If I look back over the last eight years now working on year nine, the thing I’m most proud of is what we as a team have accomplished in terms of moving our transmission plan to a PSR model, doing that over the course of the last four years and doing it in a way where our customers weren’t damaged by the transition, they were benefited from it. I think we’ve done stupendous work on sustainability. As I mentioned in my opening comments, we’ve done terrific work on diversity, equity and inclusion. We’re recognized for that right now in the industry and in our communities. We’ve done really good work on setting ourselves up to be able to grow. We’ve got a wonderful stable of partners, IMCs that are world-class in hub, in Schneider and Knight-Swift and XPO in its current form.
So I’m really, really pleased with that.As I look into the future, we are poised to be able to grow. We have to be consistent and reliable in our service product. That means we have to get our 5 critical resources right all the time. We got one of them wrong last year, part our issue and part the fact that the world blew up to a degree. But we have to be stable and consistent for our customers. They tell us they want that and they will grow with us as we deliver that.So I know the growth potential is there. Their supply chain want to use rail more, and the concept is really simple and straightforward. It’s in our strategy, serve with consistent, reliable service, grow with service product and products that meet our customers’ needs. Do that in a way where we are the provider of choice, the partner of choice that allows us to win in the marketplace and do it together with all four of our stakeholders being benefited from it.
We think the strategy is sound, and we’re ready and executing on it.Operator The next question is from the line of David Vernon with Bernstein.David Vernon Jennifer, a couple of questions for you. Within the guidance that you’re giving for a full year OR improvement, is that all just the mechanics of fuel? Or is there some improvement in the underlying business? And then as you think about comp from 2022 to 2023, on a full year basis, can you give us some sort of absolute numbers around inflation and what added cost is being put in there for PTO and additional enhancements to the compensation package?Jennifer Hamann So in terms of our inflation guide, we said 4% was our inflation guide for 2023. And we said on the employee side, the comp would to be up mid-single digits.
And those things still hold and that takes into account what we have negotiated for and plan to negotiate for in terms of paid sick leave. In terms of how we’re going to get there and how we’re going to improve, it really is the basis for the service product the pricing. Fuel will be a component. I mean, it obviously is a component in there. But we have the other levers, and that’s where we’re very much focused. Fuel is going to be what it’s going to be. We’re going to go after those items that we have the greater control over that’s winning new business, pricing it appropriately and moving it efficiently.David Vernon And then maybe, Eric, just as a quick follow-up, as you think about the FTE count for the full year, where are you sort of targeting the business to be at year-end 2023?Jennifer Hamann I think Lance already answered that question.
Our hiring levels for this year are roughly — we came into the year assuming that they were going to be roughly similar to last year. Attrition is roughly similar in terms of what happens in the back half. We’re really watching that from a volume standpoint. Operator Our final question is from the line of Jairam Nathan with Daiwa.Jairam Nathan I just had a question on the EV penetration. And as — do you need to — does UP need to make investments given the fire risk of batteries within EVs?Kenny Rocker I’ll say that we have not seen that risk right now. We have very close relationship with the EV leaders we’ve enjoyed growth there. Our ramps are prepared to handle those EVs, and then we’re looking at the forecast and the size and what we need to do anything from an investment perspective and make sure that we can efficiently move those off and on the ramp and do it faithfully.Lance Fritz Yes.
Jairam, I think fundamentally, the answer is we have not seen a shift in risk based on our shipments of EVs.Operator There are no further questions at this time. I would like to turn the floor back over to Mr. Lance Fritz for closing comments. Lance Fritz And thank you, Rob, and thank you all for joining us today and for your questions. We’re looking forward to talking with our owners again in May at our annual meeting. Until then, take care.Operator This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
