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A successful program for motivating hourly workers has been developed by a little ($3-million in annual
sales, 75 employees) company in Ashland, Ore., called Parsons Pine Products Inc. The world's largest claim to fame is its four-point plan for
"positive reinforcement" of workers. The plan includes:
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Safety pay. Each employee who goes a month without a lost-time accident receives a bonus equal to four hours'
pay.
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Retro pay. The company divides among employees the money it saves when its workers' compensation premiums go
down due to reduced accident rates.
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Well pay. Employees get no sick days. Instead, they receive monthly "well pay," equal to eight hours'
wages, provided that they have been neither absent nor tardy.
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Profit pay. Parsons has a bonus pool, into which goes all the company's earning above 4% after taxes. An
employee's share is determined by multiplying the person's wages or salary times a job rating based on attendance, productivity, and leadership.
Today, the accident rate is 32% below the state average; turnover is minimal, and absenteeism and tardiness have
dropped to almost nothing. But owner James W. Parsons admits that the program takes a firm hand to administer.
"One woman called to say that a tree had fallen, and she couldn't get her car out. She wanted me to make an
exception. But if I did that, I'd be doing it all the time."
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