3 min reading time
Story 121 – 1972 – People Care

Performance should be worthwhile

Remuneration principles: from lone fighter to group work

Wieland has a long tradition of performance bonuses as an additional remuneration to the basic income. The remuneration principles have been continuously adapted to changing production conditions – from piece work and group bonuses to summary payments with a variety of factors.

As in other companies, the principle that performance should pay off for employees was applied at Wieland from an early stage. With the further development of machinery and changing demands on workplaces, the principles according to which commercial employees were paid with bonuses in addition to their basic wages were adapted accordingly.

Whereas in the past, small, manageable workpieces were mainly processed with relatively simple machines, nowadays formats are produced that can usually only be handled by machines and automation. The work processes have therefore changed from highly manual workflows to highly automated processes.

The beginning of the performance-related bonus was the piece work. When it was introduced at Wieland can no longer be determined today. The principle was simple: In the production departments there were product-related standard times. The employee could earn an additional bonus on top of the basic wage by undercutting these times. Results were therefore highly dependent on individual willingness and ability to perform.

In 1972, Wieland introduced another, more contemporary principle – the group bonus. The basis was still the target time, but this was worked to or undercut together in a defined group. Premiums flowed into a common "pot", the monthly result was the same for each group member.

In 1989, Wieland decided on a completely different, new system: the summary income is also generated in the group – per plant or division – but without rigid time limits. As a rule, the focus is on efficient utilisation or use of cost-intensive machinery. The specifications are based on performance indicators, the systematics of which can vary greatly from plant to plant. The summary income still forms the basis for the premium structure today – but the specifications are constantly being adapted to changing conditions.

In addition to the bonuses, there are other additional remuneration components such as shift or hardship bonuses, personal performance bonuses and profit-sharing.

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Wieland Werke AG

The group bonus: The focus was on the interest in a common goal.