Tuition Reimbursement/ Skills Upgrade

In accordance with their people first approach, FedEx has various programs in
place to help employees grow professionally as well as personally. One of the ways the
company does this is with their Tuition Assistance Program through which FedEx
subsidizes higher education for eligible employees. As long as the employee can prove
that he/she is currently enrolled, attending classes, and earning a C or better in each
class, they can get reimbursed up to $750 per term or $1500 per year for undergraduates,
and up to $3000 per year for graduates (S. Wawa, personal communication, March 27,
2014). The employee, whether a supervisor or a line employee, enrolls in class, covers
his/her tuition, and then fills out a form to request reimbursement for the portion covered
by FedEx (See Appendix A to see two examples of these forms).
Another strategy that FedEx uses to motivate and help its employees pursue more
education is through alliances with various educational institutions providing specialized
programs and payment plans. These programs can help each employee acquire greater
skills for career advancement. One example of these alliances is the FedEx University
extended program from the University of Memphis through which employees can start a
new degree, or advance their technical skills with non-credit training programs
(University of Memphis, 2013).
FedEx prides itself as being a company that hires and promotes from within. In
fact, according to their statistics, more than half of their managers have been promoted
internally (Recognition Programs, n.d.). In order to facilitate this process, FedEx also
offers their AIM, or Advance into Management Program, a structured program that
focuses on leadership and management concepts and skills to help employees growth
within the company. This process can help employees from any area of the company;
even at the local store level employees can take advantage of the AIM in order to move
into supervisory positions such as the Overages, Shortages and Damages Department
Supervisor position (S. Wawa, personal communication, March 27, 2014). Finally FedEx
also offers APAC e-Learning, an online platform that offers employees in any position a
way to advance their knowledge and skills at their own time, and from any location
(Working at FedEx, n.d.).
Unionization at FedEx
Unionization refers to the intention of both employees and agencies, such as
unions and/or associations, to work together as a unit when having to handle work-related
issues with management (Jackson, 2011, p. 518). The National Labor Act (NLRA)
governs unions in the United States. According to the U.S Bureau of Labor Statistics
union memberships are currently experiencing a declining trend with an 11.3 percent of
wage and salary workers being members of a union in 2013 and 2012, a decrease from
the 11.8 percent membership in 2011 (Bureau of Labor Statistics, 2013).
There are positive and negative aspects to becoming unionized, but the process
can always influence important aspects of an organization such as its strategy, culture,
and even HR policies. Union membership can give employees a greater employee voice,
and bring other advantages such as better wages, benefit packages, and more workplace
safety measures. These employee benefits can be advantageous for the organization and
even result in better financial health for the firm. Satisfied employees have increased
motivation, positively influencing productivity and performance. In addition, employees
engaged in their positions can participate in strategic planning, which can result in a
competitive advantage for the company.
On the other hand, employees have to pay fees to belong to a union, and they can
lose a certain degree of individuality because the collective takes priority in negotiations.
From the firms perspective, labor costs are usually higher in unionized organizations due
to higher negotiated wages, and the actual process of collective bargaining can also
represent cost increases when there are disagreements through work interruption.
Management can have less operating flexibility and control over workplace practices like
hiring, firing, and the assigning of jobs. They can also have less decision freedom, and
productivity and performance can also be affected negatively due to work rules
established by the union that might limit the companys flexibility.
The unionization of a firm depends largely on the attraction of its employees of
becoming unionized; something that is directly related to the type of employment
relationship that the company has with its employees. Job satisfaction is a key factor; if
employees feel unappreciated, and/or that they are not being treated fairly, they might
consider becoming part of a group that can better represent their interests. Other aspects
that can impact this attractiveness are the employees perception of power within the
organization, their relationship with management, and union instrumentality, or their
perception of how belonging to a union can impact their well being at the firm.
Service-intensive organizations, such as FedEx, are very dependent on having a
good relationship with its employees. Employees need to feel motivated and satisfied so
that in turn they can provide the best customer service possible, increasing the companys
revenue. FedEx has been very concerned with employee satisfaction throughout its
history as a company. Founder and CEO, Frederick Smith, believes that the best service
can be attained when people are put first within organizations, and then this will be
followed by profits (FedEx Attributes, n.d.).
This people-first stance inspired their People-Service-Profit, or PSP, a corporate
philosophy that impulses them to create distinct relationships with their employees.
