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Business Title: CEO Raises Salaries to $70K for EVERY Employee, Now has to Rent Out his Own Home to Make Ends Meet Back in April we told you about Dan Price, CEO of Gravity Payments, who said he would pay every single one of his employees $70,000 annually. Every single one, from the lowest skilled workers on up. Now, as expected, Price has fallen on hard times financially, even having to rent out his own home. Employees who work for Gravity are now leaving the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.” This was always going to be the outcome. If everyone hits the jackpot, does anybody really win the lottery? When Dan Price, founder and CEO of the Seattle-based credit-card-payment processing firm Gravity Payments, announced he was raising the company’s minimum salary to $70,000 a year, he was met with overwhelming enthusiasm. “Everyone start[ed] screaming and cheering and just going crazy,” Price told Business Insider shortly after he broke the news in April. But in the weeks since then, it’s become clear that not everyone is equally pleased. Among the critics? Some of Price’s own employees. Maisey McMaster — once a big supporter of the plan — is one of the employees that quit. McMaster, 26, joined the company five years ago, eventually working her way up to financial manager. She put in long hours that “left little time for her husband and extended family,” The Times says, but she loved the “special culture” of the place. But while she was initially on board, helping to calculate whether the company could afford to raise salaries so drastically (the plan is a minimum of $70,000 over the course of three years), McMaster later began to have doubts. “He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” she told The Times. A fairer plan, she told the paper, would give newer employees smaller increases, along with the chance to earn a more substantial raise with more experience. Back in April we told you about Dan Price, CEO of Gravity Payments, who said he would pay every single one of his employees $70,000 annually. Every single one, from the lowest skilled workers on up. Now, as expected, Price has fallen on hard times financially, even having to rent out his own home. Employees who work for Gravity are now leaving the company, “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.” This was always going to be the outcome. If everyone hits the jackpot, does anybody really win the lottery? From BI: When Dan Price, founder and CEO of the Seattle-based credit-card-payment processing firm Gravity Payments, announced he was raising the company’s minimum salary to $70,000 a year, he was met with overwhelming enthusiasm. “Everyone start[ed] screaming and cheering and just going crazy,” Price told Business Insider shortly after he broke the news in April. But in the weeks since then, it’s become clear that not everyone is equally pleased. Among the critics? Some of Price’s own employees. Maisey McMaster — once a big supporter of the plan — is one of the employees that quit. McMaster, 26, joined the company five years ago, eventually working her way up to financial manager. She put in long hours that “left little time for her husband and extended family,” The Times says, but she loved the “special culture” of the place. But while she was initially on board, helping to calculate whether the company could afford to raise salaries so drastically (the plan is a minimum of $70,000 over the course of three years), McMaster later began to have doubts. “He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” she told The Times. A fairer plan, she told the paper, would give newer employees smaller increases, along with the chance to earn a more substantial raise with more experience. From Fox News: Dan Price, 31, tells the New York Times that things have gotten so bad he’s been forced to rent out his house. “I’m working as hard as I ever worked to make it work,” he told the Times in a video that shows him sitting on a plastic bucket in the garage of his house. “I’m renting out my house right now to try and make ends meet myself.” The Times article said Price’s decision ended up costing him a few customers and two of his “most valued” employees, who quit after newer employees ended up with bigger salary hikes than older ones. Grant Moran, 29, also quit, saying the new pay-scale was disconcerting “Now the people who were just clocking in and out were making the same as me,” he told the paper. “It shackles high performers to less motivated team members.” The Times said customers who left were dismayed at what Price did, viewing it as a political statement. Others left fearful Gravity would soon hike fees to pay for salary increases. Brian Canlis, co-owner of a family restaurant, already worried about how to deal with Seattle’s new minimum wage, told Price the pay raise at Gravity “makes it harder for the rest of us.” And to think, all of this came about within a few short months. Liberal logic, for ya. One man with good intentions loses so much because he doesn’t understand how economics work. Socialism: We all fail together! Poster Comment: Grant Moran, 29, also quit, saying the new pay-scale was disconcerting “Now the people who were just clocking in and out were making the same as me,” he told the paper. “It shackles high performers to less motivated team members.” SOCIALISTIC INCOME EQUALITY WILL DO THIS EVERY TIME... WE ARE NOT EQUAL. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 26.
#7. To: GrandIsland (#0)
The same thing will happen with the $15 minimum wage. Employees who have been there five years and worked their way up to $15 an hour see a new hire being paid that. Now what?
Sure. Why not dump your $15/hour job putting up dry wall and just take $15/hour to flip burgers instead?
Neither job is a skilled tradesman job. In any case, cities that have a high cost in housing should adopt socialist measures and build low cost community housing that will allow minimum wage workers to afford care. That is a better solution than raising wages to try and match some sort of fair living wage. The thing is most jobs are in big cities and this forces people to commute up to 2 hours a day and more. This applies to middle class people and poor people. It is not a case of them trying to find work nearby - there is no work in rural or suburban areas in these quantities. Public transportation can't hack it either and roads are clogged. And I am not talking about 'projects' style housing either. small 2 to 4 family style homes built in a lot of the unused city land and rented or sold cheap to working class families within 30 minutes of downtown is doable and cheap. It is something that would not cost a lot to do and would pay off in tax revenue, increases in quality of life (families may divorce less, parents near schools, more involved in child rearing, etc).
Minimum wage jobs are starter jobs for teenagers that are living at home with Mommy and Daddy. They aren't meant for you to make a living off of just learn what work is all about... BTA again if the stupid bastards you vote for weren't in office this country wouldn't have that problem now would it??
That hasn't been true for a long time. Especially in recent years where illegals are grabbing up 70% of the minimum wage jobs, possibly more. And I recall when you could make ends meet on minimum wage. I did it while working through college. So did a lot of other people.
One idea that I like is for city govt to give up land for a construction company like Trump to build low cost housing - high rent mixed with middle and low rent maybe? Studies show mixed classes produce stable communities - and allow the company to rent and or sell condos and rent apts that will have fixed prices - say for 10 years. This way no taxes are raised and you add value to unused land. Better spent then building sports stadiums, etc.
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