The Penn's Grove record., 1919-08-15
DUPONT Company Profit Sharing
dupont Magazine)

businesses and governments is to eX-
tend benefits to the individuals who
compose them. Universal well-beinp
is a product of democracy, and SLOWLY
but surely u political system has
brought with it the disposition on the
part of employers to give the employe
a share IN the responsibilities and
benefits arising from industrial and
commercial enterprise, through vari-
Gus methods of profit-sharing.
The question very naturally arises
as to why any employer of labor
should give any more than the wages
or salary agreed upon. Although at
that glance it might appear that any
additional grant to the employee would
be actuated only by philanthropic mo-
tives, yet, after investigation, it proves
to be profitable to both employer and
employee.
Proft-sharing benefits the employer
by anticipating a demand on the part
of the employe to share in the wealth
which he has aided in creating. A vol
untary concession on the part of the
employer avoids such a demand with
a lower percentage of actual capital
outlay than the ordinary demands on
the part of the laborer would involve.
At the same time, the saving effected
by the sterilization of labor conditions
on his organization enables the profit
sharing employer to give his workers
much higher rewards than would
otherwise be practicable. Thus work
ing and income conditions which profit
sharing produces go far toward elimi-
mating discomfort and preventing labor
difficulties.
Cultivation of the individual work
mans interest in his daily tasks is an
other desirable result of proit-shar-
ing. Men and women work because
necessity demands that they meet
their daily needs. Nevertheless, there
is no incentive to voluntary endeavor
and the exercise of personal initiative
so potent as a valuable consideration
given in special recognition Of service
rendered. The best method of stimu-
lating such personal interest is thru
the reward for m%eritorious services by
means of bonus or profting-sharing
system.
Sterilization of labor is, perhaps,
the most profitable phase of profit
sharing from the employers view
point. Every employer of labor real
ICES the tremendous loss sustained
through the labor turnover due to re-
placing employees who leave on ac-
count of apparent advantages to be
gained through a change. A bonus
system obviates this difficulty, for it
holds the higher grade of employee at
a lower net cost than would be posi-
bic without such a system. The work.
man receives more money, but the
total amount paid out by the firm is
less, because the increase paid through
the bonus or profit-sharing system is
less than the loss sustained by contin-
uously hiring and training new men.
Waste production and prevention
constitute another profitable element
of pr~oit-sharing. Everyone working
on a p~rofit-sharing basis has a selfish
interest in e~ndeavoring to eliminate
waste and in raising the standard of
efficiency. This disposition, of course,
tends to increase profits.
The development of goodwill among
the general public is another highly
profitable outcome of proft-sharing.
Purchasers have great confidence in
firms employing a bonus or profit
sharing system, for the maintenance
of such a plan not only argues well
for the stability of an organization,
but also gives an assurance of fair
dealing and satisfaction. A firm that
deals fairly with its employees will
certainly do the same with its custo-
mers. The contracts of such a firm,
too, are more dependable, for there is
but little risk of disappointment in
deliveries through delays caused by
labor difficulties.
The benefits of a bonus system or
profit-sharing plan, of course, are by
no means confined to the employer
alone. Obviously, there is the imme-
date benefit of increased income
achieved without resorting to drastic
measures. Under such a system there
is no need for strikes, whose cost is
always paid by the workman.
Profit-sharing, moreover, tends to
increase the individual workers earn
ing capacity insofar as it stimulates
his interest in his work and thus leads
him to the development of more eff
: cient methods of performing his du-
ties. The logical outcome of such in
terest and development, of course, is
greater ability with consequent
greater rewards. Recognition of such
progress is necessarily swift under
a proft-sharing system, for careful
supervision and scrutiny of the work
of every individual constitute an in
tegral part of the plan. Consequently
the efforts of the energetic and m
bilious worker are SURF to be noticed.
The incompetent workman is spurred
on to meet the standard set by the
competent workman, and the energetic
workman is spurred by the knowledge
that service rendered will receive re-
compense in just proportion.
In most proft-sharing systems, the
pecuniary advantages accumulate by
arithmetical progression, and are thus
cumulative in the latter years Of a
mans active life.
Pro6t-sharing systems give the en-
ploye assurance of continued employ
ment, and such assurance permits him
to formulate definite plans for the
thrifty management of affairs. AS
soon as a man feels that he is perma-
nently employed, he can establish