Talent Management and
Employee Development

Who We Are

Setting aspirations for the diversity of our workforce and the development of our employees begins with understanding who we are today. While diversity is much broader than the following categories, these metrics are important for continuing to measure and compare to benchmarks.

Gender

Pie chart showing FirstEnergy’s workforce gender diversity of 78.1% male and 21.9% female.

Gender – Leadership

Pie chart showing FirstEnergy’s leadership gender diversity of 80.6% male and 19.4% female.

Race/Ethnicity

Pie chart showing FirstEnergy’s workforce racial/ethnic diversity of 89.1% White/non-Hispanic and 10.2% racially/ethnically diverse employees. The racially/ethnically diverse population is comprised of 1.0% Asian, 5.4% Black/African American, 2.7% Hispanic/Latino, 0.3% Native American, 0.1% Native Hawaiian/Pacific Islander and 0.8% two or more races.

Race/Ethnicity – Leadership

Pie chart showing FirstEnergy’s leadership racial/ethnic diversity of 91.1% White/non-Hispanic and 8.3% racially/ethnically diverse leaders. The racially/ethnically diverse population is comprised of 1.0% Asian, 3.9% Black/African American, 2.2% Hispanic/Latino, 0.3% Native American, 0.2% Native Hawaiian/Pacific Islander and 0.7% two or more races.

Generations

Pie chart showing FirstEnergy’s generational diversity of 24.0% Boomer, 36.3% Gen X, 35.2% Millennial and 4.4% Gen Z.

Additional Measured Categories

Bar graph showing 0.6% of FirstEnergy’s workforce is LGBTQ+, 3.9% are IWD and 5.1% are veterans.

Data is through June 30, 2021, unless otherwise noted. Leadership is defined as supervisor-and-above positions. Racially/ethnically diverse refers to American Indian or Alaska Native, Asian, Black/African American, Hispanic or Latino, and Native Hawaiian or Other Pacific Islander. Racially/ethnically diverse employees may be recorded in more than one category. Generations’ year of birth: Boomer is <1943-1964,  Gen X is 1965-1980, Millennial is 1981-1996, Gen Z is 1997 >. Demographic information is based on employee voluntary self-identification. LGBTQ+ is an acronym for lesbian, gay, bisexual, transgender and queer or questioning. IWD is an acronym for individuals with disabilities. Veteran includes employees who self-identify with the performance of duty on a voluntary or involuntary basis in the Armed Forces and can include active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, part-time duty service in the Reserve and/or National Guard, active Reserve, inactive Reserve, retired military and veteran status.

For more workforce demographics, please visit our ESG data table.

Talent Management Processes

We prioritize the transparency of our talent management processes and are committed to ensuring employees receive ongoing feedback. With greater visibility into our processes, employees can have more meaningful career conversations with their leaders and develop a clearer understanding of opportunities available to them and how they can advance their careers and grow at FirstEnergy.

Recruiting and Hiring a Diverse,
High-Performing Workforce

Our recruiting and hiring efforts are designed to attract an innovative, diverse team of employees committed to making our customers’ lives brighter, the environment better and our communities stronger. FirstEnergy’s recruiting, interviewing and hiring processes leverage many recognized best practices in support of ensuring that the best candidate is selected for every open position. 

To that end, our key recruiting and hiring practices include:

These best practices ensure we can consistently hire and promote the best talent.

Managing and
Assessing Our Talent

Career Management: Employees actively plan and manage their careers in partnership with leadership. Our career management process includes:

Talent Talks: Business-unit leaders assess employees’ leadership potential, performance and development needs.

Succession Planning and Leadership Selection: FirstEnergy strives to maintain a robust and diverse leadership pipeline for manager-and-above positions, while ensuring that meaningful development plans are in place for emerging leaders. We often look to succession plans when there is a need to fill a leadership role. However, we also engage in external searches to ensure a broad, diverse pool of candidates is considered. Our robust selection process ultimately ensures we identify the best person for the job:

990

Unique Near-term Successors

8%

Racially and Ethnically Diverse Near-term Successors

31%

Female Near-term Successors

Data is representative of YTD June 30, 2021. Succession plan metrics are based on manager-and-above succession plans. Near-term successor includes employees who are considered Ready Now or Less than 2 years. Racially/ethnically diverse refers to American Indian or Alaska Native, Asian, Black/African American, Hispanic or Latino, and Native Hawaiian or Other Pacific Islander. Racially/ethnically diverse employees may be recorded in more than one category. Demographic information is based on employee voluntary self-identification.

Employee Development

Employee development is another key talent management process. We are committed to preparing our high-performing workforce for the future and helping each employee develop their skills and competencies to reach their full potential. Our learning and development strategy encompasses a range of employee development and training programs designed to help our employees achieve professional goals and drive FirstEnergy’s success.

Power Systems Institute: An award-winning program for recruiting and developing the next generation of highly trained, dedicated and motivated line and substation workers. The 21-week program combines technical coursework at local community colleges with hands-on skills instruction at company facilities.

