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Author: Site Staff

Posted on May 18, 2005July 10, 2018

Productivity Remains High in China, U.S., Japan, India

The gap between how fast productivity is growing in the European Union versus growth in the U.S widened for the 10th consecutive year in 2004, according to the Conference Board.

At 6.3 percent annually, productivity growth is very high in China, according to the latest available figure from that country (where economic data is harder to come by and is often open to debate). It’s also high in India at 3.8 percent growth in 2004, the U.S. at 3.1 percent and Japan at 3.6 percent. Latin America and Africa generally are experiencing low rates of productivity.


Productivity growth in Europe, while on the rise, is still only about 1.6 percent, significantly less than in the U.S.


Robert McGuckin, director of economic research at the Conference Board, says that as Europe rebuilt after World War II, the gap between Europe and the U.S. was much smaller than now.


That stopped around 1995. He attributes the change partly to regulations, particularly in Western Europe, that have made it difficult for companies to do business. These include restrictions on land use, store hours and more. Many companies operate globally but avoid Western Europe. “Europe needs some structural reform,” he says.


McGuckin says that U.S. companies have pioneered new ways of running businesses. Fifty years ago, Procter & Gamble, for example, would just “shove the goods out the door. Inventory was a problem.”


Now, Wal-Mart and other companies have made a science out of buying and selling goods, first using software and later the Internet. These practices have yet to penetrate the financial and services sectors as much in Europe as they have in the U.S.

Posted on May 17, 2005July 10, 2018

Army Getting Creative With Recruiting; New Report Examines Reserve Call-ups

With the Army failing to meet its recruiting goals, U.S. Army Secretary Francis Harvey says, “I’ve challenged our human resources people to get as innovative as they can.”


With that, the Army is aiming its new ads more at parents than potential soldiers, according to the Army Times. One spot shows a son trying to convince his dad that the Army is a good idea, saying, “I’m going to be part of something that’s important.” Another, in Spanish, shows a young man telling his father, “With the training and experience I get, this is going to change my life.” The ads are running on major networks and smaller channels such as the Food Network.


The Army is also suspending its recruiting efforts May 20 to train recruiters in which tactics are–or are not–appropriate to entice young men and women to join the military. The action comes after reports of recruiting abuses, including the enlistment of a mentally ill man, and reports of a recruiter instructing a student in how to fake a high school diploma.


Meanwhile, according to the Classified Intelligence Report, “CareerBuilder has seen a 40 percent jump in military postings since the first of the year” and the Army will spend about $17.8 million this year on online recruiting.


The reserves
Meanwhile, on the reservist front, the Congressional Budget Office last week released a report discussing the effect that the call-ups of reserves have had on businesses.


The evidence at this point is very limited, partly because only a small minority of businesses employ reserves, and there is little data on how many reserves have highly specialized skills or who are key employees. The CBO relied on a limited set of interviews with employers who employ reservists.


The CBO found that smaller employers are more affected than large ones by reserve call-ups, and that some very small businesses actually shut down during the mobilizations. The adjustment was more difficult when companies received little warning–sometimes less than three days’ notice–that an employee was being called up.

Posted on May 13, 2005July 10, 2018

Dear Workforce How Could Our Human Resources Arm Contribute to Executive Development

Dear Lost:



Your talent-management strategy needs to support your hospital’s overall strategy. Consider not only your current recruiting and training methods, but also how your strategy may need to adapt to future market conditions.

Forecasting the future is very difficult. It can be helpful to ask some basic questions regarding how your middle managers will put strategy into practice. Figure out how development efforts tie in tocareer development,performance management, succession planning and the like. Do you have enough people to fill these roles now? What about 5 or 10 years down the road? We recently worked with one hospital that discovered that an alarming 50 percent of its managers were eligible for retirement within five years. That caused them to worry less about training employees and more about recruitment and succession planning.

Additionally, determine the competencies your executives need to drive the company strategy. You say your training program needs to be comprehensive, but sometimes an A-to-Z approach can dilute your overall effort. It is far more beneficial to determine which competencies are needed, perform a gap analysis, and then fill those gaps. Only then can you start thinking about the development program itself. (I am reluctant to call it a training program, although that may be the ultimate format you select.) Classroom training serves a certain purpose. But management development takes a variety of other forms in lieu of, or in addition to, classroom training. These include on-the-job training, special projects, job rotation, mentoring, external seminars and Web-based learning. Your end goal determines the combination of training methods you use, as well as the best learning environment for your managers.

