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Why Gravity Payments CEO Dan Price Gives Employees a Minimum Wage of $ 70,000

The CEO was six years ago Dan Price We’ve raised the salary of everyone at Seattle-based credit card processing company Gravity Payments to at least $ 70,000 a year.

Price has cut his salary by $ 1 million so he can raise his salary. He was welcomed by some of the heroes and met with bankruptcy predictions from his critics.

But that’s not happening. Instead, the company is thriving.

“So, has the number of employees almost doubled?” Asked Carter Evans of .

“Yeah,” Price replied.

He said his company tripled and he still pays his employees $ 70,000 a year.

“How much do you earn?” Evans asked

“I earn $ 70,000 a year,” Price replied.

Price reduced his life, sold his villa, and used his savings to pay his bills. Some financial experts believe that pricing is a big risk.

Andrew Hafenblack, assistant professor of management and organization at the University of Washington Foster School of Business in Seattle, said:

According to the Institute of Economic Policy, the average salary of CEOs is 320 times the salary of their typical worker.

“This shows that companies aren’t the only way to succeed and make a profit,” Hafen Black said. “Do you pay what you can escape? Or do you pay what you think is ideal, rational, or fair?”

Mr Price said that despite his company’s success with this policy, he hopes other companies will follow suit.

“I think it’s a failure of this. You know, I feel like yelling from the rooftop,” This works, this works, everyone should do it! ” I will. And because the system has the highest value, the lowest risk, and the least amount of work, large companies are following zero. “

The price believes Gravity’s revenue has increased significantly as higher salaries have led to highly loyal employees.

“Our turnover has been cut in half, so when employees stayed for twice as long, their knowledge of how to help their customers soared over time, which was more than my reduction. We paid for the salary increase, “says Price.

The company COVID-19 Pandemic, Lost 55% of its business in March 2020. At one point, Price thought gravity was only four months after the failure, but recovered after employees voluntarily made a temporary wage cut.

Among the volunteers were new parents and colleagues Carrie Chen and Alex Franklin.

“We reduced our salary to $ 40,000,” Chen said.

“Yes, I think we’re taking about 60% each,” Franklin said.

Since then, both Chen and Franklin’s salaries have returned to normal, and Gravity has repaid them the lost wages they voluntarily abandoned.

Chen and Franklin had a baby named Thomas. They said the pricing policy allowed them to buy a family for the first time.

“We are on track for the American dream. We have beautiful boys, great homes and beautiful lives. We can prosper, not just live.” Chen said.

Baby Thomas is one of the 60 new members of the company’s family over the last six years. He also claims that the number of employees buying homes has increased.

To repay Price for his sacrifice and the dreams he made possible, all his employees decided to tip him and buy him a car. Gestures that make a lot of sense for the price.

“My employees have done more than I have ever done, so the fact that they wanted me such an unrealistic and wonderful gift is very special. I don’t know if it can be expressed in words. “Price said.

“You could have afforded it with your old salary,” Carter said.

“Yes, that’s true. I’m much happier than before,” Price replied.

Why Gravity Payments CEO Dan Price Gives Employees a Minimum Wage of $ 70,000

Source link Why Gravity Payments CEO Dan Price Gives Employees a Minimum Wage of $ 70,000

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