What’s the best way to encourage good performance? Employers have always struggled with this question. One answer is to pay employees based on how well they perform their jobs. Many private sector employers have adopted pay-for-performance (PFP) programs, and several federal agencies have also experimented with PFP. Some federal PFP programs have operated successfully for many years; others have been more controversial. Last year, Congress terminated a PFP program at the Defense Department. Employees complained that the program was arbitrary and lacked transparency.
The Postal Service processes payroll for more than 500,000 employees. To handle this monumental task, time and attendance information is gathered through the Time and Attendance Collection System (TACS). TACS then transmits the payroll data to the mainframe run by the Information Technology and Accounting Service Center (ASC) in Eagan, MN, for payment processing.
To encourage employees to contribute constructive ideas to enhance customer satisfaction, generate revenue, increase productivity, and improve competitiveness, the Postal Service offers the web-based eIDEAS program. Postal employees can submit ideas online or at a mail processing plant kiosk.
There is no question that a country’s postal service is a valuable national asset. On one hand, it is a functional asset that supports commerce and binds the nation together. On the other, postal operations are capital assets, with distribution networks, vehicles, machinery, and labor resources that have some sort of value.
The Sarbanes-Oxley (SOX) Act of 2002 grew out of large corporate financial scandals. SOX aims to improve corporate governance and enhance the accuracy of financial reporting. While compliance is required by the Postal Act of 2006, the Postal Service believes it is a great way to make its business stronger. SOX helps target areas of improvement and strengthen financial accounting, making the Postal Service a better business. As a result, the Postal Service designed and implemented new business mail acceptance procedures and requirements in an effort to comply with SOX.
The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).
One area identified in the Postal Service’s action for the future is to increase workforce flexibility. A larger, part-time work force would give postal management the flexibility to increase or decrease employees depending on mail volume. Although this change is not as drastic as closing postal facilities or switching to 5-day delivery, it raises questions about what a part-time postal workforce would look like. The Postal Service has fewer part-time employees than any other international postal operation. Currently only 13 percent of its workforce is part-time.
For decades, the Postal Service offered vending machine service to supplement its retail operations. Vending machines meet the needs of customers who want to purchase stamps without waiting in line. While the lack of stamp vending machines has resulted in customer frustration and a surprising number of newspaper articles, the problems are particularly acute in economically depressed and more urban areas.