Dan Price, CEO of Gravity Payments, Ddan Price, said he would pay every single one of his employees $70,000 annually.
He meant…Every single one….yes…from the lowest skilled to the highest!
Now, as expected, Price has hit a very rough spot financially, resorting to rash measures like renting his own home.
Many employees are now departing from 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.”
Of course, those of us that have even a dim view of econimics knew that this was always going to be the result. The reality is…you can’t pay a person more than the job is worth. Some people are more productive than other, consequently should be rewarded more.
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.
“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, it’s become clear that not everyone is equally pleased. Among the critics? Some of Price’s 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 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.
It certainly didn’t take very long for this to happen either. What is the saying? ‘The road to ruin is paved with good intentions’? Well maybe the saying is about a road that leads somewhere else, but this CEO may feel like he’s at that place.
Ya know.. If every single American was given $1 million on Monday by Sunday some of us would have $2 million and some of us would have -$0. There have always been rich folks and there have always been poor folks. This will not change. If we take from the rich and give to the poor. Sorry. Show me where this Socialism thing works.
Read even more from FN