Posted on 10/25/2015 8:16:57 PM PDT by napscoordinator
Gravity Payments, that Seattle credit-card-payments processing company that said all its employees would earn at least $70,000 in three years, is defying the doomsayers.
Revenue is growing at twice the rate it was before Chief Executive Dan Price made his announcement this spring, according to a report on Inc.com. Profits have doubled. Customer retention is up, despite some who left because they disagreed with the decision or feared service would suffer. (Price said he’d make up the extra cost by cutting his own $1.1 million pay.)
Barely any employees have left — although some outsiders, including some commenting on a MarketWatch article about the decision earlier this year, warned that employees could start putting in less effort because everyone is being paid the same regardless.
(Excerpt) Read more at marketwatch.com ...
too lazy to open link. What kind of company? Mail clerks work there? Clerical? lots of money for them, but whatever works.
i would assume those already making 70k got increases.
anyway, old had to me. I worked in graphics where there were set hourly wages for the three different shifts. only a promotion would earn you more money.
Good pay though.
They do something like that. The reason it is so triumphant is because most industry leaders thought it would fail. How does giving everyone a raise a failure. I don’t think the ones over 70K got raises and some left due to it, but I think in the long run they will regret it. The naysayers look stupid now.
Remember all those stories of the self described superstars getting pissy and quitting? I bet every one has been replaced by someone just as good.
Good on this guy, at least he put himself in the pot.
Totally agree. Those losers who left will regret it. Some even here felt this was a failure to begin with. I knew it wouldn’t be. If you treat your employees with respect and dignity, they will work doubly hard.
I wonder what Rush will say?
He (whom I love) kicked all this in the face about 100 times.
He will make up some excuse as to why it succeeded and why he was wrong but he will never admit that.....hell just deflect.
Good grief. Faceless hell is coming- deep, hard and continuously. Get ready, naps.
I don’t believe this.
but you said the key word. “Private”
people can stay or go. Although in today’s job force 70k plus is hard to leave.
Federal employees on the other hand, are getting our money for watching porn and working for the union.
“Price, meanwhile, has invested another $3 million in the company after selling all his stocks, emptying his retirement accounts and taking out mortgages on two homes, according to Inc. (He told the New York Times three months ago that he was “renting out my house right now to try to make ends meet.)”
I guess that would cover the $70,000 salaries for awhile.
Tough.
“If you treat your employees with respect and dignity, they will work doubly hard.”
Oddly, there was a brigade here back then that hated it on a knee jerk fashion. Like they wanted to see it fail. Very odd. I agree with you that treating your employees very well will pay off in spades.
BS - I call fake. Let’s see the data on customer retention. That sounds invented.
And your problem with this company is? Too much fairness to the employee? Not making them work for 8 dollars an hour like most companies while the CEO walks away with 70 million even when he/she gets fired? I know it must be hard to see a company treat employees right but it is rare. Most companies treat their employees like a number who can be told to leave at any moment. You think it is on purpose that they give layoffs beginning November through mid-December? Companies have been wrong for years and some are going to start changing and it is for the better.
OK. So he threw his own money into it. No wonder he can do it. It is coming out of the 3 million he raised by selling or cashing in his assets. I knew there was a hitch.
Well, that changes things a little!
i have to read up on this now. None of it makes sense.
either his company is doing well and he is making a bundle, or the salaries are too much and he is failing.
The companies that paid the same rates for graphics were investment banks. We were worth 70k.
It was the modern equivalent of a factory except skilled labor.
You could hand you work over to any other work or new shift person so i could see why you would pay the same.
The RAISE was getting hired instead of being a temp.
It is unbelieable how you want this company to fail. Why? What is wrong with it? That the CEO is making 15 million a year at least? That they treat their employees with respect? Gosh it is unbelievable. Do you want everyone making 8 dollars an hour?
The HFIC (Head Fool In Chaarge) is a Happy Meal shy of bankruptcy.
Good for them. The market will decide and each business should the freedom to do what it wants to do.
I was personally involved (although not a beneficiary) of a private company where the founder/owner handed each long-term employee a check that was basically equal to a year’s pay as a bonus when he sold out. He didn’t have to do it, but it was his way of thanking them for his success. If this company can pay $70K and meet the expectations of it’s owners, good for them.
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