Code of Ethical ConductInclusion and Belonging | Succession Planning | Employee Development and Training | Talent Strategy | Employee Health and Wellness | Total Rewards Strategy | Employee Engagement | Employee Concerns | Union Connections


Updated: April 2024

Our nearly 5,900 dedicated employees strengthen our company with their skills, experience and diverse perspectives.  Several factors will impact the APS employee of the future. Many are approaching retirement, making transfer of their knowledge and experience a top priority. As our industry adopts new technologies and our customers’ needs evolve, employees will need to be technically and technologically fluent. Changing demographics are reshaping how employees think about and structure their careers—placing a growing emphasis on continuous training, targeted experiences and networking opportunities that broaden their experience.

We recognize that the next generation of employees has unique career expectations, and our business is evolving to accommodate the changing workforce. We are taking steps to support the changing needs, skills and priorities of our employees. We also continue to develop strategies to attract and retain highly-skilled employees, and ensure they remain engaged during this time of change. For these and other reasons, our employees have an average tenure of approximately 11.6 years. 

 

Code of Ethical Conduct

Our Code of Ethical Conduct (Code) serves as a guide for how we live the APS Promise. It demonstrates the actions and behaviors that will enhance ethical decision-making and strengthen our culture. The Code covers a variety of topics including company assets, business courtesies, ethical conduct, conflicts of interest, reporting and retaliation. The Code applies to all employees and Board of Directors. We expect contractors, business partners, suppliers and other third-party agents to follow similar principles when working with or on behalf of our company.

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Ethics Training. We require our employees to complete annual online training on our Code of Ethical Conduct. Upon completion of the training, employees are asked to acknowledge having read, understood, and agreed to comply with the Code of Ethical Conduct.

Governance. We use a strong system of governance to establish our policies and standards for ethical conduct and ensure compliance. Our Code supports our principles, policies and goals for paving the way to a more reliable, affordable and clean energy future. The Corporate Governance and Public Responsibility Committee of the board is responsible for reviewing and assessing the Code.

Link to Code of Ethical Conduct.

Inclusion and Belonging

At APS, we believe that belonging matters. When we feel seen, heard and valued, we can more effectively unite behind our APS Promise.

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We create this sense of belonging through our commitment to inclusion. Inclusion at APS involves taking deliberate action to embrace the unique perspectives of each employee. True inclusion brings greater appreciation for our diversity. This allows us to equitably leverage our powerful workforce so we can succeed together to bring our APS Promise to life.

Since launching our Diversity, Equity and Inclusion Strategy in 2021, key activities include:

  • Bringing inclusive leadership education to officers, senior leaders, business unit leadership teams, and other stakeholders; covering topics such as cultural competence and unconscious bias,
  • Developing and launching a self-paced module for all employees, explaining how cultural competence drives inclusion of diverse groups,
  • Conducting cultural competence assessments with our inclusion council groups and other key stakeholders,
  • Holding listening sessions with employees to learn about what matters most to them.

Governance and Advisory Groups. Our Inclusion Council includes a Steering Committee and Executive Advocate group. We also launched DEI Employee Advisory Council. This group of employees from diverse business functions and organizational levels provides feedback on DEI plans, initiatives, and projects and helps brainstorm about effective ways to incorporate DEI at APS. Input from this group is shared by the DEI Team with the Inclusion Steering Committee and Executive Advocate group.

Education and Learning. The goal of our education efforts is to bring inclusive leadership education to the business unit leadership teams covering topics such as cultural competence and unconscious bias. We launched a self-paced module for all employees explaining how cultural competence drives inclusion of diverse groups and conducted cultural competence assessments with our inclusion council groups. In addition, we hold listening sessions with employees to learn about what matters most to them.

Robust, Long-Standing Employee Network Groups. Our 11 self-organized Employee Network Groups were formed to encourage employees to challenge themselves, develop additional skills and advance within their chosen fields. The Company supports employee networks that enable employees to connect with one another and promote career development. These groups are open to all APS employees and promote engagement, inclusion, and leadership opportunities.

To learn more about our inclusion program and performance read our Annual Inclusion Report.

To learn more about diversity statistics read our Consolidated EEO-1 Data Report and see our Employee Performance Metrics.

Succession Planning

We are committed to identifying APS’s long-range organizational needs and cultivating internal talent to meet those future needs. Succession planning helps ensure we can meet the future needs of the organization by assessing and developing employees identified as successors.

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Through a strong focus on succession planning, we ensure that our company is prepared to fill executive and other key leadership roles with capable, experienced employees. We conduct annual and ongoing succession planning conversations, and support successor talent identification, development, and transition. We also regularly review and update our succession plans to ensure that qualified internal individuals are in place to move into critical positions and, when necessary, augment plans with strategic external hires. We have strategically selected successors for our management team, whom we are confident will lead our company successfully.

In addition, we ensure that each business unit has talent management strategies and development plans to meet its future leadership needs. Effective succession planning helps us identify employees with leadership potential and allows us to evaluate gaps in knowledge, skills, or experience that need to be addressed before those employees can move into leadership roles.

