Nucor's business is new and not sexy. In fact it is a rusted belt: melting under scrap steel to make new steel. The amazing thing about Nucor is not the business they are doing, but the result.
How does 387% return to shareholders sound over the past five years?
It's tough. :
Business, Business Growth, Customer Satisfaction, Innovation, Entrepreneur
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Nucor's business is new and not sexy. As a rust belt, Meltda scrap steel is a new steel material. The amazing thing about Nucor is not the business they are doing, but the result.
How does 387% return to shareholders sound over the past five years? It is better than Amazon, Starbucks and eBay. Since the 1980s, it has grown to become the largest steel company in the US Sales were $ 1.27 billion in 2005, up from $ 4.62 billion. Revenues were up from $ 1.3 billion, $ 311 million 2000.
Their secrets? This fundamental insight from their legendary leader F. Kenneth Iverson: employees, even the hourly clock punchers, can you reward them richly and we can learn from the service industry with respect Sounds like something that may be.
From a recent article by BusinessWeek:
"In Nucor, the art of motivation is focused on people at the forefront of business. It's about talking to them, listening to them, taking the risk of thinking, and accepting occasional failures."
Many people talk about empowering employees and paying for performance. The hourly base at Nucor is about $ 10 a hour compared to other companies and its average $ 16 to $ 21. But the bonus tied to the production of flawless steel made by the shift of workers is at Nucor You can triple the average to $ 30. Bad work is punishable. In order to catch the bad batch, the factory loses the shift and loses the bonus side with the lost bonus. They will lose that amount three times if the defect is not caught until it reaches the customer.
Thinking about this plan works with a specific employee? Nucor applied it on several sites with tremendous success. They do not force new employees to immediately switch to the new pay system, they just post what the employees have made. It does not take long as employees can request a switch as the production of the facility goes up.
It is an aspect of how Nucor operates its business. They also listen to employee suggestions and take risks, this is not the kind of command and control of place. This is a place where people are passionately working together, and is rewarded by feeling responsible for their success and failure. Natural result.
The manager is on the same compensation boat. Shifts, factories, or companies often get bonuses to make up for lower than industry standard salaries. If things go wrong, they feel a pinch.
I already touch this company Midas.
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