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from the sydney-morning-herald-wrong-again dept.
The Center for American Progress reports
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.
[...]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.
Previous: Gravity Payments: CEO Takes Cut and Makes $70k/year New Minimum Salary
All Staff Pay Raise Backfires on Credit Card Processing Firm
(Score: 2) by mojo chan on Wednesday October 28 2015, @08:54AM
It doesn't really matter why they are doing well, the point is that they are not falling apart like previous articles claimed. So at the very least, increasing salaries doesn't seem to have hurt them.
const int one = 65536; (Silvermoon, Texture.cs)
(Score: 2) by vux984 on Wednesday October 28 2015, @02:51PM
If this benefit is due to the Press, then
a) the press will eventually fade, and the benefit along with it
b) and even the bump will not be reproducible by other companies. because the press won't report on the 10,000th company that does this. It won't be news anymore.
If its due to increased productivity due to better pay
a) it will continue
b) will be reproducible by other companies
So yeah, It matters why it worked.