Ep.569 Henry Ford Doubled Pay When Everyone Else Was Trying to Cut Costs

Cutting labor costs can look like the fastest way to protect profit, until turnover, weak performance, and constant replacement start costing even more. In 1914, Henry Ford introduced the famous $5 workday, more than doubling typical factory pay while shortening the workday. The move helped solve Ford’s severe turnover problem, attracted workers, and strengthened the system behind its rapidly growing production. It also helped give more workers the purchasing power to participate in the marke...