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The $70,000 minimum wage is paying off for that Seattle company
Market Watch ^ | 25 October 2015 | Silvia Ascarelli

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 ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: economy; jobs; success; workers
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To: C. Edmund Wright; napscoordinator

A Non-producer- who is deeply alienated against self-originated taxed producers. The pimps by proxy, who have been allowed existence, by the nature of our busy and fruitful lives. The ungrateful miscreants, who need exactly what is coming, our way.


41 posted on 10/25/2015 9:24:22 PM PDT by RedHeeler
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To: C. Edmund Wright

I recall the same, back in August?


42 posted on 10/25/2015 9:25:52 PM PDT by Irenic (The pencil sharpener and Elmer's glue is put away-- we've lost the red wheelbarrow)
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To: napscoordinator

Let’s see how this works out in the courtroom:

http://www.nydailynews.com/news/national/brother-sues-seattle-ceo-setting-70k-minimum-wage-article-1.2300422

This has all the earmarks of a PR offensive for a progressive wet dream.


43 posted on 10/25/2015 9:27:10 PM PDT by CreviceTool (A Good Samaritan with a handgun saved my life...)
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To: napscoordinator

Yea, as long as he isn’t subsidized or bailed out by taxpayers who cares? It’s his money as the owner.


44 posted on 10/25/2015 9:29:11 PM PDT by Rusty0604
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To: napscoordinator
the article says he makes $1.1million not $15
45 posted on 10/25/2015 9:29:26 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -w- NO Pity for the LAZY - Luke, 22:36)
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To: napscoordinator

>>Who wants to work with someone not happy at work. I would like to see more companies at least start doing this. <<

It is OK with you that you work 10-15 years at a company, learning all the skills needed, investing your own time at some of them and putting in 50-60 hours a week and some clerk who puts in 40 (not counting 1-1/2 hour lunches, coming in a bit late, leaving a bit early) gets the same compensation?

There might be a push from the publicity, but this is NOT a sustainable model.


46 posted on 10/25/2015 9:47:13 PM PDT by freedumb2003 (Don't mistake my silence for ignorance, my calmness for acceptance, or my kindness for weakness)
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To: napscoordinator
I'm unfamiliar with this company, but as someone who did hires/fires/training in a previous life, I can say this:

The additional salary expense may be offset by what I presume is a reduced turnover rate. I don't think people realize just how expensive it can be to recruit and train employees, especially in a business sector that has a high turnover rate.

47 posted on 10/25/2015 9:52:55 PM PDT by TontoKowalski (Satisfied Customer #291)
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To: TontoKowalski

Why the high turnover rate?


48 posted on 10/25/2015 9:54:09 PM PDT by RedHeeler
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To: RedHeeler
As I said, I'm unfamiliar with the company. The reduced turnover rate was just a supposition as to why paying higher salaries could pay off in the long run.

Keeping employees is often less expensive than hiring new ones, even if you pay them more.

49 posted on 10/25/2015 9:56:59 PM PDT by TontoKowalski (Satisfied Customer #291)
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To: 21twelve
Yeah, we never get the whole story anymore. Give it a year or two and see then whether it is still in business.
50 posted on 10/25/2015 9:58:14 PM PDT by hinckley buzzard
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To: napscoordinator
We have a precedent where everyone makes the same wage regardless of whether they are any good or not. It is called union scale. If you want to know how that turned out, ask Chrysler or LTV Steel or...
51 posted on 10/25/2015 10:04:20 PM PDT by hinckley buzzard
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To: DesertRhino

So true.

When employees wake up and want to go to work rather than dread going to work it shows in the finished product or service.


52 posted on 10/25/2015 10:09:09 PM PDT by warsaw44
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To: napscoordinator

From my memory, the CEO cut his salary to do this, so their bottom line every month was the same amount... Why shouldn’t it work??


53 posted on 10/25/2015 10:09:28 PM PDT by AzNASCARfan
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To: napscoordinator

It couldn’t have been more than six months ago just the opposite type of article was published saying the company was going belly up. Wonder who’s responsible for this new version of events


54 posted on 10/25/2015 10:10:13 PM PDT by Cyman
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To: napscoordinator
Too many companies today are in it for the money.

You must have never run a business.

If you are running a business and you are not doing it to make money, then you should be doing something else. That's not to say there can't be other reasons for running a business but making money is the lifeblood of every business. And without it, your business will die.

Or to put it another way, which might strike closer to home, all of the people who are employed by the business owner will lose their jobs if the business owner doesn't do his job of keeping a constant eye on the bottom line.

55 posted on 10/25/2015 10:15:44 PM PDT by vbmoneyspender
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To: TontoKowalski

That is not, what was going on this “company”. Your idealism is showing. Go to work, or create a business. I would like to hear from you, in 5 years.


56 posted on 10/25/2015 10:17:55 PM PDT by RedHeeler
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To: vbmoneyspender

You know, it shouldn’t be necessary to explain that on a conservative site. Sum ting wong.


57 posted on 10/25/2015 10:18:59 PM PDT by sparklite2 (All will become clear when it is too late to matter.)
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To: sparklite2

It seems that eye-rolling and head-shaking are two constants in my life nowadays.


58 posted on 10/25/2015 10:24:18 PM PDT by vbmoneyspender
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To: RedHeeler
What the hell are you talking about?

My remark was that I don't know anything about this company, but that it can be very expensive to recruit and train new employees. If a company is in an industry with a high turnover rate, the bottom line could come out better by paying a higher salary that will retain employees.

That's not idealism. That's just fact, unless your vision is a form of slavery in which employees are prohibited from leaving the company.

My son's friend, an honorary member of my family, has just taken a job in which he will be in training, full-time, for over three months. He went through a 2 month process, including numerous panel interviews and an extensive background check, before he was offered. His company has invested quite a lot in him. They'll pay him enough to keep him.

59 posted on 10/25/2015 10:38:49 PM PDT by TontoKowalski (Satisfied Customer #291)
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To: TontoKowalski

Okay, Tonto. So, you made direct comments about this specific company- although you knew nothing about it? That’s “what the hell”, that I am talking about, Kowalski. Go ahead, write back.


60 posted on 10/25/2015 10:56:44 PM PDT by RedHeeler
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