Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-13
THE BUSINESS OF GETTING
AHEAD.
The Straight Salary.


noint the hest form of compensation
is that which will make the ind
vidual most productive. The reward
should be designed to stimulate the
interest of the worker, to rouse ms
energies and to bring out his best
efforts.
In general, the reward should be
largo enough TO free the individual
of undue worries concerning MS ram
ily finances For that reason, many
employers who compensate their EN-
ployes on a graduated scale in accord
ance with their success give mini
mum guarantee. The salesman WHO
works on commission frequently gets
minimum guarantee The theory be
hind this combination is that even
the fruitless efforts of the statesmen
in bringing the wares Of the employer
to the attention of the market place
deserve some recognition Furtner'
more. on the human side, the EN-
ployer knows that his agent cannot
nut himself in the best frame OF mind
If he Is haunted by the fear that
there may he no income at all to meet
the needs of his family.
Assumes Business Risk.
When an employee is rewarded in ac-
cordance with his own success or that
of the business, he is assuming bust
ness risks. Presumably he has sum-
cient confidence in himself to forego
safe and assured guaranteed income
in the hope of. an uncertain income oil
far larger dimensions.
In the production end. too, there
are these two systems of payment
one the fiat weekly or hourly wage,
and the other the piecework rate. The
latter system differentiates between
the rapid and efficient worker and all
others and pays him premium. 1T
also puts the responsibility directly up
to the worker to keep his production
up to par. Some employers pay a
minimum weekly wage, and a gradu.
ated surplus in accordance with out,
put The combination is better In
most instances than the purely piece
work basis. One chief objection to the
piecework system Is that 1t may tend
to induce the efficient and ambitious
to work harder thanfs consistent with
good health. Industry has a RESPONSE
bility to keep the dema nds on it's work
ers within reasonable bounds. In the
early days of the industrial revolution
in England, before the conscience of
the community caught up with the de-
velopment of the machine, the new
ing institution.
Compensated on Profits.
The F.. w. Woolworth Co., with it's
/ All stores, strives to make partners
out of it's store managers. Following
the principle laid down by the late
Frank w. Woolworth, founder of the
business, store managers are COM
pensated on the basis of the profits of
the units which they head The COM
pany feels that in this way 1t gets the
same unhagging interest, the same de-
termination to fight adverse conditions
and to hold down expenses which the
ONE aunt business with a single pro-
pristor had. The J. G. Penney Stores
operate on A similar principle. In this
chain of clothing stores, the managers
are actually part owners.
Conspicuously able men in the role
of employees will prefer the commits
sion basis, because it will enable them
to he compensated more promptly in
accordance with their productive
ability than the straight salary sys-
tenn. because although eventually an
individual is likely to make what he
earns, there Is likely to he a lag be-
tween actual business progress and
salary increases. On the other hand.
men who through luck or their skill
in selling their services get better
jobs than they are fitted for will strive
for a straight salary arrangement,
clinging to the guaranteed income az
long as an employment contract will
assure 1t.
Fluctuating salaries give an indi
vidual a sense of being in business on
his own, and subject him to the oppor-
tunities and hazards of the market
place In the long run, irrespective
of methods of payment. the individual
will be called upon by his employer
to demonstrate that he is worthy of
his hire.