On January 5, 1914, Henry Ford shocked the world when he announced that Ford Motor Company would increase it’s employees minimum wage from 0.50 cents a day to $5.00 a day.
The idea that any wealthy industrialist would share profits with their employees to such a high degree as Ford did had never been seen before.
In one day, Ford had increased his workers pay by 900%!
Henry Ford was not trying to be a philanthropist by raising his company’s minimum wage, but instead he was taking advantage of a sound business principle, which by doing so had greater positive effects for his business than he could have ever hoped for.
As a result, people of the highest talents were all lining up to work for Ford and those who were already working for Ford understood how lucky they were and worked even harder.
By paying higher wages on average, Ford received better service on average.
Henry Ford made it a philosophy in his business to provide more value than he needed to because by doing so, Ford received more than he gave.
We live in a world of reciprocal altruism where the quickest way to become successful and find happiness is to provide value to others before you receive any value in return.