January 5, 1914: Henry Ford Launches a Revolution

If you worked for Henry Ford he could be a very, very demanding employer.  That was demonstrated by his high rate of turnover, 370% in 1913, and that was a huge problem for Ford  as he spent a lot of time and money training his workers.  On January 5, 1914, he did something to address his turnover problem.  He cut the shifts of his employees to eight hours a day and he doubled their pay to the then unheard of sum of $5.00 a day.  Ford, contrary to myth, was not raising the pay of his workers so they could buy Model T’s.  His workforce was not large enough for that to make a difference to Ford.  However, Ford did understand that a contented worker was less likely to quit, and that is precisely what happened.  Ford set the standard and other employers in the auto market, if they wished to retain their men, followed suit.

Published in: on January 5, 2017 at 11:03 am  Comments Off on January 5, 1914: Henry Ford Launches a Revolution