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Audit Reports

Jun
03
2013
Report Number:
DP-MA-13-001
Report Type:
Audit Reports
Category: Strategy & Investments

U.S. Postal Service Pay for Performance Program

BACKGROUND:

The U.S. Postal Service’s Pay for Performance (PFP) Program enables the Postal Service to set strategic goals and measure supporting performance objectives throughout the organization. These performance metrics are aligned to measure performance at corporate, functional unit, and individual employee levels.

The Postal Service froze pay increases for fiscal years (FY) 2011 and 2012 due to financial difficulties and has yet to decide whether to grant pay increases in FY 2013. However, in the past, the PFP Program has been the sole source of annual pay adjustments for non-bargaining unit employees, including Postal Service executives. If pay increases are reinstituted, the program again may be used in this capacity.

The program included two parts: the National Performance Assessment and the core requirement or individual performance metrics within the Performance Evaluation System. The National Performance Assessment provides a standardized method for assessing performance within the Postal Service on a national and local level and reporting on weighting factors and timeframes for key performance metrics. The Performance Evaluation System is a national system for evaluating individual achievements determined by the employee and his or her supervisor. However, effective October 5, 2012, the core requirement portion was discontinued for most PFP participants. Our objective was to determine how PFP metrics were developed and measured and whether they are aligned with the Postal Service’s strategic goals.

WHAT THE OIG FOUND:

The Postal Service clearly and accurately documents how it develops, measures, and approves its PFP metrics. However, current Postal Service PFP metrics do not directly support all of the agency’s strategic goals or, specifically, the postmaster general's four core business strategies (and sub-objectives) created to return the Postal Service to profitability. If the Postal Service addresses this issue, it could increase productivity towards its strategic goals.

WHAT THE OIG RECOMMENDED:

We recommended evaluating the current performance metrics and developing performance metrics that better support the Postal Service’s strategic goals.  

Report Recommendations

# Recommendation Status Value Initial Management Response USPS Proposed Resolution OIG Response Final Resolution
1

R - 1 -- We recommend the chief human resources officer and executive vice president, in coordination with the vice president, Finance and Planning:

Evaluate the current performance metrics and develop performance metrics that better support the Postal Service’s strategic goals.

Closed $0 Agree