Dan Price announced a minimum salary of $70,000 to all of his 120 employees back in 2015.
What has happened?
• 50+ babies have been born to company employees
• Employees have lost 50 pounds, defeated cancer
• 70% paid their debts
• 10% bought homes in Seattle
👇👇👇
What has happened?
• 50+ babies have been born to company employees
• Employees have lost 50 pounds, defeated cancer
• 70% paid their debts
• 10% bought homes in Seattle
👇👇👇
1. Back in 2015, Price was a successful co-founder and CEO at Gravity Payments, earning a seven-figure sum.
One day, he went for a hike with a good friend, who earned less than $50k in a different company.
One day, he went for a hike with a good friend, who earned less than $50k in a different company.
2. When she learned that her rent was about to go up by $200 a month, she couldn’t figure out how to pay it.
I was so upset.
Here I am, earning over $1mm a year, realizing that, at Gravity, I work with people who I really value as partners, and they were making less than her.”
I was so upset.
Here I am, earning over $1mm a year, realizing that, at Gravity, I work with people who I really value as partners, and they were making less than her.”
3. He decided to pay a minimum salary of $70k/year to all his employees.
• 30 had salaries doubled
• 40 had salaries increased significantly
• No one was fired
• No manager’s wage (except that of Price) was reduced
• Price’s own wage was reduced from $1.1mm to $70k
• 30 had salaries doubled
• 40 had salaries increased significantly
• No one was fired
• No manager’s wage (except that of Price) was reduced
• Price’s own wage was reduced from $1.1mm to $70k
4. “I hope this company is a case study in MBA programs on how socialism does not work, because it’s gonna’ fail.” — Fox News.
But what happened?
• The number of employees increased by 70%
• The company’s customer base doubled
• The cash turnover cleared almost tripled
But what happened?
• The number of employees increased by 70%
• The company’s customer base doubled
• The cash turnover cleared almost tripled
5. Then, earlier this year, Gravity Payments was hit hard by the pandemic. Dan Price warned the company would run out of cash in just four months.
The company was burning $1.5mm/month.
He didn't want to fire any employee but had to come up with a solution, and fast.
The company was burning $1.5mm/month.
He didn't want to fire any employee but had to come up with a solution, and fast.
6. He received an original proposal from a worker: Each employee will anonymously write down the percentage pay cut for the coming months.
Price first thought the proposal had no chance but he decided to give it a go. When he got the numbers, he was amazed at what he saw:
Price first thought the proposal had no chance but he decided to give it a go. When he got the numbers, he was amazed at what he saw:
7.
• 98% of the employees agreed to cut their wages
• Ten wrote that they were willing to work for free
• Several dozen offered a 50% reduction
“When I saw it, I was so moved, that tears flowed from my eyes.”
• 98% of the employees agreed to cut their wages
• Ten wrote that they were willing to work for free
• Several dozen offered a 50% reduction
“When I saw it, I was so moved, that tears flowed from my eyes.”
8. No employee’s salary was reduced by more than half, and for those who earned less than $100k, the maximum reduction was 30%.
The company was saved.
The company was saved.
9. And what happened to the Gravity employees who took a massive pay cut back in April?
In July he announced that workers would get back the amount deducted from their respective salaries.
In July he announced that workers would get back the amount deducted from their respective salaries.
Source: thestar.com/business/opini…
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