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2020 Strategic Report

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S O C I A L E Q U I T Y COMPANY RESPONSE Based on employee feedback , the CCI developed an action plan to complement Southern Company system talent and supplier diversity commitments, continuing to sharpen the culture focus at A labama Power. Additional opportunities will be identif ied throughout the year that align with these priorities. PREVENTION OF BIAS AND BARRIERS THROUGHOUT THE TALENT JOURNEY. In support of Alabama Power's commitment to creating opportunities both internally and externally for underrepresented talent, the company will adopt the following talent selection initiatives along with the rest of the Southern Company system. » Positions will be posted with an internal focus to provide more employees an opportunity to compete before external candidates are considered. » Interview panels will be diverse. » During the screening and review process, personal and identifying information will be removed from applications before sharing with hiring managers. » Candidate pools will be screened during the selection process to identify pools that lack diversity. » The panel will seek options to increase diversity prior to selecting final candidates. Alabama Power will expand existing talent pipeline programs and initiatives with proven ability to positively affect Alabama communities and establish new partnerships to develop the workforce across the state. Those include: » Enhanced succession planning process. » Expanded leadership development programs. IMPROVEMENT OF CULTUR AL KNOWLEDGE AND COMPETENCIES. Beginning in 2021, all employees will participate in inclusion training to increase understanding and help identify biases. There will be two different programs designed specifically for leaders and other employees. CONNECT EMPLOYEE PERFORMANCE TO R ACIAL EQUIT Y WORK AND PROGRESS. Alabama Power leaders will review the company's representation scorecard quarterly to identify opportunities to increase minority representation, identify talent and implement actionable plans. In alignment with the Southern Company system, leader expectations, goals and performance will be tied to results in representation, inclusion and equity. These include: » An inclusion and equity goal in annual Connected Conversations. » An inclusion and equity assessment will be included in the PPP component (up to 20%) for officers. CANDID ANALYSIS OF REPRESENTATION, RECRUITING EFFECTIVENESS, WORK ENVIRONMENT AND PAY DATA FOR UNDERREPRESENTED TALENT. The company will cultivate engagement and account- ability for improving representation, recruiting eff ec- tiveness, work environment and pay metrics for under- represented talent by participating in a system-level pay equity analysis and by conducting a companywide quarterly review of Alabama Power's metrics. The company will continue its commitment to workforce development, expanding programs with proven success including: » Bishop State, Jefferson State and Lawson State Apprentice Programs. » Utility Assistant Internship Program. » HBCU Partnership. » HVAC Fast-track Training Program. In addition, Alabama Power is commi ed to leveraging its purchasing and procurement eff orts to create economic opportunities for minority-owned, female- owned and disadvantaged businesses – pledging to increase its minority spending across the state in 2021. 3 1 4 2

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