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U.S. Postal Service: Opportunities Exist to Strengthen Workforce Diversity Efforts

GAO-24-105732 Published: Dec 15, 2023. Publicly Released: Dec 15, 2023.
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Fast Facts

The U.S. Postal Service's workforce has become more diverse in recent years, but it's had challenges ensuring its leadership reflects the diversity of its workers. White employees are still more likely to be promoted to some management positions than non-White employees. And managers from historically disadvantaged groups are generally paid less than their White counterparts.

USPS's executives have made commitments to supporting diversity, and USPS has met some other leading diversity management practices. But it can make further improvements, like linking diversity goals to leaders' performance plans. We recommended it do so and more.

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Highlights

What GAO Found

The diversity of the U.S. Postal Service's (USPS) workforce has increased in recent years, including among its executive leaders. However, GAO's analysis—which controlled for factors such as employee tenure—found that White, non-Hispanic or Latino, and male employees generally had more positive career outcomes in USPS management than other demographic groups. For example, Hispanic or Latino employees' likelihood of promotion to middle manager roles was 28 percent less than their non-Hispanic or Latino counterparts. For Black or African American and Asian employees, the likelihood of promotion to middle manager roles was about 40 to 50 percent less than their White counterparts. In contrast, Black or African American and Asian managers were almost twice as likely as their White counterparts to be promoted to executive positions. GAO's analysis of management pay, which also controlled for relevant factors, found that many historically disadvantaged racial or ethnic groups, as well as women and employees with disabilities, earned 1 to 7 percent less than their counterparts, who were White, non-Hispanic or Latino, men, and employees without disabilities, respectively.

In each of its annual reports to the Equal Employment Opportunity Commission (EEOC) from 2016 through 2022, USPS identified some triggers to achieving workforce diversity. However, lack of applicants' demographic information, which is voluntarily provided by job and promotion applicants, limited USPS's ability to identify actual barriers. USPS is developing a new data system but does not have a plan for how it will use the data.

U.S. Postal Service's Diversity Practices Compared to Diversity Management Leading Practices

U.S. Postal Service's Diversity Practices Compared to Diversity Management Leading Practices

USPS met or mostly met five of the nine leading practices GAO previously identified for diversity management in the workplace. For example, establishing an Executive Diversity Council was among USPS actions that demonstrated top leadership commitment. USPS partially met the remaining four leading practices. For example, while its 10-year strategic plan highlights USPS's commitment to diversity, the plan does not specify performance measures for achieving that end. Developing specific diversity-related performance measures could help USPS track its progress and identify areas where adjustments to its diversity program, practices, and policies may be warranted. In addition, USPS has developed advisory boards to facilitate USPS's workforce diversity efforts, but membership of those boards consists only of senior USPS leaders. Gathering employee feedback from all career levels and different affinity groups could help USPS better assess progress towards its goal of a diverse and inclusive workforce.

Why GAO Did This Study

USPS reports it employs one of the most diverse workforces in the nation. However, USPS has faced challenges ensuring its leadership reflects the diversity of its workforce and the U.S.

GAO was asked to examine USPS's efforts to develop a diverse workforce. This report examines career outcomes for demographic groups in USPS management. It also addresses the extent to which USPS has identified barriers to achieving workforce diversity and met leading diversity management practices, among other objectives.

GAO used USPS data from fiscal years 2016 through 2022 to analyze career outcomes (promotions, pay, and separations) in management by demographic groups. GAO's analyses do not completely explain the reasons for differences in career outcomes, which may result from various unobservable factors. Thus, GAO's analyses do not establish a causal relationship between demographic characteristics and career outcomes. GAO reviewed USPS reports submitted to the EEOC and assessed USPS's actions against diversity management leading practices. GAO interviewed EEOC and USPS officials.

Recommendations

GAO is making four recommendations to USPS, including developing a data plan and diversity performance measures, and formally gathering employee feedback. USPS stated that the recommendations are redundant to its ongoing efforts. GAO maintains that USPS's ongoing efforts only partially address its recommendations, as discussed in the report.

