Investing in our People
Our emphasis on performance and development directly supports our corporate strategy and vision to continue focus on operational excellence. It provides a solid platform for our “People Strategy” which is to ensure that employees develop and utilize skills, understand career opportunities, and strengthen engagement and line-of-sight to business objectives.
The vision for 2009 and beyond is the same: people are the critical assets of our business and prudently investing in their development will result in achieving our operational excellence. We build talent at PSEG by providing people with the tools, technologies, coaching and development resources necessary to reach performance excellence.
Talent Management
In November 2007, PSEG launched empower, its integrated Web-based talent management system, encompassing employee profiles, goal management, performance management, development planning and succession planning. The first module launched was the employee profile module which contains employee work history, education, skill sets, leadership experience, and other qualifications. Second, the goal management module was launched which provides for employee performance goal setting in support of PSEG’s organization-wide goals. Also, included was a development goal module which provides for employee development goal setting for employee professional and leadership growth. PSEG achieved its target with a 91 percent development goal completion rate in 2008. Continued focus on employee development will occur in 2009, with a year-end target of 92 percent development goal completion.
Every PSEG employee is required to have at least one annual development goal. To ensure that our focus on people stays strong, this is now a critical scorecard metric for which all company leaders are accountable.
Supervisory Academy
Confronted with a challenging economic environment and leaders, our leaders have become more creative in addressing development needs of their people. We developed an intensive, four-week Supervisory Academy to provide first-line supervisors with management skills and competencies. For first-line supervisors with PSEG Nuclear, the Supervisory Academy satisfies all requirements they are subject to under Institute of Nuclear Power Operations which recognized the academy as a “strength” in its evaluation of our nuclear plants in 2008. In all, 150 first-line supervisors have received leadership assessment and training since the program began. A variety of manager-employee follow-up processes ensure that the academy is linked back into our overall development planning and performance management programs as well. A number of academy participants have gone onto to higher responsibilities at PSEG and have attributed their success to the lessons learned at the academy.
In 2009, we piloted a two-week Leadership Academy for middle managers which is designed and taught around PSEG’s four Leadership Competencies and delivered in part by the CEO and other members of the Executive Officer Group. We are continuing the investment in the development of our first-line supervisors with four Supervisory Academies during 2009.
Preparing Future Leaders
PSEG prepares for future leadership needs by recruiting high potential college graduates and offering developmental experiences to prepare them to fill future business and finance leadership roles in PSEG. During the three-year management development program, Management Associate Program associates rotate every 12 months across various business units to gain exposure in strategic, financial, and operational areas of the company. Upon completing three assignments, successful associates are placed in a senior consultant / analyst / supervisory positions. In June 2008, the company increased its hiring rate for the first time in several years in order to be more competitive with market rates. We’ve added monthly meetings featuring a developmental component and the opportunity to interact with and learn from key company leaders.
Succession Planning
Succession planning at PSEG is a focal point for the overall talent management process. It begins with an assessment of potential and performance for all employees at the senior professional level and above. Following the assessment, succession plans are completed for positions director-level and above, in addition to other positions identified as critical. The company increased its focus on succession planning for 2009 with more frequent reviews of talent and succession, moving from an annual review to several times during the year. With 2008 as a baseline year, the company established an overall measure of the organization’s succession readiness. With 51 percent of its critical positions having succession candidates ready for succession in 2008, PSEG set a target of 67 percent for year-end 2009.
Workforce Planning and Development
An integral part of our talent management strategy is the development planning for critical positions which require more comprehensive, robust development plans focused on technical, managerial and leadership competencies and behaviors. Our planning and development function has developed a methodology to supporting that activity as well.
Policy, Practice, Procedure Review and Update
In 2007 and 2008, PSEG undertook a wholesale review of all of its Human Resources policies, practices, procedures and guidelines (referred to collectively here as “policies”). Aligning itself with best practices found through research, industry groups, consultants and liaison councils, PSEG streamlined its Human Resources policies, eliminated duplication, added and updated policies to bring it closer to becoming an employer of choice, and communicated and re-published its new policies. More than 200 policies were reviewed and updated; more than a dozen new policies were added and the way in which the policies were changed and improved was communicated throughout the entire company using a communications strategy that included email, small group meetings, large group meetings and posted notices.
Awards
PSEG Power received a 2009 Patriot Award from the National Committee for Employer Support of the Guard and Reserve for practicing leadership and personnel policies that support employee participation in the Guard and Reserve.
In 2007, PSEG was inducted into the Paladium Group’s Balanced Scorecard Hall of Fame for Executing Strategy. This national award recognizes companies that successfully use the balanced scorecard to achieve superior levels of performance.
In 2008 Margaret “Peggy” Pego, vice president – human resources, was selected by the Executive Women of New Jersey as one of New Jersey’s leading women policy makers.
