rps vs. ups turnover and management philosophies for reduction in turnover

To: Ivan T. Hofmann, RPS President

RPS vs. UPS Turnover and Management Philosophies for Reduction in

Turnover Daniel McBride

Dallas F/T Coordinator, 1994

RPS VS. UPS TURNOVER 2

INTRODUCTION This report is an analysis of turnover of part-time Package Handlers. The report examines turnover in two major companies in the small package industry, RPS and UPS. I first discuss what RPS and UPS offer their Package Handlers and how this might affect turnover. However, the amenities a Package Handler receives does not solely reflect why they are turned over. I believe a very important issue which affects turnover is how RPS and UPS train their first-line Coordinators/Supervisors. Therefore, this report will not only examine how RPS and UPS do this, but it will reflect my views on the knowledge and philosophies that I believe the first-line Coordinator should possess. The foundation for these views stems from my experience with both companies as well as research I have done through the years. I enjoy reading books on such topics as psychology, self-help, management and business tactics. I thank you for the opportunity to write such an analysis. I am fully aware that, as President of a billion-dollar company, you do not request such a report from every Coordinator or Manager you meet in every facility you visit. I am also aware that you surely have had in-depth studies conducted on these issues and have read such reports before now. As any intelligent Manager would do, you have asked the opinion of a first-line Coordinator who has direct involvement with these issues on a daily basis. You are “walking your plant” as it says in the book In Search for Excellence.


I hope you will find this analysis informative as well as enlightening. I believe you will enjoy some of the quotes and phrases from famous individuals who have influenced my life. I have learned, or relearned, much while preparing it for you much as a teacher continues to learn when conveying his or her message to their students.


PART I: AMENITIES

WAGES RPS offers their Package Handlers $7 per hour plus $1 per hour towards

tuition. This is competitive compared with UPS which starts new employees at $8 per hour. I believe the tuition fund is a positive enticement for Package Handlers, as well as RPS, due to the tax break received. Both companies have built-in raises but UPS employees are able to reach a higher rate of pay in a shorter amount of time. UPS also offers a $1 per hour raise to employees who pass a sort test, gaining knowledge to sort packages in their manual hubs. I believe RPS can compete with this by offering a similar raise for a skilled position such as ten-key certified SWAKer.

BENEFITS

UPS offers hourly employees a very good medical benefits package. However, they incur a cost of $400 to $500 per month for each employee. RPS offers no such benefits, but I do not believe this to be a major cause of turnover as most students fall under their parents’ insurance. RPS would not be wise to incur such an expense for so little return on that investment.

MANAGEMENT OPPORTUNITY

RPS and UPS both offer the opportunity to move to a part-time Coordinator or Supervisor position while the Package Handler is still in school.


UPS, however, uses strictly part-time Supervisors for first-line management. I believe RPS uses mostly full-time Coordinators because they are more focused and career oriented. UPS is much larger and their system seems to work well for them.

DRIVING OPPORTUNITIES

Package Handlers at UPS have an opportunity to drive delivery vans. They merely have to put their names on a list (based on time served with the company) and they can deliver packages earning $35,000 to $45,000 a year when a position opens. Because the P & D contractors at RPS must purchase their own van, RPS could set up a van fund not unlike the tuition fund. However, I do not recommend this because those who wait for the opportunity at UPS are usually less desirable employees. Most of these employees lack the determination and motivation to complete their education. However, the opportunity to drive for UPS could partially account for their lower turnover.

WORKING CONDITIONS Dock conditions at RPS and UPS are very similar. Package Handlers must

endure the same weather conditions and similar amount of physical labor. I do not believe this to be a factor in comparative employee turnover.


BREAKS UPS offers a ten-minute break in the middle of a shift. I do not believe this

to be a factor in turnover. RPS should not implement this because our requirements are lower than UPS. The UPS load rate is 600 packages per hour and the unload standard is 1300 pph. As you know, the RPS standards are lower as we attempt to provide higher quality.

