in every community across the country. We are committed to improving the employee experience and we
continue to invest in initiatives that will equip, empower, connect, and engage our employees.
At September 30, 2022, our workforce consisted of 635,250 employees, substantially all of whom reside in the
U.S. We categorize our employees into two primary groups: career and pre-career. Career employees are
considered permanent and are entitled to a full range of benefits (e.g., health and retirement) and privileges,
while pre-career employees do not yet have permanent status and do not receive full employee benefits and
privileges. At September 30, 2022, we had 516,750 career employees and 118,500 pre-career employees.
At September 30, 2022, 92% of our employees are covered by collective bargaining agreements. These
agreements include provisions governing work rules and provide for general wage increases, step increases
and COLAs, which are linked to the CPI-W, as well as provisions that limit our ability to reduce the size of the
labor force and restrict the number of pre-career employees. Our labor force is primarily represented by the
APWU, the NALC, the NPMHU, and the NRLCA.
By law, we must consult with management organizations representing most of our employees not covered by
collective bargaining agreements. These consultations provide non-bargaining unit employees in the field with
an opportunity to participate in the planning, development and implementation of certain programs and policies
that affect them. For additional information on our collective bargaining agreements, see Part II., Item 8.
Financial Statements and Supplementary Data, Notes to Financial Statements, Note 10 - Commitments and
Contingencies.
COMPENSATION AND BENEFITS
We endeavor to enhance our role as a preferred U.S. employer, offering stable jobs with flexible compensation
and benefits packages to attract and retain highly qualified employees. We regularly review our compensation
and benefits offerings to ensure we are meeting the needs of our current and future employees.
Along with basic competitive rates, certain employees are also eligible for overtime pay, night shift differential,
and Sunday premium pay. Benefit programs include health, dental, and vision benefits, flexible spending
accounts, paid time off, defined contribution retirement plans, defined benefit retirement plans, and employee
assistance programs, depending on eligibility.
Overall, the total compensation of our median employee was $98,260 during the year ended September 30,
2022. Total compensation for this purpose includes base pay plus other forms of cash compensation, such as
overtime and bonuses, plus any change in pension value.
DIVERSITY AND INCLUSION
We believe diversity means building an inclusive environment that respects the uniqueness of every individual
and encourages the contributions of people from different backgrounds, experiences, and perspectives. We
believe our investment in a strong diversity program creates a positive work environment that recognizes the
contributions of all our employees and provides us with a strategic advantage. As a further commitment to this
investment, in 2021, we established an Executive Diversity Council to advise on diversity, equity, and inclusion
matters, and champion key initiatives to build leadership and organizational capabilities.
We focus on diversity and inclusion in the recruitment, development, and retention of employees. We continue
to be one of the leading employers of historically underrepresented racial groups, women, and veterans, at all
levels of our organization. As of September 30, 2022, historically underrepresented racial groups, women, and
veterans represented 53%, 46%, and 10% of our total workforce, respectively, and 38%, 36%, and 11% of our
senior management, respectively.
EMPLOYEE ENGAGEMENT
We aim to provide employees with an engaged workplace, one in which teams and individuals thrive and
perform at high levels. We use a variety of methods to promote engagement including employee feedback
mechanisms, such as open communication through Next Level Connection conversations, engagement
ambassadors, an annual engagement survey, engagement communications through multiple platforms (e.g.,
social media, videos, newsletters, publications, etc.), engagement action planning, and engagement recognition
2022 Report on Form 10-K United States Postal Service 8