About Don Brown comments,..we can (should) discuss the pros, cons, and merits of his position, going forward.
I think Don Brown (or favorite finance guy) fails to recall what led up to the “biggest wage increase in company history”, including long overdue GPD corrections at 56 centers.
Questions:
How many years did the bottom line benefit from less than COLA increases, as well as other "cost cutting measures"?
How might these “historic” increases have contributed to FedEx Freight (currently) doing better than the industry as a whole?
What would the current picture look like without the increases?
The answers would likely be outside the fine margins, that the CFO is focused on. Outside of his field of vision, I suspect. Or perhaps it just makes his job more difficult.
People contribute to each step of the customer satisfaction/service process. Without motivated people (the 1st P in PSP), the current industry leading growth would not be there. Low satisfaction/service would effect profit in a negative direction. Cause and effect must be factored in.
Without the increased wages, growth could be flat, and we would likely be hearing about how we simply must do more, The squeeze would still be in full force and a disgruntled workforce (top to bottom) would likely still be the norm. The corrections have contributed substantially to the bottom line in terms of lower turnover, employee engagement, etc.
Instead of dwelling on the past, it might be more productive to focus on how and where to bring more improvements. Know that they do, in fact, contribute to the long term success of that bottom line.
I think Don Brown (or favorite finance guy) fails to recall what led up to the “biggest wage increase in company history”, including long overdue GPD corrections at 56 centers.
Questions:
How many years did the bottom line benefit from less than COLA increases, as well as other "cost cutting measures"?
How might these “historic” increases have contributed to FedEx Freight (currently) doing better than the industry as a whole?
What would the current picture look like without the increases?
The answers would likely be outside the fine margins, that the CFO is focused on. Outside of his field of vision, I suspect. Or perhaps it just makes his job more difficult.
People contribute to each step of the customer satisfaction/service process. Without motivated people (the 1st P in PSP), the current industry leading growth would not be there. Low satisfaction/service would effect profit in a negative direction. Cause and effect must be factored in.
Without the increased wages, growth could be flat, and we would likely be hearing about how we simply must do more, The squeeze would still be in full force and a disgruntled workforce (top to bottom) would likely still be the norm. The corrections have contributed substantially to the bottom line in terms of lower turnover, employee engagement, etc.
Instead of dwelling on the past, it might be more productive to focus on how and where to bring more improvements. Know that they do, in fact, contribute to the long term success of that bottom line.
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