SOURCE: Keith Swenson, managing partner,Capital H Group, Chicago, July 6, 2004.

LEARN MORE: A Sample Leadership Strategy.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce Newsletter
Posted on May 13, 2005July 10, 2018

Dear Workforce How Can I Convince Management to Provide Money for Our Initiatives

Dear Budgetless:



First you need to take a step back. You’re thinking tactically with the list of projects you would like to pursue. If you want to be a strategic partner to the business, you need to start thinking and acting strategically from the beginning.

You’re going to need a vision of what a strategic human resources function will look like and how it will positively influence the performance of the business. This is the perfect time to create such a vision, since you mention that the organization is restructuring. Creating a vision can be difficult. But it’s a worthwhile exercise to align human resources to the business’s priorities. Plus, it will help you determine how each of your initiatives best supports the company’s business plans. Once the vision is created, you will need to market this vision to senior management and your internal customers. People–not equipment–offer the best chance for any organization to gain a competitive advantage. Your goal is to ensure that the executive team also believes this.

To back up this vision, you and your colleagues need to become experts on best practices for human resources. Pay attention to trends and apply this knowledge to the business. From this position of authority, you’ll be able to advise your executive team on how human resources can bring about change that leads to higher performance levels.

Get the human resources department to behave like a business unit, leaving behind older transactional models. Start measuring performance and the customer value that human resources provides. Share these metrics, along with their associated goals, with executives and customers. This helps them share in the vision you have for human resources, and mark its progress.

Once you make strides in accomplishing your vision, and compile a track record of helping the organization, requesting money and resources becomes easier. Human resources will cease to be viewed as a drain on profit and instead emerge as a tool to enhance the bottom line.

SOURCE: Ted Stephens, principal,Intellilink Solutions, Inc., New York City, July 17, 2004.

LEARN MORE:Strategic Human Resources Actions.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce Newsletter
Posted on May 13, 2005July 10, 2018

Employee Morale Is Up, but That’s Not Saying Much

While U.S. employees have grown more confident in prospects for their companies’ success, the American workforce is still unenthused, creating challenges for employers.

Seventy-three percent of employees are confident their organization “will be successful in the future,” compared with 63 percent in 2002, according to a Mercer Human Resource Consulting survey of working adults at more than 800 organizations. Also, 49 percent of employees feel that their organizations are well-managed, up from 40 percent in 2002.


Despite the rise in employee confidence, the data can still be seen as an ominous sign for companies. The majority of employees—51 percent–do not feel their organizations are well-managed. A recent Harris poll also painted a relatively negative picture of employee satisfaction.


Rod Fralicx, Mercer’s global employee research director, notes that although Mercer’s findings do show an improvement in employees’ feelings toward their companies, it’s fairly faint praise. Morale in the U.S. was so low in 2002 that the comparison offers “a very low bar to cross.”


“You still have less than half the people feeling that management is doing a good job,” Fralicx says. “And 40 percent of the U.S. population is vulnerable to leaving their jobs. I don’t think that’s good news.”


Fralicx says that with the upcoming retirement of the baby boom generation, “there’s going to be a big, big talent war going on.” He recommends that companies immediately start working to plan for this war, such as trying to improve the commitment levels of employees.


Mercer researchers pinpointed the eight biggest drivers of an employee’s commitment to an organization: 


  • Employees’ confidence in their future with the organization
  • Employees’ confidence in achieving career objectives
  • Employees’ confidence in the future success of their organization
  • Degree of teamwork and cooperation
  • Employees’ satisfaction with the type of work they do
  • The chance to do challenging and interesting work
  • The company’s commitment to quality
  • Opportunities for continuous learning to improve skills

Fralicx says that some of the eight have greater importance than others, depending on the company. Also, within a company the biggest drivers vary. What motivates the marketing staff in a hospital is different than what motivates a nurse.


At one large financial services organization, he says, employees had lost confidence in the ability of management to communicate a clear vision for the company. The firm was an almagamation of 50 different companies brought together through acquisitions. The executives worked on a major initiative to explain the company’s mission, and Fralicx says of the communication problems, “Those things went away.”

