参考说明分析draft preliminary retention

1、1Preliminary Retention Bonus StrategyJuly 18, 2022Purpose and ObjectivesPurposeThe purpose of the retention strategy is to mitigate risks to Constellation Energy business operations and the implementation of Shared Services while the program is in processObjectivesRetain employees essential to maint

2、ain business operationsRetain employees with knowledge and skills required for a successful establishment of the Shared Services Organization2Demographics31 fully impacted employees (60% of tasks/activities in scope)5 full time managers/supervisors (BGE- 3; CGG-2)26 full time non-management (BGE-14;

3、 CGG-10; CNE-E-1; CE TBO-1)Location25 full time employees and 3 contractors in Baltimore/suburban Baltimore6 full time employees and 2 contractors in Calvert Cliffs1 contractor in Houston7 employees are eligible for retirement2 managers/supervisors2 T&E/P-Card Employees3 non-management331 employees

4、are fully impacted given the scope of Accounts Payable, T&E/pCard Processing, and Supplier Data ManagementNOTE: 6 fully impacted positions (CGG4; CNE-E2) filled by contractors are not being considered for retentionObservations and ConsiderationsExpect fewer management/supervisor positions in the Sha

5、red Services Organization. Employees not working in the selected Shared Services Organization location may not want to relocate.Contractors may begin to look for other jobs.Six fully impacted employees are part of the project team either full or part time. Involvement in the team may give them an in

6、centive to stay through implementation. Although salaries are being validated by Constellation Energy Corporate Compensation group, preliminary data collected during the benchmark indicates Constellation Energy may be compensating employees higher than market value. Employees may perceive fewer oppo

7、rtunities in the market at their current salaries.Some attrition may be desirable to enable cultural/behavioral shift to Shared Services.Feedback from legal is to either give all fully impacted employees a bonus or identify select positions based on objective factors (i.e.: location, employees in a

8、particular position, etc).AP supervisors stated AP positions/roles are similar making it is hard to differentiate skills and capabilities.Varying opinions of the validity of performance data makes it hard to differentiate high performers.4 mend focusing retention on management/supervisors and employ

9、ees not working where the Shared Services Organization will be located Typical Retention StrategiesFinancialFlat amount based on career levelExample: $2,500 entry level; $3,500 experienced non-manager; $7,000 manager; $10,000 executivePercentage of salaryExample: Typically 10-20% of base salary; max

10、imum 50% of base salaryVariable amountExample: 2 months base pay for all employeesExample: 1 month base pay for non-executives and 3 months base pay for executivesManagement bonusBonus given to manager/supervisor employees onlyBonus is tied to ability to maintain business operations, retention of em

11、ployees, and successful establishment of the shared service operationsUsually percentage of base salaryNon-FinancialTeam activities, lunches, social eventsContinuation of existing programs (Example: education reimbursement)5Experience shows most companies use a blend of financial and non-financial r

12、etention strategiesRetention Bonus mendationFinancialManagers/SupervisorsAll eligible to receive Range 5-15% of base salary (1-2 months base pay)Non-managementEmployees deemed a risk based on the following criteria:Fully impacted employeesProximity to selected Shared Services Organization locationRa

13、nge 5-10% base salary (1 month base pay)Non-FinancialInvolvement in future project activities (engage “voice” whenever possible)Team activities, lunches, social eventsContinuation of existing programs (Example: education reimbursement)6 mend a blend of financial incentives to all managers/supervisor

14、s and to select non-management employees coupled with team events conducted by the Business UnitsPotential Cost Scenario 1 Location BaltimoreRetention Bonus AmountApplied ToAverage Monthly SalaryAverage Amount Per Person*Total Non-Management Bonus Amount5% of base salary5 employees$3,843$2,306$11,52

15、87% of base salary5 employees$3,843$3,228$16,13910% of base salary5 employees$3,843$4,611$23,056Retention Bonus OptionsApplied ToAverage Monthly SalaryAverage Amount Per Person*Total AP Management Bonus Amount5% of base salary5 employees$5,367$3,220$16,1027% of base salary5 employees$5,367$4,509$22,

16、54310% of base salary5 employees$5,367$6,441$32,20415% of base salary5 employees$5,367$9,661$48,3077Management Non-Management Calvert CliffsA retention bonus will be given to the fully impacted employees working in Calvert Cliffs if the Shared Services Organization is located in Baltimore*Amounts ar

17、e based on current compensation data provided by HR. Data will be crosschecked and updated by HR. Potential Cost Scenario 2 Location Calvert CliffsRetention Bonus AmountApplied ToAverage Monthly SalaryAverage Amount Per Person*Total AP Management Bonus Amount5% of base salary21 employees$3,830$2,298

18、$48,2557% of base salary21 employees$3,830$3,217$67,55710% of base salary21 employees$3,830$4,596$96,511Retention Bonus OptionsApplied ToAverage Monthly SalaryAverage Amount Per Person*Total AP Management Bonus Amount5% of base salary5 employees$5,367$3,220$16,1027% of base salary5 employees$5,367$4

