Employee Relations

When Crestwood began, our small team was more like family. As we have grown in numbers over the years, our close-knit structure remains. We believe our people are our best asset, and critical to our continued success. Our goal is to give our employees the opportunity to be successful in their careers and develop both personally and professionally.

Employee Profile

As of December 31, 2018, we had 849 employees across our operations spanning the United States with the following demographics:

Employee Profile

Position
Gender
<30
31-40
41-50
51-60
60+
Total
Individual Contributors, Supervisors
Male
79.5%
75.4%
78.1%
83.2%
86.6%
482
Female
20.5%
24.6%
21.9%
16.8%
13.4%
123
Managers
Male
76.5%
73.5%
71.8%
82.1%
50.0%
102
Female
23.5%
26.5%
28.2%
17.9%
50.0%
35
Directors
Male
50.0%
50.0%
72.7%
90.9%
100.0%
39
Female
50.0%
50.0%
27.3%
9.1%
-
16
VP +Above
Male
-
100.0%
81.8%
83.3%
100.0%
46
Female
-
-
18.2%
16.7%
-
6

2018 Age Demographics

2018 Age Demographics
Number
< 25
27
26 - 34
205
35 - 44
226
45 - 54
199
> 55
192
  • Demographic data excludes temporary workers, students, interns, and Stagecoach employees.

Approach

Our Vice President of Human Resources (HR) is responsible for the development and oversight of company-wide HR programs, performance management and appraisal processes, and compliance. She serves on the HR Leadership Committee and reports to the General Counsel and board quarterly on HR progress and compensation. In 2017 and 2018, our corporate HR team conducted a talent management assessment to identify Crestwood’s critical roles and the high potential employees for those roles. Building on this assessment, HR works with senior leadership annually to update our Ready Now succession plan for these roles. Beyond succession planning, our HR team implements strategic initiatives to attract, develop, and retain all of our employees.

Talent Attraction

Crestwood is growing rapidly, owning and operating a diverse set of midstream assets across high quality basins throughout the United States. To keep up with our operational expansion, our goal is to attract top performing individuals into our highly collaborative growth environment. We then aim to retain these individuals with challenging and satisfying work that fosters a high-performance culture.

In 2018, we began our first Summer Internship Program, where we offer students a dynamic and challenging opportunity full of unique and engaging projects that highlight what Crestwood has to offer and help students learn more about the midstream industry. We provided our interns with networking opportunities to enhance their knowledge, skills, and career path whether they choose to join our team or engage elsewhere. We hired 10 interns from multiple disciplines including engineering, environmental safety and regulatory, technical services, supply chain, and risk management. At the end of the summer, we hired three interns for full-time positions. In 2019, we will double the number of internships we provide to 20 and will offer internships nationwide.

Employee Development

Our HR team focuses on carefully building and growing expertise in the company and supporting our employees in their professional development. Employee development is critical to our success, enabling our people to build their capabilities and reach their career goals.  

We begin developing new team members from their first day, with a specialized orientation program with targeted training for their first month, 60 days, 90 days, and first year on the job. Tailored for different positions at Crestwood, these trainings each carry their own set of core competencies for success. This enables our employees to understand the baseline expectations for their work, helps them build a career development plan, and enhances communication between managers and employees throughout an individual’s career.

In 2018, we implemented a robust performance management system called R.O.A.D. Map to provide expanded direction and depth to our annual performance appraisal cycle. This map helps our employees keep their goals in mind for the year, as well as giving guidance on how to achieve their short- and long-term goals. One hundred percent of our employees participated in the R.O.A.D. Map cycle in 2018. We look forward to enhancing this program in 2019 by integrating our existing individual development plans into the R.O.A.D. Map, and including a new competency – Environmental, Social, and Governance. With the ESG competency, we encourage our employees to create a goal that helps them operate in an environmentally, ethically, and socially responsible manner. These steps will enhance career progression for Crestwood’s key roles, allow for rotational opportunities among our engineering, business and commercial development, and project management roles, and integrate sustainability into our employee development practices.

As part of Crestwood’s commitment to bring out the best in our people and provide a culture of excellence, in 2018 we developed the Executive Sponsorship Program – an annual program where employees and leaders engage in discussions tied to career development and our company’s plans for the future.​ These discussions allow space for our employees to explore their long-term career aspirations, and to increase their knowledge and skills with the guidance of senior leaders at Crestwood. For our inaugural year, seven executive mentors were paired with 14 high-potential mentees in both our Houston and Kansas City locations. We plan to expand this program to other locations and more employees in 2019, including developing a rotational component for our employees to experience other areas of Crestwood’s business.

Development Metrics

Total Training Hours
2018
19,167
2017
23,386
2016
20,102

Engagement & Retention

Once we attract and develop top talent in the industry, we offer several programs and benefits aimed to encourage engagement and retain our Crestwood team members. Our compensation philosophy emphasizes pay for performance, which aligns with our annual performance review process and encourages our high-performance culture. Additionally, our robust career development program, health and safety initiatives, and community engagement and volunteerism opportunities illustrate our commitment to our employees’ overall satisfaction with Crestwood.

An important aspect of retaining our employees is allowing for flexibility in the workplace and work life balance. We want our employees to enjoy their time at Crestwood, and recognize that individuals who are able to balance work with other important aspects of their lives are happier, more energized, and excited to bring continued value to Crestwood. To encourage work life balance, we offer a flexible 9/80 work schedule for employees. Additionally, we offer 12 weeks maternity leave and three weeks paternity leave.  

