Can you guess what happened with the company that set $70.000 minimum wage?
When I heard last year that CEO of Gravity Payments cut down his multi-million wage and set minimum wage for everyone in the company, I couldn't believe that something that good can happen today. Many big companies attacked them because of this decision, simply because they are run by modern slave masters, but Gravity Payments kept their ground.
What do you think happened after a year?
Simply put - happiness and stability came to Star Trek utopian level.
If we had people doing business like this... saint, world would be a lot happier place today.
If you had a chance to do what he did, would you do it?
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Read the full story here - http://www.today.com/money/gravity-payments-70k-minimum-salary-ceo-dan-price-shares-results-t101678
I think you missed off one of the most important points profits and sales also shot up. Here is a quote:
"sales skyrocketed after the announcement, and Gravity Payments continues to take on new clients at a rate it never had before. It reports nearly doubling profits in a year, from $3.5 million in 2014 to $6.5 million in 2015"
I think most companies will be looking at the sales figures with more envy. There could be a lot of reasons for it - good publicity and PR from the salary rule, happier and more productive employees etc.
This is a great feelgood story but we will need time to see if it truly works long term or if it really was more a result of being good PR. I'm sure other companies will follow their example and give it a try and in turn give us more data to work with.
It will be interesting to see if more companies start doing this. I truly believe if more companies followed this model, the management would see that their lives are a lot easier. No more interviewing people everyday to try to fill positions. Spending money on training new employees setting up computer systems or uniform ordering or whatever they need to do when hiring new employees. It doesn't even need to be $70000, it could be half that for many businesses.