USPS Launches innovative management pay system
U.S. Postmaster General John E. Potter, working with Postal Service employee groups, has launched an innovative pay system for 70,000 management employees that uses goals and performance indicators to determine the size of their annual raises. Potter is betting the pay-for-performance system will spur most postmasters, managers and supervisors to continually improve mail operations because they will have a chance to earn bigger raises than in the past. “If our people are happy, our customers will be happy because service will be up, and costs will be down,” he said. “If we have unhappy folks, the system will be sending a message that they haven’t performed. To me, that is truly a breakthrough — that we’re able to get through the entitlement culture and get to people and say, ‘Okay, listen, there is no more mystery here. This is what your job is. These are the indicators that you are being held accountable for.’ Potter described the new pay system as “strictly data driven.” The pay of postmasters, managers and supervisors will hinge on how well they meet customer service goals, improve workplace safety and control overtime and other costs that can be measured. The system includes a few subjective measures, such as management demeanor and verbal communication. The new system underwent a test run last year. Potter applied it to the Postal Service’s 713 executives, who are paid an average of USD118,400. In the past year, Potter said, productivity went up, employee grievances went down and safety improved. The job performance will be measured based on how an employee achieves national and local goals, measured by team and individual performance. The goals and payouts are weighted based on the job, location and other factors. The first raises under the system will be paid out about this time next year.
