As a global enterprise, all FedEx Corporation companies strive to develop mutually rewarding relationships with our employees. FedEx Corporation companies are consistently recognized for our progressive and innovative policies, programs, benefits, and stimulating working environment. Our culture fosters an environment where a person’s performance is what counts and productivity is highly rewarded.
Narrative Description of Program
As a global enterprise, all FedEx Corporation companies strive to develop mutually rewarding relationships with our employees. FedEx Corporation companies are consistently recognized for our progressive and innovative policies, programs, benefits, and stimulating working environment. Our culture fosters an environment where a person's performance is what counts and productivity is highly rewarded.
Over 200,000 individuals who work in the FedEx family of companies were each hired for their unique blend of talent, enthusiasm, and ambition. They are the reason that FedEx Corporation companies are truly global and diverse and deserve credit for the company's impeccable service to our customers.
In the words of the founder, Fred W. Smith, “Our Company is built on the rock solid foundation of employee commitment.”
With annual revenues of $19 billion, FedEx is the premier global provider of transportation, logistics, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Logistics, an integrated logistics, technology and transportation-solutions company; FedEx Custom Critical, the world's largest provider of expedited, time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. More than 2.5 million customers are connected electronically through the FedEx information network and approximately two-thirds of its U.S. domestic transactions are now handled online.
Rising health care costs, a tight labor market and the need to increase productivity are the driving forces that fuel our innovative health promotion, injury prevention and disability management efforts.
In the mission statement of FedEx Corporation, safety is to be the first consideration in all operations. Supporting that element of the mission are various programs that have been described in the following pages for your review.
Human Capital Management
Human Capital Management is a strategic initiative with many different components that all have interactions with each other. Many different departments within FedEx “own” part of the system - Safety, Risk Management, Health and Wellness, Disability, Human Resource Services and Operations.
There are approximately 60 HCMP Managers within FedEx that coordinate and manage employees on a medical leave of absence. We have had tremendous success in keeping disability claim duration lower than the transportation industry average.
Results indicate the expected average duration for a FedEx disability claim is 61 days, compared to 107 days for the transportation industry. Total disability claims have decreased 28 percent since FY94 and from FY99 to FY00, disability claims have declined 7.2 percent.
Disability claims costs have decreased by 2.5 percent in the five fiscal years from FY96 to FY00, and at the same time, employment has increased by 20,000 employees.
The FedEx Temporary Return to Work (TRW) Policy has been instrumental to the success of the Human Capital Management Program by allowing our employees to return to work and remain productive during a partial disability. The employees work in a temporary assignment performing duties within the temporary restrictions specified by the physician.
Our own research and experience at FedEx shows the TRW Program works, particularly when we return the employee to TRW quickly. Employees who return to work TRW return to full duty sooner than employees who do not work TRW or return to TRW later in the leave.
The FedEx TRW Program
- Encourages and facilitates earlier return to full duty
- Helps speed the recovery process
- Helps employees maintain a sense of belonging in the work group
- Allows employees to continue to contribute to the productivity of the company during the time they are unable to perform their full duties
Full-time employees in the FedEx TRW Program can work a minimum of 15 hours but no more than 28 hours per week. Part-time employees are allowed to work not less than 7 hours and no more than 70% of their average hours worked for the last 12 weeks not to exceed 21 hours.
The FedEx Temporary Return to Work Program is not a voluntary program. Employees released to return to work with restrictions must participate except where limited by State or Federal law. Work assigned to employees on TRW must comply with the restrictions specified by the employee's releasing physician. The employee's physician provides a document indicating temporary limitations and a release to light duty.
TRW hours are limited so that an employee's earnings do not exceed the 70% maximum disability allowed eligible employees based on the FedEx Short Term Disability Plan and 60% for employees who have transitioned into the Long Term Disability Plan. Limiting the earnings an employee can receive while working TRW provides an incentive for the employee to return to full duty as soon as possible.
Since 1997 our Leave of Absence Days/100 Employees has been reduced by 28.4 days, while our TRW utilization has increased from 32.4% to 54.9% (employees on a medical leave of absence).
The FedEx Human Capital Management Program has proven to be good for both the employee and the company.
|Program Name||FedEx Express Health Risk Reduction and Cost Reduction|
|Company Name and Address||FedEd Express3660 Hacks Cross Rd., Bldg F, 2nd FloorMemphis, TN 38125|
|Contact Person||Susanna Baker, Program Administrator
|Program Category||Chronic Disease, High Risk|
|Total number of individual participants|
|Number of currently actively enrolled|
|Access to Program||All employees and family members|
|Program targeted at Healthy People 2000 and/or Healthy People 2010 goals||Yes - 3/4|
|Program goals (in priority order)||(1) Health Promotion(2) Injury Prevention(3) Cost Reduction|
FedEx offers a variety of Human Capital Management (HCM) programs to its over 200,000 employees. Its management philosophy and culture focuses on “people – service – profit” in that order. Its varied programs include: FedEx Safety Above All, FedEx Employee Benefits (with programs directed at demand management, utilization management, catastrophic case management, and disease management), Cigna Well Aware, CareMark Care Patterns, Maternity Education Benefit Fairs, Smoking Cessation, LifeWorks, Health and Wellness Centers, and Employee Assistance Programs. Compared to expected values, FedEx’s programs resulted in cumulative five-year medical benefit cost savings of about $579 million. Additionally, six year cumulative cost savings related to decreases in medical-related lost time from work were estimated at approximately $497 million. FedEx Fitness Program participants reduced their overall benefit costs from $1,210 to $1,021 (16%) in the year following program enrollment, while non-participants’ total benefits decreased from $2,104 to $1, 947 (7%).
The following are verbatim remarks made by the reviewers:
- Temporary return to work (TRW) program which has been successful
- Huge savings – perhaps over $1 billion
- Uses Cigna case management and disease management
- Smoking and Fitness lifestyle special programs
- Emphasis on TRW (disability) is unusual. Evidence of decrease in absenteeism and TWW utilization increases is significant
- Extensive documentation of cost savings
- Impressive 6 year cost savings of approximately $579M
- Tying the program into the corporate mission is an excellent strategy
- This program for 200,000 employees is integrated across the organization (Safety, Risk Management, Health and Wellness, Disability, HR and Operations) and emphasizes human capital management and productivity. Essentially the goal is to increase operating income by increasing productivity. Their management of absence has decreased absence claims by 28%. The temporary return to work policy has greatly influenced lost time.
- The scope of the program includes both physical and psychological programs and there is close integration with the health plan vendors. Demand Management and Disease Management are included in the scope of work as well as Utilization Management and Catastrophic Case Management.
- Savings are notable in the area of benefit costs per employee and absence.
- Health and Wellness Centers are available at several locations and if there is no on-site access, a Fitness Center Network location is made available. Fitness Participants’ claims costs are $200/yr. Less than non-participants.
- Company commitment
- Disability claims trends
- Broad program
- Safety is well developed. Reviewer understands and appreciates FED EX’s program and commitment to health from the various presentations given about the program. Resource commitment to HCM seems to be high.
- Integration of health promotion with other company depts.
- Safety and health and it’s link to productivity.