PSE's priorities for HR development

GRI 103-2
One of the PSE's strategic objectives is to develop and implement a competency model that will define the following competency groups:

• company-wide – core competencies that all employees of the organization should possess. They are a way of reinforcing the desired corporate culture and fostering the organizational values. This is a common element for leaders and other PSE employees;
• managerial – desirable in those who manage people, define in practical terms the standards of leadership consistent with the corporate culture;
• position-specific – related to the specific work performed in the particular positions;
• functional (specialized) – related to the substantive knowledge and the ability to apply it in practice in everyday work..

The developed and implemented competency system will serve as an integrator of solutions to support HR decisions..

In 2020, we continued to conduct development programs focused on ensuring the proper functioning of the national power system. Two dedicated programs for Operation and Maintenance Services as well as Dispatching Services once again became an important element of our development activities. Due to the pandemic still going on, both programs were implemented on a limited basis.

In 2020, we also continued to implement development activities as part of the training catalog addressed to all employees of our company. The catalog of training available at PSE includes:

1. GRI 404-2 Manager's Academy training, to improve managerial and leadership skills. These trainings are tailored to individual needs of managers.
2. Specialist and expert trainings covering topics closely related to the substantive specifics of work in a given area or position.
3. Training to develop soft skills, improve personal skills and support effective task performance.
4. Initial, periodic and job-specific onboarding training for all employees regardless of functional areas and hierarchy, and providing comprehensive basic knowledge necessary for the job.
5. Professional conferences.

During the early stages of the pandemic, training delivery was temporarily put on hold. After some time, we resumed online, training, which gave us the opportunity to meet the training objectives while complying with safety rules. Training proposals have been customized. New topics included training in distributed team management, effective communication and remote collaboration, as well as conducting on-line meetings and presentations.

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In November 2020, PSE completed project works on the implementation of a state-of-the-art tool for comprehensive support of training processes, i.e. SAP SuccessFactors, Learning Management System module (SAP SF LMS). Implementing the project under COVID-19 pandemic conditions was a major organizational challenge. The situation forced the need for remote work.

The timing of the system implementation, especially regarding the e-learningu, functionality, which was put into use as early as February 2020, was important in the situation of limitations in access to training resulting from the pandemic situation. This step provided the ability to easily share training content with employees and oversee the completion of mandatory trainings.

Currently, the education and development platform, whose users are all PSE employees, allows training to be posted in all forms and configurations (e-learning,instructor-guided training, mixed training, sequential and periodic training, etc.), and made available to selected groups of employees. It provides the ability to create reports, evaluation surveys and knowledge tests. The available periodic training functionality facilitates the efficient management of periodic training, e.g. in occupational health and safety.

The new tool helps increase the effectiveness of training processes by offering employees unlimited access to educational content, streamlining document circulation, and enabling quick access to information.

The implementation of SAP SF, including the introduction of cloud solutions, is the first step on the path towards digital transformation of the HR area. The next step will be work on the configuration and implementation of the module for management of objectives and performance reviews (SAP SF PMGM), which enables monitoring of the implementation of tasks and projects, and planning and implementation of the development objectives of employees. Work is scheduled to begin in 2022.

The e-learningowa platform, released in February 2020, has given us new opportunities to enhance the employee knowledge. PSE shared a variety of materials with the employees on multiple topics. In addition to mandatory training, the employees gained access to optional training content to improve knowledge and skills in areas such as remote work organization, problem solving and innovative thinking, Design Thinking, personal efficiency and intrinsic motivation. The PSE employees may take advantage of this offering according to their needs or as recommended by their superiors. The new way of expanding knowledge has met with great interest, and the available training library is constantly being enhanced by addition of new contents.

In 2020, the ongoing COVID-19 pandemic had a significant impact on the hiring processes and the employer branding activities, including PSE's participation in job fairs. Our recruitment processes were conducted mainly remotely, which allowed us to acquire new employees without any interruptions. PSE also offered places for students and college graduates to gain their first work experience through an internship program.

