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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: 3, Insightful) by Joe Desertrat on Thursday October 29 2015, @06:56PM
The truth of the matter is that it might actually be working to some extent, but right now we can't factor out the effect the journalism about the incident has had on it. And the journalists are failing to realize their part in the success.
For their type of business, long term service contracts, there is no reason to expect that business will tail off after the publicity dies down, providing they continue to provide a high level of service. The growth rate may slow, but if they are making money now they should continue to do so at an increasing rate.