19、,509$22,54310% of base salary5 employees$5,367$6,441$32,20415% of base salary5 employees$5,367$9,661$48,3078Management Non-Management BaltimoreA retention bonus will be given to the fully impacted employees working in Baltimore if the Shared Services Organization is located in Calvert Cliffs*Amounts

20、 are based on current compensation data provided by HR. Data will be crosschecked and updated by HR. Potential Cost Scenario 3Location Outside of MarylandRetention Bonus AmountApplied ToAverage Monthly SalaryAverage Amount Per Person*Total AP Management Bonus Amount5% of base salary26 employees$3,83

21、2$2,299$59,7837% of base salary26 employees$3,832$3,219$83,69610% of base salary26 employees$3,832$4,599$119,577Retention Bonus OptionsApplied ToAverage Monthly SalaryAverage Amount Per Person*Total AP Management Bonus Amount5% of base salary5 employees$5,367$3,220$16,1027% of base salary5 employees

22、$5,367$4,509$22,54310% of base salary5 employees$5,367$6,441$32,20415% of base salary5 employees$5,367$9,661$48,3079Management Non-Management Baltimore and Calvert CliffsA retention bonus will be given to all fully impacted employees if the Shared Services Organization is located outside of Maryland

23、*Amounts are based on current compensation data provided by HR. Data will be crosschecked and updated by HR. Requirements to ReceiveManagement/SupervisorsMaintain smooth and efficient business operations at FY04 performance level (per performance goals)Participate in program activities as requiredIf

24、 not selected for position in Shared Services OrganizationRemain in current position for 6 weeks after implementation or date specified by managementComplete knowledge transfer/transition checklist and obtain signoffNon-managementMeet or exceed normally expected performance goals If not selected for

25、 position in Shared Services OrganizationRemain in current position for 6 weeks after implementation or date specified by managementComplete knowledge transfer/transition checklist and obtain signoff10Retention bonuses will only be provided if requirements are met mended Employee Communications11One

26、 on one retention bonus conversations will be conducted in mid NovemberNext StepsTarget TimeframeActionOct 28Review Retention Strategy with John and Corporate HRBy Nov 2Work with change management team to develop retention bonus communication plan/timelineOct 31-Nov 11Review Retention strategy with

27、the following groups:Legal (Week of Oct 31) Business Unit HR (Week of Oct 31)Reese Feuerman (Week of Oct 31)Process Owners (11/3)Supply Chain Council (11/9)FLT (TBD)Revise and update as appropriateBy Nov 11Review Retention Strategy and Workforce Selection Strategy and obtain signoff from:Kathi HyleM

28、arc UgolFollin SmithBy Nov 14HR crosschecks all financial data and drafts retention bonus agreements TBDCommunicate retention bonuses with employees in one on one meetings12Appendix Additional Cost Scenarios13Potential Cost Scenario Includes Manager, Interim Calvert Supervisor, and Gives One CGG BU

29、Rep management and non-management bonusRetention Bonus AmountApplied ToAverage Monthly SalaryAverage Amount Per PersonTotal Non-Management Bonus Amount5% of base salary*6 employees$4,121$2,472$14,8357% of base salary*6 employees$4,121$3,461$20,76910% of base salary*6 employees$4,121$4,945$29,67015%

30、of base salary*6 employees$4,121$7,417$44,505Retention Bonus OptionsApplied ToAverage Monthly SalaryAverage Amount Per PersonTotal AP Management Bonus Amount5% of base salary*6 employees$5,181$3,108$18,6487% of base salary*6 employees$5,181$4,352$26,11210% of base salary*6 employees$5,181$6,217$37,3

31、0215% of base salary*6 employees$5,181$9,325$55,95014Management (*Includes Managers and Interim Calvert Cliffs Supervisor)Non-Management Calvert Cliffs (*Includes additional bonus for CGG BU Rep)A retention bonus will be given to the fully impacted supervisors (including one manager and interim supe

32、rvisor) and fully impacted non-management employees (including one CGG BU Rep)Amounts are based on current compensation data provided by HR. Data will be crosschecked and updated by HR. Potential Cost Excludes Manager, Considers Interim Calvert Supervisor, and Gives One CGG BU Rep management and non

33、-management bonusRetention Bonus AmountApplied ToAverage Monthly SalaryAverage Amount Per Person*Total Non-Management Bonus Amount5% of base salary*6 employees$4,121$2,472$14,8357% of base salary*6 employees$4,121$3,461$20,76910% of base salary*6 employees$4,121$4,945$29,67015% of base salary*6 empl

34、oyees$4,121$7,417$44,505Retention Bonus OptionsApplied ToAverage Monthly SalaryAverage Amount Per Person*Total AP Management Bonus Amount5% of base salary*5 employees$4,756$2,854$14,2697% of base salary*5 employees$4,756$3,731$18,65410% of base salary*5 employees$4,756$5,311$26,55315% of base salary*5 employees$4,756$8,561$42,80615Management (*Excludes Manager and includes Interim Calvert Cliffs Supervisor)Non-Management Calvert Cliffs (*Includes additional bonus for CGG BU Rep)A retention bonus will be given to the fully impacted supervisors (minus managers and including interim s