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 companys 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, its become clear that not everyone is equally pleased. Among the critics? Some of Prices 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 didnt 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 companys 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, its become clear that not everyone is equally pleased. Among the critics? Some of Prices 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 didnt 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 hes been forced to rent out his house.
Im 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. Im renting out my house right now to try and make ends meet myself.
The Times article said Prices 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 Seattles 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 doesnt 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.