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Update: $70k Salaries Didn't "Backfire"; Gravity Payments' Profits Have Doubled

posted by martyb on Tuesday October 27 2015, @10:25PM   
from the sydney-morning-herald-wrong-again dept.

"gewg_" writes:

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

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Original Submission

• Re:Precedent has been set (Score: 3, Interesting) by CoolHand on Wednesday October 28 2015, @03:44PM

  by CoolHand (438) on Wednesday October 28 2015, @03:44PM (#255639) Journal

  A large number of Walmart's employee's are part time, so probably wouldn't get the same annual salary. Also, only 1.3 Million are in the US, so a large number of foreign associates with lower cost of living might survive comfortably on far less of a salary. In fact, a huge number of Walmarts inside the US are in areas with much lower cost of living that where the business in the article is located. So, $70K/year for ALL Walmart associates might be out of the question, but a live-able salary per region for all full time associates may in fact be much more possible.

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