Posted on May 10, 2005July 10, 2018

HR Chiefs Are Pricier By The Pound

British human resources executives pull down the biggest paychecks and easily surpass their U.S. counterparts in both base salary and total cash compensation, according to a new global pay survey from Mercer Human Resource Consulting. The HR executive in the United Kingdom also receive a larger portion of their compensation in bonuses and allowances, which account for 23 percent of their total cash, compared with 19 percent of total cash for U.S. HR executives.

Although U.S. companies pay less than U.K. companies for their human resources executives, that’s not the case for U.S. executives in finance, sales and marketing, and supply and logistics. They are the highest-paid in the world. In most countries, the top finance and marketing executives are the highest-paid heads of a function. In the United Kingdom and Hong Kong, however, the head of information technology is the top earner.


 


Annual Compensation (U.S. $) in 2004 for Head of Human Resources
CountryMidrange base salary*Midrange total cash compensation**
Italy$143,996$163,964
Denmark144,781166,171
Hong Kong137,667172,772
Canada136,797177,591
Mexico126,709178,332
Belgium169,847195,318
Germany153,135199,370
Switzerland167,213203,885
United States174,670213,050
United Kingdom184,546231,323
*Monthly salary multiplied by number of months (based on the company policy).
**Includes total annual base salary plus any guaranteed cash and the actual annual short-term incentive amount.

Source: Mercer Human Resource Consulting’s Global Pay Summary, 2004/2005. Exchange rates as of year-end 2004.


Posted on May 6, 2005July 10, 2018

Dear Workforce How Do We Get New Managers to Document Performance

Dear Happy/Sad:



From your description, it appears that the former supervisors tolerated mediocre performance, while your new supervisors have higher standards. Now that the employees are back from leave, you must address the gap inperformance. That’s both good and bad news.

The bad news is that you cannot do much to make up for past performance, so you must look to the future to correct things. It could require a lot ofsupervisory stamina to straighten things out.

Nevertheless, take heart that your new supervisors are making high performance a priority and providing the leadership needed to make this happen. Working with employees who didn’t have to perform well in the past will test their motivation and abilities. Having new supervisors at the helm, though, will ease the transition for employees.

Help your new supervisors set clear expectations, establish performance measures and reward/recognize good performance. Establishing ground rules should help your supervisors motivate employees to perform at higher levels. Holding employees accountable while at the same time providing coaching, guidance andrecognition ought to improve the situation.

Remember to approach employees with confidence in their abilities and respect for their trustworthiness. If you expect employees to fail, they will. It also is possible that the employees did not get along with their former supervisor, causing their motivational levels to suffer. Give them the benefit of the doubt and focus on the positive. Provide as much praise as possible and address performance issues without delay.

What if employees don’t turn around their performance? With documented performance expectations and follow-up coaching, you are now on solid footing to implement progressive discipline if it is warranted. Hopefully, you won’t have to consider that.

SOURCE: Patsy Svare, managing director,The Chatfield Group, Glenview, Illinois, July 2, 2004.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce Newsletter
Posted on May 6, 2005July 10, 2018

Dear Workforce I Just Trained 32 Customer-Service Reps. How Do I Demonstrate the Return on Investment?

Dear Mining for Answers:



It can be easy to latch on to intangibles when trying to measure something that doesn’t appear to show a direct line to results. However, if you take off your training hat and put on your businessperson’s hat, you may see things from a different perspective. Trainers tend to look at what they do in terms of activities, learning retention and participation rates. Businesspeople measure results. Instead of seeing yourself as someone who conducts training activities, think of yourself as a person who creates solutions to business problems.

Consider why management should invest resources in customer service. Are there problems with customer service, sales or retention? What leads you to believe that more resources are needed for customer-service training? Do you expect salespeople to produce a specific outcome as a result? How might changing their behavior affect the company’s bottom line?

Once you have established a clear need, simply assess what the value to the business would be if you solved the problem or capitalized on an opportunity–increased sales, gained repeat customers or something else.

If you can’t really determine a definite need, but base your training decision only on intuition, you ought to redirect resources into more productive areas. As a businessperson, you would be trying to add value to the business in everything you did. If you didn’t see a return, you would put the resources somewhere else.

SOURCE: Kevin Herring, president,Ascent Management Consulting, Tucson, Arizona, July 7, 2004.

LEARN MORE:Formulas for HR’s Effect on Business Results orThe Relationship Between Training and Organizational Performance orQuantifying the Value of a Training-Technology Investment.

