Slashdot Mirror
Company Testing Standardized Salaries Is Struggling
jmcbain writes: In April 2015, Dan Price, the CEO of online payments company Gravity Payments based in Seattle, announced that all employees would have their salary bumped up to a minimum $70,000. Slashdot covered this news. Since that time, however, things have not gone well. Some employees quit because they felt it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises. Furthermore, after reducing his own salary from $1M to $70K, Mr. Price is now renting a house 'to make ends meet'. On an unrelated note, Mr. Price's brother, who is a co-founder of the company, is suing him.
Imagine that.
Differences in pay exist for a reason: Because different people perform functions of different value to the company.
LOL.
What about the company's revenue? Employees can easily be replaced, but revenue is key.
This guy sounds like a SJW which is a terrible CEO choice. You can't run a company on your feelings, and hope to remain successful.
This sounds like something out of an Ayn Rand novel. It's very similar to something that happens in Atlas Shrugged.
Same thing happened at walmart when they bumped their lowest paid workers up to the minimum wage.
http://business.financialpost.com/news/retail-marketing/wal-marts-pay-raise-creates-thousands-of-unhappy-workers-its-pitting-people-against-each-other
Senior workers got no raise and feel disrespected.
None of them can see the clouds; The polished wings don't care.
I've seen minimum wage go up by 40% since I entered the work force, but my own salary has only gone up by 25% in that same period.
You know that the minimum wage hasn't kept up with inflation in over two decades, right? So if your wages are doing even more poorly than the minimum wage, you're getting fucked and hard. But you're complaining about the people who are getting fucked way harder than you, because them getting fucked slightly less hard means you get fucked slightly harder. What about the people doing the fucking? Maybe you should stop attacking your natural allies.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
whenever CEO pay comes up on this site, people bitch about how much more the CEO makes vs rank and file. Okay, valid complaint.
Here a CEO bucks that trend, nukes his own salary and gives everyone a *minimum* 70k salary -- which is different from everyone getting 70k. He not only does a commendable thing: paying employees more than necessary; but walks the walk and takes a massive paycut himself.
The real story here is the crab-pot mentality. If I'm making 100k, and my cubicle neighbor goes from 35k to 70k, that doesn't have any impact on me whatsoever*. Why complain?
*small scale, intra-company comparison here, yes I know if the minimum wage was suddenly 70k, that's a different beast.
But you don't understand! it's absolutely unfair that Timmy had 3 marbles and got 3 more, and he had 10 marbles and only got 2 more! ITS NOT FAIR!!1! He demands at least 4 marbles or he's going to flip his shit and go full on ballistic temper tantrum followed by pouting for the rest of the afternoon!
With the only problem that things ain't the way they were. What was supposedly a temporary job to make ends meet while you study for your "real" job more and more becomes the real job for many people.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Yeah, how dare he try to put his employees first - even ahead of himself. What an asshole!
BeauHD. Worst editor since kdawson.
Don't leave out that the business is booming, doing much more business than before, and getting tons of applications from high quality candidates attracted by the higher wages.
So yes, the transition might be bumpy. But nobody's salary went down, so they're all making at least what they agreed to for their job. It seems weird to me that people are angry that while they got a raise, but so did lower paid workers, so they aren't making as much more than the other guy as they used to.
A good writeup is at http://www.forbes.com/sites/mi... .
Enable 3D printed prosthetics!
And in the meantime those two selfish assholes who quit solely because they couldn't stand to see other people not treated worse than them have made themselves radioactive. Why would I ever want to hire people who might throw a huge public tantrum and quit because I don't treat other people badly enough to soothe their ego?
A bullet may have your name on it but splash damage is addressed "To whom it may concern."
Gee, who didn't see THAT coming! Socialism does not breed happiness. Paying EVERYONE the same breeds resentment. Those that worked HARD, and worked their way up the ladder, are now ticked off, because all of their hard work was for nothing, because now the new hire, off the street that knows NOTHING, gets paid the same. Those that goof off, don't work hard, get paid the same as the person that will bust their butt. Customers, some of which already left, are worried that paying everyone the same, will result in the fees going up. Great job! You backhandedly once again showed that socialism DOES NOT WORK, never will work!
Those who can contribute significant, above-and-beyond value naturally feel that people should be rewarded in proportion to their contributions.
Those who cannot contribute significant, above-and-beyond value naturally feel that everyone should receive equal rewards, regardless of their contributions.
By setting policies that pander to the second group, you wind up losing members of the first group, resulting in a company full of under-performing slackers. No surprise such a company doesn't do well.