To evaluate the success of our approach, we invited employees in our Houston and Kansas City corporate offices and other select regional offices to fill out an annual Employee Engagement Survey. We review the results and report to senior leadership to illustrate the areas of opportunity. In 2018, our employee satisfaction response rate was 74 percent. Additionally, during onboarding, we conduct stay interviews to ensure our employees are engaged and productive within their first few months with Crestwood. In 2018, our Houston office was recognized as a Top Workplace in 2018 by the Houston Chronicle for our emphasis on a culture of engagement and employee empowerment across our organization.

In addition to employee engagement, we measure our voluntary turnover rate, which was 16.2 percent in 2018. To understand the reasons why employees may choose to move on, we conduct exit interviews, gathering this critical information to report to leadership accordingly. We provide statistical analysis to our executive leaders to proactively effect change. Our goal for 2019 is to reduce our voluntary turnover rate to under 13 percent.

Voluntary Turnover Rate

Voluntary Turnover Rate
2018
16.2%
2017
22.0%
2016
18.6%
  • Our Voluntary Turnover Rate includes our Transportation Drivers

2018 New Hire Metrics by Gender

By Gender
2018
New Employee Hires - Male
178
New Employee Hires - Female
46

2018 New Hire Metrics by Age Group

By Age Group (years)
2018
25 or younger
18
26 - 34
73
35 - 44
53
45 - 54
45
55 or older
35

2018 Employee Turnover Metrics by Age Group

By Age Group (years)
2018
25 or younger
9
26 - 34
71
35 - 44
84
45 - 54
66
55 or older
110

2018 Employee Turnover Metrics by Gender

By Gender
2018
Employee Turnover - Male
278
Employee Turnover - Female
62

Compensation

We employ a compensation philosophy that emphasizes pay for performance. We believe that by tying a substantial portion of each Named Executive Officer’s total compensation to financial, operational and safety performance metrics that support sustainability in distributable cash, our pay-for-performance approach aligns the interests of our executive officers with that of our unitholders. Accordingly, the objectives of our total compensation program consist of:

  • Aligning executive compensation incentives with the creation of unitholder value;
  • Balancing short and long-term performance;
  • Tying short-and long-term compensation to the achievement of performance objectives (company, business unit, department and/or individual); and
  • Attracting and retaining the best possible executive talent for the benefit of our unitholders.

By accomplishing these objectives, we intend to optimize long-term unitholder value. The Key Performance Indicators (KPIs) for fiscal 2018 were Distributable Cash Flow Per Common Unit, Adjusted EBITDA, Operational and Administrative Expense, Total Shareholder Return Relative to Peers and Safety.

Twenty percent of our company’s compensation plan hinges upon Crestwood’s performance on both leading and lagging safety metrics. The leading indicators include near misses, unsafe acts and safe acts, while lagging indicators are Total Recordable Incident Rate (TRIR), Preventable Vehicle Incident Rate (PVIR), Lost Time Incident Rate (LTIR) and Notice of Violation / Notice of Enforcement (NOV/NOE) Count. We discuss our progress on all of our safety metrics in our Health and Safety section. In 2019, we are including Sustainability related KPI’s into our compensation.

Case Studies

Executive Mentor Program Produces a VP of Business Process Optimization

Executive Mentor Program Produces a VP of Business Process Optimization

During our 2018 Executive Sponsorship Program, Crestwood employee Deana Werkowitch was paired with our Executive Vice President and Chief Operating Officer. During the course of the Program, they worked together to focus on Deana’s strengths and long-term career goals within Crestwood. They realized there was an opportunity for Deana to create a new team within Crestwood that focuses on Business Process Optimization (BPO).

Deana became the Vice President of BPO on January 1, 2019. The BPO team aligns with Crestwood’s strategic plan, and their role includes supporting our operations and administrative functions in identifying and implementing process improvements, with the ultimate goal of increasing efficiency, optimizing performance, reducing costs and improving reporting and analysis throughout Crestwood.

“Being selected to be part of this incredible program gave me the platform to leverage my strengths and define my goals in a creative way.  Building the relationship with my mentor and collaborating with my advocates across the organization, allowed me to achieve the next steps in my career while adding value to the organization in a new and innovative way resulting in a win-win for everyone!” – Deana Werkowitch, Vice President, Business Process Optimization

Crestwood’s Houston Office Named One of Houston’s Top Workplaces by Houston Chronicle

Crestwood’s Houston Office Named One of Houston’s Top Workplaces by Houston Chronicle

 

Houston Chronicle recognized Crestwood as a Top Houston Workplace for 2018. Top Workplaces is a celebration of companies and their employees that have a culture of engagement and employee empowerment across the organization. As one of the 150 companies and organizations chosen, our Houston Crestwood office ranked within the top 50 workplaces for midsized employers.

Each year, the Houston Chronicle compiles employee-nominated companies, scoring each against employee-valued workplace criteria in order to create this list. Earlier this year, employees had the opportunity to participate in a survey on Crestwood’s strengths and areas needing improvement. In 2017, over 84,000 employees participated in the survey citywide – in 2018, our employee’s candid feedback on employee morale, satisfaction, and engagement was instrumental in our achievement and recognition of this prestigious honor.

Each member of the Crestwood team is an important part of the Company’s success and this award is for the entire Crestwood organization, nationwide. This is the first year of recognition for this achievement for Crestwood, and we look forward to continuing a tradition of excellence in years to come.

Looking Ahead

During 2019, we are excited to continue advancing our recuiting, career development, and retention programs to enable our employees to reach their fullest potential, and more fully integrate sustainability into our employee relations practices.

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