NON-UNION VS. UNION

RPS is a non-union work environment. This fact makes it easier for the first-line Coordinators to terminate employment of Package Handlers. UPS first-line Supervisors must thoroughly document reasons for termination and union hearings are often held. I certainly would not recommend a union at RPS for there is a different set of difficulties which need not be explained to someone with your knowledge. RPS has tightened requirements for terminations by requiring proper documentation and Hub Manager approval. This should help reduce turnover of some employees who, perhaps, should not be fired.

FIRST PAYCHECK DELAY RPS has up to a three-week delay before new employees receive their first

paycheck. UPS has no such delay. I believe the delay to be an inhibiting factor for RPS, especially if it is not properly communicated during orientation. RPS should work to eliminate the delay.


PART II: FIFTEEN-POINT CHECKLIST TO REDUCE TURNOVER

UPS follows a fifteen-point checklist which they believe will help new

Package Handlers adjust to their work environment and reduce turnover. There are some of these philosophies that RPS does employ. They are as follows:

1. Interview during sort hours- UPS believes the Package Handler will be able to start adjusting sooner to the hours they will be working. Sort Managers at our hubs also conduct interviews during sort hours.

2. Facility tour during second interview- This will enable the employee to see what the work environment will be like. This procedure is also followed by RPS and can have a significant impact on turnover.

3. Orientation during sort hours- This will allow operations personnel to participate. UPS believes that orientation should be held for two days and consist of one-half classroom and one-half “hands on” in the training area. To the best of my knowledge, this is not in place at RPS.

4. Midweek start- UPS has their new employees start on a Wednesday with the first full work day on Friday (two days for orientation). This gives the employee the weekend to assimilate all the new information and their


body time to adjust to the physical nature of the job. RPS does not incorporate a midweek start and, to the best of my knowledge, does not employ a two-day orientation.

5. Graduated workload- UPS new employees’ package rate per hour is progressively increased during their training period until they are performing up to standard. RPS must certainly adhere to this procedure to reduce turnover.

6. Designated training area- RPS hubs are now setting aside load areas for training. This is also essential to maintain a controlled environment to graduate the employee’s workload.

7. Twenty-two day training format followed- Employees should remain in the training area until certified in loading and safety methods. UPS has a detailed twenty-two day training packet which tracks performance. The packet is reviewed daily with the employee. This will have a noticeable impact on reducing turnover in new-hires if it is implemented at RPS.

8. Division Manager approves terminations- This has recently been implemented at RPS hubs and it should serve to reduce some unnecessary terminations.

9. Employees working daily- UPS believes that new employees cannot be expected to wait at home, while they are earning no money, for UPS to call them in. I do not


believe this to be a major problem at RPS, though I am sure it occurs occasionally.

10. Exit interviews completed- RPS could use exit interview information to identify trends which could help us correct problems and keep other employees from leaving the company.

11. Turnover is a Management by Commitment element- RPS follows Management by Objective principles and it is an element reviewed with Managers and Coordinators. UPS and RPS use turnover as a conference call item.

12. Backup at all times- RPS and UPS believe that a pool of individuals should be on-call and ready to work. Recruitment of students should be continuous and special emphasis needs to be placed on the times of year when recruiting is most difficult.

13. Hub/Preload training personnel- Although long in effect at UPS, this would be the ITC position more recently created at RPS. They should train in a designated training area (as I do not believe that the RPS ‘Simulator’ properly prepares new employees) and the ITC should have been previously successful managing dock operations.

14. Area Personnel Representatives- UPS believes that this individual should not be the same individual


who does the hiring or firing. They should follow a prescribed routine. This function could be assigned to the ITC at RPS. I believe that the main function should be to enhance follow-up communications with Package Handlers who have been out of the training area for at least one month.

