Independently, each company offers flexible, specialized services representing the best supply chain, transportation, business and related information services.
Fedex's HR Practices
People-service-profit (PSP) philosophy
Survey Feedback Action program
Employee Communication Program
Job Change Application Tracking System
Leadership Evaluation and Awareness Process
Succession Planning Executive Education
Recognition and Reward Program
Complimenting FedEx for its HR policies, Work Force magazine wrote, " FedEx is an example of an organization that has created an effective HR strategy that supports productivity and profitability. The corporation's philosophy is that employees should be doing the kind of work they want to do ."
Commitment of the employees
When the company was going through severe financial difficulties, the employees were prepared to sell their personal belongings and use their own credit cards to purchase fuel to deliver the packages to the customers. Even when the employees didn't receive their salary on time, they continued working with FedEx.
Promotion of employees for higher cadres
Unique program called “LEAP” - Leadership Evaluation & Awareness Process for providing opportunities to employees from non-managerial cadre to move to managerial level within the organization.
Employee Communication and Performance Appraisal
Two – way communication
Mechanism for resolving employee grievances
Employee communication programs implemented by FedEx included the SFA program, Guaranteed Fair Treatment Procedure (GFTP) and Open Door Policy (ODP).
Employee retention was a significant aspect of FedEx's HR policy.
"In our competitive marketplace, employee loyalty tends to be low. If employees don't like their jobs, they simply walk across the street and find a new one. It's important to keep your people happy and to create an environment where they want to stay."- Mc Mahan
The Benefits Reaped
FedEx's employee-friendly policies resulted in very low turnover rate. In 2000, the turnover rate was estimated to be below 6%, while the industry average was 20%.
It also enhanced the reputation of the company as an employee-friendly, service-oriented organization.
Over the years, FedEx developed several innovative HR and hence achieving maximum employee satisfaction.
This served as a benchmark for many organizations, particularly in the service industry.