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 ...
In spades.
I'm a past owner of 3 small businesses, so I understand the profit & loss statements which payroll is usually the biggest cost. However, if it works within the business model and good for the employer and employees, good for them.
They purport to make it easier for "independent businesses" to accept credit cards. See http://gravitypayments.com/.
If so, it’s just because of the publicity generated by the owner doing this. What if other companies followed suit? Once it became old hat there’s no novelty
bump...
This insight changes things a bit.
If I have to keep putting money into a company to keep it floating and looking good on paper I need to find another line of work. Unless I’m looking for some feel good bailout money.
“Too many companies today are in it for the money.”
Are you for real? Your making stupid liberal comments about a story and company that you’ve done no more research on than read a headline. He’s defrauded an investor and sold everything he’s got damn near to keep this charade afloat.
Dude--learn to read for comprehension. Tonto clearly said he was guessing as to why they were doing this, and gave a supposition as to their logic for doing this. He never claimed authority, nor knowledge, nor expertise--other than having similar experience in hiring/firing people.
He was contributing to the discussion, while you are just trying to pick a fight.
naps makes liberal comments and anti business comments all the time, because he’s a liberal goobermint employee who happens to be pro life......
this is hardly a conservative site anymore....
the extremely short term effect is not necessarily predictive of the longer term.
it is too soon to be joyful
Once you start cutting off your arms and legs, there won't be many body parts left to cut before this whole sham goes up in smoke. Only idiots like this "CEO" and those idiots in the media who don't have a clue how real economics works, think this is a real "progressive" way to conduct business.
This reminds me of the chapter in Ayn Rand's Atlas Shrugged about the 20th Century Motor Corp. and how that company went down the tubes after the socialist-bent kids of the founder who inherited the company, decided everyone should earn the same salary, no matter what their contribution or effort at the company. Epic fail.
By definition, a business must make money to survive. Making a profit is the goal of all businesses. If your goal is to make the employees "feel" good, then you should become a church.
you beg the question...... it the business in question a church?
it is actually a progressive experiment in utopia, a utopian cult.
It is fine that it is his own money or his family’s money this guy is throwing down that conceptual socialistic rathole.
Here is the problem: this guy is using his own money and the future of his company to advance socialistic concepts and the utterly moronic concept of “fairness” in wages. To anyone who thinks that “socialism is only government”, that is fine. But what of it when someone in government like Obama or virtually every person who is a member of his party uses this flawed “experiment in wage fairness” as “proof” that it is possible to run things this way, and references it to get legislation passed. Is it not part and parcel of that process?
If Bernie Sanders points to this farce as proof that his concepts “work” and convinces enough idiot voters to elect him (this is not a stretch by any means) and he then uses Executive Orders to hammer into place things that will work towards establishing this ridiculous model, is what happens at that company not an integral piece of it?
Anyone who buys into this is fooling themselves if they think it can be workable at a level beyond someone who wants to throw his money into it in order to prop it up. This is the equivalent of Bernie Sanders with a printing press for creating currency.
I believe in paying people what they are worth and treating people with respect, but paying two people the same amount of money when one of them neither has to put forth the same effort to earn it, bear the same burden of responsibility, nor expend the same amount of time, energy, and capital to get qualified enough to get to a point of doing a job is not “fairness”. It is extremely disrespectful and unfair towards one of those two people.
In the twisted, socialistic world of “wage fairness”, a person responsible for quality control on pacemakers to be implanted in the chests of sick people would get paid the same pay as a assembly line worker who dropped out of high school to do drugs and live at his parent’s house. If the assembly line worker doesn’t put a bag of desiccant inside the box before it is taped up, does that carry the same assumed risk as the guy who is responsible for quality control?
Laud this guy for throwing away his own money to try to put his money where his mouth is. But anyone who praises the concept of what he is trying to achieve, can fairly have the term “Useful Idiot” applied to them.
See my post at #75.
There are a lot of Free Traitors™ gloBULList agitators on Free Republic that think everyone should be paid 3rd word wages and that borders and 1st world standards of living are 20th century concepts.
You are a liar..... having been proven wrong over and over by many many that understand business you revert to cutsy out right lies
go back under your rock
The problem is that it seems artificial. You can’t just say that you’re going to pay everyone at least $70K without having the financials to actually pay it. If the company can make a profit while paying that type of salary, then great. But it doesn’t seem doable.
I wonder why you think business exist?
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