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<blockquote data-quote="TUT" data-source="post: 5558348" data-attributes="member: 29298"><p>Glad you asked.</p><p></p><p>UPS has preformed better coming out of covid, it is much easier keeping a fair paid employee than a contractor where Ground is near the bottom of the contractor barrel. Let me explain the later, when you are a contract driver you are part of the gig economy. You compete with ubers, food delivery, product physicality. Ground is one of the hardest physcial delivery contract jobs out there. Would a new kid rather drive some one from x to x, with a solid chance of tips? Would a new kid rather pickup up easy to handle food and deliver it with a solid chance at a tip? Would a new kid rather work at Amazon and deliver their lighter/smaller packages on average? The answer to all of those are yes. It isn't that Fedex is bad, but Fedex is harder because they take in harder to handle pacakges with no tips. Fedex also needs a nurture plan that allows kids to acclimate to physical work, meaning bonus pay milestones.</p><p></p><p>Once you look at it this way it explains why turnover is high, it's common sense really. So to get people, keep people, get good at what you do, you need to make them fair paid employees.</p><p></p><p>The "get good" part is the part the customers see, improved performance, less headaches will spread word of mouth and simply selling these improvements is how you generate more revenue. There are many shippers that don't want to <img src="/community/styles/default/xenforo/smilies/group1/censored2.gif" class="smilie" loading="lazy" alt=":censored2:" title="Censored2 :censored2:" data-shortname=":censored2:" /> around with Ground and Express pickups. They don't want to know to understand dozens of differences between Ground and Express, it gets complicated, people don't want complicated. These are customer satisfaction things, these are real and in time proving you are better will drive more revenue.</p><p></p><p>I did want to circle back on an earlier ask of yours "why would Fedex incur more cost, when they are trying to save?", it's a fair question. First they will still save overall, but in addition to the above, look at UPS, they do better than Fedex on profit per package, they profit more money overall. <strong>Well how can this be when they have Union Workers getting great pay and benefits?</strong> First they are One UPS already, but in addition to, it is because they are seasoned and more reliable because of the job pay and benefits, they want to stay, it is a career job vs where's my next job, this can't be understated. With being seasoned that explains the better delivery metrics. Fedex is sloppy in comparison because of turnover and loss of needed control at the contractor driver level. What I'm saying is sometimes you do pay more to make more and I think that is where Fedex is at. They are competing with too many businesses with the contractor model, they need to bring them in as employees, on top of the unification of services (very good), that driver reliability will pay big dividends and bring in more customers. Now if people at Fedex think everything is ok in the areas I'm discussing, they are purposely putting their fingers in their ears not wanting to believe it.</p></blockquote><p></p>
[QUOTE="TUT, post: 5558348, member: 29298"] Glad you asked. UPS has preformed better coming out of covid, it is much easier keeping a fair paid employee than a contractor where Ground is near the bottom of the contractor barrel. Let me explain the later, when you are a contract driver you are part of the gig economy. You compete with ubers, food delivery, product physicality. Ground is one of the hardest physcial delivery contract jobs out there. Would a new kid rather drive some one from x to x, with a solid chance of tips? Would a new kid rather pickup up easy to handle food and deliver it with a solid chance at a tip? Would a new kid rather work at Amazon and deliver their lighter/smaller packages on average? The answer to all of those are yes. It isn't that Fedex is bad, but Fedex is harder because they take in harder to handle pacakges with no tips. Fedex also needs a nurture plan that allows kids to acclimate to physical work, meaning bonus pay milestones. Once you look at it this way it explains why turnover is high, it's common sense really. So to get people, keep people, get good at what you do, you need to make them fair paid employees. The "get good" part is the part the customers see, improved performance, less headaches will spread word of mouth and simply selling these improvements is how you generate more revenue. There are many shippers that don't want to :censored: around with Ground and Express pickups. They don't want to know to understand dozens of differences between Ground and Express, it gets complicated, people don't want complicated. These are customer satisfaction things, these are real and in time proving you are better will drive more revenue. I did want to circle back on an earlier ask of yours "why would Fedex incur more cost, when they are trying to save?", it's a fair question. First they will still save overall, but in addition to the above, look at UPS, they do better than Fedex on profit per package, they profit more money overall. [B]Well how can this be when they have Union Workers getting great pay and benefits?[/B] First they are One UPS already, but in addition to, it is because they are seasoned and more reliable because of the job pay and benefits, they want to stay, it is a career job vs where's my next job, this can't be understated. With being seasoned that explains the better delivery metrics. Fedex is sloppy in comparison because of turnover and loss of needed control at the contractor driver level. What I'm saying is sometimes you do pay more to make more and I think that is where Fedex is at. They are competing with too many businesses with the contractor model, they need to bring them in as employees, on top of the unification of services (very good), that driver reliability will pay big dividends and bring in more customers. Now if people at Fedex think everything is ok in the areas I'm discussing, they are purposely putting their fingers in their ears not wanting to believe it. [/QUOTE]
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