Employee Development and Training

We focus on attracting and developing a skilled workforce. To attract and retain top talent, we provide formal professional development programs through blended learning education and leadership training.

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Professional Development. Our employees have access to various training and development opportunities, including leadership academies, rotational programs, mentoring programs, industry certifications and loaned executive programs. Key activities in 2023 include:

  • Leadership Academy. Graduated 152 individuals from our three academies (Leadership Academy, Impact and Influence Academy, and Strategic Leadership Academy).
  • Learning and Development. Supported our modern learning culture by continuing to offer on-demand learning to our leaders and program participants, who collectively completed over 9,500 development modules.


Talent Strategy

We seek to attract, retain and create a productive work environment for all employees.

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We believe the strength, talent, and commitment of our employees are significant contributors to our success.

  • Internship programs: 57 summer internships were completed in 2023; 67% of interns were diverse based on race, ethnicity, or gender
  • Apprentice programs: 130* apprentices participated in the programs, 36 of whom were hired into the programs in 2023
  • Incoming engineer programs: : Legacy Engineer Program (PVGS); Rotational Engineer Program (Transmission and Distribution)
  • Expanded recruitment marketing: Improved marketing collateral and increased job advertising (externally and internally) to attract top talent and create greater awareness of career opportunities available to employees
  • Strong commitment to our communities: Filled 121 Customer Care Center Associate I roles utilizing community organizations and partnerships as talent sources. 100% of hires were Arizona residents. Continued support of talent programs that support Arizona and aim to increase our diversity, such as the U.S. Department of Defense SkillBridge veteran hiring program, ElevateEdAZ Job Shadow Program for high school students, and the Arizona Latino Student Mentorship Program

* As of June 30, 2023.




Employee Health and Wellness

At APS, we care about the wellbeing of our employees. We know happy, healthy employees are more engaged, more productive and more satisfied. That is why we encourage employees to participate in the Total Wellbeing program.

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Total Wellbeing inspires employees to take charge of their physical, financial, emotional and social well being by providing tools to invest in their wellness and have fun while doing it. Employees can learn more about their Wellbeing and how they can improve it when they participate in challenges and health coaching. Employees can also interact through the social channel and give encouragement and support to other participants through the Wellbeing Community.

Total Rewards Strategy

We offer a flexible, inclusive and evolving total rewards program that delivers on the APS Promise by providing current and future employees the support they need at various stages of their life and career.

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As part of our rewards strategy, we complete annual market analyses that ensures we are offering a competitive pay structure. We consider several factors including internal equity and external market factors. Our robust Total Rewards package includes the following:

  • Competitive base pay
  • Short-term incentives
  • Pay-for-performance
  • Flexible work schedules and remote work for certain eligible positions
  • Career development opportunities
  • Medical and prescription drug plans
  • Health savings account with company contribution
  • Company paid short-term and long-term disability coverage
  • Company paid life and AD&D coverage
  • Vision and dental plans
  • Wellness program
  • Comprehensive behavioral health programs including an EAP with 10 visits per year
  • Generous paid time-off plan starting at 160 hours per year
  • Eleven paid holidays a year
  • 401(k) plan with company match
  • Pension plan and retiree medical/life plans
  • Paid parental leave
  • Caregiving support program and paid caregiver leave
  • Mother's rooms
  • Tuition reimbursement program

Read more about our employee benefits on aps.com

Employee Engagement

Annual employee experience surveys and focused quarterly pulse surveys allow us to gather employee feedback, identify opportunities for improvement, and take meaningful action in response to survey results.

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Through the quarterly pulse and annual employee experience surveys, we track our Employee Experience Index (Index), a set of seven questions that encompass essential elements of a positive employee experience, including recognition, career development possibilities and pride in the organization. In 2023, we received responses from approximately 4,500 (76%) of our employees. Eighty-five percent of those responded positively to the underlying items in the Index, which compares favorably to industry benchmark of 82%.

Actions taken in response to the surveys focus on improvements in targeted areas. Examples include improving communication between employees and leadership, improving internal processes, and employee recognition.

Employee Concerns

Multiple avenues for resolving concerns are available to employees, including pursuing resolution through the chain of leadership, Human Resources or the Ethics Office.

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All employees receive annual ethics training on processes and channels available for filing concerns, which are outlined in our Code of Ethical Conduct. In addition, the Ethics Office provides a third-party administered website, helpline and phone app for anonymous reporting of concerns.

Employees covered under a collective bargaining agreement also have a process to file and resolve grievances as outlined in the collective bargaining agreement.

Read more in our Code of Ethical Conduct.

Union Connections

Maintaining strong, long-term relationships with our union members is important to our success. APS has approximately 1,122 employees who are represented by the International Brotherhood of Electrical Workers (IBEW) Local 387.

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In September of 2023, members of the IBEW Local 387 voted to ratify a new three-year collective bargaining agreement through April 1, 2026. We expect a continued positive, collaborative, working relationship with the IBEW Leadership and our represented union employees in pursuit of our common goal of delivering safe, efficient, and reliable energy to our customers.

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