The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1917-08-23
BONUSES AND PAY
. BASED ON MERIT
ATTRACT WORKERS
Company Wins Loyalty Of Men
by Recognizing Ability
and Service.
INSURES LIVES OF ITS men
Wage Rate Limited by capabiIity Only,
but Cannot Fall Below Fixed Mini
mum-Workers Promoted From One
Glass to Another.

"aSO ndtO GHHlbSu ny NaPaplitJ SHtyS
but Cannot Fall Below Fixed Mini
mum-Workers Promoted From One
Class to Another.
By recognizing individual effort on
the part Of it's employees and by re-
warding them literally for faithful
ness and industry a big machine tool
company In Connecticut has succeeded
In solving practically all the labor
problems incidental to the manage
ment Of a large manufacturing plant.
So effective is the system adopted by
the company that in a tTifle over a
year it increased its working force
from 250 to over | 400 hands, and that,
too, In the highest labor market this
country has ever known in the metal
working industries.
But this was not the only wonder
accomplished. By perfecting the plan
so that it gave even greater incentive
70 labor initiative able workers were
attracted to the plant and remained
there, so that gradually the coming
and going of labOrers, with the attend
ant waste, ceased and a permanent
working staff of about 1,1O0 men re-
mained. Moreover, records prove that
these 1,100 men turned out more work
than the 1,4OO employed by the firm at
the zenith of it's hiring experience.
The basis of the system which work
ed all these reforms in the tool plant
is the well established rule that the
highest priced man does the best and
most work and the short time man
causes a direct loss. Thus the elimi-
nation of the 'hiring and firing evil
in the plant in question resulted, as it
usually does, in increased output, de-
creased spoilage of work and decreased
spoilage Of tools.
Methods Used to Hold Good Men.
The company employs four methods
to secure and retain the most profit
able type of wOrkmen. 1t has In op-
GRAFTON "maXi-pay" wage plan, pro
duction bonus, a service bonus and an
attractive form of insurance. From
time to time happily worded pieces of
literature are distributed to the work
men to call attention to some phase of
cooperation.
The "maXi-pay" plan offers full Op-
portunity for advancement along def
mite lines to those showing ability. pro.
vides a wage rate limited only by abil.
ity and occupation and advances wages
in recognition of ability. The work
men are divided into these classes
Glass AA includes sub-foremen and
leaders In charge of working gangs OF
mechanics and, so far as possible, al
fOremen and shop executives are Sc
lected from this class. The minimum
7ate per hour is 55 cents, but the maxi
mum rate is dependent on ability.
Glass A includes skilled mechanics o.
demonstrated ability with a minimum
rate of 80 cents per hour and the pos
sibility of a higher maximum rate
Glass B includes mechanics Of goo(
average ability, and the rate is 45 cent'
per hour. Mechanics of limited expert
ence are placed in Glass G. The rat
per hour for this class is 40 cents
Apprentices, both special and regular
are included in Class d. Men from thi
class upon completing their courses ar
advanced to the class determined b,
computing their average efficiency rec
| do ho loo CT thni
apprenticeship.
In Class E is found labor Of all kinds
skilled or unskilled, which is not d
rectly productive. The minimum rat
per hour is 80 cents, but the maximum
is dependent upon ability and occupa
tioE. In the employment of men Q
this class preference is given to thos
who speak and write English and wh
show qualities which will later wa
rant advancement. This "maxi-pay
plan has been in successful Operatio
since May 10, 1916.
Reward For Skill and Service.
A production bonus which was IL
corporated into the plan on Nov.
. 1916, provides extra compensation fl
l employees who can beat the standaI
time set for the turning out of the "
rious pieces.
OF course the basis of efficiency v
ries according to the class rating
the operator. In the lowest class
productive employees, for instance, IL
basis is set at 75 per cent, and l p
cent of wages is paid for each per cel
Of efficiency above 75 per cent. IT
records of bonuses earned are used
a basis for advancement from one ella
to another In the "maXi-pay" rating.
An employee also gets a bon
amounting to 10 per cent of the week
). wages he earns during the regul
hours Of operation.
Buys Insurance For Workers.
On Nov. IA. 1916. the company to-
out group insurance for all workm
who had been six months or more
'' the employ Of the company.
1t can hardly be said that the 81
/ cess Of the system as a whole Is d
entirely to the technique Of the syste
itself. Back of it lies wise selecti
Of administrators who have won t
confidence Of the men.-IMdTstrf0I Ct
servGtiOR. NesO York.