Organisational Overview and Company Profile: Fedex’s Hr Policy


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The purpose of this report is to critically review FedEx Corporation’s existing human resources policies, and assess the extent to which they are integrated with the broader organisational objectives. I will also go on to discuss how these HR policies contribute to improve the levels of performance and enhances employee’s commitment.

Organisational Overview and Company Profile

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Founded in 1971 in the United States, Federal Express also known as FedEx is a renowned service provider for logistics that offers worldwide transportation, e-commerce and business services to customers and businesses. With annual revenues of over $69 billion, the company delivers integrated business applications and solutions through operational competing co-operatively and managed collaboratively, under the esteemed FedEx brand. FedEx holds a remarkable position amongst some of the worlds most accepted and committed employers in over 220 countries worldwide. Employing more than 275,000 staff as well as contractors in around 50,000 drop-off locations, with 645 aircrafts, 42,000 motorized vehicles in its leading global network. They not only play a key role as stakeholders within the organisation, but also play a vital role in achieving the broader organisational objective .

FedEx is built on a philosophy of prioritizing its people and is a company that takes its commitment to diversity seriously. With its ‘people-service-profit’ philosophy, FedEx is able to establish a respectful and rewarding atmosphere for its employees with the reward of obtaining remarkable services from their customers. Customers reward FedEx with their loyalty, creating a lucrative enterprise boosting job satisfaction and job security amongst the company.

With the aim to motivate and encourage its employees, FedEx’s aims to remain entirely focused on safety, to highlight the highest ethical and practical measures in the transportation and e-commerce industries. As well as, to meet the highest demands of their customers and communities.

The company operates with the following four segments through the world; ground,

Express, services and freight. FedEx Ground; This company segment offers services for the delivery of business and residential ground packages. FedEx Express; This company segment offers various shipping services for packaging and freight delivery. FedEx Services; Provides sales, IT support, marketing, document solutions, customer service support and business services as well as many other advanced services. FedEx Freight; This segment offers shipping carrier services as well as freight services that are less that truckload (FedEx and Key Industry Drivers,)

 FedEx’s Objectives

FedEx corporate mission statement, its ambitions begins with “Providing high value, added logistics, transportation and related business services thru focused operating companies. This will generate superior financial returns for its shareholders. Customers’ requirements will be met in the highest quality manner appropriate to each market segment served”.

The statement continues,’FedEx will strive with its employees, partners and suppliers to develop mutually rewarding relationships.Safety in all operations will be the first considerationm it will carry out corporate activities to the highest ethical and professional standards. Along with its vision, FedEx is composed of a ‘three level operating strategy’. The company strives to operate independently by fulfilling individual customer needs in its independent structure. It aims to have, one dream one message and one voice, FedEx also strives to manage collaboratively by working together to sustain relationships with its valued customers and employees.

FedEx Corporation has identified financial goals which are listed on the investor website of the company. These long-term financial objectives include:

1. Increase EPS [Earnings-per-Share] 10%-15% per year

2. Raise profitable revenue

3. Attain 10%+ operating margin

4. Increase cash flows

5. Increase ROIC [Return on Invested Capital]

6. Increase returns to shareowners

FedEx human resource department have developed a policy knows as a ‘people –service-profit (PSP), it has been developed and implemented thru-out the entire organization. Under this policy, ‘if the employee’s personal needs are met and are well cared for, they would provide the customer with efficient service which in turn will profit the company by generating more incomes and revenues. As a result of the employees being well cared for and delegated with more power and authority, they exercise the use of their initiative and decision making. This empowers them to take care of the organization by delivering excellent quality service, thus facilitating the organizations in its increase in profits .


Recruitment is the process by which the organization finds and engages the people the business will need. Selection is the part of the recruitment process to decide which applicants or candidates should be appointed to jobs (Armstrong, 2014). FedEx follow a systematic recruitment and selection process, the organization believes in recruiting people who are willing to take advantage of their initiative and take risks, people who show enterprise by nature and are enthusiastic to engage in new challenges .The companies HR department recruits potential employees from world several universities in countries it’s operated in, offering internship programs which nurture individuals for future job roles and potential projects. An estimate revealed that 25,000 employees were hired by FedEx every year.

Attracting candidates is primarily a matter of identifying, evaluating and using the most appropriate source of applicants (Armstrong, 2014). Given the increasing number of applications which the HR department receive for various positions, FedEx automated its application processes and screening procedures for applicants by developing an online job application form available to the applicants through the organisations ‘career centre’. This process has made it extremely easy for the business to attract high quality candidates and has helped the organization easily identify the best potential candidates to employ.

