Every time Ford increased auto production, he also raised wages. In one three year period, he lowered per auto cost 66% and raised wages each year. He did it because he knew it was the right thing to do. He did it because he knew that well-paid employees had more to spend on houses, clothes, and of course, on autos. He knew that well-paid employees were more likely to ramp up production in return. He also knew that well-paid employees were loyal.
The take-a-way here is that you can’t shrink your way to greatness. When you enable your employees to do more, connect more, produce more and get paid more, you create a positive give and take environment that’s mutually beneficial for everyone.
Truth Be Told, the goal isn’t to clear the table, as some companies think and do; the goal is to set it.