E.ON

The overview

Chances are, most people have heard of E.ON UK – it’s among the big six UK retail energy suppliers, serving 5.3 million residential, small business and industrial customers across the country. Originally launched as state-owned Powergen in 1990, the company was bought by German energy giant E.ON in 2002, and now operates as its fully-owned subsidiary. It has around 12,500 employees and generated turnover of £9,227 million in 2009.

Areas of business

As well as selling gas and electricity to customers, E.ON UK generates energy from a variety of sources, accounting for over 10% of UK electricity demand. While 38% of its generation is currently from coal, the company also operates gas and oil-fired power stations, and has a strong renewable energy portfolio comprising 21 wind farms, a biomass station and 13 large-scale combined heat and power facilities.

E.ON generates over 10% of UK electricity demand.

Its other services include energy consultancy, metering, street lighting, heating installation and maintenance, natural gas storage, energy trading and business services.

The company also has a high visibility outside the energy sector, having sponsored the FA cup between 2006 and 2011, and enlisted Manchester United player Rio Ferdinand as an ambassador for its Energy Fit programme.

Rankings and awards

E.ON (parent company):

• Ranked 83 in the 2011 BrandFinance Global 500 rankings.
• Ranked 27 in the 2010 Fortune Global 500.
• Listed in the DAX index of the top 30 companies on the Frankfurt stock exchange.
• Listed on the Dow Jones Global Titans 50 index.
• The Great Place to Work Institute ranked it at 41 in the 50 Best Large Workplaces in Europe in 2010.

E.ON UK:

• Its Energy Experience, Challenge 100 and Green Travel initiatives received Business in the Community’s National Big Tick awards for responsible business practices.
• E.ON Central Networks won the 2011 customer satisfaction innovation of the year award from the Institute of Customer Service.

Future opportunities

Issues relating to long-term supply of fossil fuels and increasing concerns about the environmental impact of the energy industry have prompted E.ON UK to focus on boosting its renewable energy operations. It is particularly interested in wind energy, and is currently planning to develop new offshore wind farms such as the 219MW Humber Gateway farm. It is also researching new low-carbon technologies such as gasification, micro-generation and carbon capture and sequestration, and recently began construction on a £120m biomass-powered plant near Sheffield.

Other main growth areas include markets outside Europe, as the parent company aims to establish its international credentials by generating 25% of overall profits from non-European operations by 2015.

Interesting facts

• Former chief executive Dr Paul Golby was named as a Commander of the British Empire in June 2011, in recognition of his services to energy.
• Sponsor of International Women’s Day 2011.
• Sponsor of the Engineering Undergraduate of the Year award.
• Invited unemployed teenager Hanna Evans to interview after she walked around Swindon carrying a sign asking for a job – the company said it liked her ‘enthusiasm’. She was taken on in a call centre role.

Salary and benefits

Starting salaries vary by scheme.

Engineering leadership and commercial schemes: £26,500.

Science and engineering excellence: £27,000.

Exploration and production: £35,000.

There is no specific salary for graduates after completing the training scheme – it really depends on the role they go into.

Other benefits

• 26 days’ holiday per annum.
• A £1,500 joining bonus.
• Contribution-based pension plan.
• Life and accident insurance cover.
• Free health checks.
• Employee assistance scheme.
• Car sharing incentives or discounts on purchasing a bike.
• A £150 annual bonus payment for employees who get their energy supply from E.ON.
• Discounts on products like O2 mobile phones and Microsoft Office software.
• My Choice benefit portal: allows employees to manage a range of voluntary, flexible and ‘total reward’ benefits such as travel insurance, dental cover, payroll charity donations, and discounts for high street shops, experience days, gyms and holiday bookings.

The My Choice portal was shortlisted for the 2011 Employee Benefits award for most effective benefits communications strategy, in the category of employers with over 5,000 staff. The Employee Benefits awards are organised by a publication specialising in this area.

Culture and values

In terms of E.ON’s working culture, the words ‘friendly’ and ‘relaxed’ seem to pop up on a relatively regular basis. While it is a large corporate organisation, the company generally manages to avoid an overly hierarchical structure, with some directors joining their less senior colleagues in an open-plan office rather than occupying an individual office. Even when they do have their own offices, their doors are usually open.

The appraisal process, for graduates at least, is conducted fairly frequently, at around once per quarter. Performance reviews are usually conducted by placement managers, who will often hold more informal catch-ups weekly or fortnightly to ensure graduates are on track. Each graduate scheme also has a scheme lead who will coordinate the programme, and who carries out additional reviews with individuals throughout the two years.

Working hours

Most employees report having a good work/life balance at E.ON UK, and the company strives to promote this across all divisions. Actual working hours will generally vary by placement and area, with offices tending to work on a 9 to 5 basis and power stations (and other operational sites) using shift rotations. Either way, flexi-time is often available, and overtime – which is not usually necessary – can usually be taken back as time in lieu at a later date.

Diversity

As is often the case in the engineering sector, there are more male employees than female at E.ON UK; the proportion of female staff was 32% in 2010. According to the parent company, around 27% of the entire group’s employees are female, but women represent only 11% of senior management positions. In order to address this, it has introduced a policy (which also applies to the UK) whereby there must be one woman for every man on the shortlist for a senior role.

E.ON UK is also working with BT and the UK Department for Work and Pensions on a new recruitment framework to support disabled workers and jobseekers. It is hoped that the initiative will help promote inclusion in the workplace.