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Soft Heart Pays Off For the last 12 years,
IMR, Nov. 21, 1994
H. Dean Horn, president of Rath Resources and Automation in Bellefontaine, Ohio, has hired local senior citizens on an as-needed basis for the last 12 years. They wire tags, collate, apply transfer tape and stuff envelopes in their own homes or, when necessary, at Rath's facility. A core group of three or four retired couples has become loyal to Rath and appreciates the extra income. "They're very reliable," he says. "We have almost no quality errors."
The arrangement began through a close relationship with a local manufacturer who needed a job in a hurry. Since much of the work is repeat orders, the workers don't need to have it explained each time. "I give them a deadline so they know what to expect," says Horn. "It gives me a little more control. I know where the tags are." With help from these workers, he can "turn things around pretty fast" and meet deadlines on rush orders.
Although some of the work can be done by machine, Horn sometimes prefers to have the senior citizens do the work manually. "It's just as economical," he says. "We're doing it more and more." He attributes the excellent quality of the seniors' work to their experience. "If you've lived that long, you understand that it needs to be done right," he says.
Rath pays the senior citizens a flat rate. For #8 tag wiring, they earn $4 per thousand. Horn treats the workers as contractors and files a 1099 tax form on each one.
At the end of the year, Horn thanks each of his senior citizen employees with a fruit basket. "I guess I have a soft heart," he says. "Maybe someone will favor me when I get old."