Workforce Planning at TECO Energy Tracy McPhail, Ph.D., SPHR

Planning… What’s That? During a constant change of priorities, downsizing, rightsizing. It’s amazing that any planning is done like it should be.

TECO Overview 1 Workforce Challenges 2 Examples of Workforce Planning Data 3 Future 4

TECO Energy is a leading energy company located in Tampa, traded on the New York Stock Exchange (TE) and part of the S&P 500 Index. We have four core businesses. Our Florida utility businesses include: Tampa Electric, a regulated utility serving nearly 667,000 customers, and Peoples Gas System, Florida's largest natural gas distributor serving more than 334,000 customers. Our other businesses include TECO Coal and TECO Guatemala.

TECO

Strategic Planning New CEO New Direction Customers People & Systems John Ramil Customers Shareholders People & Systems

Questions from CHRO Where are we most at risk? Do we have the right talent in the right places? How does the cost of work differ across the company? Is my workforce aligned and optimized with Corporate Goals? What are the strategic Talents/Skills/Capabilities do we need? Clint Childress, SPHR We need to know what’s really going on with our whole workforce

Environmental Scan = Mixed Messages More Americans leaving the workforce American workforce growing grayer

Concerns over mass exodus in critical areas Workforce Challenges Aging Workforce Recent RIF Low Turnover Concerns over mass exodus in critical areas

Workforce plan to focus on risk areas Strategic Team Goals Workforce plan to focus on risk areas Create a company wide knowledge transfer portal Focus on retention efforts by demographic and strategic segments

Internal Capabilities and Current Realties Fewer people than back in the days of centralized manpower reporting Need to go beyond excel charts and graphs describing current workforce No long drawn out internal process. Need a quick guide to assist in data-driven decision making

Workforce Planning Steps Business Strategy Environmental Scan Segment Roles Current State Future state Scenario Forecasting Gap Analysis Action Planning Monitor and Report

Feels Like External Drivers and Labor Market Conditions Individual Preferences Workforce Capacity and Capabilities Supporting Business Strategy

Workforce Segmentation Strategic Critical Core Necessary (non-core) A critical step in our project. Before we could give a good answer to where our risk in the organization was we needed to get on the same page about what positions/people were important to us now and in the future. We went back and identified all 900+ unique positions. It forced us to review our incentive structure, succession plans.

Talent Review Approach Strategic Critical Core Necessary(non-core) 1 to1 Succession 1 to few Succession 1 to many Workforce Plan by groups 1 to many Monitor no plan

Data Required vs. Nice to Have Business Unit Position Levels Tenure Turnover (voluntary and involuntary) Headcount and FTE Age Gender Diversity Internal moves Performance data Preference data Leadership bench (strength and depth) Overtime Compensation

Data Analysis Before and After Sonar vision SAP extracts 100s of Queries Excel spreadsheets Lists and notebooks Death by charts/graphs 1 Data upload Risk Analysis Dashboard Staffing Forecast Labor cost Instant Insight

Overall Company Risk Profile

Gap or Surplus?

Average Age and Distribution

Retirement Projections

Position and Department Specific Risks Helped us see the need for a clear deployment plan. Using our segmentation data and our risk data from sonarvision we were able to support certain decisions around our mechanical maintenance areas.

Position Level Profile

Position level age and projected retirement

Use Workforce Information to Guide HR Strategy Number of strategic and critical positions at risk? Which at risk positions are hardest to fill? What positions need LTI? What knowledge transfer plans need to be our top priority?

Next Steps: Strategic Talent Review Officer and Director level review of all individuals and current individual development plans for high risk strategic and critical positions Director and Manager review of action plans for high risk core positions. Rotation/Developmental Assignments Potential Strategic Critical

Ongoing balancing act… Current Headcount Future Needs New Products/Markets Apprenticeships Co-ops Knowledge Transfer Retention reduced staff levels, Hire best talent & Capture Critical knowledge

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