Every six months it adjusted their job levels and salaries. And production—the number of health claims processed—was just 30 percent in the formula. Accuracy was another 30. The remainder of the formula plugged in attendance and supervisors’ observations on job knowledge and the quality of correspondence. The employees weren’t just at the mercy of a machine.
“It’s a more equitable system,” said a claims processor whose salary leaped from $220 to more than $280 a week.
Still, the union claimed that most members weren’t so well disposed to the new system. That may or may not have been true. Just the same, the claims processor qualified her own enthusiasm. She wanted faster feedback from the monitoring. “It would be constructive,” she said, “if we got it at the end of the day or even weekly.”
The woman, too, hoped to know the exact math behind the salary system: “I’ve asked my manager a number of times. She said, ‘You wouldn’t understand it.’ I said, ‘Tell it to me, and I will understand it.‘”
Big questions persisted. Was the insurance company, for instance, really crediting her extra for writing letters to doctors who haven’t submitted diagnoses with claims? The company told her that it was—that it still paid to handle such cases. But she wasn’t so sure. Management, she claimed, had lied on other matters.
Another worker said the company did not audit enough forms to discourage slipshod work from high producers.
Even in its first few weeks, with the normal start-up wrinkles, the system did show some promise. Production was dramatically up. “If I was a manager and my job was to get the maximum amount of work out of an employee,” said a claims processor, a union member, “yeah—in that position I’d use it.” But she worried, justifiably, about her own future. “Maybe a person has been producing ninety claims a day. How much more can they push them? They can’t push them past a hundred, so what else is there for them to do?
“There aren’t many [promotion] opportunities here because supervisors have been here for years and years,” she said. And she wondered: What about turnover?
It was winter 1982. A depression or near depression was in full swing. Would the system have worked well in normal times?