The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

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Dear Workforce Newsletter
Posted on May 3, 2005July 10, 2018

AFL-CIO Calls Out Firms for CEO Greed

As activist shareholders gather at corporate annual meetings this spring, the AFL-CIO is naming six companies whose compensation programs promote CEO “pay greed.” They are: Amgen, Sempra Energy, Coca-Cola, Dynegy, Sprint and Wal-Mart.

In an ongoing effort to reform “runaway” executive pay, the labor organization says it has selected the firms to highlight issues such as excessive compensation and golden parachutes for fired corporate leaders.


Union-sponsored retirement funds introduced shareholder proposals this year for the six companies. The reforms include restricting a CEO’s ability to cash out his equity awards, a requirement for shareholder approval for preferential executive pensions and the creation of performance benchmarks that must be met before restricted stock could vest.


The reforms are necessary because “excessive CEO pay takes money out of the pockets of shareholders, including the retirement savings of America’s working families,” the AFL-CIO contends.


“Investors are concerned not just about the growing size of executive compensation packages, but the fact that CEO pay levels show little apparent relationship to corporate profits, stock prices or executive performance,” the AFL-CIO says.


—Staff report

Posted on May 2, 2005July 10, 2018

UPS 37 Principles for Managing People

The guidelines below spell out UPS’ vision for managing its workforce. They’re part of a larger “policy book” given to the company’s management team, which also includes principles for handling customers and shareholders.


We Build Our Organization Around People
    The strength of our company is its people, working together with a common purpose. Although methods, equipment, and procedures are important, and we constantly strive to improve them, our most valuable assets are loyal and capable people.


    We seek, through the use of our impartial employment and promotion practices, to have a diverse workforce. Our organization is strengthened by capable individuals with diverse backgrounds.


    We assign responsibilities and duties to secure the full benefit of an individual’s talents and abilities and to provide each person with an opportunity to develop further.


    All our people, and the jobs they perform, can make important contributions to our company. We maintain an environment that enables them to obtain personal satisfaction from their work.


We Place Great Value on Diversity
    We value the diversity that exists within our workforce, our customers, those who provide goods and services to our company, and the communities in which we do business.


    Managers are responsible for creating a workplace of fairness, dignity, and respect for all employees–an environment of inclusion, encouraging participation, and the best effort of everyone. The diversity of our workforce results from a sincere effort to hire and retain dedicated people from the communities in which we operate.


    We strive to enhance our reputation as an organization that values diverse customers as well as suppliers and vendors. In addition, we support and work closely with organizations that believe fair employment practices are integral to a successful business.


We Treat Our People Fairly and Without Favoritism
   
We believe that impartiality is the foundation of a loyal, cooperative work group.


    We want to treat our people as individuals, without causing the perception of special treatment.


    We have the responsibility to avoid any relationship that may result in actual or perceived favoritism.


We Maintain an Environment Free of Discrimination and Sexual Harassment
   
All UPS employees have the right to work in an environment free of any type of harassment and discrimination. Sexual harassment and discrimination will not be tolerated.


    Managers and supervisors are responsible for ensuring that they and their employees understand and comply with UPS guidelines and maintain a professional work environment. That responsibility includes reporting incidents to the appropriate management people.


We Insist Upon Integrity in Our People
   
We understand that integrity is fundamental to how we run our business and essential to maintain compliance with our policies and legal requirements. Operating with integrity means we provide an atmosphere in which our people can perform their jobs in an ethical manner. We present our company honestly to employees and, in turn, expect them to be honest with us.


    We expect honesty from our people in all their duties, including their handling of money, merchandise, and property with which they are entrusted. We insist on integrity in the preparation and approval of all reports.


    We also expect our people to be honest in their assessment of themselves, such as the time and commitment they give to their job performance, the fairness they seek in their dealings with others, or the objectivity they use in evaluating their own contributions.


    The great majority of our people are of high moral character. However, when we do discover a dishonest person in our organization, we deal with that individual quickly and firmly. For our company to be known for its integrity, each one of us must meet high standards.


We Promote From Within
    Generally, we fill management positions from within our organization. In doing so we take care to include for consideration and not overlook qualified people whose present jobs may make them less noticeable than other employees. We fill a vacancy from the outside when we cannot locate one of our own people who has the professional or technical skills required for a particular assignment.