Recommendations for Executive Action

Agency Affected Recommendation Status
United States Postal Service The Postmaster General should ensure that executive leaders develop a plan for capturing and using data from USPS's new applicant flow tracking system to prepare the workforce tables and barrier analysis in its annual reports to the EEOC. (Recommendation 1)
Closed – Implemented
USPS is one of the largest civilian employers in the United States and reports employing one of the most diverse workforces in the nation, representing the diverse communities that it serves. However, in a prior review of USPS workforce diversity management, GAO found some disparities in the diversity of USPS's leadership. More recently, the EEOC found that USPS discriminated against certain employees with disabilities by withdrawing reasonable accommodations and subjecting them to disparate treatment, among other violations. In 2023, GAO reported that EEOC identified USPS's longstanding inability to collect applicant flow data-the demographic information voluntarily provided by job applicants-as a critical equal employment opportunity program deficiency. Applicant flow data refer to demographic information voluntarily provided by applicants for: (1) vacancy announcements and interviews with applicants for new hires and internal competitive promotions to management positions; and (2) career development programs for the senior grade levels and management positions. EEOC's technical assistance feedback letters to USPS indicated that, since fiscal year 2012, USPS has not collected applicant flow data needed to complete some workforce data tables that are part of required annual MD-715 reports to the EEOC. EEOC officials told GAO that the absence of such data has affected USPS's ability to pinpoint actual barriers because the data are the starting point and key source to analyze any workforce discrepancy and anomalies. USPS's development of a system to collect applicant flow data has been delayed multiple times since 2012. GAO found that it was not clear how USPS will capture and use this newly collected applicant flow data for its workforce analysis. USPS officials told GAO that the new applicant flow tracking system is being developed, in part, for the purpose of preparing the workforce data tables and conducting the barrier analysis required by the MD-715. Nevertheless, developing a detailed plan for how the newly collected data will be used to prepare those workforce data tables would better position USPS to identify barriers and their causes, and in turn, make any necessary changes to policies and practices. Therefore, GAO recommended that USPS should ensure that executive leaders develop a plan for capturing and using data from USPS's new applicant flow tracking system to prepare the workforce tables and barrier analysis in its annual reports to the EEOC. In 2024, USPS demonstrated that is has a plan, and has begun executing the plan, to capture and use applicant flow data. Specifically, USPS deployed its new applicant flow tracking system (ATS) nationwide for Mail Handler Assistant jobs and are now able to track applicant flow data for that job to use in preparation of the MD-715 workforce data tables and barrier analysis, as appropriate. This data includes the demographic data and hiring process step for every applicant (except those that choose not to disclose). For each step of the hiring process, USPS will use the data to calculate the demographic distribution of applicants in that step of the hiring process. Anomalies will be identified by comparing the demographic distribution of each hiring process step to the demographic distribution of the proceeding hiring process step. USPS noted that it plans to deploy the ATS in phases for other bargaining unit job positions through 2025. Having applicant flow data, and a process for how USPS will use this data, will help USPS identify barriers and their causes and make any necessary changes to policies and practices.
United States Postal Service The Postmaster General should ensure that executive leaders develop DEIA-specific performance measures, time frames, and responsibilities related to USPS's DEIA goals. (Recommendation 2)
Open
USPS stated that GAO's recommendation is redundant to USPS's ongoing efforts. GAO maintains that USPS's ongoing efforts only partially address its recommendation. When GAO confirms what actions USPS has taken in response to this recommendation, GAO will provide updated information.
United States Postal Service The Postmaster General should ensure that executive leaders develop DEIA performance objectives linked to USPS's organizational DEIA goals, including on adhering to EEO policies and principles, to ensure that managers and executives are incorporating leading diversity management practices into their individual performances. This could be through USPS's update to manager and executive performance competency models. (Recommendation 3)
Open
USPS stated that GAO's recommendation is redundant to USPS's ongoing efforts. GAO maintains that USPS's ongoing efforts only partially address its recommendation. When GAO confirms what actions USPS has taken in response to this recommendation, GAO will provide updated information.
United States Postal Service The Postmaster General should ensure that executive leaders regularly and formally gather employee feedback to assess employee perceptions of USPS's diversity efforts, such as through a diversity and inclusion advisory group, surveys, or focus groups, to measure progress toward stated DEIA goals. (Recommendation 4)
Open
USPS stated that GAO's recommendation is redundant to USPS's ongoing efforts. GAO maintains that USPS's ongoing efforts only partially address its recommendation. When GAO confirms what actions USPS has taken in response to this recommendation, GAO will provide updated information.

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