Henry Ford's Per Day Wage Policy

390 Words2 Pages
Henry Ford says his reasons for implementing his $5 per day wage policy were to stabilize the workforce and raise the bar all over the world. It was widely believed, however, that he believed increased wages would expand the market and therefore his employees and those like them would be able to afford Ford’s products. The reason, nonetheless, was actually because Ford had a high employee turnover rate. With a rate of hiring 52,000 workers to only keep a workforce of only 14,000, the increased cost and delayed production inhibited Ford from selling his cars at the low price he desired. He needed to cut turnover and training time of the labor force. Therefore, he decided to pay his workers high wages, specifically higher wages compared to other
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