STUDENT STUDY OWEN GRADUATE SCHOOL OF MANAGEMENT

Work-Life Balance Research Project

Whitney DuPree, Daniel Hudson, Scarlet Jones, Venkataraman Viswanathan May 9th, 2012

Table of Contents Executive Summary . Introduction . 2 3 4 57 79 10 15

Methodology . Results . .

Conclusions & Recommendations Appendix

Executive Summary FedEx recently received low survey scores from FedEx Sales Employees (FXSE) regarding work-life balance. As a result, FedEx collaborated with Vanderbilts Owen Graduate School of Management in forming a research team. The purpose of our team was to discover the underlying causes of these imbalances in hopes of resolving work-life imbalance issues. We gathered data through primary research (online surveys and phone interviews) to achieve the following objectives: Determine why FXSE are unsatisfied with their work-life balance. Locate the source(s) of FXSE work-life imbalance. Gather information on potential solutions to employee issues. Identify best practices for FedEx to increase efficiency during work hours.

After analyzing 49 surveys and completing 31 interviews our team recommends the following: Hire an administrative assistant to support teams of FXSE. Conduct a cost benefit analysis on the purchase and use of the iPad Tailor internet access (home system, air card) to the needs of the FXSE. Design alternative system for determining appropriate territory alignment. Continue strong managerial support of work-life balance and gain support from human resources. Minimize the frequency of territory realignment to support long-term customer relationships.

Introduction The majority of FXSE work from home making it difficult for them to establish work-life balance in comparison to the FedEx employees headquartered in Memphis. Over the past few years, FedEx has received positive feedback from sales regarding FedEx's culture and career advancement opportunities. However, the feedback section receiving the lowest scores is worklife balance. It is important for FedEx to improve this measure so that they are able to retain and recruit a talented workforce. Our team was assembled to research the sources of work-life balance dissatisfaction and recommend solutions. In order to accomplish these goals, we divided the project into three steps: First, conduct market research to determine why current FXSE are dissatisfied with their current work-life balance. Such market research would include surveys and interviews. Second, identify new best practices for FedEx Sales to adopt in order to increase their efficiency during work hours. Third, present findings to sales managers for local implementation and potential international rollout. Immediately after an initial meeting with FedEx management, we drafted a contract (Exhibit 1) outlining details of the project, including the following research objectives: Determine why FXSE are unsatisfied with their work-life balance. Locate the source(s) of FXSE work-life imbalance. Gather information on potential solutions to the employees issues. Identify best practices for FedEx to increase efficiency during work hours.

Relationships among work-life balance, demographics, time usage, technology satisfaction, and customer support directed the focus of our interview guide, which ultimately offered recommendations for improving work-life balance of FXSE. 3

Methodology All of our data was primary and collected through online surveys and follow-up interviews. Before creating and distributing the survey, our team met with the managers at FedEx to help direct the nature of the survey. The meeting led us to test three main areas of potential work-life balance dissatisfaction: Time (length of workdays, regularity of working hours), technology (Blackberry, iSell), and support (human resources and management). The population was small at just 59 individuals in this FedEx Sales region, so the Qualtrics-based survey was distributed via an e-mail link on Thursday, April 12th. The link to the survey was closed on April 17th, as was specified in the e-mail. The total number of respondents, 49, yielded an extremely high response rate of 83 percent. Every finding was statistically significant and is therefore discussed in the succeeding section. Certain patterns emerged from the survey that triggered further investigation. Respondents signaled in their answers that issues pertaining to customer relationships, administrative work, and support from management were more important to their work-life balance than time spent working and the availability of certain technology. From these emerging trends, we drafted an interview to be conducted on the phone with FXSE. The goal of the interview was to identify potential solutions to work-life balance dissatisfaction. We ensured participants of their anonymity to encourage interviewees to speak honestly. This assurance maximized the effectiveness of the interview. For the one-on-one interviews, we used a subset of the population, interviewing 31 individuals, at just over 50 percent of the whole population. The survey, interview results and recommendations are detailed below.

Results We analyzed the survey responses for all 49 respondents using cross-tabulations, correlation testing, linear regression and descriptive statistics. Four general trends emerged from the survey: The longer an employee is with FedEx, the more likely they are to rate their work-life balance lower (Exhibit 2). On average, FXSE routinely work beyond their expected or planned hours, often doing activities unrelated to actual selling (Exhibits 3 and 4). With regard to the quality of their work-life balance, FXSE rank management support the most important aspect in their jobs, followed by technology and time commitment (Exhibit 5a through 5d). Respondents that met a higher percentage of their sales calls rated their work-life balance higher than those who were unable to meet such a high percentage (Exhibit 6). The first finding from the survey seems logical. FXSE that have been with FedEx the longest are more likely to have family and therefore more demands from their home life than employees that are younger. We defined this statistical relationship with the following equation: Work-life balance quality out of 5 = 3.47 - 0.053*(Number years worked at FedEx) This could also be attributed to more experienced employees with a high degree of comfort in speaking openly about their career, including work-life balance. Indeed, they might be just as satisfied as their younger counterparts but are more willing to open up about it. Perhaps the most revealing discovery from our research was the amount of work FXSE is doing unrelated to actual selling. FXSE recognize that there is a certain amount of administrative work that is unavoidable. However, they had many recommendations on ways to minimize 5

