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 ...
I don’t know about customer retention except if they are dealing with happy employees, the clients/customers will be happier. Who wants to work with someone not happy at work. I would like to see more companies at least start doing this. How about at least stop the 40 million dollars a year for a CEO. I mean that is really insane even for conservatives to believe that is good.
in the example I refer to in post 20, I guarantee you it was not. Nor is there any reason to call it BS in the absence of contrary data.
This is bull. Socialism has never worked and never will because its based on a uni-dimensional construct of a person. Real people work harder for rewards and want to differentiate themselves. They get resentful of someone else getting paid the same and doing less or simpler tasks.
You can get anything to work for awhile by throwing money at it as the president of this company is doing but the fact that you have to do that admits from the outset that its a sham and eventually the money will run out.
The world and people are the way they are and have been throughout history not the idealized soldiers of the workers paradise.
Totally agree.
Too many companies today are in it for the money. I mean what does a worker get? Not much. Benefits are nonexistent for the most part. Heck even two week vacation is going away. They are stopping the matching funds for 401K. These are companies that have made billions with ending the pensions and they still can’t give anything to the workers. Something is seriously wrong.
It is not socialism. This is a private company. Socialism is only government. Something I wonder about the education of some.
After the initial backlash, they probably got another initial rush of new customers from the publicity. Plus took a ton of his own money to cover the costs.
It’s too soon to say whether this is a failure or a success.
It will be interesting what the numbers look like 1-2-3 years out.
If the Company’s Revenue Stream can support the increased Operational Costs, good for them. Henry Ford gave his Worker’s a Salary of $5.00 a Day so they could also afford to buy the Cars they Manufactured.
Whatever a Private Company chooses to do, they are the ones taking the risk. I draw the line on Government intervention when it comes to Employee Compensation, but as we all know that is only because I’m a crazy Right Wing Bitter Clinger.
That being said, I guess the Democrat’s had better get busy on Raising the Minimum Wage to $70,000 a Year.
Utopia is at hand!
That’s not accurate. Socialism relates to equal pay for all despite what each is putting in. It has often related to countries but doesn’t need to.
The company processes around $10 billion in credit card payments.
Last I heard, he was getting sued by his brother, who is a co-owner of the company.
but just a few weeks ago, there were reports indicating exactly the opposite. I am suspicious of this...
This ‘CEO’ wasn’t making $15 million per year. The $15 million is the gross revenue number for the company. He was taking a salary of $1 million on very small revenue, fishy to begin with.
He paid out these ridiculous raises to show zero profit. He has a profit sharing agreement with this brother. No profits means no profit sharing. His brother is now suing for his share of profit which was about $2 million before the raises.
As it looks now, you’re cheering on a criminal who screwed his own brother over money.
people need to be competitive to get the best out of them...
if you are intelligent and spend the years getting your degree, why would you work for someone who thought the janitor deserved the same pay as you?....
its communism.....
Apparently, you have a very poor idea, of capitalism. Good. The world you envision as fair, on all levels- is headed into your station. All the best to you and yours...
btw, his brother who apparently has some ownership in the company is not happy with what has happened...
That’s why i never bought a house with my brother. Love him, but no.
this story has so many angles i dont know what is going to happen to the company down the road.
i guess we’ll see.
if he bankrupted himself giving everyone 70k then he’s done.
Maybe he was out to prove a point, maybe it was an in the moment decision. I dont know.
sometimes out of nowhere i want to up my monthly to FR and sometimes i do, and sometimes i dont.
But i never throw a crazy number that i wouldn’t be able to pay.
it’s called being rational. Maybe he’s not.
This article says it’s a total flop:
http://www.entrepreneur.com/article/249313
Human nature indicates it will be a flop.
he’s a gummint employee.....
When the consumer credit bust comes— the company will go under. They make money through processing. This is not supportable.
Yeah I remembr this story about the guy selling all his stuff to make this work because the company was goin under in this crazy idiocy.
Its socialism. Hes free to do it but thats what it is. Some jobs are inherently worth more to theco,panys bottom,line. Its a stupid idea. He can do what he wants but its a stupid idea. If he tanks the company and loses all his stuff how has he made his former employees lives better, by destroying the dompany?
It says he invested three million more in the company by selling his stocks, emptying his retirement accounts and taking mortgages on his homes, so I hope it works out for him.
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