CEO bumped his company’s minimum wage to $70,000 a year & some employees still quit

CEO bumped his company’s minimum wage to $70,000 a year & some employees still quit

Reality is going to bite that business in the behind, trust me. And it won’t be pretty. Dan Price has gone whole hog Socialist and mandated that all his workers will get $70,000 a year as a salary. From the lowliest worker to the executives. This means that there is no incentive to excel, because you will get paid anyway. Creativity and work ethic will not be rewarded as they should be, so those that are exceptional will look for greener pastures. Two people have already left for these reasons. They won’t be the last. The business owner is living in some sort of Marxist utopia dreamland and thinks that this is true social justice and income equality. It’s not. Not only is it the death knell for the company eventually, it is the ultimate form of financial discrimination. This is the best solution he could come up with? Fail.

Gravity

From Yahoo! Finance:

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.

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“Everyone start[ed] screaming and cheering and just going crazy,” Price told Business Insider shortly after he broke the news in April.

One employee told him the raise would allow him to fly his mom out from Puerto Rico to visit him in Seattle. Another said the raise would make it possible for him to raise a family with his wife. Overnight, Price became something of a folk hero — a small-business owner taking income inequality into his own hands.

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.

The New York Times reports that two of Gravity Payments’ “most valued” members have left 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.”

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.

Gravity’s web developer, Grant Moran, 29, had similar concerns. While his own salary saw a bump — to $50,000, up from $41,000, in the first stage of the raise — he worried the new policy didn’t reward work ethic. “Now the people who were just clocking in and out were making the same as me,” he tells The Times. “It shackles high performers to less motivated team members.”

He also didn’t like that his salary was now so public, thanks to the media attention, and he worried that if he got used to the salary boost, he might never leave to pursue his ultimate goal of moving to a digital company. Like McMaster, Moran opted to leave.

But according to the Times, even employees who are “exhilarated by the raises” have new concerns, worrying that maybe their performances don’t merit the money. (Arguably, this is evidence the increase is actually a good idea, potentially motivating people to achieve more.)

For his part, Price — who’s also under fire from other local business owners and his brother, who says Price owes him money — stands by his plan, but doesn’t begrudge his critics. “There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” he tells the Times. “I came up with the best solution I could.” And certainly, many of his employees agree.

In business, it truly is survival of the fittest and smartest. This enterprise is not long for this world and with the politically correct brainwashed mentality of the owner, I’m surprised he made it this far. He’s a fiscal moron. Even a number of the employees who cheered the across the board raises feel guilty because they have not earned what they are receiving. People who feel that way tend to leave a company, simply because they feel what they are doing is wrong. Those rejoicing over the pay that aren’t earning it are not people I would want to know or hire. That is a criminal mentality and they know it is dishonest. The actions of Price are also making it much harder on sane business owners locally who are being pressured to do the same stupid thing he did and they aren’t happy about it. If I were them, I would not capitulate and I would certainly look for another venue in which to conduct business.

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Terresa Monroe-Hamilton

Terresa Monroe-Hamilton is an editor and writer for Right Wing News. She owns and blogs at NoisyRoom.net. She is a Constitutional Conservative and NoisyRoom focuses on political and national issues of interest to the American public. Terresa is the editor at Trevor Loudon's site, New Zeal - trevorloudon.com. She also does research at KeyWiki.org. You can email Terresa here. NoisyRoom can be found on Facebook and on Twitter.

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