Chapter 3 Our Workforce

Pay-for-Performance

The Postal Service’s award winning Pay-for-Performance (PFP) program continued to drive organizational achievement in 2008. (Performance results are highlighted in Chapter 5.) PFP is the sole source of annual pay adjustments for non-bargaining unit employees. The foundation of the evaluation system is a balanced scorecard of objective, independently-verifiable measures of service, workplace environment, productivity, and financial performance. Performance indicators are measured at national, area, district, business unit, and individual levels so that meaningful performance distinctions are made within the line-of-sight of all managers.

In September, the Government Accountability Office issued a report on the PFF program which included a recommendation for new delivery performance indicators for Standard Mail and bulk First-Class Mail. These will be baselined in 2009 along with other mailing services as required by the Postal Act of 2006. The Postal Service’s PFP program has been cited by several independent entities as a model for other agencies to emulate as it links individual contributions to organizational success through objective indicators that are aligned at the corporate, functional, and individual levels.

The Performance Evaluation System (PES) automates the recording of core performance requirements and individual results. PES has improved efforts to provide timely and specific feedback on individual performance. The major change in PES this year was a broader range of individual core requirement ratings, designed to allow evaluators to differentiate performance contributions to a finer degree. PES was enhanced to give evaluators the ability to rate executives on eight executive competencies. The Ratings Recourse process was enhanced to allow evaluators to approve and/or modify rating challenges by employees for individual core requirement ratings.

Pursuant to §39 U.S.C 3686(d), the Postal Service hereby reports that during calendar year 2007 the following individuals received compensation in the amounts listed in excess of the rate for level I of the Executive Schedule under section 5312 of title 5: