Employees

Employees

TXNM Energy looks to our more than 1,500 dedicated employees to transform our business model and lead us into an emissions-free generation future by being part of a diverse and inclusive workforce, actively being developed and trained to meet evolving skill set requirements, participating in succession planning, and leveraging our employee wellness programs.

Diversity and Inclusion

At TXNM Energy, we value the diversity of our workforce and actively seek opportunities for incorporating Diversity, Equity and Inclusion (DEI) within our family of companies. We believe a diverse workforce enriches our environment and helps us better meet the needs of our employees, customers and shareholders. TXNM Energy employs over 1,500 employees in New Mexico and Texas.

In 2022, to further our commitment to diversity, TXNM Energy enacted our Human Rights Policy and created a formal DEI strategy, with these guiding principles: 

• Cultivate a productive and engaging workplace culture that encourages collaboration, flexibility, and fairness to enable individuals to contribute to their full potential.
• Develop systems to equip leaders with the ability to manage diversity, be accountable, measure and refine based on data and results, and institutionalize a culture of inclusion. 
• Assess and support diverse internal talent to sustain a high-performance organization that meets its strategic and operational goals and objectives. 
• Attract and retain diverse talent drawn from all segments of our society to create a sustainable organization contributing to strategic and operational goals and objectives.

To promote DEI, we take a multi-tiered approach. We provide awareness training on topics such as Unconscious Bias, Celebrating Juneteenth and accessibility. We discuss our DEI goals with our hiring managers, include diverse hiring panels for leadership roles and undertake targeted recruitment with organizations including Women in Business and Hire Our Heroes. On an annual basis, we review and update our diversity and affirmative action plans. 

Our DEI vision is to build a sustainably diverse, empathetic, supportive, and equitable workforce. It is through our culture, individual beliefs and experiences that collective diversity of thought is put into action. As well, to further our commitment to DEI, TXNM Energy enacted a Human Rights Policy, emphasizing our commitment to ethical conduct and legal compliance.

We promote diversity and opportunity across our business and recognize how critical it is for the success of our company and our culture. Our commitment to DEI is reflected in the high proportion of women and minorities represented across all levels of our organization.

The company has numerous employee policies that govern hiring practices, paid and unpaid leave, health and safety, employee performance evaluations, anti‐corruption, and anti‐trust. Our Do The Right Thing: Principles of Business Conduct is an over‐arching guiding document that lays the foundation of what is expected of all employees. We also abide by our Equal Employment Opportunity policy and we believe this helps cultivate our environment of equitable personal and professional growth.

Pay Equality

TXNM Energy is committed to the principle of equal pay for equal work for our employees and we seek to ensure employees are paid equitably for substantially similar work. Pay equity is reviewed internally three times per year according to factors including role, years of industry-related experience, performance and tenure, among other factors. Where a discrepancy might be identified, there is an internal review process to evaluate and, where appropriate, address it. The company completed a third-party fair pay study which indicated women earn $0.98 for every $1.00 earned by men and minority employees earn $0.98-$1.01 for every $1.00 earned by non-minority employees. The company will maintain the third-party fair pay study annually and act on the results as appropriate.

Learning and Development

We are committed to developing and retaining our highly skilled workforce. We continue to leverage an online training platform which supports custom programs and training journeys designed to provide the necessary technical skills and leadership development to enable the long-term success of our company. All employees are expected to develop an annual performance plan, with goals tied to corporate Key Results and department goals. Our leaders engage in feedback conversations with their employees throughout the year, to foster communication, development and opportunities for growth, including formal performance and development conversations at the beginning of the year for goal setting, mid-year progress and end-of-year for overall evaluation.

At TXNM Energy, we approach our learning and development offerings through the lens of an employee’s complete life cycle and have established a Learning Governance Council that is chartered to champion enterprise-wide development programs, training initiatives, and learning alignment.

The Learning Governance Council provides oversight and sets employee development policies and strategies that effect corporate-wide learning initiatives focused on compliance, safety, technical skill development, leadership, and employee career development to ensure an agile workforce.

