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UPS is one of the world’s largest employers in the private sector—and less than 20 percent of our people work in a typical office building. The rest work in freight and package handling or drive motor vehicles, which means their workplace is the roads, streets, and highways of the world as well as hundreds of sorting facilities, distribution centers, and vast, complex air hubs. 

We expect our employees to operate vehicles, equipment, and information technology tools while fully committed to safety; to meet daily and hourly business deadlines; and to maintain a positive attitude toward customers and co-workers at all times. We also expect them to represent our brand, culture, and values day in and day out, throughout the world. The way they embrace these challenges is one of the reasons UPS has been included for more than 20 years on the FORTUNE Magazine list of “World’s Most Admired Companies.” 

We have been able to maintain a long tradition of excellence and high standards by hiring the most talented people we can regardless of their race, gender, gender identity, or sexual orientation. And because we value their talents and diversity so fully, we systematically invest substantial resources in training, educating, and promoting our employees to increase their capabilities and career opportunities even further. 


Management Approach 


The majority of our managers started in non-management positions, so they have first-hand experience of the UPS workplace from the bottom up. This generates one of the most important aspects of our corporate culture: an egalitarian, can-do attitude at all levels of the organization. So our management approach in the workplace begins with preserving and reinforcing this attitude, even as we expand internationally at a rapid rate. 

Our primary strategies in this regard have remained in place for decades. 
• We keep our employees safe, with a comprehensive program combining training, technology, recognition, and continuous communication aimed at minimizing unsafe situations and behavior. 
• We develop our employees as workers and individuals, with training for both current tasks and future career development. 
• We promote our employees to new responsibilities and roles, which adds value both to UPS and to the individual. 
• We thrive on diversity, recognizing that it makes us stronger and more sustainable as an organization. 
• We retain employees as a high priority even when macroeconomic conditions reduce our business opportunities. 
• We help our employees maintain healthy lifestyles with a broad range of programs and benefits to promote whole-person health and wellness. 


Policy & Responsibility 


Use of Metrics and KPIs 
We use metrics and key performance indicators (KPIs) throughout the workplace, where they can give management a clearer view of trends and help us spot opportunities to execute on the management approach previously outlined. We consistently report on four workplace KPIs, using the same terms and definitions as in past years and presenting prior-year data for comparison. In this Report, the workplace KPIs appear in "Key Performance Indicators". 

Responsibility 
Organizational responsibility for executing our human resource policies and management approach rests with John McDevitt, Senior Vice President, Human Resources. Mr. McDevitt is a member of the Management Committee, which is responsible for setting and executing all UPS policy. 

Training and Awareness 
Most of our senior managers have worked in multiple functions within the company. This includes members of our Management Committee, the most senior management body at UPS. To reach the Management Committee, an employee must work at multiple levels in multiple departments and facilities throughout the company. Our company leaders are thus aware of the full range of issues related to fair employment and human rights on the job. We supplement this experience with systematic training of our management employees, and we provide all employees worldwide with a 24-hour “Help Line” that enables them to anonymously report their concerns about on-the-job issues. 

Monitoring and Follow-Up 
We conduct regular internal monitoring of how our employment policies and practices are followed around the world. One of our primary monitoring programs is our employee engagement survey (EES), which is a survey of employees at all levels and locations of the company. Many business units gather their survey results from a representative subset of their employees. The EES is reported back to all employees and also to management, up to and including the UPS Management Committee. We use a subset of the EES for our annual KPI on employee engagement (see “Employee Satisfaction” on the following page). 

Additional Information 
Numerous outside stakeholder groups monitor UPS with regard to workplace issues. These include industry publications, general interest publications, professional groups, and workplace interest groups. We take their views and reports seriously. When outside stakeholders LA1 LA2 LA13 raise issues about our workplace practices or performance, we engage with them directly to understand how we can best address the issues. UPS routinely wins positive recognition from outside observers regarding equal opportunity, diversity, and other employment issues. 

UPS does not rely on recruitment and placement services to a significant extent. When we do contract with recruitment and placement services, we conduct those relationships in accordance with our Code of Business Conduct and Policy Book, other UPS governance structures, and all applicable laws and regulations. We believe the criteria established in our governance structures substantially meet or exceeds existing international standards. Organizations that do not meet these standards are not eligible to provide recruitment and placement services to UPS. 

Our approach to workforce stability and employment continuity relies on effective business planning. Proactive workforce strategies and staffing partnerships help us work through challenging economic conditions. While the majority of our people are regular employees, we meet seasonal customer demands by hiring more than 100,000 seasonal employees globally, and where applicable, professional service companies and contingent workers are added to supplement service flexibility and staffing needs. During conditions, which require a reduction in regular employee numbers, we employ numerous measures to ensure income security and employment continuity for our regular employees. These include limiting new hiring, transferring employees into equivalent positions in other departments, and training them for new positions either in their own department, a new department, or business unit. 


Goals and Performance 


Employee Satisfaction 
Our KPIs for workplace include Full-Time Employee Retention Rates, Employer of Choice Index results, Lost Time Injury Frequency, and Auto Accident Frequency. All of these trended positively in 2012 compared to 2011. 

Safety on the Job 
Of note, our two safety KPIs continue to improve due in part to revamped training for managers in how to educate, instruct, and motivate their teams about safety on the road and on the job. In 2012, more than 850 front-line managers and supervisors completed dedicated courses in the areas of auto accident and injury prevention. 

Employment Statistics 
As of September 30, 2012, UPS had 397,123 permanent employees (approximately 100,000 seasonal contingent hires), including 76,885 people employed outside the U.S. We hired 59,562 permanent new employees in 2012. 

Additionally, our workforce is broken down by gender as: 
1. 20.2 percent total female (18.5 percent in the U.S., 27.1 percent outside the U.S.). 
2. More than 71,506 full and part-time management, of which 29.0 percent are female (28.8 percent in the U.S., 30.1 percent outside the U.S.). 
3. More than 325,617 full and part-time nonmanagement, of which 18.3 percent are female (16.2 percent in the U.S., 26.6 percent outside the U.S.).
Risks and Opportunities


A full discussion of risk factors related to the workplace is included in our Annual Report, which is available online at www.ups.com/investors. The main opportunities in the workplace at UPS are discussed in this Report.