The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1913-12-19
PROFIT SHARING.
Outline Of a Tentative Plan For
Department Stores.
BASED ON ENGLISH IDEA.

gEE
Scheme centsmplates a Commission
On Sales Sufficient to Provide Fair
Wages For Employees-Part Of 30.
muses. to Be Retained.
A tentative profit sharing plan for
nse in department stores has been for
mulated by +. Colburn Pinkham. sec
rotary Of the National Retail Dry
Goods association, says the New York
Times. This plan has been submitted
for suggestions and criticisms to sew
era! persons prominent in the CONNER
.cial world, including Secretary Of Com
merce Redfeld and George w. Perkins.
Mr.. Perkins has expressed his approval
of the main features of the plan, and
Secretary Redfield. while too busy to
give it thorough consideration. has ex-
pressed himself as being in sympathy
with the idea of 1t.
MIR. Pinklam also submitted the Plan
to the management Of Selfridge's. the
American department store in London.
and recently received from there a let
ter regarding it. Part ] Of the plan. as
outlined below. is. strangely enough.
somewhat similar to the plan now in
use In the Selfridge store. Over there
a commission of w per cent is paid
weekly on sales. in addition to the reg
ular wage. In this way a saleswOman
who might regularly earn Sc a week
there is enabled frequently to make us
high as $12 or SIS. Naturally the Self
ridge executives expressed themselves
in favor of the commission idea of MI.
Pinkham's plan. but they objected to
the idea Of withholding bonuses from
employees under the conditions out
lined below in part 2. .
Part I Of the Pinkham plan deals
with the weekly wages of salesper-
Sons and says:
First.-Ascertain the wage which the av-
erage employee is getting at the time 1t Is
proposed to install this profit sharing sys'
TEN and then figure out what percentage
this wage is of the amount of goods sold
by the average salesperson In a depart
ment.
Sccond.-Assume that the average wage
Of employees is s. a week based upon sales
OF $.uO Ii WGCh. Liz ONuOAo y RSs SS""
Third.-Reduce the fixed ages of $ to
81. Now, on the basis Of 4 per cent $17a
worth of goods should be sold to earn this
s.. On all sales in excess of $175 allow q
percentage of from l to 8 per cent Tor
commission. The exact percentage OF the
bonus shout be in inverse ratio to the
sales price of the merchandise and the
readiness with which 1t may be sold.
Fourth.-In following out the wage and
--.-.-A~~~ x,x,uA Axnz n q a uhnIS1d ho -f1kRn
that the commission percentage is suh-
cient to guarantee that tie salesperson
earn at least as much as before the
system was installed.
Fifth.-When this system is properly in
stalled an increase in wage is produced
mechanically as a result OF the additional
effort put forth by the salespcrson under
the stimulation of this profit sharing sys-
tem.
Part =, which deals with retaining
part Of an employees commission. fol.
lows:
First.-lt should be determined what per-
centage should be withheld from the EN-
ployce's weekly or monthly commissions
This percentage should not be so large as
to decrease her weekly salary to u point
where 1t rs not in reasonable excess OF the
fiat wage previously given.
mo- HGECC1ld6e wllylLlSlu AIOIS
the commissions or bonuses paid the en-
ployees shall be turned over to them at "A
rate of interest upon the completion
of five yeays' continuous service in good
standing except IN the case of women en-
ployees who marry before the five year
period of SET vice is completed. They shall
receive full commissions to the date Of
their resignation from the cOmprny's serv-
ice.
>l..a Eyt-. l1n,,>r th.,
service of the concern before the Nv
years expire. except in the case of women
employees who marry as above noted. the
percentage Of the employers earnings SO
withheld shall be turned over to a fund to
he divided equally among those employees
who have remained in the service of the
organization for 1--WE years continuously.
Part 3 deals with plans for EN-.
pIoyees sharing in ownership Of the
working capital of the business. IL
says:
First.-Where the concern is a corpora
ton il shall be arranged that the reserve
fund bonus shall be invested as q working
capital in the business and that this shall;
earn IN precisely the same manner as ev-
cry other dollar of the capital of the bust
ness.
second.-Tllts makes employees. In pom,
of fact. sharers in the actual earnings Of
the business to this extent.
The plan concludes with an outline
for the organization Of a benevolent,
association. which prOvides:t
First.-That the owners of the concern
shall also agree TO contribute to a benev-
client association a certain stipulated
amount. provided u per cent of the en-
ioin the association.
second.-The idea Of this mutual benefit,
scheme, which provides for revenue in
cases of sickness. accident and death 10 Z"
knit the employees more closely to the
concern and to establish an organization
In the concern which shall be governed by
the employees and which shall promote
the esprit de corps OF the entire oreaniza-
tlon.
The plan was outlined by Mr.. Pink
ham to get suggestions and criticisms
from various merchants. and III 1901
enough have been received to make
II nOaSihln n nnrmannnf nlan will II.