Is your operation keeping pace with the industry standard? You can find out through our Annual Wage and Operations Survey results. We have analyzed the responses from 510 mail centers and the wages and conditions of over 5,400 mail center employees. It's an undertaking we have done for the last 12 years. And each year, the industry has yearned for information about business changes that might affect mail center operations and employees. Over the course of time, we have documented the impact of the "basement syndrome," the Postal Service's automation plan, the "threat" of facility management companies, the professionalism of certification and, this year, we take a hard look at the looming threat of the Internet as businesses move documents to electronic format to cut costs. But we don't stop there. In this issue, we delve into all of the wage and employee condition issues and, then in the next issue, we will unveil the results of the operations side of the survey.
The Internet Threat? Not Yet
The paperless world is still a long way off, according to survey results. Only 34% of mail center managers reported the Internet as having an affect on mail volume. Even that number may be high because 68% of those did not report whether it was an increase or decrease in volume and perhaps were responding on an assumption. Of those who knew the effect, 39% said it had increased mail volume while 61% saw a decrease. About one-third of respondents didn't know by what percentage volume had increased or decreased.
Even though we are most likely at the beginning of a trend, the impact of the Internet has had little affect on mail center staffing. In those centers where volume has decreased because of the Internet, the average number of employees has and will remain stable (2000-2002 statistics), most likely because other factors are increasing overall mail volumes. In centers with volume increases, staff size has increased, on average, 2.4 people from 2000 to 2001 and 1.7 from 2001 to 2002.
Managers who are experiencing an increase in volume (71%) tend to support Postal Reform more than those experiencing a decrease (67%). On the flip side, those with volume decreases would like to see the USPS privatized (31%) and give up the private express privileges (37%) more often than managers with increasing volumes generated by Internet activity (22% and 25%, respectively).
Hanging on to Employees
Mail center managers have done an outstanding job of elevating their centers and employees. Even in the tight labor market of the last few years, managers have been able to improve employee retention rates. Managers in manufacturing and wholesale trade have achieved the highest rate (94%). Surprisingly this year, business services had the lowest rate (86%), a spot usually reserved for lettershops (a close second at 87%). Managers who have safety protocols in place have the lowest levels of turnover and those who measure operator productivity have the highest turnover levels, most likely preferred turnovers. Managers' pay does not significantly vary ($1,000 variance per year) based on how well or poorly they retain employees.
Professional Development
Training themselves and their employees makes a significant difference in managers' pay (22% more). Of those managers (52%) who budget for training, 82% provide general training while only 49% provide technical. Only 31% of those who · budget for training provide both general and technical. Male and female managers equally offer the opportunity to staff. Those who receive technical training get paid more than those who receive general training (entry level is 5% more; highest wage is 8% more). Technical training has also positively affected the retention rates, although by only 1%.
Although the industry isn't realizing an increase in the number of managers becoming certified, those most likely to be certified are from government or other nonprofit organizations, processing Standard mail in volumes exceeding one million pieces.
Less than half (49%) of the respondents reported belonging to an association. Of those, 25% belong to more than one association. Fifty-eight percent belong to PCCs, 16% belong to NACUMS, 13% belong to MASA, 13% to MSMA and 5% to IPMA. Managers who participate in associations earn 6% more than the industry average. However, supervisors and non-management staff do not fair as favorably. Supervisors earn 2% more and non-management entry wages are slightly lower (1%) than the industry average and the high-end is only 1% more than the industry average.
Sizing up the Staff
In years past, the industry witnessed fewer employees by volume processed, perhaps due to automation. The average number of workers in the mail center is slowly on the rise. While the very smallest centers, processing less than 50,000 per month are stable at 3.7 employees, all other centers are increasing staff. Mid-volume centers experienced a 4% increase from 15.4 in 2000 to 16.1 employees in 2001. The very largest centers, processing more than 1 million per month, increased staff by 13%, in the last year (41.1 to 46.7 employees), but expected to slow staff growth to only 1% into 2002.
More Facts and Figures
Don't miss the next issue of Mailing Systems Technology in which we showcase more information about buying habits, cost per-piece, productivity, outsourcing, opinions about the Postal Service and a bevy of other data. Thanks to all those who took time to fill out the survey. Without your efforts, we couldn't set industry standards. If you have any comments on the survey, why not post them on our discussion board at www.mailingsystemsmag.com.
See Part 2 of the Annual Wage and Operations Survey Results in the November-December issue of Mailing Systems Technology.