Leadership Development Program

To develop current and future leaders of our company, we have implemented a robust four-tiered, stackable, holistic approach offering learning and networking opportunities to participants across various business functions and geographic locations. Participants have the option to follow a structured four-year development journey or tailor their learning journey to reflect completed prerequisites and level of prior experience. The program design evolves with the changing needs of our customers and employees, advancing technologies, and evolving capability requirements. A recent upgrade to one of the supporting platforms is effectively enhancing the learner experience by focusing on intentional application and sustained behavior change.

 Emerging Leaders - Provide development opportunities to prepare leaders to transition into a formal leadership role or to lead projects more effectively as an Individual Contributor.

 Supervisor Essentials – Provide early career supervisors and managers with essential corporate requirements and expectations whether new to managing employees or new to TXNM Energy.

 Leadership Fundamentals - Facilitates a shift from managing effectively to leading and equips leaders with the skills to set strategic direction in collaboration with their teams and enhance their coaching skill set.

 Leading the Organization – Increases leadership competency, coaching skills and the ability to influence the enterprise through servant leadership excellence.

Our current Leadership Development Program grew out of our successful pilot program, Next Level Leadership Academy. The hybrid pilot program provided the supporting data for expanding to a three-tiered model and the recommended offerings that are part of our current program. 24 employees participated in 123 hours of instruction in 2022.

New Hires

TXNM Energy provides a welcoming environment for new hires through various programs that are continuously reviewed and updated, including:

• New Hire Welcome – Welcome, engage and introduce new employees into our Company and culture. 
• Company Orientation – Further integrate our new employees by providing a holistic company orientation and broader overview of our operations. 
• Job based skill training – Our learning platform offers job-based e-badges and certifications, as well as coaches and mentors for skill development programs across multiple domains. 

Ongoing Training

TXNM Energy provides technical, safety, and compliance training as set forth by Federal and State standards and the Company. We do this not because of a requirement, but because it’s the right thing to do.  

Employees represented by the International Brotherhood of Electrical Workers (IBEW) are also eligible for formal apprenticeship programs in certain classifications, designed to progress individuals to journey-level proficiency.

With approximately 8.0% of our workforce eligible for retirement as of December 31, 2022, TXNM Energy works to ensure institutional knowledge and technical expertise is maintained within the company. To that end, we have developed a program to identify key and critical positions to focus our efforts on transferring and retaining knowledge. We have implemented a robust interview process program for learning and sharing knowledge of those in key and critical positions, particularly as individuals move to retirement.

Collective Bargaining Agreements

As of December 31, 2022, approximately 33% of our workforce population was represented by collective bargaining agreements.

In July 2023, TNMP and IBEW Local 66 entered into an agreement which included extending the collective bargaining agreement through August 30, 2027. In April 2023, the TNMP Distribution System Operators voted to join the IBEW Local 66, and TNMP and IBEW Local 66 are currently negotiating an addendum to the agreement.

In January 2023, PNM and IBEW Local 611 agreed to a successor collective bargaining agreement effective May 1, 2023, through April 30, 2026.

Cultural Transformation and Employee Engagement

Our focus on culture, Powering Change, continues to progress with the updating of our cultural beliefs in March 2023, Why Here, Be Bold, Be Transparent and Think Ahead. Our cultural beliefs align to the Company’s desired results and reinforce our commitment to a diverse workplace. Our workplace culture supports inclusion and recognition of employees and their valued differences and contributions.

The program also aligns and develops leaders to propel current and future initiatives in areas of: Safety, Customer Experience, Accountability, Communication and Wellness. Employee engagement programs are being encapsulated into Powering Change, ensuring alignment and embracing culture, engagement and well-being holistically.

Understanding and maximizing employee engagement is fundamental to the well-being of our workforce and the success of our company. We have found over time that the best way to understand what our employees are thinking and to identify potential areas for improvement is through small focus groups. We regularly convene varying groups of employees to survey their thoughts, opinions and ideas. We use the insights learned to make TXNM Energy a better place for our employees, customers and community.

Human Resources in collaboration with New Mexico Operations recently implemented micro-learning and chat sessions with supervisors and managers to address ongoing and prevalent duties including influencing great performance, developing staff and responding to employee requests, among other topics.

