$70k Salaries Didn't 'Backfire'; Gravity Payments' Profits Have Doubled (inc.com)

AmiMoJo writes: In April, Dan Price, CEO of the credit card payment processor Gravity Payments, announced that he will eventually raise minimum pay for all employees to at least $70,000 a year. The move sparked not just a firestorm of media attention, but also a lawsuit from Price's brother and co-founder Lucas, claiming that the pay raise violated his rights as a minority shareholder. But six months later, the financial results are starting to come in: Price told Inc. Magazine that revenue is now growing at double the rate before the raises began and profits have also doubled since then. On top of that, while it lost a few customers in the kerfuffle, the company's customer retention rate rose from 91 to 95 percent, and only two employees quit. Two weeks after he made the initial announcement, the company was flooded with 4,500 resumes and new customer inquiries jumped from 30 a month to 2,000 a month.

Comments

Re:In other news....

[Coren22]

https://www.google.com/webhp?s...

Yeah, because if everyone paid 70k minimum, that is 15k over the GDP/person, so we would have a massive economic crash.

Good on Gravity Payments that it worked for them, but it won't work in general because there isn't enough money generated by the economy for it.