Halsey Premium Scheme
Under this plan,
(i) Time rate is guaranteed;
(ii) Standard time is fixed for the job or operation;
(iii) The workers producing more than the standard, or the workers completing the work in less than the standard time fixed, get bonus in addition to the ordinary time wage;
(iv) The bonus of the premium, by whatever name called, is 30 to 70 percent of the wages of time saved, the usual percentage being 50%,
(v) The remaining of the bonus percentage is shared by the employer.
Merits of Halsey Plan
(i) Day wage or the time rate is guaranteed. Even if output is less than the standard, one gets the time wage;
(ii) Workers get premium for the output above the standard. It provides incentive to the workers to produce more;
(iii) As the premium is not 100% but only 50% or so, the employers feel happy about it is a they share the remaining 50%;
(iv) The scheme is very simple and understood easily by the workers.
(i) A significant share of the bonus goes to the employers. So the workers object to it;
(ii) Incentive is not so attractive as it is with the piece work;
(iii) Where the workers start saving more than 50% of the time, they earn premium in huge amounts, which the employers do not relish.