admin work, which is discussed in a later section. Respondents, on average, work from 7:15 AM to 6:30 PM, equating to a 56-hour and 15-minute five-day work week. (Exhibit 4) Furthermore, they answered that they expect around 46 hours per week. In interviews, salespeople explained that many of these hours are not used selling or building customer relationship but putting out fires and taking care of customer service issues because customers either do not trust or do not want to use FedExs 800-number. When prompted to describe how their customer assignments have changed, several responded that assignments change as often as every six months. FXSE prefers to build long term customer relationships because it helps them anticipate customer needs and increase FedEx business. We tested three main areas with the online survey: time, technology and managerial support. Our hypothesis was that time would be the key area that salespeople would want improved for their work-life balance, but it was actually the least important (Exhibit 5a). The most important aspect of their job with regard to work-life balance was managerial support. Respondents are fine with working beyond their expected hours and using the current technology if they feel that their manager hears and supports them. To dive further into this question, we asked interviewees how well their duties were defined for them. The majority were happy with the clarity of their responsibilities, but one did explain that while his/her duties were defined well, managerial perspectives of those duties varied. Overall, FXSE are happy with their managerial support and because the survey revealed that is the most vital aspect of work-life balance, it is beneficial. A reoccurring theme was that a salesperson that had reasonable workload expectations was going to be more satisfied with his/her work-life balance than the average respondent. This was confirmed with weekly working hours (as previously discussed) and with percentage of 6

sales calls met. Respondents that met a higher percentage of their sales calls had a higher worklife balance rating than others, as described by the equation: Work-life balance quality = 3.58 - 0.33*(On scale from 1-5, percentage of calls met), where 1 = 100 percent, 2 = 75 percent, 3 = 50 percent, 4 = 25 percent, and 5 = I do not plan my sales calls. The satisfying feeling of meeting 75 or even 100 percent of planned sales calls had one of the strongest influences on work-life balance in all of our research.

Conclusions & Recommendations Technology: We received mixed feedback on whether FXSE should switch to the iPad from the current Blackberry and laptop. However, the majority agreed that with an iPad, ease of use would improve and duration of load time would decrease. Sales consistently commented on the slowness of their laptop and the inadequacy of their Blackberry in doing job-related tasks other than checking e-mail. FXSE claimed that starting up their computer took anywhere from five to fifteen minutes. Additionally, since an iPad is lightweight sales reps stated they would be more likely to bring their iPads with them during sales calls as opposed to their current laptops. We recommend investigating total investment (time, money, training, etc.) in iPads. The laptops are not used very often, so the high investment could be a potential waste and therefore demands further investigation. Internet Access: Employees had neither, either or both internet services (home system and air card). Internet access should be tailored to the individual. For example, one sales individual said that an air card would be of great benefit when a customer cancelled/postponed a meeting. During this time an air card could be utilized to complete work instead of travelling 7

thirty minutes back to the office. Other employees did not show an interest in an air card as most of their customers were in close driving range to their home office location. Administrative Assistant: Many salespeople indicated the non-selling parts of their job as the most draining on their work-life balance, such as making themselves available 24/7 to handle customer service issues in order to maintain customer satisfaction. Throughout the interviews, FXSE claimed that a large portion of their time was spent putting out fires on customer issues, LTL pricing, Apex Reviews and CBR. FXSE claimed that using the sales hotline was unreliable because the skill level would vary depending upon who answered the call. Additionally, customers prefer to use FXSE to handle all of their issues instead of customer service because of the varying skill level. During the interviews, sales highly recommended that there be an administrative assistant assigned to each team. This assistant would be highly skilled in the needs of the team and would be able to assist with items such as LTL pricing, tracing and territory alignment. Territory Alignment: FXSE respect FedEx Corporation, and believe in the company values but feel as though they are unfairly treated when it comes to territory alignment. FXSE complained of outdated software, lost commissions to other divisions such as marketing and an unfair distribution of territory. We recommend that FedEx evaluate the current territory alignment software and update it or replace it to better align territory assignments. Long-term Customer Relationships: FXSE can better serve customers when they build long-term relationships with them. With regard to work-life balance, FXSE are likely to become more and more accustomed to the needs of customers that they have had for a long time and can plan accordingly, improving their work-life balance.