15. Focus meetings- These meetings should be held between Coordinators and Package Handlers. Groups should be limited to 10-15 people and will improve communication and teamwork. This is essentially what RPS calls Hub Quality Teams.


PART III: MANAGEMENT PHILOSOPHIES

GETTING THE EMPLOYEE “IN THE BOAT” Management must get their employees to do the job at hand because it is

what the employee wants to do…because it is the right thing to do. You do not have to be a dictator to get the job done. This concept was lost on Adolph Hitler. Hitler also made another mistake, He saw the American people’s creativity and freedom of expression as a weakness. Hitler saw America as a chaotic and disorganized society: one which could not sustain a prolonged war effort. He soon realized that the United States was not vulnerable because its people were free to express themselves; that people from different cultures and ideals could pull together if given a reason.

Managers/Coordinators are supposed to provide this reason. They must motivate, show leadership, set goals and provide the resources to reach a common goal. Employees do not just look for a paycheck. They also want recognition, appreciation and creative freedom. Managers cannot just make their employees aware of the details of their job if they tear down the individual’s sense of freedom and creativity in the process. Managers must not forget that they can get their employees to pay attention to detail if they develop a leadership style which positively delivers their message and their confidence in the employees. Coordinators need to give the employee the freedom to do the job that they were hired to do. They should only tighten the reins when they stray from the path of your communicated goals.


DELEGATING RESPONSIBILITY

A good manager must be able to delegate responsibility. He or she needs to make the Package Handler feel that they are making some decisions which affect the operation. Ask for their opinion and listen with empathy. If the opinion is a good one, then use it; and if it is not, then explain why you will take another direction.

I have once heard it said that there will always be a job for the man who knows how to do a job, but not for the man who knows why you do the job. A manager must know why and then communicate this to his or her employees. Getting your employee’s point of view and then explaining why you do a job a certain way are paths to increase the employee’s self-esteem. Employees will feel better about their jobs and this increased self-worth is a good way to reduce turnover.

THE COORDINATOR…THE TEACHER

“True teachers use themselves as bridges

over which they invite their students to cross; then, having facilitated their crossing, joyfully collapse, encouraging them

to create bridges of their own” Nikos Kazantzakis


Employees who perceive that they have nothing to learn from their superiors are not likely to stay. This is a responsibility that I do not take lightly. There is a pivotal point in all our lives when we are most susceptible to change. Most people set the pattern in our minds, which we will follow the rest of our lives, between the ages of eighteen and twenty-two. The Coordinator has an opportunity to shape the mind of his or her employees, as most RPS employees fall with in this range.

“A great teacher never strives to explain her vision; she simply invites you to stand beside her and see for yourself” – The Rev. R. Inman.

SET THE EXAMPLE

One of the quickest ways to lose the respect of an employee is to have a “do as I say, not as I do” attitude.

I am reminded of the story of a woman who brought her son to Mahatma Ghandi. She begged, “Please Mahatma, tell my son to stop eating sugar.” Ghandi paused, the said, “Bring your son back in two weeks.” Puzzled, the woman thanked him and said she would do as he asked. Two weeks later, she returned with her son. Ghandi looked at the child and said, “Stop eating sugar.” Thankful, yet confused, the woman asked, “why did you tell me to bring him back? You could have told him that two weeks ago.” Ghandi replied, “Two weeks ago, I was eating sugar.

Package Handlers will not want to work for someone who does not practice what they preach.


TRUE RESPECT In order to properly communicate with others, you must understand that

true respect comes from the heart. It is the foundation of correct communication. True respect produces the right communication amongst family, friends and business associates. Communication without true respect is what occurs when a business transaction takes place with just an exchange of words with no deeper feeling or meaning behind them.

Most people want the respect of others. However, respect cannot be bought or expected due to one’s status…you must earn it. Package Handlers can tell when their Supervisor is not sincere in praise, showing concern, or other aspects of communication. A Coordinator will not be able to teach or reach a common goal. This most certainly can have an adverse effect on turnover.

