Employee retention in the Federal Government : a case study of the United States Postal Service

Abstract

Following the worst financial crisis since the great depression, the United States has experienced three consecutive years of unemployment above 8%. The current economic situation has pushed the economy to the forefront of the 2012 Presidential election. At the heart this partisan economic debate is the issue regarding the size of the Federal Government. The objective of this thesis is not to debate the politics of how big the Federal Government should or should not be. I merely point to the current economic situation and the partisan debate because I believe they are masking a potential issue which will impact the efficiency and quality of the services provided by the Federal Government - the issue of employee retention. Specifically, this thesis focuses on the voluntary turnover of top performing talent. Regardless of one's beliefs regarding the size the Federal Government or what role it should play, it is hard to debate the need to employ talented, productive, and innovative leaders within the government. In this regard, the Federal Government is no different than any private business. As the world shrinks and technology rapidly changes how we live and work, the demands of managing a business or running a government have become increasingly complex. This thesis uses the United States Postal Service (USPS) as a case study to illustrate some of the employee retention challenges facing the Federal Government and how the agency has implemented policies and strategies to improve its ability to retain employees. During this difficult time in its history, it is increasingly important to attract and retain talented employees. The USPS is now facing financial uncertainty, a rapidly changing marketplace, and intense competition from the private sector for its top talent. This thesis will attempt to reconcile these and many other factors impacting turnover in the USPS and highlight what USPS is doing and recommend potential actions to improve employee retention.