The daily banner. (Cambridge, Md.) 1897-2008, 1917-08-08
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 czpabiIity Only.
but Cannot Fail Below Fixed Mini
mum-Werksrs Promoted From One
Class to Another.
BY recognizing individual effort on
the part OF its employees and by re-
warding them literally for faithful
ness and industry big machine tool
company In Connecticut has succeeded
IN solving practically all the labor
problems incidental to the manage
ment OF large manufacturing plant.
So effective is the system adopted by
the company that in u trifle over
year it increased it's working force
from $50 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
to labor initiative able workers were
attracted to the plant and remained
there so that gradually the coming
and going Of la borers with the attend
ant waste. ceased and permanent
working staff of about LOO men re-
mained Moreover, records prove that
these 100 men turned out more work
than the | 400 employed by the firm at
the zenith of its hiring experience.
The basis of the system which work
ed all these reforms In the tool plant
is the well established rule that Che
highest priced man does the best and
causes a direct loss. Thus the elimi-
nation of the hiring and firing" evil
in the plant in question resulted, as 1t
usually does, i'll 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, q pro-
duction bonus, service bonus and an
attractive form Of insurance. From
time to time happily worded pieces
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-
yides 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, all
foremen and shop executives are Sc
lected from this class. The minimum
rate per hour is IS cents, but the maxi
mum rate is dependent on ability.
Glass A includes skilled mechanics Of
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 good
average ability, and the rate is 45 cents
per hour. Mechanics of limited expert
ence are placed in Glass c. The rate
per hour for this class is 10 cents.
Apprentices, both special and regular,
are included In Glass D. Men from this
class upon completing their courses are
advanced to the class determined by
computing their average efficiency rec
ords over the last three months OF their
apprenticeship.
In Glass E is found abor Of all kinds.
skilled or unskilled, which LIS not di-
rectly productive. The minimum rate
per hour is 80 cents. but the maximum
Is dependent upon ability and occupa
ton. In the employment OF men Of
this class preference is given to those
Who speak and write English and who
show qualities which will later war
rant advancement. This 'maxi-pay'
plan has been In successful operation
since May Is, 1915.
Reward For Skill and Service.
A production bonus which was in
cOrporated into the plan on Nov. l,
1915. provides extra compensation for
employees who can beat the standard
time set for the turning out OF the va
rious pieces.
or course the basis Of efficiency va
ries according to the class rating or
the operator In the lowest class OF
productive employees, for instance, the
basis is set at rs per cent, and ! per
cent Of wages is paid for each per cent
Of efficiency above 15 per cent. The
records of bonuses earned are used az
basis for advancement from one class
to another In the "ma1i-pay" rating.
An employee also gets bonus
amounting to 10 per cent Of the weekly
wages be earns during the regular
hours Of operation.
Buys Insurance For Workers.
On Nov a. 1915. the company took
out group insurance for all worKmen
who had been six months or more In
the employ of the company.
1t can hardly be said that the sue
cess OF the system as whole Is Que
entirely to the technique OF the system
itself. Back OF It lies wise selection
Of administrators who have Won the
confidence of the men.-Industrial C0s-
SerrUfiOu Eeas Ynyk