The Employer of Choice Index (ECI) is compiled from a subset of 20 questions contained in the Employee Opinion Survey. The ECI looks at concepts, like career opportunities, workplace flexibility initiatives and benefits, that affect how we attract, retain and motivate employees. The results are used by senior management to analyze company initiatives. The goal is to use the feedback to develop and implement strategies that continue to make UPS an employer of choice.

2007 Goal

Achieve an 80 percent favorable rating among our employees.

UPS has implemented several programs to ensure we maintain our status as an employer of choice, including expanded training, renewed focus on career development discussions with all employees and enhanced programs for years of service.

Initiatives:

• In 2006, a Women’s Leadership Development program was initiated to address the attraction, development and retention of women in the workplace. The program seeks to provide connections through networking, mentoring, education and community-based involvement. Initially lauched as a pilot, the program will be deployed across the U.S. and Canada in 2007.
• Also during 2006, UPS launched a unique health coaching program called UPS Healthy Connections – Informed Choices to approximately 100,000 employees. This cutting-edge health program provides access to health information, health decision support tools and valuable health resources that empower employees while offering the personalized support of a health professional to those who need it most. As of February 2007, approximately 300,000 U.S.-based employees and their family members are eligible for this program.

Ongoing Initiatives:

• Action plans developed by employee relations committees to address issues identified by employees in the survey
• Annual video message from the Chairman and CEO which addresses company-wide challenges as well as issues confronting specific functions
• Effective employee communication programs, including worldwide deployment of employee portal
• Competitive compensation and benefit plans
• Enhanced recognition programs to reward years of employment
• Career development opportunities
• Workplace flexibility initiatives
• New hire training and job specific training
• Tuition reimbursement
• Continued benefit for up to 12 months for military reserve employees call to active duty

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