Listening to Employees

In 2007, PSEG conducted two short employee engagement surveys throughout the company. In 2008, a cross functional team developed and administered a more comprehensive survey to measure engagement and other issues throughout PSEG. 

In comparison to high performing companies, PSEG achieved a very high participation rate of 83 percent. Among the employees who responded, 76 percent scored favorably in the engagement category, and 83 percent said that they would recommend PSEG as a good place to work.  This score is consistent among the union and non-union population.  Eighty five percent of respondents stated that considering everything, they are proud to work for PSEG.  Eighty six percent stated they know what is expected of them, and 87 percent understand how their job supports PSEG’s business objectives.  Despite these strong scores, however, there are areas for improvement.  Only 65 percent of employees indicated that PSEG motivates them to go the extra mile.  In addition, only 65 percent believe they have a clear vision for the future.

This year, PSEG will conduct a pulse survey (a random sample of employees representing the company in all quadrants will take the entire survey). Our plan is to conduct the full survey (with less people) at a high level to ensure that we are making progress in the areas needing improvement and at least holding steady in the areas where we scored well.

Providing Leadership Skills
Leadership was one of the areas in which our employees told us that we need to improve.  In this regard, PSEG had previously have implemented a Supervisory Academy and recently began a Leadership Academy.  These academies provide leadership skills training to first line supervisors and middle management employees.   Another major initiative to understand and bridge the gap identified in the areas of values and business strategy is also well underway. 

Keeping Employees Engaged
Employee engagement impacts retention.  Over the past several years, PSEG has seen a decline in voluntary separations.

When retirements are excluded from the voluntary separation number, the turnover number is even lower.

PSEG’s turnover is well below the benchmark voluntary separation level of 4.3 percent (including retirements).  

Most voluntary separations tend to occur during the first year of hire.   During 2008, 6.32 percent of employees with less than one year of service voluntarily left our organization.  During the first quarter of 2009, that number decreased to 5.8 percent annualized.  The top quartile target or benchmark for first year turnover is 4.2 percent.  

To address this gap, PSEG is conducting exit interviews to better understand why employees are leaving.   In addition, we are in the process of implementing a new onboarding process that should assist us in reducing the voluntary turnover of our new hires.