Market Comparisons

Market Comparison #4 -- Operating Revenue per Employee

Consumer Postal Council
Market Comparison #4
Operating Revenue per Postal Worker

November 21, 2011 -- Posten, Sweden's national post, generated the greatest amount of revenue per employee of 24 countries profiled in the U.S. Consumer Postal Council's Index of Postal Freedom, according to 2008 data from the Universal Postal Union. India Post, by contrast, had the lowest ratio of revenue per postal worker.

The U.S. Postal Service posted revenue of $100,550 per worker in 2008, which puts it in the top third of countries profiled by the Index of Postal Freedom. However, Sweden's post generated almost twice as much revenue per employee. The United States has a postal workforce nearly 30 times larger than Sweden’s.

Revenue per worker at USPS has hovered near $100,000 since 2005, falling slightly below that benchmark in 2010.   A reduction of 26 million workhours was also a driving factor behind a 2.2-percent increase in USPS's Total Factor Productivity in 2010.

Of the 24 countries surveyed, 12 saw double-digit growth rates in operating revenue per worker between 2005 and 2008, including an 81-percent increase in Sweden and a 45-percent increase in France.

Growth in operating revenue per worker for both Posten and France’s La Poste was even better through 2009. The two national posts pared their workforces even as their revenues increased. Swedish Posten's total  number of employees was roughly 10,000 fewer in 2009 than in 2005. La Poste cut about 28,000 people from its labor force between 2005 and 2009.

Only four countries experienced a decline in revenue per worker in the same time period, with Chile's 21-percent decline the most severe. Other countries that witnessed declines include Canada, Great Britain, Korea, and Mexico. In 2009, however, Great Britain's revenue per worker increased by nearly $14,000, or about 17 percent, but failed to reach its 2007 high. South Korea experienced a similar phenomenon, with revenue per worker jumping by more than $4,000, or about 4 percent, in 2009.

New Zealand, the Netherlands, South Korea, France, Switzerland, Germany, and Sweden all had ratios of operating revenue per worker above $100,000. At the other end of the scale, India, Russia, and Indonesia all posted revenue of less than $10,000 per worker.

See graph below.

Source: Universal Postal Union

Operating Revenue per Postal Worker

Chart - Operating Revenue per Postal Worker

Download attachment(s): Market_Comparison__4_--_Operating_Revenue_per_Postal_Worker.pdf

Index of Postal Freedom

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