Managers were getting raises of 2.5 percent to 3 percent every year, regardless of their performance. Under the new system, which began October 1, 2003, raises are determined by how well they meet customer service goals, improve workplace safety and control overtime and other measurable costs. There are no guaranteed increases or cost-of-living adjustments.

The new system underwent a test run last year, when it was applied to the USPS's 713 executives, who are paid an average of $118,400. The system led to a rise in productivity while employee grievances went down and safety improved, according to the Washington Post.

What gets measured gets managed, as the saying goes.

Most managers would earn a minimum of a 2.5 percent raise under the new system, though some could achieve 7 percent to 8 percent increases. "Breakthrough" or "exceptional contributors" would qualify for raises of 10 percent or more.