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Egypt Express - HR Department of the Year

Gold Stevie Award Winner 2018, Click to Enter The 2019 International Business Awards

Company: Egypt Express, Cairo, Egypt
Company Description: Egypt Express (“EE”) was established in 1998, and has since been a Global Service Provider for the Federal Express (“FedEx”) brand in Egypt Total # employees = 550+ , Total # offices = 33 FedEx is a courier delivery service company, Nature/line of business: Transportation , shipping , clearance cargo and courier services
Nomination Category: Human Resources Categories
Nomination Sub Category: Human Resources Department of the Year

Nomination Title: HR as a business Partner

Tell the story about what this nominated organization/department has achieved since 1 January 2017 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.

The Challenge:

Following the years of Egypt’s revolution in 2011, Egypt has passed through its most difficult times not only from; demonstrations, rallies, strikes, curfew, currency devaluation, travel ban, economy drop, fuel and Gas shortage, yet all economic indicators has declined leading to a severe decline in overall organizations’ business results while many others has closed. Egypt Express one of many organizations hardly survived yet couldn’t keep healthy business results.

In Sept 2013Minister of manpower, announced ithat more than 4,500 factories had closed in Egypt. Cost measures have been put to keep business going, those measures included productivity measures, total review of unhealthy products and accounts that needed to be closed, delay and halt of merit increases, halt of unnecessary communication and entertainment costs, etc.

Despite of all measures and different tactics put to keep business on healthy trends, not only all business measures declined year over year, yet more over employees’ morale was down leading to clear emotional separation from the business and indicators of unhealthy work environment were worrying

2015 business indicators:

  • Revenue, EBT, Volumes-25% - -35% YOY (2016)
  • Productivity= 28 pickups & delivery / FTE/Day
  • DSO = 54.09 days
  • # Investigations / month = 76
  • # Lost shipments = 114
  • Bad attitude investigations = 51
  • Turnover rate = 39%

Lead by the HR as a business partner, an initiative was raised to focus on “People” adopting FedEx culture P-S-P (People-Service-Profit).The focus was to achieve a healthier work environment, increase the level of passion and commitment thus a higher Employees’ engagement level to achieve better business results.

The risk was taken by the management despite the risky business results and unhealthy EBT, to invest in People and a better work environment.

Aim: was to improve employee morale and 2015/2016 business indicators 10-15% YOY

Measuring Employee satisfaction was necessary as a base line to measure level of satisfaction before and after the plan.

Six Sigma Techniques were used in all Action plans meetings beginning using (brainstorming, SIPOC, In & Out of the Frame, Fish bone, 5 WHYs) to come up with the pacific actions that are aimed to improve the Employee satisfaction level and consequently the engagement level on the aim to help improve business results.
Following actions were taken:

-Applying productivity measures –based on market trends- to ensure right sizing of the organization
-Using assessment and development centres for hiring managerial position and right allocation of calibres.
-To increase alignment and cooperation between department, collaborative targets were set shared between department and linked to company strategic objectives.
-All management team were set a target related to improving their leadership score of their departments and the company YOY.
-All senior and middle management teams are rewarded annually based on achieving collaborative targets of the organization. The targets are linked to: People- Service- Profit.
-Adopting FedEx latest trends related to technology: GPS in courier vehicle, ERP system started implementation in 2017, Sales forces for commercial department and surveys.

Main Actions:

A performance management system was planned and implemented based on collaborative KPIs, Departmental KPIS and individual IKOs, and main competencies. Merits were based on performance and new recognition programs were communicated celebrating extra miles and customers’ excellence.

Huge investment is Systems (Sales Force – ERP) and tools were done and employees’ trained.

Actions aimed at increasing employee engagement (kick off meetings, MD breakfast tables for informal top down/bottom up communication, road shows , celebrating extra milers, birthday and events celebrations, games, competitions between stations… were all actions initiated by employees during the road shows)

By 2017; We achieved not only best KPIs records ever (EBT, revenue, customer satisfaction) but we were also able to achieve substantial increase on all Employee Satisfaction KPIs increasing engagement score from 68% to 86% over one year.

Mission Accomplished through our people : (One Team – One Goal)

In bullet-list form, briefly summarize up to ten (10) accomplishments of the nominated department since the beginning of 2017 (up to 150 words).
2017 VERSUS 2015/2016 RESULTS:

-Productivity= 28 pickups & delivery / FTE/Day à 42 PUD/FTE/Day
-Revenue improved + 49%
-EBT % revenue -8% to +13.95%
-FTE from 380 to 570 (+56%)
-Turnover rate = 39% to26%
-DSO = 54.09 days to27.17 days (100% improvement)
-Engagement 68% to 86%
-Work environment from 60% to 82%
-Communication 62% to 82%
-Training hrs/FTE 4.33 to6.81 (+57%)
-Pre-Post Training assessment improvement +44%
-Investigations / month = 84 àto18 (10 months YTD)
-Bad attitude cases/year = 62 to12
-Recruitment lead time 27 days to 22 DAYS
-Lost Shipments 114 / year to6 per year (2015 vs. 2017)
-Productivity measures improved (28 -> 42 PUD/FTE/Day)
-SFA response rate improved from 55% to 84%

Extraordinary results were achieved, not only improving all 12 KPIS in the Employee Satisfaction (SFA), yet all other measures have exceeded the targets set only through engaging our employees.