June 21, 2018
Why the Henry Ford Approach to Compensation Still Works Today
There’s no more direct way to invest in your business than to pay your employees well. Henry Ford knew this. Early on, the Ford Motor Company was struggling to keep employees and had an extremely high turnover rate. In 1913, Ford hired more than 52,000 men to keep a workforce of only 14,000. To address the turnover issue, Henry Ford upped his employees’ pay from $2.25 a day to $5.00 day, twice the average wage for automobile makers in 1914.