Value of Strategic Design in Enterprise-Wide Employee Recognition Programs

Steve Baniecki – Manager of Compensation, Business Services Company, Exelon Corporation

Jada Sudbeck – Sales Manager, Hallmark InsightsLisa Herwers – Marketing Manager, Hallmark Insights

April 27, 2010

Purpose

• To present Exelon Corporation’s enterprise-wide employee recognition program, which successfully delivers an accessible, easy-to-use, centralized reward and recognition tool

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Introduction• Exelon Corporation

– One of the nation's largest electric companies with 19,500 employees and 5.4 million customers in IL and PA

– Culture focuses on performance, encourages innovation and acknowledges the power of ideas generated by a diverse work force

– Corporate goals are • Attract and retain employees who will best serve and represent our

customers and communities• Treat diversity and inclusion as a business imperative, core value

and moral obligation• Create a challenging and rewarding workplace

• Hallmark Insights– Hallmark Insights is a business incentive provider that specializes in

integrated recognition solutions. Our solutions engage employees through the value of choice to achieve corporate objectives, delivering measurable results to our clients

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Today’s Agenda

• Challenge• Solution• Results• Insights• Q&A

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Challenge - Background

• Formulate a Recognition Policy for enterprise-wide application– Provide direction on permitted programs & practices– Allow flexibility to accommodate the priorities and

cultures of the operating companies • Previous program & process:

– Tracking process needed improvement– Administration was manual and paper-intensive

resulting in delayed recognition– Access privileges were limited to Vice Presidents and

above restricting usage of the program• Launch the new solution following a workforce reduction

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Challenge - “What we needed to do”

• Secure management commitment to a comprehensive yet flexible Recognition Policy and enhancing the current system

• Implement a solution enterprise-wide while allowing each operating company or business unit the flexibility to maintain their own recognition program identities

• Modify and improve the solution technology• Enhance tracking and tax compliance processes• Open the recognition process to managers below the

executive level• Communicate the new solution

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SolutionExelon Reward and Recognition Program

• Comprehensive discovery plan for identifying program objectives and requirements

• Robust data integration for accuracy and compliance• Meaningful awards with emphasis on timely recognition

and recipient choice • Extensive communication and training plan• Detailed online reporting to measure performance and

manager utilization

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SolutionThe Four Ds

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• Enterprise-wide needs• Tax Compliance• Exelon Commitment

• Identify behaviors to reward – connect to corporate objectives

• Identify/confirm incentives to engage entire base

• Establish metrics for success

• Communication plan• Branding

• IT integration of online solution, HRIS file, Payroll file

• Single Sign-On from Exelon intranet

• Rules and timelines for multi-level approvals

• Custom functionality

• Execute communication plan

• Ongoing measurement of program success

• Employee feedback – formal and informal

• Model for successful incentive programs for our clients

• Understand and assess client situation • Create

incentive strategy

• Build and test the solution

Development

• Launch and measure program

SolutionRPI Best Practices

• Management Responsibility– Committed to program objectives

and administration

• Recognition Strategy– A successful program encompasses

formal, non formal, monetary, non monetary etc. Exelon’s program includes formal cash and gift certificate programs and less formal practices like logo merchandise.

• Recognition Measurement– Program Awareness & Adoption

• Recognition Training– Administration training

• Communications plan– Plan followed Cascade Model– Update and publish Recognition

policies and guidelines– Pre launch communications– Orientation materials– Recorded demo of new solution

• Events and Celebrations– Departmental outings to the ballpark

for team building or group recognition.– Chief Fun Officers (CFOs) appointed

within HR to plan informal low or no cost fun activities for employees.

– Taste of Asia and other similar events for other employee network groups to sample cuisine and enhance diversity awareness.