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In 2020, PSE continued its participation in the “Energy for the Future” internship program carried out in cooperation with the Ministry of Climate and Environment (formerly the Ministry of Energy) and companies from the power sector (PKN Orlen, PGNiG, PGE).

The goals of the program are as follows:

• building human resources for the Polish power sector by attracting the best students from technical universities interested in working in this sector;
• familiarizing interns with the specifics of working in the country's key power companies and the Ministry of Climate and Environment;
• preparing interns for employment in the power sector.

In 2020, PSE accepted 5 interns as part of the program. Internships were organized remotely or onsite, with sanitation and safety restrictions.

Energy Academy – a training and education project of the Lesław A. Paga Foundation – is addressed to those who see their future professional careers in the power sector. Its purpose is to provide an opportunity to learn about the best practices in the industry. As part of the 2020 undertaking, a meeting was held with the Managing Director of the Department of System Management, the topic of which was: “The National Power System: the way towards modern market solutions”.

In order to increase the effectiveness of the recruitment processes and to attract the best candidates, PSE participated in selected events organized as job fairs, the Data Science Summit 2020 Conference and Warsaw IT Days. The pandemic affected the way the events were organized also in this area. Apart from direct participation in the fairs, PSE presented its offer in the Catalog of the 25^thJob and Internship Fairs for IT and Electronic Engineers at the Faculty of Electronics and Information Technology of the Warsaw University of Technology in the on-line version.

In 2020, our organization continued its employer branding efforts by promoting job offers on the company's LinkedIn profile, and by conducting the “Fridays with a Recruiter” information campaign on LinkedIn to encourage participation in our hiring processes.

In October 2020, PSE joined the Coalition for Friendly Recruitment. In this way, our company has joined the group of approximately 350 employers promoting friendly recruitment practices and building better standards in this area.

One of the important elements for an employee to function properly in an organization is a smooth onboarding process. For many years, we have regularly conducted “Compass Towards a Start” training sessions, during which newly hired employees are introduced to the most important information about PSE. Additionally, the participants of the training receive a manual entitled “The Compass Towards a Start”, which outlines the issues relevant from the point of view of a new employee in a user-friendly way.

A long-lasting pandemic and the accompanying uncertainty and the need to make changes in the way we function is associated with increased stress and uncertainty for many people. In order to prevent this from happening, PSE provided opportunities for individual consultations with a psychologist for everyone interested. The consultations are anonymous and completely confidential.

Additionally, to help alleviate the stress levels in employees, we offer training opportunities in stress management, mental toughness, and managerial stress.

Since 2017, the Department of Human Resources Management has been publishing a weekly HR newsletter that communicates all the relevant HR information in a clear and transparent way. This form of communication was previously used to address the directors, who distributed materials to managers and employees as needed. In order to improve access to current HR information, the group of the newsletter recipients was expanded in 2021 to include managers. Currently, approximately 400 people are receiving HR news.

PSE has been conducting the organization’s condition and employee engagement surveys for years. We believe that in this way we will obtain reliable and representative information on whether the company's management and decisions create an engaging work environment. On the other hand, such a survey provides an opportunity for everyone who is a part of the company to assess its condition. This demonstrates the maturity of an organization that wants to keep improving.

In 2020, we decided to change the survey methodology to be more PSE-specific. That is how the PSE Pulse Meter – a proprietary survey developed by the Department of Human Resources Management – came to existence.

The survey was conducted in November and December 2020. It was attended by 45% of all employees. For the sake of transparency of the study, the questions were grouped into 4 main themes: commitment, evaluation of the actions taken by the company during the pandemic, employee motivation, organizational values. OThe assessment of task performance and commitment-building behaviors was broken down into 11 areas: leadership and strategy, management quality, competencies and development, knowledge management, work structure and organization, collaboration and employee relations, remuneration and recognition, communication and openness, safety, working conditions and resources, and commitment.