    Advancement is based on individual merit and performance. All who perform their tasks capably and have the capacity to assume greater responsibility are eligible. Observing equal opportunity guidelines, we select those who seem best fitted to the position.


    All managers and supervisors are responsible for encouraging and developing capable people, not only for their own groups but also for openings elsewhere within our organization. We actively search for such capable people and give them opportunities to succeed.


We Maintain a Spirit of Teamwork
    Throughout our organization, we capitalize on the advantages of working together in an informal manner. Although defined responsibilities are assigned to specific individuals in our company, we act as a cooperative team. Combined efforts, which help any part of our organization, serve to strengthen our entire organization.


We Compensate Our People Fairly
    Our compensation programs keep pace with today’s changing business needs and compare favorably with those programs in other companies. Our employees’ compensation includes more than salary alone. When considering pay ranges and negotiating wage agreements, we weigh the value of the total compensation package. We also consider plans that give participants a stake in the financial success of the company and offer ways to enhance savings.


We Promote the Good Health of Our People
    We provide a benefits package and other programs that help promote good health and well-being among employees and their families. Attention to employee health increases the safety of our operations and reduces the costs of injuries and illnesses.


We Transfer Management People to Meet Our Company’s Needs as Well as to Broaden Their Experience
    One of our long-standing strengths is the willingness of our people to take job assignments where needed. Moves intended to strengthen our organization may involve promotions, lateral assignments, transfers or relocations. Assignment changes should be considered with the view of enhancing career opportunities.


    Because we realize that transfers have profound effects on individuals and their families as well as the company, we carefully consider all transfers and never undertake them lightly.


We Look for People Who Have Potential for Development
    We know that most of our future management people will come from within our organization. For that reason, we look for applicants who can progress beyond the immediate job. We also need people who can qualify and become skilled at their work without necessarily aspiring to more responsible jobs.


We Help People to Develop Themselves
    One of the most important responsibilities of managers and supervisors is the development of people. We are responsible for seeing that all people in our immediate organization are fully prepared to perform their jobs well.


    Through our support, coaching, counseling and example, we expect people to develop the knowledge and skills that are necessary for success in their current jobs and which can help them assume positions of greater responsibility. We expect them to take advantage of the training available to them from the company and from outside sources. In turn, we provide people with assignments and opportunities that allow them to demonstrate their skills and develop their capabilities.


    We seek to give people assignments for which they are well-suited.


We Expect Our Managers and Supervisors to Train Their People
    We conduct training schools, workshops, and other programs in order to meet the needs of our people. However, it is the responsibility of our management team to ensure that their people receive all the necessary training and that it is effective. We review training regularly to see that it is relevant to our current needs.


We Hold Frequent Evaluations With Our Employees About Their Performance
    Reviews of each person’s performance enable us to arrive at a mutual understanding about progress toward meeting goals and objectives.


    We hold formal evaluations periodically. However, there is no substitute for daily and weekly feedback on each person’s performance.


    We follow up on the results of all evaluations to ensure the continued development of our people.


We Have Meaningful Discussions With Our People
    Cooperation and teamwork among all our people are necessary for the continued success of our business. To foster this spirit, we seek to develop meaningful businesslike relationships and better communications by having regular and frequent planned individual and group discussions.


We Recognize Accomplishments
    Our people deserve recognition for accomplishments in their regular jobs and for contributions made to other departments and operations. They also deserve recognition for the extra effort they make to satisfy customers and for their participation in efforts that benefit their communities.


    All managers and supervisors are responsible for recognizing the accomplishments of people in their own groups. Our established programs are intended to ensure that deserving employees are recognized appropriately for their accomplishments. These programs, however, do not replace the important role of the manager or supervisor in employee recognition.


We Promote an Open-door Approach to Managing People
    Every person should feel free to discuss matters with management people in our company. Accessibility, however, does not relieve anyone of the obligation to respect delegated lines of authority. Employees are encouraged to discuss their ideas or try to resolve a disputed matter with their immediate supervisor before seeking the counsel of others. One of our company’s strengths is the development of professional relationships among everyone, regardless of authority or responsibility level.


We Give Each Employee Complaint Prompt, Sincere Attention
    If overlooked or neglected, even minor misunderstandings can escalate into major dissatisfactions.