• Program Change and Flexibility

– Evaluation of new program enhancements to meet new goals of the organization

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SolutionExelon Reward and Recognition Program

• Program Overview:– Enterprise-wide including union

population– Accessible to all 700 key level

managers – Exelon branded solution– Single sign-on access– HRIS and payroll integration– Up to 5 levels of nominations and

approvals depending on various business rules

– Proxy access– Reporting based on position

management and user role

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SolutionProgram Logistics

• HRIS file is updated weekly• Payroll file is distributed bi-

weekly• Easy access through Exelon

intranet via single sign-on• Proxy privileges • Two programs with unique

rules– Cash Recognition– Premiere Choice Gift

Certificate Awards

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SolutionNominations and Approvals

• Approver notification upon login

• Manage approvals page

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Solution Premiere Choice Gift Certificate Award

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Award includes personalized message of up to 500 characters, multiple logos for all business units, three delivery methods

SolutionCash Award

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Award emailed to nominator to print and present to recipient

Solution Redemption Home Page

• Recipients are able to redeem their awards online or use mail-in redemption form

• Award includes redemption instructions along with URL, award number and award value

• Fulfillment of gift cards - same business day

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Solution Merchant Selection Page

• Recipients are able to redeem their Awards for numerous merchant gift cards

– Merchant selection– Merchant information, store

location, terms & conditions

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SolutionCommunication

• A robust communication plan was implemented– Project plan began approximately 1 year prior to launch– Communications planning started four months prior to launch– Cross-departmental representation on communications team– Audiences, messages and vehicles identified – Vehicles included department meetings, emails, company

newsletters, multiple WebEx demos, online FAQs

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SolutionTraining

• WebEx Training– 185 managers attended one of

two available WebEx training sessions prior to launch

– Reviewed Exelon Reward and Recognition philosophy and policies

– Conducted a live demonstration of the new solution

– Q&As were addressed using a private chat function

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Results

This is a great program. This is not an area that I would skimp on for “budget” purposes. Remember, this is one of the areas that our troops are clamoring for -- greater recognition. Please encourage the use of this program with your staff. We’ll track it’s use as a team.

- Matt Hilzinger, SVP & Chief Financial Officer, Exelon

A bit of feedback on the new Program. I was in there last week for a Gift Certificate … First, cutting the bureaucracy out was great (giving key managers authority) and it was nice to do something which should take 10 minutes and it actually did!. Two, the system is a piece of cake to use and very user friendly. Lastly, Steve Baniecki was very helpful walking me through my first time.

- Jimmy Llende, Director External Reporting & Analysis

Via this email, I want to recognize your [Steve] and George’s effort in making this happen.  I’d ask also as our account lead, you contact Hallmark with the feedback that they have gone the extra mile for our Generation team and the extra session to train our report points of contact.    If I could nominate them for certificates, I would.

- Jim Byrne, Compensation Manager

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20

Results

0

1000

2000

3000

4000

5000

6000

7000

8000

3873

7336 69256284

Pre

mie

re C

ho

ice

Aw

ard

s Is

sued

October – March of Each Year

Total Number of Gift Cert. Awards Given

2006

2007

2008

2009

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$0 $10 $20 $30 $40 $50 $60 $70 $80 $60

$70$60

$80

Do

llar

Am

ou

nt

October – March of Each Year

Average Gift Cert. Award Amount

2006

2007

2008

2009

Results

Insights

• Key Learnings– Benefits of a detailed comprehensive scoping plan– Aligning calendars early to coordinate IT resources– Regular status meetings for updates and deliverables– Representation from the field– Previews of functionality for end-users– Key Performance Indicators

• What’s next?– Launching an HR Portal by the end of 2010

• Links to recognition tool and policies

– Enhanced nominations and approval tracking• Additional proxy email functionality to streamline approvals

– Ongoing manager training and communication – Introduction of new functionality to keep the program fresh

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Questions?

Thank you!

Steve BanieckiExelon Corporation

Stephen.Baniecki@ExelonCorp.com312.394.4769

Lisa HerwersHallmark Insights

Lisa.Herwers@HallmarkInsights.com612.672.8638

Jada SudbeckHallmark Insights

Jada.Sudbeck@HallmarkInsights.com612.672.8656

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