When the real head returned, he called his managers together and told them that the new man must be removed and the most deserving man in the regular organization appointed in his place. He was met with the protest that no employee was capable of taking up the work and reminded that the new man had already achieved great success. The president answered that he was willing to lose money in the department for the first year rather than cheapen and disorganize the service by taking away the certainty of promotion and by re- <p 158> moving the incentive to study and self-development which had increased the efficiency of every ambitious employee.
Innumerable examples of the same principle in promotions could be gleaned from the records of some of the oldest and most progressive houses in the country. In one establishment visited, the quality of whose wares is strenuously guarded, it was discovered that the chemist and metallurgist in charge of the factory laboratory had been lifted out of one of the departments and supplied with the money to take a specialized course in physics, chemistry, and metallurgy. The advertising manager, the factory engineer, and two or three of the foremen had been given leaves of absence to study and fit themselves for the positions to which their talents and inclinations drew them. Even among the workmen there was a fixed basis for advancement towards the better jobs and the higher rates, dependent on satisfactory service and output.
To these major considerations in increasing the worth of wages, those companies which <p 159> have given the longest attention to the problem add many other inducements.
An efficient and contented employee has a positive money value to any employer. To hold him and keep him efficient, his personal comfort and needs should be considered in every way not detrimental to the company's interests.
As nearly as possible, the ideal in factory location and construction is approached. Some industries have removed bodily to country towns, less for the sake of a cheap site than for the purpose of establishing themselves where housing conditions for workers were good, rents low, the cost of living cheaper, and other factors tending to *add value to every dollar paid in wages were present. Direct appeal was made to the intelligence of employees, whose health is part of their capital, by making and keeping working conditions as healthful and sanitary, as little taxing on eyesight and bodily vigor as circumstances and judicious investment of capital allowed. Scores of towns have been built outright, to benefit employees. <p 160>
In line with this policy are the systems of benefit insurance for accident and sickness maintained and partly supported by many companies; the pension systems which have been adopted within the last few years by some of the greatest and most progressive companies in America; the free medical service, both in case of factory accidents and sickness at home, which other firms provide for employees; and various other activities contributing to the welfare of workers, both during working hours and afterwards.
Employers are coming more and more to see that this is the case and to devote both thought and money to the elimination of conditions which cut wages below par.
Whatever reduces hazard, discomfort, loss of time, uncertainty, or the cost of living for workers adds value to their wages and is a means of influencing their attitude towards the company.
Some employers are continually exercised to keep the wages of their men from falling below par. Others are equally solicitous that their men may regard their wages as above <p 161> par. This classification is a real one and was made plain by some of the interviews referred to above. Thus in answer to the question, ``What special method do you employ to make men satisfied or pleased with their wages?'' one employer immediately put his own interpretation on the question. To him it meant, ``What method do you employ to keep your men from being *dissatisfied with their wages?''
His answer was: ``By paying them somewhere near what they ask or expect. If we don't,'' he added, ``they go out on strike and we have to compromise.''