People, service, and profit are three goals that serve as the basis for most business
decisions in the company, and the priority they give to their people comes from their
conviction that employees need to feel satisfied and empowered so that they are willing
to be innovative and take risks to pursue quality, service, and customer satisfaction.
FedEx strives to maintain high quality relationships with its employees to ensure their
well being, increased productivity, and their commitment to providing superior customer
service.
They are proactive in trying to foster work satisfaction amongst its employees by
having in place a variety of strategies that have helped strengthen the relationship with
their workforce. These strategies include higher than average wages, generous benefits
packages, training, promoting from within, and programs to enhance employee health and
work-life balance. In addition to this FedEx strives to maintain good communication by
having an open-door policy throughout the company where employees can approach their
supervisors or any member of management if they have any issues and/or suggestions.
Finally, programs like their Survey Feedback Action (SFA,) and their employee
recognition and rewards programs also help ensure that they are active and involved with
their employees.
It is true that FedEx works hard in the previously mentioned areas because they
care about their people and they know that this can translate into more profits, but there is
also another advantage to having a happy, engaged workforce. Since all these HR
practices and benefits help employees feel appreciated and committed to the company,
unionization has less chances to seem attractive to them. Like a lot of organizations,
FedEx is not keen on the idea of its workforce becoming unionized. In fact, internal
memos are sent to employees explaining the disadvantages of unionization and
highlighting the perks of the company not having labor unions. (S. Wawa, personal
communication, March 27, 2014). We believe that this company has structured itself in
such a way that their employees do not have many reasons to seek unionization. This
coupled with the fact that the company actively discourages unions makes us think that
FedEx will not become unionized as long as they continue being proactive in fostering an
environment in which their employees feel appreciated and engaged.
Quality of Work Life
Quality of Work Life (QWL) is generally associated with a series of objective
organizational conditions and practices that enables employees of an organization to
perceive that they are virtually safe, satisfied and have better chances of growth and
development as individual human beings (Ahmad, 2013). QWL practices strive to
address employee satisfaction, engagement, and commitment, which can lead to an
increase in the companys productivity, revenue, and heightened customer service
(Jackson, 2011, p. 10).
QWL has different dimensions that are important for companies to take into
account when developing their strategies. These include health and safety, employment
security, job satisfaction, occupational stress, work environment, leadership, training,
work-life balance, and human relations. There is not a specific recipe for companies to
implement strategies that increase their QWL, but the different dimensions should all be
considered, and it is in the interest of the organization to include as many as possible onto
their strategic plans. Programs such as employee rewards and recognition, and open
communication policies where employees feel that they can participate are techniques
that companies can develop to enhance their employees environment. In addition to this,
the human resources department can work on their job analysis and design to ensure
employees remain challenged and engaged.
As previously mentioned, FedEx remains committed to ensure employee
satisfaction. When founder, Frederick Smith, began the company he knew that employees
would be a driving force for the companys success. FedEx has been careful to design
and implement programs to promote QWL within the company, and they cover a few of
the main QWL dimensions. One of the programs that FedEx has in place is the Survey
Feedback Action (SFA), an annual employee survey that measures employee satisfaction,
and their opinion on the leadership skills of management (FedEx Attributes, n.d.). They
also have the Leadership Evaluation and Awareness Program (LEAP), a process that
includes a training class, self-assessment, peer assessment, and management
recommendation. LEAP was developed to better identify leadership candidates, and to
improve leadership effectiveness and retention within the company.
These programs are proving to be very helpful in getting FedEx noticed as a
coveted place to work as evidenced by the fact that they have been part of FORTUNEs
100 Best Companies to Work For list eleven times of the last fourteen years (FedEx
Named Among Fortune, 2014). Employee loyalty is also an advantage resulting from the
QWL that FedEx offers. Even at the local store level they have achieved a culture where
employees as well as supervisors appreciate the positive work environment resulting
from FedExs practices. In a recent interview the Overages, Shortages and Damages
Supervisor of a South Florida location confirmed that she feels well compensated for her
work, and even though her workload is intense, she would not easily consider moving to
a different company. She genuinely enjoys working for FedEx, in part due to her
relationship with her supervisors and subordinates, and the benefits are above average (S.
Wawa, personal communication, March 27, 2014).