their potential to move or develop within the organization. Individuals who have demonstrated a desire and ability to move to new leadership roles collaborate with their managers to document meaningful development plans designed to ensure that their development remains on track.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements within the meaning of the federal securities laws.  Words such as “annual,” “at least once a year,” “campaign,” “can,” “commitment,” “continuous,” “designed,” “ensure,” “expect,” “every day,” “goals,” “may,” “objectives,” “opportunities,” “plan,” “potential,” “progress,” “project,” “trajectory,” and similar expressions are intended to identify such forward-looking statements.  These statements reflect management’s views of future events based on assumptions and are therefore subject to known and unknown risks, uncertainties, and other factors, and are not guarantees of future conduct, results, or policies.  Please view the Cautionary Statement Regarding Forward-Looking Information on page 134 of PotlatchDeltic’s 2022 ESG Report.