Back in 2015, a story popped up about how the CEO of Gravity Payments, Dan Price, took a big cut in pay in order to make sure every one of his employees made at least $70,000. For some employees, that meant a doubling of their salary. Cynicism abounded. It will never work! said some. He’ll go broke!, said others. He’ll rob employees of ambition!, said others. The story below, from BBC News, provides an update. Apparently, the naysayers were wrong.
LINK: The boss who put everyone on 70K (by Stephanie Hegarty for BBC News)
…More than 10% of the company have been able to buy their own home, in one of the US’s most expensive cities for renters. Before the figure was less than 1%.
“There was a little bit of concern amongst pontificators out there that people would squander any gains that they would have. And we’ve really seen the opposite,” Price says.
The amount of money that employees are voluntarily putting into their own pension funds has more than doubled and 70% of employees say they’ve paid off debt.
But Price did get a lot of flak. Along with hundreds of letters of support, and magazine covers labelling him “America’s best boss”, many of Gravity’s own customers wrote handwritten letters objecting to what they saw as a political statement.
Rosita Barlow, director of sales at Gravity, says that since salaries were raised junior colleagues have been pulling more weight.
“When money is not at the forefront of your mind when you’re doing your job, it allows you to be more passionate about what motivates you,” she says.
Senior staff have found their workload reduced. They’re under less pressure and can do things like take all of the holiday leave to which they are entitled…..
What do you think?