Hearing this, I sit up straighter and raise my eyebrows skeptically. My truth detector sends up a red flag. Keep an open mind, I tell myself. Instant disbelief is hardly the way to begin an interview.
Stropki continues: “Some people joke that it’s more like a cult than a culture.”
Ahem. The red flag is flapping now, furiously trying to get my attention. With careful diplomacy, I point out the obvious: It’s difficult to believe that a performance-driven multinational company employing some 7,000 people in 18 countries would resemble anything like a family. Especially a manufacturer of welding equipment in a traditionally cyclical industry.
But Stropki — who, like many on his payroll, has been with The Lincoln Electric Company for his entire career — goes on to explain why, like a family, the company sticks by its employees and its employees stick by their company:
1) Guaranteed employment. Lincoln Electric guarantees a job for everyone who meets performance expectations and has been on the roster for at least three years. The company hasn’t had a layoff in more than 60 years and promotes from within whenever possible.
2) Pay for performance. To encourage productivity and quality, most production workers are paid by the piece, not by the hour, and all employees share in the company’s profits.
3) Open door policy. The company encourages employees to raise any issue with management. Every two weeks, Stropki meets with an advisory board composed of representatives from each area of business. And he makes time in his schedule whenever necessary to meet with individual employees.
Obviously, these policies present more than a few management challenges, not the least of which is how to manage workflow during cyclical economic swings. In a recession, the company cuts employees’ hours to a minimum of 30 per week, moves people to different jobs or departments and uses its own workforce (instead of contractors) to make plant improvements. When business picks up, the company exhausts its options for mandatory overtime before adding new workers.
The piecework system also is challenging to administer, according to Stropki, because it requires a higher level of cooperation among employees and management than a straight hourly system would.
But the extra effort is worth it, he says. “We have a fiercely loyal, highly trained and flexible group of people who want to work and contribute to the company’s success. I believe it’s one of the most productive workforces in manufacturing.”
And that, he asserts, makes a significant difference to the bottom line. Beginning in September 2003, the company has seen double-digit increases in its domestic market, as well as strong export sales.
Which is why a big “Hiring” sign now hangs in front of Lincoln Electric’s headquarters building. Since January, Lincoln Electric has welcomed more than 150 new employees into the family fold.
No doubt they’ll stick around for awhile.
Allison Conte is editorial director of Leadership for Manufacturers.
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