    We try to anticipate and eliminate causes of complaints. When a question exists, we give the employee the benefit of the doubt. The immediate supervisor has the initial responsibility for resolving a complaint. When necessary, we involve the next level of management and, if appropriate, the human resources manager.


    We keep the employee informed about the status of his or her complaint. In the process of making a decision, we do our best to take action that is fair to both the employee and the company.


We Respect Each Employee’s Point of View
    We listen with an open mind to suggestions and are attentive to problems.


    By talking with and listening to employees, we can often help them in doing their jobs and, at the same time, learn things that benefit the company.


    We train our managers in the skills necessary for talking with and listening to their employees and in translating what they learn into action.


We Encourage Participation and Suggestions
    Managers and supervisors should invite help and encourage suggestions for improvement. In working together this way, we create an environment of teamwork that benefits our company and our employees.


    We consider carefully any suggestion that might be of value. If we adopt a suggestion, we give full credit; if we reject it, we explain the reasons. We also encourage feedback on plans that have been implemented, knowing that the people involved can contribute to further improvements.


We Keep Employees Informed About Company Activities and Plans That May Affect Them or Their Work
    Keeping our people informed helps them to understand the company’s objectives and to perform their jobs more efficiently.


    To accomplish this, we hold prework and other periodic meetings. We supplement our face-to-face communications through a variety of media. Besides disseminating information to our people and their families, these communications give public recognition to employee achievements and encourage teamwork and cooperation.


We Address Each Other on a First-name Basis
    Using first names helps to generate a friendly and informal atmosphere. We use corporate titles only when necessary. Within our company, use of a title is usually not necessary to define a person’s job and responsibilities. Knowledge, performance, and capabilities should be adequate evidence of a person’s position and leadership.


    If it becomes necessary to use a title, we should select one that accurately describes our job and reflects our level of responsibility in commonly understood business terms.


We Are Considerate and Professional With All Applicants
    We want applicants to think well of us, whether or not we hire them. We are careful not to misrepresent or make any unwarranted promises.


    We welcome referrals from employees, customers and others who know us well, and we consider them along with everyone else. But the ultimate decision to hire is made impartially based on the applicant’s qualifications.


    We look for people whose personal objectives are compatible with our company’s objectives and whose attitudes toward performing a job are consistent with our company’s ideals.


    We select new employees on the basis of qualifications that will help them work capably and successfully within our organization. We are an equal opportunity employer and comply with all laws governing fair employment practices.


We Limit the Employment of Relatives
    In order to help maintain equal opportunity of employment for the general public and equal opportunity of promotion for our employees, we limit the hiring of relatives. Relatives of current employees up to and including the level of center manager are eligible only for part-time employment in operations. Relatives of current employees at the level of division manager or above are ineligible for employment. Also, we do not hire relatives of former district managers or managers with equivalent or higher levels of responsibility.


    This policy helps us avoid misunderstandings, acts of favoritism, or the perception of favoritism that could arise were an employee in a position to influence the hiring, work, or advancement of a relative.


    For similar reasons, we discourage continuation of the full-time or part-time employment of any employee who marries another employee while either person holds a management position.


We Do Not Rehire Former Employees, Except Under Special Circumstances
    We should not rehire former employees, especially those who left because they had become discontented or with whom we had become dissatisfied. Employees who left to further their education or for other valid reasons should be given the same consideration as new applicants. The decision to rehire a former employee should only be made with appropriate approvals.


We Try to Retain the Good Will of Former Employees
    We are considerate of employees who are leaving us for whatever reason. We know that the good will and respect of former employees can be beneficial in future relationships.


    At the time of an employee’s separation from the company, we seek an opportunity to conduct a friendly discussion regarding both the individual’s and the company’s views. Such discussions may point out ways in which we could improve our working environment or the company in general.


We Develop and Maintain Professional Relations With Labor Union Representatives
    Many of our employees are represented by labor unions. We know that our people can be effective and loyal employees and, at the same time, be good union members. We consider the point of view of unions along with the interests of our customers, our people, and our company as a whole.


    We negotiate fairly with labor unions for reasonable wage rates and working conditions. These negotiations should give due consideration to our unique operations and enable us to maintain the operating flexibility and efficiency needed to remain competitive.


    We respect and fulfill the terms of our labor agreements. We also expect union leaders and members to cooperate in fulfilling the terms of such agreements.