The survey respondents were very positive about the area of the declared commitment (84% positive responses) and the perceived level of safety (82%) as well as the management quality (82%). Work structure and organization (44% positive responses) as well as communication and openness (48%) emerged as areas for improvement.

The evaluation of the company's behavior during the pandemic and the crisis management were assessed very well. When asked “how would you assess the actions taken in the company during the pandemic?” as many as 94% of respondents answered “well” or “very well”. Even better received was the time of adaptation to the new situation (96%). Thirty percent of respondents felt that “we were prepared for the contingency” and 66% felt that “we took organizational measures on the fly, and it went smoothly”.

Another issue we examined were the factors influencing motivation. Among “blockers” to motivation, the respondents listed excessive paperwork, procedures, and pointed out to the need for shorter decision paths. When asked directly the question “What motivates you?”, the most common responses were “good relationships with people” and “money”. In the second place there were factors that translate into personal motivation, namely “recognition by colleagues and superiors, personal achievements, and being needed”.

In the final fourth part of the survey, we asked the participants about 5 most important values they identify with. From the responses, a fairly consistent message emerged about what drives our work, and what kind of organization we want to be. Of the 25 values, more than 60% of respondents indicated quality. Next were professionalism (48%), meeting commitments (47%), cooperation (35%) and honesty (35%).

The satisfaction index, made of positive responses to 3 indicator questions (i.e. “PSE is an employer I identify with, and I care about the success of my company”, “I do not intend to change my employer in the coming years”, “My work gives me a sense of satisfaction, and my role / position in the team suit me)”, was 82%.

Based on the survey results, it can be stated that PSE continues to be viewed as a stable and responsible organization. Analysis of the survey results allowed us to draw conclusions and develop a plan for company-wide and specific initiatives, the implementation of which will be monitored on an ongoing basis.

In 2020, as in previous years, all PSE employees were subject to a periodic performance appraisal. The performance appraisal of employees in specialist positions is conducted on a quarterly basis (provided that they have worked for at least 1 month), and focuses on the task completion level.

Managers, legal advisors and experts are covered by the “Management Through Objectives” system, which assumes achievement of strategic objectives cascaded by the Management Board to the individual managers, and based on the current strategy of the company. “Management Through Objectives” is a comprehensive and result-oriented method of evaluation, but also, and very importantly, it fosters increased staff commitment to achievement of strategic objectives, and it helps monitor their achievement.

In order to increase the level of managers' knowledge on conducting appraisal interviews, a dedicated e-learning training on the subject has been prepared. The training was made available as mandatory for all managers in the second quarter of 2021.

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In early 2021, we began working on implementation of a systematic approach to employee professional development planning. The principles for creating the Personal Development Plans (PDPs) based on, among other things, company-wide competency assessment were formulated.

PDP implementation in the organization began in June 2021, involving selected organizational units as part of the pilot program, and the management participated in workshops on planning development activities and providing feedback.

A guide has also been prepared for all participants in the process, that takes a closer look at the most relevant issues related to the PDPs.

PSE provides an extensive benefits package. In 2020, employees were eligible for the following benefits, among others: employee pension scheme, meal subsidies, preventive program, holiday subsidies for employees and their families, housing loans, subsidies for nature schools and nurseries as well as kindergartens for the employees' children, and subsidies for cultural activities. A new offering for 2020 includes access to the “Inspiro” audiobook library for all employees.

Employees becoming entitled to their pension at PSE are eligible for several different mandatory and optional benefits.

Mandatory benefits:

• retirement severance payment in an amount depending on the length of service with PSE and the employment contract termination date (up to 500% of the remuneration base),
• compensation for loss of subsidized electricity costs (2 times the company's average remuneration).

Optional benefits:

• increase of the base remuneration up to 10% in the two years prior to the retirement.