--- title: "Meaning & Key Takeaway of: That’s what happened at Ford, for…" description: "\"“That’s what happened at Ford, for example. In 1914, Henry Ford famously raised his starting wage to $5 a day (nearly $120 in today’s dollars). He had ..." image: "https://sms4smile.com/quotes/i/965/don-watkins-23222_quote_that-s-what-happened-at-ford-for-example_789140.jpg" --- # That’s what happened at Ford, for example. In 1914, Henry… ![“That’s what happened at Ford, for example. In 1914, Henry Ford famously raised his starting wage to $5 a day (nearly $120 in today’s dollars). He had to: turnover at Ford in 1913 had been 370 percent.37 In order to find and keep the workers who were assembling his increasingly profitable cars…” quote by Don Watkins](https://sms4smile.com/quotes/i/965/don-watkins-23222_quote_that-s-what-happened-at-ford-for-example_789140.jpg) [Download](https://sms4smile.com/quotes/i/965/don-watkins-23222_quote_that-s-what-happened-at-ford-for-example_789140.jpg) [Open image](https://sms4smile.com/quotes/i/965/don-watkins-23222_quote_that-s-what-happened-at-ford-for-example_789140.jpg) > ““That’s what happened at Ford, for example. In 1914, Henry Ford famously raised his starting wage to $5 a day (nearly $120 in today’s dollars). He had to: turnover at Ford in 1913 had been 370 percent.37 In order to find and keep the workers who were assembling his increasingly profitable cars, Ford had to be willing to outbid his competitors (which included not only other car makers, but every other employer bidding for his prospective employees).”” [Don Watkins](https://sms4smile.com/quotes/author/don-watkins/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Ford raised wages to $5/day to cut massive turnover and attract labor, showing pay can be a strategic competitive advantage. **In simple terms:** Higher pay can reduce turnover and improve loyalty. Key Takeaway Invest in fair wages to retain talent. Themes labor economics management incentives Mood pragmatic analytical Type business historical When to use this quote - manufacturing - retail - tech hiring - service industry - startup recruitment Key Concepts human capital competitive strategy Questions to Reflect On - How can firms balance wage increases with profitability? - What non‑monetary incentives complement higher pay? A Different Perspective Higher wages may increase costs and require productivity gains. ★ ★ ★ ★ ★ No ratings yet [Wage](https://sms4smile.com/quotes/about/wage/) ## Related quotes > [“Henry Ford gave that idea popular currency when he brought out the famous Model T car and announced in 1914 that he would pay…](https://sms4smile.com/quotes/hedrick-smith/henry-ford-gave-that-idea-popular-currency-when-he-brought-out-the/) [Hedrick Smith](https://sms4smile.com/quotes/author/hedrick-smith/) > [This relationship is the foundation for the argument, made by some trade unionists and labour advocates, that high wages can actually be "good for…](https://sms4smile.com/quotes/jim-stanford/this-relationship-is-the-foundation-for-the-argument-made-by-some/) [Jim Stanford](https://sms4smile.com/quotes/author/jim-stanford/) > [“hat are the effects of increasing minimum wages?” asks Paul Krugman. “Any Econ 101 student can tell you the answer: The higher wage reduces…](https://sms4smile.com/quotes/don-watkins/hat-are-the-effects-of-increasing-minimum-wages-asks-paul-krugman-any/) [Don Watkins](https://sms4smile.com/quotes/author/don-watkins/) > [“We’re taught to think of the minimum wage as a mechanism for helping people earn more. 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I don't want the wage gap issue to be…](https://sms4smile.com/quotes/patricia-arquette/it-concerns-me-when-people-frame-the-conversation-about-equal-pay/) [Patricia Arquette](https://sms4smile.com/quotes/author/patricia-arquette/) > [Along with a livable wage, many parents are desperate for quality affordable child care.](https://sms4smile.com/quotes/kirsten-gillibrand/along-with-a-livable-wage-many-parents-are-desperate-for-quality/) [Kirsten Gillibrand](https://sms4smile.com/quotes/author/kirsten-gillibrand/) > [You can't receive a living wage unless you work.](https://sms4smile.com/quotes/mark-winne/you-can-t-receive-a-living-wage-unless-you-work/) [Mark Winne](https://sms4smile.com/quotes/author/mark-winne/) > [If cheap immigrant labor is made unavailable, employers can hire Americans at a higher wage, or replace low-wage immigrant workers with technology and automation,…](https://sms4smile.com/quotes/jan-c-ting/if-cheap-immigrant-labor-is-made-unavailable-employers-can-hire/) [Jan C. 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