Headquartered in Euclid, Ohio, a suburb of Cleveland, The Lincoln Electric Company is a world leader in welding and cutting products, as well as a premier manufacturer of electric motors. The company is well known for its dedicated, talented workforce and its superior technology. Lincoln Electric Company gives its customers total solutions along with a commitment to quality. Lincoln Electric Company is also well known for its incentive management system. Many companies strive to duplicate the success that Lincoln has enjoyed over the years.
John C. Lincoln founded Lincoln Electric Company in 1895 with a capital investment of $200. At first he only designed electric motors, but in 1909, he began to build welding machines. In 1814, he hired his brother James to be the VP and manager of his company.
In 1934, the famous Lincoln bonus plan was instated as employees enjoyed bonuses of 25% of their base pay. By 1940, Lincoln employees enjoyed two times the average pay and productivity of similar Cleveland workers.
Lincoln has built a very profitable company. This by way of treating all of its stakeholders with the utmost importance. Lincoln always kept its prices very fair, if not too fair for the customers. In many cases, the price of an item or service provided by Lincoln had gone down over the years. At the same time, employee's salaries actually went up. This is just one example why Lincoln has flourished.
Why are the employees at Lincoln Electric Company so pleased as well as so productive? Why were Lincoln employees willing to work overtime during an August vacation time in 1994? The following benefits are some of the main reasons why Lincoln employees will do almost anything to help its employer:
an employee stock purchase plan
company-paid life insurance
piece rates adjusted for inflation