Pay for Performance

The Postal Service’s Pay-for-Performance (PFP) program continued to drive organizational achievement during calendar year 2010. Unlike most government agencies that provide regular, across-the-board pay increases, PFP is the sole source of annual pay adjustments for non-bargaining unit employees.

PFP has been cited by several independent entities as a model for other agencies to emulate. The foundation of the system is a balanced scorecard of objective, independently verifiable measures of service, employee engagement 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. Core performance requirements and individual results are recorded in the Performance Evaluation System. For calendar years 2011 and 2012, salaries are frozen. For fiscal year 2011, no lumps sums are being paid due to the Postal Service’s financial challenges.