We Stress Safety Throughout Our Company
    The safety of our people and of the general public is of utmost importance to us. We train our people to avoid injury to themselves and others in all phases of their work. We do not tolerate unsafe work practices.


    We encourage the involvement of all our people in safety awareness activities and give recognition to employees for safety accomplishments. We are all committed to fostering the most effective safe practices in all our work.


    By meeting our own high safety standards, we will be contributing to the well-being of our people, our company, and the communities we serve.


We Plan Our Buildings and Facilities for Safe and Efficient Operations
    We develop detailed plans for the design of our buildings and the installation of equipment in our facilities. We plan our buildings and facilities to be in compliance with governmental and regulatory requirements. Our plans take into consideration reasonable, anticipated requirements for growth. We arrange for specialized equipment and facilities as well as efficient and economical methods for handling and delivery. We provide safe, clean, and pleasant places to work.


    We plan and select buildings that are functional and attractive and create a favorable impression of our organization.


We Keep Our Buildings and Equipment Clean and Neat
    We believe this has an important effect on attitude, safety, and efficiency. Facilities and vehicles that are clean and neat indicate to employees and customers alike that we are proud of our company and that we give the same meticulous attention to our business that we give to our work environment.


    We provide sufficient maintenance so every operating facility, office building, and vehicle will be maintained at a high standard of appearance and cleanliness every day. The exteriors of our buildings, parking lots, lawns, and shrubbery are kept neat and well maintained.


We Assign the Same Equipment to Each Employee Every Day Whenever Possible
    We retain flexibility in the matching of equipment to the requirements of the job. Wherever practical, the same equipment should be assigned to each employee every day.


    This results in employees feeling more responsible for the care of equipment and for reporting any special attention equipment may require. For example, drivers come to know their UPS vehicles as they do their personal cars and take the same pride in them.


We Expect Our People to Be Neat in Appearance
    A neat appearance greatly impacts the way our customers view us and how our employees interact on the job. Our drivers and flight crews and certain other employees wear standard uniforms as a distinct reflection of our company and our service.


    Just as we require our people who come in contact with the public to maintain a neat appearance, we expect our office people to be well groomed. We ask them to select clothes and accessories that are appropriate to our business environment.


    Managers and supervisors take note of the appearance of their people daily and set the example through their own proper grooming and attire.


We Reimburse Our People for Appropriate Expenditures Incurred on Behalf of the Company
    No one should gain or lose because of money spent for company purposes. We require our people to submit an itemized accounting of these expenditures.


    Sound judgment is necessary in the management of such expenses. Questions concerning these expenses should be resolved in advance with one’s manager.


    Approval of the expenses of those who report to us requires equally careful consideration, as well as attention to guiding them in future expenditures. We periodically review and adjust our reimbursement practices.


We Prohibit the Use or Possession of Alcoholic Beverages or Controlled Substances While Working
    Employees are not permitted to start work or remain at work if they possess or are using any of the following:


  • an alcoholic beverage, regardless of its alcoholic content


  • any controlled substance or illegal drug or any derivative thereof


  • any other substance that could impair their ability to perform a job safely and competently


    This rule governs employees from the time they report to work until they leave our premises at the end of the workday.


    The rule reflects current laws and government regulations that strictly prohibit the use or possession of any illicit substances by those who operate our air and ground vehicles, as well as those in other specified jobs. These regulations also contain prohibitions against the use of alcoholic beverages by employees before they start work.


We Prohibit Gambling, Holding Raffles and Similar Activities on Company Time or Property
    At best, these are unbusiness-like activities and inappropriate on the job. They also place our people under improper pressure to spend or contribute money.


We Prohibit Use of Company Time, Facilities or Materials for Personal Benefit
    The use of company time, labor, supplies, equipment, tools, buildings or other assets for personal benefit is prohibited. Employees are required to pay for personal use of our delivery services. We also do not repair or wash private cars for employees or other individuals. Similarly, we do not sell gasoline, parts or other supplies from our inventories.


    An exception to this policy may be made only in the case of an unavoidable emergency, when there is no reasonable alternative.


We Separate Business and Social Functions
    Combining social and business functions can create conflicts, misunderstandings and jealousies that may adversely affect both the company and our people.


    Families and friends normally do not attend our business meetings or travel to the meeting sites. They are, however, welcome at company open houses and at other social functions held primarily for their benefit.

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