SCANA CORPORATION

1
SCANA CORPORATION

• Creating a Culture that Fosters Career
  Commitment
• Joe Bouknight
• Senior Vice President, Human Resources

2
Todays conversation points

• State of the workforce
• Why people leave organizations
• Review SCANAS workforce management approach
• Detail specific workforce management programs
• Highlight results that verify success

3
Company profile

• 4 Billion Fortune 500 Company
• Headquartered in Columbia, South Carolina
• 9 Major Subsidiaries (Energy related businesses)
• Southeastern Business Markets (GA/SC/NC)
• 557,000 Electric Customers/1 Million Gas
  Customers
• SCEG Serving South Carolina for 155 years

4
State of the workforce

• Total SCANA workforce 5600 employees
  (12/31/04)
• Workforce growth trend Avg. growth rate of 4
• Avg. annual turnover 5.2
• (includes 1 avg. annual retirements)
• Avg. years of service 14.5 years
• Avg. age of employees 44
• of workforce over 40 70
• Avg. age of new hire 34

5
Workforce notes

• Recruitment
• SCANA external hire opportunities number around
  350 annually
• SCANA is viewed as an employer of choice with
  heavy applicant flow
• Most jobs are skilled (professional, craft)
• Workforce demographics suggest need to improve
  diversity (including generational)
• Retention
• Low turnover rate limits career advancement
  opportunities
• Typical SCANA employee either retires or leaves
  looking for career opportunities
• New Compensation system with career groups and
  job families will enhance career options
• Three fourths of employment transactions
  (promotions, lateral transfers, etc) benefit
  current employees due to internal job posting
  program

6
Why people leave organizations
Source 2000 SHRM Retention Practices Survey
7
Workforce management approach

• Comprehensive Workforce Planning System
• Delivers the right people with the right skills
  at the right time
• Total Rewards Philosophy
• Health, Wealth, and Career programs reinforce
  employee value proposition
• SCANAs Cultural Expectations built around Values
  Competencies
• Key Human Resources Programs are used to
  orientate, manage, and develop talent
• Employees communication designed to foster
  engagement commitment

8
Workforce Planning Employment Program

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The Workforce Planning Process
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SCANAs Talent Powerhouse
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Comprehensive Employment Process
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Employment system secures right candidate

• Recruitment Targets
• Secure a strong and diverse pool of candidates
• College Recruitment program which involves all
  levels - serves as solid talent pipeline
• Comprehensive media recruitment strategy
• External and internal web based tools (E-recruit)
• Utilize third party recruitment sources to meet
  real-time needs
• Employee referrals are 1 source of applicants
  participate in employment process like others

• Employment Process
• Well-developed process to screen and hire
  candidates
• Clearly defined description and the skills needed
  for success
• Screening interviews determine essential
  technical skills and capabilities
• Panel interviews use behavioral based questions
  to determine personality and fit
• The right candidate will have the capacity to be
  successful in the open position and grow with the
  organization
• Treat each hiring decision as a rare opportunity
  to influence SCANAs future

13
Total Rewards Strategy

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Whats in it for me?

• Affiliation
• Values
• Organization Support
• Work environment
• Community Citizenship
• Relationship
• Communications

HR Influenced SCANAs Focus
Business Influences

• Compensation
• Base salary
• Incentives
• Cash recognition
• Premium pay
• Ownership
• Pay process

Employee Value Proposition

• Work Content
• Variety
• Challenge
• Structure
• Autonomy
• Feedback
• Impact

• Benefits
• Health
• Retirement
• Recognition
• Income Security
• Time Off
• Work Schedules

• Career
• Advancement
• Title
• Personal growth
• Training
• Employment security

15
Cultural Drivers

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Values and Behaviors makes a difference

• Our Values
• Serve our community
• Achieve
• Communicate openly and honestly
• Respect diversity and care for each other
• Excel in customer service and safety
• Do what is right

• Core Competencies
• Communication
• Customer Focus
• Personal Leadership
• Problem Solving Decision Making
• Teamwork
• Work Quality Safety

17
Demonstrated cultural support

• Senior staff that is approachable and visible
• SCANAs culture demonstrates that every employee
  is equal through an environment that is
  inclusive, challenging and participative
• Developmental activities are designed to bring
  together people from all organizational levels in
  a journey of discovery about themselves and their
  organization
• Diversity seen as an organizational strength that
  capitalizes on the synergies of difference

18
Key Human Resources Programs

19
Employees growth options are pivotal

• SCANA believes a employee who has the opportunity
  to learn through education, experience, and
  building relationships will be successful
• Development opportunities are open and available
  to all employee levels through a variety of
  internal and external training offerings
• Employee Leadership Development focuses on
  improving interpersonal and technical skills and
  knowledge
• Succession planning is a formalized process to
  develop key leadership talent for future movement
  within the organization
• Key employee growth options may include
• Promotion open posting system with competitive
  interview process
• Transfer a way to broaden and develop employee
  skills and SCANAs bench
• Tuition Reimbursement Program allow employees to
  prepare for future lateral and/or vertical
  opportunities by gaining formal education and
  college degrees.

20
A successful entry is key to success

• New Employee Orientation Program is an integral
  part of setting the road map for success Day one
  orientation includes
• The SCANA Story
• Code of Conduct
• Performance Expectations
• Safety Health
• A formal, six-month probation period allows final
  stay/go decision to come after coaching and
  evaluation
• Clearly defined roles and responsibilities that
  ensure managers and employees alike will Walk
  the Talk and are proud to do it
• Performance Management program incorporates
  objectives, competencies, career and development

21
Managing performance is a top priority

• Structured corporate system that clearly defines
  performance expectations
• Performance Objectives
• Competency Assessment
• Career Plan
• Developmental Plan
• Overall Assessment of Performance
• Defines accountabilities for employee and manager
• Employee driven rather than responsibility of
  manager
• Corporate and Business Unit goals included in
  performance objectives
• Year round process with required meetings at
  beginning, mid-, and end of year
• Web based to facilitate process and integration
  with other systems
• Merit increases separate from Performance
  Management but based on performance

22
Employee communications is a powerful tool

• Goal is to foster engagement, commitment, and
  ownership
• Regular standard written communications
• Different frequencies and forms from very
  informal to more formal
• Internal Web-site available to all employees
• Quick access to current topics, policies, forms,
  personal information, open postings, etc.
• Employee involvement in communications such a
  contests, quizzes, surveys
• Voice mail to all employees from SCANA officers
  as important topics emerge

23
Results Matter

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Results verify success

• Strategic financial goals consistently meet
  stakeholders expectations
• 13 of company stock held by employees
• Excellent employee labor relations environment
• Very few internal or external grievances
• Internal applicants are promoted 3 times more
  often than external hires
• Retention ranks in the top tier of utility
  industry
• Consistently seen as employer of choice by
  external applicants
• External awards verify commitment to workforce
  excellence
• Secretary of Labor Award 2003
• Governors Family Friendly Award 2004
• SC Diversity Council Award 2004