Appendix Exhibit 1

FedEx Sales Work-Life Balance Research Study

February 13, 2012

According to recent feedback, work-life balance is an aspect of FedEx Sales employees jobs that needs most attention. These employees are primarily based out of their homes, which makes it difficult for them to establish work-life balance due to numerous potential factors. It is the discovery of these factors, their sources, and ways to avoid their influence that is the impetus for this project. Work-Life Balance Study Objectives The following four objectives will guide this study. Stemming from these objectives are many questions and insights that will be gained from interviews and surveys: 1) Determine why FedEx Sales employees are unsatisfied with their work-life balance. 2) Locate the source(s) of employees work-life imbalance. 3) Gather information on potential solutions to the employees issues. 4) Identify best practices for FedEx to increase efficiency during work hours. Information Gathering We plan to collect data regarding this phenomenon from two different methods: Surveys and interviews. The survey will be sent through the FedEx system to the employees located in the Middle Tennessee region from the Nashville office. It will address quantitative information such as time spent planning by the salesperson and daily hours spent using technology. We will analyze the results from the survey to identify trends that urge for furthering research. This research will be done with interviews, either on the phone or in person, which will allow us to collect qualitative information and anecdotal data. Conclusion of Study The study will conclude with a written report and presentation to Hiro Ito and Joe Sharkey on our findings, key insights, and suggestions for improvement based on the research. This concluding presentation will take place before May of 2012.

Exhibit 2 Work-life balance quality out of 5 = 3.47 - 0.053*(Number years worked at FedEx)

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Exhibit 3

8. What is your expectation with how many hours a normal work week should be? 40-42, 43-45, 45-48, 49-52 or 53 plus
# 1 2 3 4 5 6 Answer 38-40 41-43 44-46 47-49 50-52 53+ Total Response 2 9 11 9 10 3 44 % 5% 20% 25% 20% 23% 7% 100%

Statistic Min Value Max Value Mean Variance Standard Deviation Total Responses

Value 1 6 3.57 1.83 1.35 44

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Exhibit 4

9. What time do you usually begin working?

# 1 Question Begin work 6:00 AM 3 6:30 AM 8 7:00 AM 9 7:30 AM 14 8:00 AM 5 8:30 AM 5 9:00 AM 0 9:30 AM 0 10:00 AM 0 Responses 44 Mean 3.57

Statistic Mean Variance Standard Deviation Total Responses

Begin work 3.57 1.97 1.40 44

10. What time do you usually finish working?

# 1 Question End work 4:00 PM 0 4:30 PM 1 5:00 PM 5 5:30 PM 8 6:00 PM 6 6:30 PM 5 7:00 PM 6 7:30 PM 2 8:00 PM 11 Responses 44 Mean 6.05

Statistic Mean Variance Standard Deviation Total Responses

End work 6.05 4.93 2.22 44

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Exhibit 5a

30. Rate the following elements of your workday on its importance to you. (1=Very Unimportant, 10=Very Important)
# Answer Time (working hours, planning time etc...) Technology (ISELL, BlackBerry, Laptop) Support Min Value Max Value Average Value Standard Deviation Responses

0.00

10.00

7.98

2.28

43

2 3

0.00 0.00

10.00 10.00

8.23 8.25

2.35 2.37

43 44

Exhibit 5b

6. How important are the following elements relative to your worklife balance? (1 = Very Unimportant, 5 = Very Important)
# 1 2 Answer Regular Working Hours Well Planned Daily Schedule Easy Documentation (Sales call, contract completion) Less Travel Min Value 2.00 3.00 Max Value 5.00 5.00 Average Value 4.14 4.39 Standard Deviation 0.93 0.63 Responses 36 41

3.00

5.00

4.44

0.74

41

1.00

5.00

2.77

1.14

30

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Exhibit 5c

16. How important is the following technology relative to your worklife balance? (1= Very Unimportant, 5= Very Important)
# 1 2 3 Answer ISELL BlackBerry Laptop Min Value 1.00 2.00 2.00 Max Value 5.00 5.00 5.00 Average Value 3.97 4.64 4.65 Standard Deviation 1.24 0.74 0.72 Responses 38 39 43

Exhibit 5d

22. How important is support from the following parties relative to your work-life balance? (1= Very Unimportant, 5= Very Important)
# 1 2 3 4 Answer Human Resources Your manager Your peers Other Min Value 1.00 1.00 1.00 0.00 Max Value 5.00 5.00 5.00 5.00 Average Value 2.79 4.61 3.91 3.27 Standard Deviation 1.47 0.83 1.08 1.79 Responses 34 41 34 11

Other Customer needs Including spouse in entertainments Customers, Internal Customers inside sales handling their own accts vs referring to field sales Upper Management local customer service FDX Cust Svce Dept

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Exhibit 6 Work-life balance quality = 3.58 - 0.33*(On scale from 1-5, percentage of calls met), where 1 = 100 percent, 2 = 75 percent, 3 = 50 percent, 4 = 25 percent, and 5 = I do not plan my sales calls.

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