We take a holistic approach to Human Capital Management recognizing that our success is highly dependent on selecting, developing, and retaining high performing employees who deliver results.

Our Human Capital Management strategy begins with our selection process. This is where employees and hiring managers first connect and where working relationships and expectations begin. We recognize this is one of the most crucial aspects of managing a high performing workforce and therefore invest in the development of our interview teams and hiring managers, training on topics such as behavioral interviewing techniques and eliminating unconscious bias. This ensures we select the most qualified individual whose skills and abilities best match each position. Once hired, employees can expect to participate in development opportunities designed to grow their careers and create a pathway for advancement. These initiatives may be employee driven whereby the Company provides financial support for continuing education, tuition reimbursement, or attendance at professional conferences, or company driven through individual performance and development plans. Performance and development plans place an emphasis on goals and competencies and often include on-the-job training and coaching designed to prepare motivated employees to steadily move into positions of greater responsibility. This investment in our workforce is vital to our continued success.

Of course, it is not enough to just invest in the development of our human capital. It is important that we retain our talent. That is why we employ a total rewards strategy aimed at engaging with and retaining our employees. We accomplish this by offering a suite of competitive pay, benefit, and work-life solutions designed to support employees and the changing needs of their families throughout their tenure with our Company and into retirement. The strength of our Company is defined by our employees, and we continue to look for strategic and innovative ways in which to grow our human capital so that we can quickly react to an ever-changing environment.

At the end of 2022, PotlatchDeltic employed 1,330 team members across our businesses. Full-time employees account for 1,322 of the total employed, with 8 part-time employees as a result of a workplace flexibility option provided at our wood products facilities. In addition, 307 temporary team members worked at wood products facilities for utility, sorting, or other tasks.

Hourly workers represent over 73% of the total employed and include skilled trades, operators, and laborers. Salaried professionals and managers within our Company accounted for the remaining 27% of the total and include senior operations managers, accounting, finance, legal, IT, communications, and human resources professionals as well as our foresters and wood products salesforce.

Our wood products team members are 83% of employees. Timberlands and real estate employees accounted for 6% of employees, with Spokane Corporate Office and other office locations constituting the remaining 11%.

We continue to fully support our Team Members’ rights to form, join or assist labor organizations; to bargain collectively through representatives of their own choosing; and the right to refrain from such activities. Our Warren, Arkansas wood products facility has been signatory to a collective bargaining agreement since 1956. Since then, we have peacefully bargained with the union on contract terms and renewals. Team Members at this worksite understand who their union representatives are, and management works with the union to resolve grievances. At the end of 2022, the agreement covered 182 Team Members, or about 88% of the Warren workforce. In 2022, there were no work stoppages, strikes, or lockouts. Team Members at our other worksites have not elected to form a union, and disputes at these worksites are resolved with local management or, on the infrequent occasions when it has been necessary, escalated to regional or corporate management for resolution.

Our locations are often rural or smaller communities and attracting talent can be challenging. The competition for skilled labor has never been as great as it is today as companies throughout our operating regions compete for a smaller pool of qualified candidates. As a result, we work hard to create a strong culture at each wood products facility, paying particular attention to team member engagement and development. Our ability to grow, develop, and retain high-performing team members is critical to our success and in-turn supports the vitality of the communities in which we operate.

PotlatchDeltic works to attract and develop talent for our existing and future workforce. Recruiting can be challenging due to limited supply of qualified and experienced talent at some of our locations. This is especially true for very specific roles and skilled labor positions where it can take up to a year to find suitable candidates.

We recruit using job fairs, college career days, employee referrals, search firms, and social media. We offer paid internships for some positions to help build awareness and skills in potential future employees. Summer intern positions support the students at colleges and universities and provide meaningful summer projects that aid in students’ academic development and job readiness.

Recruiting focuses on hiring individuals with diverse backgrounds and experience. We strive to ensure that 100% of all applicant pools contain a diverse slate of qualified candidates and that 90% of all final candidate pools for salaried new hires or promotions contain at least one diversity candidate. Gender diversity has improved over time, particularly in recruiting and promoting women into corporate roles.

We work with local staffing agencies to recruit and develop skilled candidates. We incorporate a range of strategies, including increased social media efforts, to staff hard to fill positions and broaden our search to include more diverse candidates. Partnerships with local high schools and technical colleges are critical for securing the skilled workforce needed at wood products facilities.