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What Next ?...
Learn Human Capital  Management  through PSP Philosphy  ( People – Service – Profit ) From FedEX Corp.

Teguh Yoga Raksa ( 2012)

"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 – FedEx)
        

What Next ? ...that one of “flash“ ideas in my mind  every day in the middle of  bumper to bumper traffic in Jakarta after spend time with  daily activities. Friend of mine , he is one of future “Talent Management Director “ gave me many inspiring ideas on development ,Y generation ,learning investment and company culture that will leverage the  company to  the next level ....    ( “Thanks buddy “   - AKC red). After many discussion  with him , what next ? the answer is “Employee Engagement “ through people development and talent management“ with ultimate support from top management.  I was wondering sometime why we need extra effort to persuade  Management  that kind of People Development  initiative is worthly for the company. In this articles ,I would like to share with you one of the successfull company which apply people development through high quality work enviroment and innovations culture, FedEx with their ideas on PSP ( People – Service – Profit)

FedEx at Beginning ..

Almost all company trying to execute company strategy through people , one of successfull company to see how people leverage their productivity and company performance is FedEx.FedEx established since 1971 was named as ‘Federal Express Corporation’  at  Arkansas. In 1973 they extended  and moved their operation to Memphis , Tennessee, they begun full-fledged network  operations accross the country within 25 cities in The US. In begining of operations , they had suffered losses but in 1976 it had started generating profits.

HR practice at FedEx shown through management focus on providing a suitabe work environment that encouraged employeed to come up with innovative solutions . This initiatives was responded with  genuinely employee engagement to the organizaiton .

Here’s some example of Employees responded when company in the midle of financial difficulties :

ü  They prepared personal belongings and use their own money to purchase fuel to deliver packages to the customer

ü  They didn’t received their salary on time but they still continued working

In 1973, FedEx implement PSP Philosophy ( People  – Service – Profit ),it means  if they care and make employee happy , it will be continued to the customer with excellent service and would in turn benefit to the company by generating operation excellent and more profits.

FedEx HR Strategy

To implement FedEx Mission on Excellent working environment , FedEx used 4-HR Initiatives: opportunity to grow, employee communication and performance Appraisal , employee retention and benefits reaped.

Opportunity To Grow

Leadership Evaluation and Awareness Process (LEAP) is a Program from FedEx related to career management , they try to give opportunties to non managerial to become managerial level with fair assesment . This tool helped management to decide the employee who eligible to achieve higher level. This initiative was begun in 1988 when more than 10% of the non managerial employee who are appointed to become managerial quit within 14 months after they did their new tasks as menagerial level.

Employee Communication and Performance Appraisal

At FedEx , The employees allowed to express their opinion about the policies. The company also provide programs to treat employee as fair as possible through employee communications program such as GFTP ( Guaranteed fair treatment procedure) and Open Door Policy (ODP). FedEx also have methodology to assess all employees  to become managerial by implementing leadership evaluation and performance evaluation, it will be easier to management to take decision  regarding employee promotion and their career planning.

Employee Retention

At begining of this article , I took McMahan Quote, he said  that people happiness and environment  will retain employee stay for a long time in the company. This is shown that retention strategy was  an important aspect in HR Strategy. HR has to evaluate the program which are implemented among employee to improve their level of happiness and engagement .  

Benefits Reaped

HR Programs were implemented to encourage employee productivity level. FedEx was doing benchmark with others who are particularly focus in the service industry especially in compansation and benefits strategy. This program gave financial benefits to FedEx because this kind HR initiatives leverage employee productivity level beside that it will be a good impression to the customer that FedEx is known as an employee- friendly and service – oriented organization.

 PSP Philosophy (People – Service – Profit) with 4-HR initiatives simultaniously were implemented by FedEx and it yielded to the company profit and organizaiton sustainability. Hopefully we can take this case as benchmark to be implemented at your organizations

Be a fast learner , ...Learn – Action and Success ,
Teguh Yoga Raksa / HR Profesional

Source : Case Study Best Practices at the FedEx Corporation