According to research by Hay Group on FedEx found that due to the nature of the organisations HR recruitment and selection process, FedEx has one of the highest engagement score as a business thought the world. It has resulted in the company having revenue levels 4.5 times higher than those with the lowest engagement scores within the industry. Not only has it resulted in a significant improvement in customer satisfaction, it has led to an increase in profitability and employee performance, reduced employee turnover and increased their morale. In conclusion FedEx’s HR policies regarding recruitment and selection has contributed to the improvement of performance and has enhanced employee’s commitment.


FedEx ensure that their new recruits are properly trained to handle tasks they are expected or assigned to perform. In addition to the provision of work related skills, training is made significant to the overall development of the employees. Vice President of Human Resources at FedEx Larry McMahan said “One reason people like to work here is that they not only come in with a set of skills that stay stagnant, we believe heavily in individual development. We offer extensive training”. All New employees undergo a programme of orientation to educate them on the philosophy and policies of FedEx, and given an understanding of the nature of the relationship between superiors and peers at the company. A training program follows the orientation programme which varies depending on the type of job the new recruit is expected to do.

FedEx emphasizes the training of employees who directly correlate with customers. These include customer service representatives (CSRs. CSR trainees receive eight weeks of intensive training, these training programmes involve educating CSR’s on the service offering of FedEx and putting them in conditions that resemble actual working conditions.

As a final observation FedEx’s HR policies on Training and development is extremely effective and a great success. In a recent study conducted by FedEx office survey, employees have acquired new skills and knowledge, enhanced existing skills and knowledge further improving their strengths , it’s has given employees a great boost in confidence , capability and competence thus resulting in employees feeling supported and enabled to do their work. Last but not least it has significantly contributed to in improving the levels of performance and enhance employee commitment.


Employee pay and recognition is designed to acknowledge individual effort, praise outstanding performance, encourage new ideas and promote teamwork.

FedEx offers an enticing and inclusive package of pay, rewards, benefits and quality of work/ life programs to their employees.

Such packages include:

  • Salary Increases- Salary increases on the basis of individual performance
  • Variable pay- Incentives to reward contributions by individual and team members
  • Tuition-Assistance- Subsidy for continuous education, learning and development
  • Health Care Programme- Both dental and Medical coverage
  • Pension- Financial retirement security
  • Reduced Shipping rate- Exclusive personal shipping discounts


At FedEx, we believe that our success depends on our people’s dedication.We have developed recognition programs to celebrate our people’s achievements and commitment to delivering the company’s values .

Such recognition programme’s include:

  • Five Star Award- FedEx’s highest merit recognises team members who have made great improvements in the company’s profitability, service and exemplified the art of teamwork and professionalism
  • Excellence Award-The prestigious award for recognizing employee leadership, creativity, and distinguished effort in support of customers.
  • Purple Promise Quality Award- Acknowledgment of teams who promote the quality culture by accomplishing exceptional results by applying application of quality driven management tools.
  • The Purple Promise awards are eligible for team members who consistently provide superior customer service to both external and internal customers and make each and every FedEx experience exceptional.


To conclude FedEx’s HR policies on pay and recognition is extremely effective and a great success for the organization. Overall, it has helped increase employee morale, improve retention and reduce employee absenteeism. According to a ‘State of the Global Workforce’ Gallup survey Fed Ex HR policies involving employee rewards and pay, is a major factor in the increase in its employee satisfaction and its main factor in reinforcing the businesses core value. Recent success at the organization goes on to show how vital and valuable its HR policies have been for the development, motivation and satisfaction of its employees.

. Diversity and Inclusion:

  • Diversity & Inclusion at FedEx connects people and possibilities to deliver a better future for team members, customers, suppliers, and communities.
  • Diversity and inclusion for the global transportation company is both a fundamental part of the FedEx culture and a business imperative.


A key catalyst in promoting diversity and inclusion within our organization is our Corporate Diversity Council which work with employees across the enterprise to motivate and inspire each other, share the best ethical practices and support multicultural programs within the company and the communities we serve.

FedEx HR department offers extensive diversity training to thousands of its employees to raise awareness and promote the understanding of the differences among its team members. Their efforts has been widely acknowledged and praised by global research and consulting firm Great Place to Work and Fortune. They have won numerous awards for their excellent policies regarding diversity and inclusion, being named as the ‘Best workplace for Diversity both in 2017 and 2018

Judy Edge, corporate vice president of Human Resources at FedEx Corp. “We are honoured to be named one of the 2017 best workplaces for diversity and are committed to embracing and celebrating the differences and unique talents of our team members across the globe.”

To conclude FedEx’s HR policies on Diversity and Inclusion is extremely effective and a great success for the organization, it has significantly contributed to improving the levels of performance and enhance employee commitment by investing over $30 billion on the organizations ‘supplier diversity programme for its employees. It has done a phenomenal job in ensuring that 49% of its US work force and 28% of minorities all are in management positions. To further praise the HR department’s efforts, FedEx was included on the Black Enterprise annual Best companies for Diversity List in 2018.

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