A work credit system for use in businesses
Nicholas Saunders
Summary
The Institute for Social Inventions is looking for a business that is still at the planning stage which might like to take advantage of the work-credit system, for such a system could have an extremely beneficial effect on the standard employer-employee relationship.
In this system (adapted from the American 'Walden 2' commune experiments), each task within the day's work is awarded credits, with the value of the credits being decided by the workers themselves, so that the most unpopular jobs receive the highest credits. Among the many advantages are that people can then work nearer to their own preferred individual pace, at work of their own choosing, and be paid according to the real value of their work, with the element of self-assessment resulting in less interference by the employer.
Free consultancy advice is offered to the first business prepared to take up this work-credit system.
Introduction
This is a system for paying staff more fairly, and one which can be extended to everyone concerned in a business including the customers. The assessment is made by those doing each job in such a way that it is automatically revised at regular intervals. As the assessment comes from the workers, it is unnecessary for a 'boss' to evaluate their worth, thus eliminating a cause of tension. As payment is by credits, staff are more free to work at their own pace and to choose which jobs they do.
Principle of operation
The work involved in the business is divided into specific jobs; or where it is impractical to distinguish some jobs, these may be combined in a category - for instance, book-keeping and ordering stock may be included in 'office work'.
'A list of the day's jobs is posted along with their credit ratings. The staff choose their jobs (from those that they are qualified to do)'
Specific jobs are allotted a number of credit points each - for instance 12 points for cleaning the work area; 10 points for banking the day's takings and so on. Non-specific jobs are allotted points by time - say office work 20 points an hour; driving a van 15 points per hour. In practice, most of the jobs would be specific but examples depend on the type of business. Where several people work together, they of course share the credits for the work they do.
The operation in practice
A list of the day's jobs is posted along with their credit ratings. The staff choose their jobs (from those that they are qualified to do), and cross them off the list, taking a note of how many credit points they have earned.
Re-assessing the credit rating
The jobs that are not chosen (ie those that are taken when no choice is left) are automatically upgraded in credit rating - by having their number of credit points increased by, say, five per cent. Of course common sense would prevent this happening if there were a particular reason applying that day. There would also be an opportunity for workers to alter the credit points - either at a regular meeting or by each person having a 'ration' of points they could change each week.
The total wages allocated per week would be divided by the total number of credit points - so, for instance, each point might be worth 13p - and each person's wages calculated accordingly.
Extensions of the principle
It would be necessary to establish some form of agreement with staff, at the outset, about how the total wages are to be calculated. For many businesses - such as a shop - this can conveniently be a proportion of turnover. It would then be necessary to have an agreement with the staff that all work (within set parameters) was to be completed each day, however long (or briefly) they had to work. There would, of course, be no 'overtime' as such, but long hours would normally be linked to high turnover. This device of linking total wages to turnover is generally seen to be fair by everyone and is a great advantage when it comes to costing.
'Say that the business is expanding, all the staff will work more and more (and earn more and more) until they decide that they had rather earn less and work less'
A further extension is for the staff to decide whether to take on more people. Say that the business is expanding, all the staff will work more and more (and earn more and more) until they decide that they had rather earn less and work less. On contraction, the staff could decide if, when and whom to lay off.
The third - and most fundamental - extension is to include those in the 'boss' position. Obviously, fewer people would be qualified to manage than to do basic jobs, but it seems to me that responsibility could be assessed and rewarded by credit points. And, to complete the set-up, why not those risking and investing their capital too?
Optional extension - combined workers'/consumers' co-op
Imagine this system in operation in a shop that catered for regular customers. It would then be possible for those who own the business to sell it to the customers so that it became a co-op. Or the same result could come from a group of prospective customers putting in money to set up the business.
The structure appears to incorporate a conflict, on the intellectual level at least - that of the customers' interests versus the workers'. But, in practice and with goodwill, I think that this is no real obstacle.
I visualise a committee of owner/customers who would lay down overall principles, employing a group of workers on the work-credit principle. The workers and customers would have joint meetings to agree on a manager and important changes - but apart from that, the staff would have control of all day-to-day and week-to-week running of the business.
Is your business at the planning stage?
I had hoped to use this system in a retail business employing some twelve people which had already been going for some years. However, in this instance there were particular difficulties, perhaps compounded by the fact that the conventional structure was already well established.
The Institute is therefore looking for a business that is still at the planning stage that might be interested in using this work-credit system and in evaluating its usefulness - so that the system can, if proved helpful in practice, be then publicised more widely, with the aim of creating an improved structure for the employer-employee relationship.
The Institute will endeavour to help the first business to take up this system, not only with advice on the work credit front, but also with business advice generally, if required.
The types of business that might be most suitable include shopkeeping, distribution and many light industries and farming.
Nicholas Saunders, top floor, 14 Neal's Yard, London WC2H 9DP (tel 071 836 9404; fax 071 379 0135).
Previous / Next / Table of Contents