Swordsmyth
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Six years ago, Dan Price, the founder and CEO of credit-card processing company Gravity Payments. made waves when he announced that he was raising the firm's minimum salary to $70,000 for his 120 employees.
To accommodate the change, Price slashed his own $1 million salary.
In the following years, revenue soared, and staff had many more babies and bought more homes, Price told Insider.
The Seattle-based company's starting wages used to be roughly $35,000, Price said. But for the company to thrive, he felt he needed to make sure all employees were making enough to look after themselves.
This led him to double their salaries. The move inevitably drew skepticism. "The media in general said we would fail. Or even in some cases, rooted for us to fail," Price said.
But he believes he's proved them wrong: "It's been over six years and we've had really fantastic results. We've had a 10 times increase in the number of first-time homeowners every year and 70% of our employees were able to pay down debt," Price said. About a third of his staff reported they were debt-free.
"Our employees had a 10x boom in terms of the number of babies they were having. We went from having between 0-2 babies born per year among the entire team, to over 65 born or announced over the last six years," he added.
To show their appreciation of the minimum-salary change, staff bought him a Tesla.
The company has more than tripled its payment-processing volume for small businesses, according to Price. Revenue grew every year, up until the pandemic hit.
When the COVID crisis really began to bite, things looked less rosy. "2020 was the first year our revenue didn't grow in our 17-year history as a company, Price said. In fact, the company lost 50% of its revenue.
Still, "we were able to recover from that," Price said, adding that staff volunteered to take pay cuts to prevent mass layoffs and were later reimbursed.
More at: https://www.businessinsider.com/gravity-payments-dan-price-ceo-raise-minimum-wage-revenue-2021-8
Ignore everything else they tell you.
This is why birth rates are dropping and one of many reasons they rob us beyond all sanity.
To accommodate the change, Price slashed his own $1 million salary.
In the following years, revenue soared, and staff had many more babies and bought more homes, Price told Insider.
The Seattle-based company's starting wages used to be roughly $35,000, Price said. But for the company to thrive, he felt he needed to make sure all employees were making enough to look after themselves.
This led him to double their salaries. The move inevitably drew skepticism. "The media in general said we would fail. Or even in some cases, rooted for us to fail," Price said.
But he believes he's proved them wrong: "It's been over six years and we've had really fantastic results. We've had a 10 times increase in the number of first-time homeowners every year and 70% of our employees were able to pay down debt," Price said. About a third of his staff reported they were debt-free.
"Our employees had a 10x boom in terms of the number of babies they were having. We went from having between 0-2 babies born per year among the entire team, to over 65 born or announced over the last six years," he added.
To show their appreciation of the minimum-salary change, staff bought him a Tesla.
The company has more than tripled its payment-processing volume for small businesses, according to Price. Revenue grew every year, up until the pandemic hit.
When the COVID crisis really began to bite, things looked less rosy. "2020 was the first year our revenue didn't grow in our 17-year history as a company, Price said. In fact, the company lost 50% of its revenue.
Still, "we were able to recover from that," Price said, adding that staff volunteered to take pay cuts to prevent mass layoffs and were later reimbursed.
More at: https://www.businessinsider.com/gravity-payments-dan-price-ceo-raise-minimum-wage-revenue-2021-8
Ignore everything else they tell you.
This is why birth rates are dropping and one of many reasons they rob us beyond all sanity.
