Development of Lincoln Electric Company

Lincoln Electric's production workers are paid by the piece, and there is no minimum hourly wage. After working in the company for two years, employees can share the year-end bonus. The bonus system of the company has a set of calculation formulas, which comprehensively consider the gross profit of the company and the productivity and performance of employees. It can be said that it is the most favorable bonus system for workers in American manufacturing industry. In the past 56 years, the average bonus was 95% of the basic salary, and the annual income of a considerable number of employees in this company exceeded $6,543,800. In recent years, the economy has developed rapidly, and the average annual income of employees is about 44,000 US dollars, far exceeding the average annual income of manufacturing employees of 65,438 US dollars+07,000 US dollars. In depressed years, such as the economic depression of 65,438+0982, the income of employees of Lincoln Electric Company dropped to $27,000, which is not too bad compared with other companies, but it is far from the economic development period.

Since 1958, the company has implemented the occupational safety policy, and since then, they have never fired an employee. Of course, in return for this policy, employees should also do several things accordingly: they must accept the decision to reduce working hours during the economic depression; Also accept the decision to change jobs; Sometimes, even in order to maintain the minimum workload of 30 hours per week, we have to adjust to positions with lower wages.

Lincoln Electric Company attaches great importance to cost and productivity. If a worker produces a sub-standard component, the product cannot be included in the employee's salary unless the component is modified to meet the standard. Strict piecework wage system and highly competitive performance appraisal system have formed a very stressful atmosphere, and some employees have also had some anxiety, but this pressure is conducive to the improvement of productivity. According to one manager's estimation, the overall productivity of Lincoln Electric Company is twice that of its domestic competitors. Since the Great Depression in 1930s, the company has made huge profits every year and never missed a dividend. The company also has one of the lowest turnover rates of workers in American industry. Not long ago, two branches of the company were rated as the top ten management enterprises in the United States by Happiness magazine.