Employee Education and Certification: We help our employees pursue degrees and certifications to advance their careers and enhance their contributions to FirstEnergy. Through our comprehensive tuition reimbursement program (capped at $5,250 per year per person), we assist all regular, full-time employees, including union members, with the costs of satisfactorily completed courses of study directly related to our business. In addition, our new Educate to Elevate program assists employees in pursuing associate and bachelor’s degrees at partner colleges and universities in Toledo (Owens College), Akron (Stark State and The University of Akron), Reading (Alvernia University) and Fairmont (Pierpont College). The benefits of this program include tuition deferment and a cohort-style approach with other FirstEnergy employees.

Discover FE: Our Discover FE program is designed to broaden and deepen employees’ knowledge of the electric utility industry and our company. The program provides a complete picture of our complex industry, strategy and operations, showing employees how the different areas of our company fit together and helping them better understand where we are headed. Through the “day in the life” aspect of the program, employees also see various company roles in action.

Mentoring Program: Our formal mentoring program matches mentees with mentors who can support their long-term career growth. It is designed to create collaborative, two-way partnerships that encourage individual development through sharing expertise, values, perspectives and attitudes.

637

Mentoring Program Participation

22%

Racially and Ethically Diverse Participants

44%

Female Participants

Data is representative of YTD June 30, 2021. Bargaining Unit employees are not eligible to participate in the mentoring program currently, except for the Reading Contact Center. Racially/ethnically diverse refers to American Indian or Alaska Native, Asian, Black/African American, Hispanic or Latino, and Native Hawaiian or Other Pacific Islander. Racially/ethnically diverse employees may be recorded in more than one category. Demographic information is based on employee voluntary self-identification.

Developing Inclusive Leaders

We’re also committed to preparing our emerging leaders for new roles and management responsibilities. We invest in developing our leaders, so they can continually build on their strengths and grow their capabilities to create a safe and inclusive workplace, where all employees feel they belong and that their thoughts and ideas are heard.

New Supervisor and Manager Program (NSM): Our NSM Program prepares newly hired or promoted supervisors and managers for their supervisory responsibilities and trains them in leadership practices that align with our mission and core values.

Experienced Leader Program: This program educates and trains experienced managers and directors in effectively leading their teams and the organization. Delivered through a series of virtual, instructor-led and small-group coaching sessions spread over six months, it equips our leadership with the tools to support their teams and ulitmately drives FirstEnergy's success.

Senior Leadership Development: Executives are selected to participate in intensive leadership development experiences in partnership with the Center for Creative Leadership, a premier external vendor for leadership development. These experiences enable executives to reflect on their leadership style and examine and maximize their effectiveness to accelerate organizational commitment, alignment and results.

Performance
Management Process

During check-in conversations throughout the year, employees and their leaders discuss their performance, progress towards priorities and development goals. During our annual Performance Investment and Rewards Calibration Process (PIRC), leaders within a business unit or department come together for performance calibration sessions. Discussing and calibrating employee performance provides multiple perspectives and ensures that leaders differentiate performance in a fair and consistent manner.

Performance calibration is a fundamental part of our pay-for-performance philosophy, which directly ties an employee’s pay to their job performance. Our annual pay-for-performance process ensures the PIRC results play a key role in helping leaders allocate compensation increases among employees.

1

Prepare

Review employee performance based on:

  • Recent performance
  • Sustained performance
  • Demonstrated FE Core Values and Behaviors
  • Demonstrated growth in knowledge, skills and behaviors
2

Calibrate

Calibrate performance across business units to ensure fair and consistent process

3

Allocate

Determine which investment and reward options to use

  • Invest in and reward employees based on performance considering employee preferences
  • Align with FirstEnergy's pay-for-performance philosophy

Retaining Talent

One hallmark of an inclusive workplace is that employees choose to stay and build their careers with us. Overall, we enjoy low turnover at FirstEnergy at rates below external benchmarks. We monitor attrition rates across all employee demographics as an indicator of job satisfaction and engagement. We are committed to advancing an inclusive workplace with a goal of retaining women and racially and ethnically diverse employees at the same rate as men and White/non-Hispanic employees. For details on our inclusion initiatives, which are essential to our success in talent retention, please visit our Diversity, Equity and Inclusion page.

Turnover Voluntary Retirement
  2018 2019 2020 2021 YTD 2018 2019 2020 2021 YTD
Female 2.3% 2.2% 1.6% 1.3% 6.9% 5.7% 2.6% 2.6%
Male 1.5% 1.4% 0.9% 0.7% 5.0% 4.4% 3.1% 3.1%
Racially/Ethnically diverse employees 2.8% 3.4% 2.2% 2.4% 5.4% 3.4% 2.4% 2.4%
White/non-Hispanic 1.6% 1.3% 0.9% 0.7% 5.5% 4.8% 3.1%

3.1%

Data is representative of YTD June 30, 2021, unless otherwise noted. Percentages are a comparison of attrition to overall in-group population. Includes employees who separated from FE voluntarily (e.g., resigned due to an outside opportunity). Demographic information is based on employee voluntary self-identification. Racially/ethnically diverse refers to American Indian or Alaska Native, Asian, Black/African American, Hispanic or Latino, and Native Hawaiian or Other Pacific Islander. Racially/ethnically diverse employees may be recorded in more than one category.

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