Business · 2

What was Henry Ford's primary business motivation for introducing the $5 daily wage in 1914?

Answer

To reduce worker turnover and increase productivity

Ford's factories suffered extremely high employee turnover; doubling the standard wage to $5 a day was a calculated business move to retain trained workers and boost output on the assembly line, not primarily an act of charity.

💡 Did you know?

Henry Ford paid workers $5 daily (1914)—double the standard wage—not primarily for charity, but to reduce turnover and increase productivity.

Other options people guess

  • To comply with a newly passed federal minimum wage law
  • To settle a strike organized by factory workers
  • To match wages already being offered by rival automakers

Topics

  • henry-ford
  • labor-history
  • 1910s
  • wages

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