Nucor Steel

Employees from Nucor Steel that were off duty dropped what they were doing and travelled to the factory as fast as they could when they heard that the electrical grid had failed. They helped get the plant back online in just 3 days compared to the estimated week. How do you get employees to volunteer to do this? The answer is within the structure of Nucor. Nucor allows employees to enjoy the benefit of doing well; this also means they take the heat also when production is poor. Nucor has a pay structure that allows employees to reap benefits of producing the steel requested in orders. Meeting this obligation efficiently and effectively grants rewards. Nucor’s guaranteed base pay is less than competitors however with bonus it can triple that of competitors. Also, the organization is flatter than most and the CEO works alongside workers and does not exude a “better than employee attitude.” Management often encourages competition on safety and production goals. These driving forces have allowed employees to feel a sense of ownership.

I chose this article after hearing from a Nucor manager in class. It was great to compare and contrast what he said and what the article said. In all honesty, they aligned perfectly. Nucor has a unique pay structure and the structure has allowed for them to be a fast growing company and one of the top performers in the S&P 500. The employees share in the pain and the glory of company. They have a strong incentive to make sure they do all they can to cut material and labor costs and contribute to a safe work environment. I was surprised that the manager in class said that the employees often arrive early for work so that they can quickly transition to a new shift. I plan to have a career in human resources and this is a great example of a compensation plan that provides the right incentives which in turn produces great results. I have had jobs where employees were not rewarded for putting in extra effort and as