CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
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CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
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.
CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
Price thinks Gravity's returns are up in large part because bigger paychecks have lead to fiercely loyal employees.
"Our turnover rate was cut in half, so when you have employees staying twice as long, their knowledge of how to help our customers skyrocketed over time and that's really what paid for the raise more so than my pay cut," said Price.
"Our turnover rate was cut in half, so when you have employees staying twice as long, their knowledge of how to help our customers skyrocketed over time and that's really what paid for the raise more so than my pay cut," said Price.
CBS News • CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
Since then, both Chen's and Franklin's salaries are back to normal, and Gravity repaid them their lost wages that they had voluntarily given up.
CBS News • CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
The company did take a hit during the COVID-19 pandemic, losing 55% of its business in March 2020. At one point, Price figured Gravity was only four months away from failing, but it bounced back after its employees voluntarily took a temporary pay cut.
CBS News • CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
To repay Price for his sacrifices and for the dreams he has made possible, his employees decided to all chip in and buy him a car. A gesture that meant a lot to Price.
CBS News • CEO on why giving all employees minimum salary of $70,000 still "works" six years later: "Our turnover rate was cut in half"
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.
"So you've almost doubled the number of employees?" CBS News' Carter Evans asked.
"Yeah," Price replied.
He said his company has tripled and he is still paying his employees $70,000 a year.
"How much do you... See more
But that has not happened; instead, the company is thriving.
"So you've almost doubled the number of employees?" CBS News' Carter Evans asked.
"Yeah," Price replied.
He said his company has tripled and he is still paying his employees $70,000 a year.
"How much do you... See more