1. © 2015 Trane | 1 Strategies to attract, retain and engage employees Randall Rogers Director, Sales and Service Talent Acquisition

2. © 2015 Trane | 2 Agenda Attracting the right Talent  Call to action! The labor market and employee demographics  Partnering with local technical schools  Employee referral programs  Alternative talent channels  Social Media Retaining and Engaging Talent  Start with culture  Setting and measuring performance expectations and standards  Employee engagement  Outcomes

3. © 2015 Trane | 3 Example - HVAC Technicians Labor Market Competitors stepping up their recruiting game to grow their business Job Growth Outlook for HVAC techs : 2012-2022 (www.bls.gov)  21% (Much faster than average of 11%)  Highly competitive labor market Technical and Community Colleges  Enrollment has soared due to return of overseas manufacturing & retraining  Colleges are struggling to meet demand Significant drop in overall US unemployment, approaching “full employment”

4. © 2015 Trane | 4 Trane technician demographics… similar across other skilled trades Mechanical HVAC technicians – average age 43, with 10 years of tenure Controls technicians – average age 31 with 7 years of tenure

5. © 2015 Trane | 5 Best Practice #1-Early Talent Establish partnerships with local schools:  Recruiters and Business Leaders own the relationship  Invest in scholarships & endowments  Regular presence on campus and at school events (not just career fairs)  Lock in the best and the brightest early on with Internships/Co-ops  Example – we doubled Penn Tech hiring since 2013  Don’t forget high schools and charter schools focusing on skilled trades. Build relationships with guidance counselors Tip – Ensure that internships have structure, offer jobs upon completion to lock them in

6. © 2015 Trane | 6 Best Practice #2 –Experienced Talent Ensure you have a generous referral program:  50% of our sales and service hires are through employee referrals (over 500 per year)  Signifies engaged employees  Referrals tend to be higher performers  Shortens the cycle time for recruiting  Low cost option when considering total cost of hiring and recruiting  If you already have a program; consider increasing the communications, energy and even the payout amount! Do you know how many of your new hires are referrals?

7. © 2015 Trane | 7 Best Practice #3-Experienced Talent Consider alternative channels of talent for that hard to find middle talent: Military and Veterans  Strong value proposition for veterans  Contact nearby military base transition centers  Partner with an agency that has credibility within active duty community. Examples include; Recruit Military Orion Lucas & Associates Military.Com  Military pays for final move, allows for consideration of talent not currently in your local market!  Tax credits at both federal and state level Temporary labor conversion to permanent hire Tip: Whatever the channel, ensure your new employee has a good onboarding experience

8. © 2015 Trane | 8 Best Practice #4 Cultivate your Employer Brand via Social Media Glass Door….  Current Employees  People that have interviewed  Work conditions  Reviews of management and CEO Linked In (Most salaried employees will have an account)

9. © 2015 Trane | 9 What does Glass Door say about you?

10. © 2015 Trane | 10 Agenda Attracting the right Talent  Call to action! The labor market and employee demographics  Partnering with local technical schools  Employee referral programs  Alternative talent channels  Social Media Retaining and Engaging Talent  Start with culture  Setting and measuring performance expectations and standards  Employee engagement  Outcomes

11. © 2015 Trane | 11

12. © 2015 Trane | 12 Best Practice #1 Culture is King – Create an environment that encourages everyone to work their best, and top talent will come knocking at your door. Define what you want your culture to be – not necessarily what it is today Culture should reflect your values and expectations Focus on strong points not your weaknesses Constantly reinforce at every opportunity  Formal communication – town halls, e-mails, mailers  Informal communication – recognition and feedback A company culture will help you attract early talent Culture is modeled behavior – it is set at the top Tells the ‘story’ of your strategies and how employee support it. Tip - Hire to your to build your culture - It’s companies that think about hiring warm bodies to man posts as opposed to hiring people to take care of customers that are destined to fail.

13. © 2015 Trane | 13 Examples of business culture

14. © 2015 Trane | 14 Best Practice #2 Establish a Performance Management process for ALL levels of the organization “What gets measured gets done” Aligns resources to common outcomes  Day to day activities  Strategic initiatives Objectively identifies and allows for differentiation of high performers Very strong correlation to retention of best talent Standard processes drives common language No surprises – people understand expectations Enforces consistent performance guidelines – halos and horns Tip - Frequently measure and give feedback Publically recognize good performance and support of company culture Privately discuss opportunities for improvement

15. © 2015 Trane | 15 Best Practice #3 Tip – Driving engagement does not need to be onerous, but there are some tools that can help. Love ‘Em or Lose ‘Em Getting Good People to Stay – by Beverly Kay and Sharon-Jordon-Evans Carrots and Sticks Don’t Work – Paul Marciano Develop an approach toward Employee Engagement You are 2/3 of the way there with an established culture, performance management process and development planning Hold your people leaders accountable for driving engagement According to Gallup the No. 1 reason people quit their job…”People leave managers not companies”* Companies with engaged employees boosted operating income by 19% - companies with the lowest percentage of engaged employees, saw operating income fall by 33%** Multiple survey providers – Gallup, Kenexa, HR Solutions – can even create your own. source: AOL news ** Towers Perrin Image from HBR “The Impact Of Employee Engagement on Performance”

16. © 2015 Trane | 16 Reference material

17. © 2015 Trane | 17 What you can expect…. Some results that we have experienced 95% retention of key talent Improved brand recognition when doing campus recruiting Cohesive story to tell potential recruits Significant productivity improvement Reduced first-year attrition in one critical role from 40% to 20% Improved pipeline of talent Feedback from employee express that they better understand company strategy and how their work supports business goals Proven link between Employee Engagement and Customer Satisfaction scores Reduced time to fill open roles

18. © 2015 Trane | 18 Workshop Survey Tell Us How We Did! Please go online now and fill out the survey. You will complete a survey for each workshop you attend. Link to survey http://irco.az1.qualtrics.com/SE/?SID=SV_9LauROO2dnkarPL http://irco.az1.qualtrics.com/SE/?SID=SV_9LauROO2dnkarPL Reminder Email Photos from event to: avsgroupevents@gmail.com