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Strategic Recognition in Turbulent Times

Michael Tatelbame

Director, Recognition and Rewards

RPI 12th Annual Conference 2009

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• 3,000 flights to 200 domestic and international locations a day

• Hub locations: Los Angeles, San Francisco, Denver, Chicago and Washington, DC

• 48,000 employees

– 15,000 Flight Attendants

– 6,500 Pilots

– 17,000 Customer Service Agents

• 6 union groups

A Brief Overview of United

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Recognition is one of United’sTotal Rewards Strategies

VP, Total Rewards

Michael Tatelbame

Director, Recognition and Rewards

Jeff Hughes

Creative Designer

Jaci Charbonneau

Recognition Assistant

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Consultant, Total Rewards

Compensation Benefits

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We are “Focused on 5”

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• Leadership

– Senior Alignment (top 250)

– Transformation (middle and front-line)

• Inclusion

– Shared Operational Goals

– Employee Idea Center

• Recognition

• Employee Communications

• Enablement

– Work environment, tools and technology

Flagship Programs

Recognition is a Flagship Program under CCR

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Our Recognition Strategy

In 2008, our recognition strategy was to design recognition programs:

– aligned with enterprise, division, and local strategy and goals

– linked to employees and customers

– to enable our leaders to provide effective recognition

– to drive employee pride

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2009: Link Recognition to the Focus on 5

In 2009, we are building to the foundation by:

– Aligning all of our recognition efforts around the Focus on 5

– Ensuring that the recognition programs:• Align employees with United’s success• Reinforce desired behaviors and outcomes• Demonstrate care and respect

– Focusing accountability: • Enterprise-level resources targeted to a few, critical programs

managed centrally. • Enhance tools, guidelines and resources provided to leaders to

allow for greater consistency while encouraging local creativity.

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Recognition is an investment!

Although the airline industry struggled in 2008 with the fuel crisis and in 2009 with declining demand, United views recognition as a smart investment in retaining our high performing employees.

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Funding

Enterprise Recognition:

� $1.5M to support enterprise-wide programs and the creation of tools and resources to enable leaders to locally recognize their employees.

Local Level:

� 2008: $20 per employee to reinforce desired outcomes and behaviors through employee recognition.

� 2009: $50 per employee at the local level.

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A look at some of our programs

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DOT Service Basics Courteous, Caring, Respectful

Safety

Focus on 5

A: 14:

Eligible employees earn up to $100/month based on United’s A: 14 performance.

STAR:

Station recognition for STAR performance.

Voice of the Customer:

Recognizing employees acknowledged by United’s customers.

Milestone Awards:

Recognizing employees celebrating 25 + years of service with a gift selection.

Military Leave:

Recognizing employees when embarking upon, and returning from, military service.

Safety Leadership:

Criteria-based safety recognition program.

Chairman’s Award:

Annual event to recognize United’s employees based on nomination criteria.

Officer Recognition:

Systematic approach for Officers to recognize employees on station visits.

2009 Employee Recognition:The Critical Few Programs Aligned with the Focus on 5

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Leader tools in support of $50 allocation/employee recognition

On-line Recognition Tool:� Every leader with direct reports expected to recognize at least one

employee/week using the on-line tool.� Leaders can order certificates, awards and gift options for employees

aligned with the Focus on 5. � Reporting and tracking the # of employees recognized by location, division

and core performance imperative.

United Branded Items/Recognition Toolkits:� Leaders with direct reports expected to recognize at least one

employee/day using a branded note card and/or a small United branded item.

Celebration Guidelines:� Leaders are expected to recognize all milestones with a celebration. � Quarterly celebrations held in recognition of attaining division goals and/or

successful results with the core performance imperatives.

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Recognition is Clearly Defined as a Leadership Responsibility

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Recognition defined in theLeadership Guiding Principles

• Recognizes Individual and Team Accomplishments

• Actively supports recognition programs

• Develops and implements recognition

Outstanding

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Leadership Training to Engage our Employees

2-day leadership training includes recognition module and hands-on practice using recognition toolbox

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Recognition Beyond 2009

• Recognition team moves to more of a consultative approach and less program design

• Formal review of programs and ROI

• Refinement and enhancement of programs

• Supporting leaders to engage employees through effective and meaningful recognition

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Contact Information:

Michael Tatelbame

Director, Recognition and Rewards

Michael.Tatelbame@united.com

847-700-2097