1. Reggie Stover VP, People & Talent Development Fairmount Minerals NOHRPS Talent Management & Leadership Engagement September 26, 2013

2. 2 Talent Management & Leadership Engagement

3. 3 Objectives  Defining the “New Normal” for Talent Management  How Does HR fit into the “New Normal”  Why Talent Management /Defining Talent Management  Leadership Role & Modeling Talent Management Behaviors  Employee Engagement/Top Employee Engagement Drivers  Talent Management Life Cycle  What Fairmount Minerals is Doing in Talent Management  Wrap-up/Questions

4. 4 HR’s Role in the “Old Normal” Reduce Employer 401(k) or 403 (B) Match Manage Outplacements Slash Budgets No New Hires Eliminate/Reduce Training Salary Reductions/Freeze Reduce Travel Eliminate/Reduce Hiring Seasonal Workers Have Tough Discussions Budget Freeze No Promotions Reduce Work Week Rationalize Meetings Terminations Integration Due Diligence Employee Relations

5. 5 Defining the “New Normal” …the challenge of aligning people, programs, systems, structures and strategies to create a competitive advantage for your organization.

6. 6 HR’s Role in the “New Normal”  Help Establish Realignment Goals  Analyze Methodology and Approach  Align Executive Team  Establish Leadership Role for HR  Assist in Employee & Executive Leadership Development  Help to Minimize Business Disruptions  Maximize Involvement, Buy-in and Transferability  Learning Agility & Change Agility - The BUSINESS of HR: Creating Competitive Advantage through People, HR Tomorrow (InterContinental Hotels Group)

7. 7 Why Talent Management  War for Talent - Highly Competitive  Estimated U.S. Worker Shortfall - 10MM  Proactive vs. Reactive  Branding - Employee Value Proposition  Increased Need to Grow Own - Develop Pipeline  Retention vs. Turnover Drives Employee Engagement & Fuels Organizational Success

8. 8 Talent Management …the strategic recruitment, development, and retention of individuals with the right skills, experience & personal qualities which are a cultural fit with an organization to achieve its mission.

9. 9 The Role of Leadership in Talent Management …to model the expected qualities and behaviors which are necessary to build an effective and sustainable culture of Talent Management. …share philosophies, what it takes to be an effective leader & what it takes to build a strong talent pool. EMPLOYEES WILL BE WHAT THEY SEE

10. 10 Modeling the Expected Qualities & Behaviors  Strengthen your own direct reports - Tell your folks how they are performing. - Give strong performers new challenges. - Face up to the difficult task of dealing with low performers.  Establish a talent standard - Identify and articulate the characteristics and caliber of leaders that the organization should have. - the talent standard should sharply define what great talent looks like for your company.  Influence people decisions far down in your organization - Get directly involved in the hiring, promotion and firing decisions for as many people as they possibly can.  Drive a simple, effective, probing review of talent - It’s a direct way leaders build the strength of the talent pool deep in the organization. - Imposes discipline of regular conversations/making decisions about people. - Allows leaders to discuss standard of talent they seek to build & how to go about doing it. - It is the backbone of good talent management.  Hold managers accountable for the strength of their talent pools - Negotiation between unit manager & the next-higher executive, should be part of objectives. Talent Management Begins and Ends with Effective Leadership

11. 11 Talent Management Questions for Leadership  Do you give candid feedback to your direct reports on their performance and how they can improve?  Do you actively help your people shape their roles so they are constantly growing and stretching?  Do you have a number of people outside your reporting line that you actively mentor?  How deeply are you involved in the hiring, promotion and firing decisions? If leaders in the organization are not doing these things, why would anyone else?

12. 12 Employee Engagement & Organizational Success

13. 13 Employee Engagement What is Employee Engagement? …a measure reflecting the extent to which an employee contributes through their effort and enthusiasm to the success and performance of their organization. Top 5 Drivers of Employee Engagement? 1. Recognition & Appreciation 2. Personal Accomplishment 3. Career Development 4. Belief in the Future of the Organization 5. Compensation

14. 14 Organizational Success is a Process  Candidate Experience/Employee Experience & Satisfaction  Safety (Employees/Customers/Vendors)  Productivity  Meeting Budget  Profitability Begins and Ends with Effective Talent Management

15. 15 Identify & Attract Select & Hire On-Board Develop Promote Transition & Retire Hire to Retire Right People, Right Skills, Right Job Smooth Transition from Candidate to Employee Engage Employees Right from the Start! Invest in Our Employees Leverage Our Investment Protect Our Investment Talent Management Life Cycle

16. 16 What We’re Doing Right People, Right Skills, Right Job Identify & Attract  Recruiting Tracker  Utilizing Search Firms  Ensuring We Have Well Defined Job Descriptions  Branding  Telling The FML Story  Being Good Stewards (People, Planet, Prosperity) Identify & Attract

17. 17 What We’re Doing Engage Employee Right From The Start Select & Hire  12 FML Leaders Trained - Targeted Selection/Behavioral Based Interviewing  All HR Team Members Certified - Targeted Selection/Behavioral Based Interviewing  FML - Hired Candidates Utilizing TS/Behavioral Based Interviewing Branding Select & Hire

18. 18 What We’re Doing Smooth Transition From Candidate To Employee On-Board  FML has initiated New Hire Orientation  FML has initiated New Hire On-Boarding Plans  Scheduled Meet & Greets with key leaders/personnel  Requesting Managers conduct 30, 45, & 60 day New Hire Reviews On-Board

19. 19 What We’re Doing Invest In Our Employees Employee Development Plan Documents – Development Dialogues  RPD - Role Performance Dialogue  IDP - Employee Individual Development Plan  PIP - Employee Performance Improvement Plan  Employee Conversion Plan Employee/Leadership Development  FML Y.O.U.  Basic Supervisory/Leadership Skills  Succession Plan/Succession Planning  New Leader Assimilation Process (Supervisor & Above) Develop

20. 20 What We’re Doing Leverage Our Investment Promote TIP - Talent Identification Process  Review of Individual Development Plans  Mid-Year Calibration  Review of Role Performance/Progress  Review of Succession Plans  Suggested Strategic Cross-Functional Assignments/Development Promote

21. 21 What We’re Doing Protect Our Investment Transition & Retire  Financial Readiness Review  Benefits Counseling  Retirement Outplacement Services  Exit Interview Transition & Retire

22. 22 - The BUSINESS of HR: Help your leaders and the organization to Create a Competitive Advantage through People.  Hiring Right - Right People, Right Skills, Right Job  Effective Employee Engagement - Leadership Modeling Right Behaviors - Leadership Having Right Conversations - Career Development/Career Pathing (PLAN)  Culture - Tolerable & Appreciative In Closing  Employees Want To Know Three Things:  Can I trust you?  Are you committed?  Do you care about me?

23. 23 QUESTIONS