CEO on why giving all employees minimum salary of $70,000 still "works" six years later:

[AZLD4Candidate]

CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"

September 16, 2021 / 7:35 AM / CBS News

It was six years ago when CEO Dan Price raised the salary of everyone at his Seattle-based credit card processing company Gravity Payments to at least $70,000 a year.

Price slashed his own salary by $1 million to be able to give his employees a pay raise. He was hailed a hero by some and met with predictions of bankruptcy from his critics.

But that has not happened; instead, the company is thriving.

Imagine that. Paying employees a good wage and not slave wages where they should fall on their hands and knees and thank the "emperor" for their pittance stops turnover and makes employees happy? Treating them like humans stops turnover?

Who woulda thunk it?

https://www.cbsnews.com/news/dan-price-gravity-payments-ceo-70000-employee-minimum-wage/

[paleotn]

1. Turnover is nearly zip....

and recruiting / new hire training cost is nearly zip. For years companies, including those I've worked for, have struggled with expertise walking out the door. Something I know costs a fortune, but it's difficult to attach exact dollars to, so many times it's ignored by upper management types. This guy doesn't have that problem.

[AZLD4Candidate]

2. Seriously, imagine that.

Paying well and treating employees with value slashed the training and hiring budgets. Wow!

[paleotn]

3. Yep. It's the no brainers that are hard for management types to comprehend sometimes.

[hibbing]

4. Facing this where I work all the time

Get a young person, train them, they do great, they leave because 2% raise a year at most, then takes forever to find someone again. We have been short a customer service member since February after a great one left. I think there have been three search committees, interviews and all that.

Peace

[tonedevil]

5. A lot of people...

said it wouldn't work even at places like DU. The idea that we must be dog eat dog is pervasive in the US.

[rownesheck]

6. More CEOs should

follow his lead. I've often said CEO pay needs to be capped to stop the bullshit of them receiving multi million dollar a year salaries. That extra money should be invested back into the salaries of the people who actually do the work. I've been told here at DU that wouldn't work. I don't know. Seems to work fine for this guy's company.

[Lochloosa]

8. Tax laws used to do that for that various reason.

[PoindexterOglethorpe]

7. What a bizarre concept.

Pay people well.

I can't begin to imagine.