Lincoln Electrics Profit-sharing Program
Teammate 1
Lincoln Electrics profit-sharing program is based on individual employee contributions. The workers’ pay is determined by the amounts of products they produce therefore they are essentially responsible for their pays. Everyone participates in Lincoln Electric’s profit-sharing program including executives. Profit-sharing bonuses are determined by the employee’s report card which includes factors from attendance to cooperation. For example, a worker with bad grades received a few thousand dollars, while a top worker received $37,000. The average bonus each year is $18,113.21 (48,000,000/2650).
I would want to work at Lincoln Electric while I am young. I liked that the company pays workers and gives bonuses according to their efforts because I work best alone. Even when the company was down 40%, they did not lay off any workers and let everyone keep their jobs. I liked the teamwork mentality because regular employees are treated the same way that the executives are. I would not want to work at Lincoln Electric if I were older. They do not provide health insurance which is something that would be much more important to me as an older person. Another crucial thing that older me would value is receiving pay for sick and vacation days which is something that they do not provide. Lincoln Electric certainly has its advantages and disadvantages.
Teammate 2
Lincoln Electric’s profit sharing program is based on employee’s getting paid for only the good work that they produce. This means that the employees are essentially paid for their performance, and if they start slacking, then they will get paid less. All employees participate in this program, including the executives. If the company’s profits go down, then the executive’s salaries would decline as well. The profit-sharing bonuses are based on each employee’s “report card” that includes measures such as attendance and productivity. On average, an employee’s bonus is around $18,000 because the total pool was $48,000,000 and it is divided amongst $2,650. Depending on the year and the company’s profits, this average could be higher or lower.
I would not want to work at Lincoln Electric. While the bonuses are appealing, I believe that a job should be more fulfilling than that. Additionally, the video stated that the employees have to pay for their own health insurance and still work even if they are sick. This means that the employees feel pressured to come to work in many circumstances because their big bonus relies on their attendance and performance. Although Lincoln Electric still provides a two-week paid holiday and a pension plan, there are no paid sick days or holiday pay. Personally, I would not feel supported by Lincoln Electric due to them using their big bonuses as a troubling incentive to keep people working as much as possible, regardless of their health. While money can be a great motivator, it is wrong to rely on it this much in a company strategy because it creates a greater risk for unethical and unsafe working conditions due to its emphasis on driving pay for performance.
Teammate 3
All of the workers participate in their profit-sharing program where most of the profits are put into a pool. The company determines the bonuses by using report cards to grade each worker on factors such as attendance and cooperation. Based on the results, the worker gets a share from the pool that is their bonus, which according to the video could range from a few thousand for a low report to $37,000 for the top employee. The average bonus each year at Lincoln Electric is $18,113.21, $48,000,000/2650 employees.
I would not want to work at Lincoln Electric because its pay system as a whole does not appeal to me nor does their company culture for the most part. While I do quite like the profit-sharing program is based on a “report card” score and is taken from a pool of the year’s profits. The pay system is based on coming into work and no sick days is not as appealing to me because it encourages employees to come in sick as some said in the video which creates an unhealthy environment. Also, if you don’t get paid for the day you just are not able to come in, then you’ll feel the need to work overtime on other days or come in on the weekend to make it up. While the pay is great, it doesn’t seem that there’s a good health security net which is important in ensuring that employees last long at the company. That really just does not appeal to me since sick days are important, even if it’s only like 2. Also, it wouldn’t benefit me as much as I get much older and am not able to work as hard like I used to when I was young and able-bodied.