News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1917-09-05
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 capability Only,
but Cannot, Fall Below Fixed Mini
mum-Workers Promoted From Ono
Class to Another.

Class to Another.
by recognizing individual effort on
the part Of its 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 large manufacturing plant
SO effective is the system adopted by
the company that in a trife over a
year it increased it's working force
from 250 to over 1,40O 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 1t 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 laborers, with the attend
ant waste, ceased and a permanent
working staff of about LOO men re-
manned. Moreover, records prove that
these LOO men turned out more work
than the 1,400 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 the
highest priced man does the best and
most work and the short time man
causes direct loss. Thus the elimina-
ton 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 prof
liable type of workmen. 1t has in op-
Grafton a "maxi-pay" wage plan, a
production bonus, 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 OPP
portunity for advancement along def
mite lines to those showing ability,
provides a wage rate limited only by
ability and occupation and advances
wages in recognition of ability. The
workmen 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
ected from this class. The minimum
ate per hour is 50 cents, but the max
mum rate is dependent on ability.
Class A includes skilled mechanics of
demonstrated ability with a minimum
ate of 80 cents per hour and the DOS
iibility of a higher maximum rate.
Class includes mechanics of good
Iverage ability, and the rate is 40 cents
Ter hour. Mechanics of limited expert
nee are placed in Glass G.. The rate
Ter hour for this class is 40 cents.
both special and regular.
re included in Glass d. Men from this
lass upon completing their courses are
dvanced to the class determined by
their average efficiency rec
rds over the last three months of their
pprenticeship.
In Glass T. is found labor of all
inds, skilled or unskilled. which is nor
lrectly productive. The minimum rate
er hour is 30 cents, but the maximum
dependent upon ability and occupa-
on. In the employment of men of
lis class preference is given to those
no speak and write English and who
low qualities which will later war
mt advancement. This "maxi-pay%
an has been in successful operation
nee May 15 1916
Reward For Skill and Service.
production bonus which was in
rporated into the plan on Nov. 1,
16, provides extra compensation for
lployees who can beat the standard
ne set for the turning out of the va
JUS pieces.
- NOuASC tic DdSlS va
s according to the class rating of
operator. In the lowest class of
'ductive employees, for instance, the
sis is set at 20 per cent, and per
It of wages is paid for each per cent
efficiency above IS per cent. The
ords of bonuses earned are used as
asis for advancement from one class
another in the ''maxi-pay" rating.
n employee also gets a bonus
ounting to 10 per cent of the week.
wages he earns during the regular
IFS Of operation.
Buys Insurance For Workers.
n Nov. IA, 1916, the company took
group insurance for all workmen
} had been six months or more In
employ Of the company.
can hardly be said that the sue
of the system as a whole is due
rely to the technique of the system
If. Back of it lies a wise selection
who have won the
idence Of the men.-TndustriaI Con
alton, Nep York.