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Nucor Uses an Integrated Approach to Employee MotivationgoIt was
about 2 P.M. on Mar. 9 when three Nucor Corp. electricians got the
call from their colleagues at the ~ickman (Ark.) plant.It was bad
news: Hickman's electrical grid had failed. Fora minimill
steelmaker like Nucor,which melts scrap steel
from autos, dishwashers, mobile homes, and the like in an
electric arc furnace to make new steel, there's little that could
be worse.The trio immediately dropped what they were doing and
headed out to the plant. Malcolm McDonald, an electrician from the
Decatur IAla.) mill.--
.
was in Indiana visiting another facility. He drove down,
arriving at 9 o'clock that night. Les Hart and Bryson Trumble,from
Nucor's facility in Hertford County, N.C., boarded a plane that
landed in Memphis at II P.~.Then they drove two hours to the
troubled plant. No supervisor had asked them to make the trip,and
no one had to.They went on their own. Camping out in the electrical
substation with the Hickman staff, the team worked 20-hour shifts
to get the plant up and
running again in three days instead of the anticipated full
week.There wasn't any direct financial incentive for them to blow
their weekends, no extra money in their next paycheck, but for the
company their contribution was huge. Hickman went on to post a
first-quarter record for tons of steel shipped.. ,. At Nucor, the
art of motivation is about an unblinking focus on the people on the
front line of the business.It's about talking to them, listening to
them,taking a risk
on their ideas, and accepting the occasional failure. It's a
culture built in part with symbolic gestures. Every year, for
example, every single employee's name goes on the cover of the
annual report. And,like lverson before him, DiMicco flies
commercial, manages without an executive parking space, and really
does make the coffee in the office when he takes the last cup.. ..
But Nucor's path is hard to follow. Itrequires managers to abandon
the command-and-control model that has dominated American business
for the better part bfa century, trust their people. and do a much
better job
of sharing corporate wealth.
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Money is where the rubber meets the road. Nucor's a rolling mill
is to thin out the steel made in the hot mill unusual pay system is
the single most daring element furnace, preparing it to be cut into
sheets. In the days of the company's model and the hardest for
outsiders before the Nucor acquisition, if the cutting backed up,
and acquired companies to embrace. An experienced Hutchins would
just take a break.'YVe'd sit back, have a steelworker at another
company can easily earn $16 to cup of coffee. and complain: 'Those
guys stink,'" he says. $2 1 an hour.At Nucor the guarantee is
closer to $10. "At Nucor, we're not 'you guys' and 'us guys.' It's
all of A bonus tied to the production of defect-free steel us guys.
Wherever the bottleneck is, we go there, and by an employee's
entire shift can triple the average everyone works on it."
steelworker's take-home pay. Ittook six months to convince Auburn
workers that-.. --
With demand for steel scorching@ese_dayls, -paxday they would do
better under Nucor's pay system. During has become a regular cause
for celebration. Nucor that time the company paid people based on
their old gave out more than $220 million in profit sharing formula
but posted what they would have received unand bonuses to the rank
and file in 2005. The average der Nucor's formula. Pretty soon the
numbers became Nucor steelworker took home nearly $79,000 last a
powerful argument to switch. Hutchins saw his pay year. Add to that
a $2,000 one-time bonus to mark climb from $53,000 the year before
the sale to $67,000 the company's record
