Because of our promotion-from-within policy, many part-time employees have the opportunity to move into full-time positions. Full-time positions range from drivers and mechanics to software engineers, industrial and plant engineers, sales executives and human resources professionals.

As a result of the career and company ownership opportunities created for our employees, turnover in our full-time workforce is at an industry low of 9 percent.

2007 Goal:

Maintain the full-time workforce retention rate at no less than 92 percent.

Attrition (including retirements), acquisitions and market conditions will cause our current retention level to fluctuate. Striving for 92 percent retention perpetuates institutional knowledge while also allowing for a steady influx of new talent and ideas. As of 2006, the average full-time manager has worked for the company 15.3 years.

The full-time retention rate now reflects UPS's global operations, except Overnite/UPS Freight. For 2006, the rate dropped 1 percent to 91 percent.

Initiatives:

• Maintain a culture of employee ownership
• Focus on career development opportunities and promotion-from-within philosophy
• Offer training and education opportunities
• Respond to annual employee survey feedback
• Provide competitive compensation and benefits

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