The Owosso times. (Owosso, Mich.) 1897-1926, 1917-08-24
BONUSES and PAY
BASED ON MERIT
ATTRACT WORKERS
Company Wins Loyalty Of Men
by Recognizing Ability
+. and Service. \.
lnSURES LIVES OF ITS men
Wage Rate Limited by capabiIlty Only.
but Cannot Fall, Below Fixed Mini
mum-Worksrs Promoted From One
Class to Another.

put Sannot rail- Below Fixed Mimi
num-Worksrs Promoted From One
Glass 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 trife over a
year 1t increased its working force
from 250 to over 1,4OO 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 permanent
working STAFF Of about LOO men re-
NAMED. 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 a direct loss. Thus the elimi-
nation of the hiring and firing evil
In the plant In question resulted, as 1t
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. II has In op-
GRAFTON ''maxi-pay" wage plan, a 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:
Class 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.
Class A includes skilled mechanics Of
demonstrated ability with n minimum
rate Of 80 cents per hour and the pos
.sibility of a higher maximum rate.
Class B includes mechanics Of good
average ability, and the rate is As cents
per hour. Mechanics Of limited expert
ence are placed in Class g. The rate
per hour for this class Is 40 cents.
Apprentices, both special and regular,
are included in Class 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 r is found labor Of all kinds,
skilled or unskilled, which Is not d.
rectly productive. The minimum rate
per hour is 30 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. 1.
1915, provides extra compensation for
employees who can beat the standard
time set for the turning out OF the va
rious pieces.
vi COuISC thc Ddbio VI Cha~AShNy W
ries according to the class rating OF
the operator. In the lowest class OF
productive employees, for instance, the
basis Is set at rs per cent, and 1 per
cent of wages Is paid for each per cent
Of efficiency above IS per cent. The
records Of bonuses earned are used as
a basis for advancement from one class
to another I'm the "maxi-pay' rating.
An employee also gets bonus
amounting to 10 per cent of the weekly
wages he earns during the regular
hours Of operation.
Y Buys Insurance For Workers.
\On Nov. IA, 1916. the company took
group insurance for all workmen
had been six months or more In
mploy of the company.
nm hardly be said that the sue
~ the system as a whole is due
Alto the technique Of the system
oIack Of It lies wise selection
ana3strators who have won the
.s,rafipf the men.-Industrfdl Con-
vO York.