Pay pegged to learning LO11588

Charles Kerr (
Sat, 28 Dec 1996 11:07:14 -0500

The WSJ's article on the remarkable turnaround of the Pratt & Whitney
engine plant in New Berwick, Maine contained an equally remarkable
description of their pay-overhaul plan. "Launched last month with the
help of a team of hourly workers, it will peg future pay boosts not to
seniority, but to the amount of training employees complete and the degree
of responsibility they shoulder. The most money going to people who are
capable of running special cost or quality projects, a task previously
left to managers."

The positive implications of this plan, and how to maximize the results,
seems to merit discussion, as well as the anticipation of potential
problems and how to constructively deal with them (Not surprisingly, the
high seniority, no interest in learning, employees were not enthusiastic).
The article is from the December 26th WSJ.

I look forward to thoughts on how to support this philosophy of a
person's value to an organization and compensation.

Charlie Kerr
Charles Kerr & Associates


Charles Kerr <>

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