COMMUNICATION

Not only is public speaking an important tool for a Coordinator, proper personal communication is as well. A Coordinator should try to “get into the employee’s head.” What are they thinking and feeling; why are they feeling this? If you do not talk to them on a personal level, you can lose them unnecessarily. Let me share a few examples:

I had a Package Handler who called in twice in order to complete school work. She left messages before I arrived at work. I have an open mind about the importance of school, but I need to speak with the employee personally to determine if they can come to work if there is a manning shortage. If the Package


Handler is willing to do this, then I count it as a day ‘scheduled off’ instead of a ‘call in’. The message that I received from the secretary did not specify that she left her phone number and that she would come in if really needed. She became very emotional and almost quit the next day when I informed her that she was in violation of the attendance policy. When I opened the line of communication to her, I found out that she indeed would have come in if really needed. She, the secretary and I had then eliminated any possibilities of communication errors in the future.

I had another employee who recently lost his father, broke up with girlfriend, and was suffering from the flu. Without communicating with him about why I thought he seemed so distant, I would have never found out what was troubling him. I gave him the afternoon off and suggested that he pick up a copy of Jonathon Livingston Seagull, by Richard Bach, on his way home. I knew that this story about reaching one’s full potential would uplift his spirits.

I had another employee who seemed dazed one day. I asked him if he was feeling alright and he said he had a headache. I offered him some aspirin from the first aid kit. He commented that most people would not have noticed. To this day, he always communicates with me and gives his suggestions about how to improve our work environment.

The point is, if you do not take the time to pick up on signals from your employees, how do expect them to perform properly? Coordinators must show genuine concern for the well-being of their Package Handlers. Communication on this personal level will do wonders to reduce turnover.


RECRUITER RESPONSIBILITIES

The recruiter can have a major impact on reducing turnover by not hiring people who are likely to quit. I’ve seen too many Package Handlers lost due to falling behind in school. The recruiter must evaluate a candidate’s workload in school. Are they taking excessive credit hours? Is their field of study especially challenging? Does the candidate have another part-time job?

Naturally, the recruiter must communicate all job requirements so as not to disillusion the potential Package Handler. One quick question the recruiter can ask themselves is, “Would I rather have this person working for the competition?”


CONCLUSION

Of course, there are several areas that I chose not to analyze, such as recognition of employees and the evaluation process. These have all been well documented in the past and I am certain that you are well versed in them. There are also reasons for turnover such as moving to another city or state and graduation which are common to both companies and, therefore, should not be analyzed in a comparative study.

I do wish to reiterate the importance of training our front-line managers. UPS sends their part-time Supervisors to a “People’s Workshop.” RPS has no such training for its part-time Coordinators and full-time Coordinators do not have the opportunity to attend the LEAD or Advanced LEAD seminars for quite some time. I believe that RPS needs to evaluate its training of first-line Coordinators.

There should be a lot of focus on the Coordinator’s understanding of themselves before they are ready to communicate with and understand the needs of their employees. Most people do not take the time to see what tools they need to improve their mind. It can be very difficult to determine the:

1. Attitudes one needs to improve 2. Beliefs necessary to improve 3. Ways an individual processes information 4. Or how to take in knowledge, from all parts of life, and digest what

pertains to them…and throw the rest away.


Other people around us (friends, family and co-workers) can see us, the way we carry ourselves and handle situations, often much better than we actually see ourselves. Some major obstacles which prevent us from this are the ‘walls’ that we build around us and all the defenses that we establish because of society or the way we were raised. We must keep an open mind in order to learn.

Finally, I urge you to develop a program which will give the first-line Coordinator the opportunity to evaluate his or her own self. We are born with only one mind and one body. This is what is closest to us. We live life only once…and there are no second chances.

rps vs. ups turnover and management philosophies for reduction in turnover

Leadership & Management