Additionally, our New Mexico Operations and Human Resources departments collaborated on a series of employee forums to identify areas of improvement in the work environment, work processes and collaboration. The forums provided insights and ideas that we were able to institute across the company to improve attraction and retention and build stronger work environments and culture within our technical teams. Some of the realized benefits of these efforts have included the adjustment of the wage scale for Engineering and Project Manager positions to be highly competitive and help with recruiting and retention; career pathing and skill development courses are being developed to foster an environment of continuous learning, and departments have been redesigned to help with work optimization.

It is in strengthening our foundation of Culture, with our transformation initiative and alignment of our employee engagement programs, where we will better drive business results, company values and individual aspirations. 

Employee Turnover

We regularly monitor employee turnover to identify separation factors and improve performance. Turnover data is reviewed at least twice a year at the executive level for each business unit and department to understand employee turnover and opportunities for making changes. Our voluntary employee turnover for 2022 was approximately 10.27% across the Company.

Recruiting and Attraction

Our recruitment efforts aim to build on our commitment to diversity by hiring those with diverse perspectives and experience from all walks of life. A redesigned Careers webpage was rolled out with the intent of being more visually appealing, streamlined navigation, incorporating new content elements to assist with attracting and recruiting a diverse pool of applicants. The website sets to highlight the Company’s dedication to its employees and expands on the commitment towards a diverse, equitable and inclusive environment.

We work with local universities and colleges to hire talented people who will grow into our future leaders. We actively recruit with diverse schools including the University of New Mexico, Central New Mexico Community College, New Mexico State University, New Mexico Tech, University of Oklahoma, UT San Antonio, University of Houston and Southwestern Indian Polytechnic Institute, among others.

We partner with universities to offer internships to those seeking experience in project management, accounting, finance, information technology, and customer experience. We have substantially increased the internship program and have targeted numerous institutions to ensure a diverse future candidate pipeline, while providing a rich learning environment for students.

In addition to attending career fairs at our partner schools we also work closely with Workforce Connect Centers to ensure we reach people in any stage of their career.

We advertise our positions to several diversity centric career sites and groups including:

• NMTC – Women in Technology Peer Group
• The Pueblo of Zuni
• NM Department of Vocational Rehabilitation
• EmployDIVERSITY
• Women Veterans of NM
• Hispanic Today
• Black Perspective

Total Rewards Strategy

At TXNM Energy, our benefits are competitive, designed to meet the varied wants and needs of our employees and cultivate a work environment that encourages personal and professional growth. The Company‐offered insurance plans are available to employee and eligible dependents, including same‐sex spouses. Although we typically do not employ a large percentage of part-time employees, many of the benefits that are available to full-time employees are also extended to part time-employees, including receiving at least 100 hours of paid time off per year, and eligibility for tuition reimbursement at 50% of the rate of full-time employees.

Benefits provided include:

• Bonus opportunities for all employees not subject to collective bargaining agreements (including equity grants for key leaders)
• 401k with employee match + supplementary age-based company contribution with a wide array of investment funds, including a Company stock investment fund
• Paid time off
• Health and life insurance
• Tuition reimbursement: $5,250 annually for degree courses and $1,100 for non-degree courses, which can be used for professional development and certifications, job specific skills development and non-degree programs
• Parental leave
• Flexible schedules and remote work
• Wellness program
• Discounted gym memberships (and many facilities have onsite gyms)
• Volunteer grants for volunteer time
• 8-hours annual time-off for volunteering
• Service Day for volunteering
• Employee Crisis Fund
• HSA healthcare account contribution

Employee Health and Wellness

The TXNM Energy WellPowered program encompasses safety, health and prevention. Employees known as Wellness Transformers serve as champions for wellness culture, advocacy and change.

Wellness Transformers operate as ambassadors to, and a resource for, the TXNM Energy WellPowered program. They communicate initiatives to co-workers and provide constructive feedback on local, regional, and company-wide wellness initiatives, which align safety, prevention and health for employees and their families. Employees may participate in activities, health and wellness assessments, and contests to earn points toward incentives, including discounts on health insurance premiums.