According to Gravity Payment’s CEO Dan Price, everyone wins. After raising the minimum wage of his employees to $70,000/year–and cutting his own salary to the same–Gravity Payment’s profits have soared.
“I want the scorecard we have as business leaders to be not about money, but about purpose, impact, and service,” he says. “I want those to be the things that we judge ourselves on.”
And Gravity’s employees are happier–they’re sticking with the company and having babies:
Cody Boorman, 23, and his wife decided to have their first child about a year early after his salary at Gravity vaulted from $42,000 to $60,000 the past year on the way to the $70,000 salary in 2017. He was able to finish paying off the balance of his $83,000 debt and is contributing $18,000 a year to his 401(k) account, hoping to retire at 33. The raise “really did take the stress away in terms of worrying about tomorrow,” he says.
They’re also feeling less day-to-day anxiety:
Alyssa O’Neal, 22, a single mother, says her days were marked by an undercurrent of anxiety before the customer support rep’s pay jumped from $35,000 to $50,000. Now, she’s poised to move into a more expensive apartment that cuts her nearly two-hour commute by more than half, plans to start college next spring, and can buy a daily cup of coffee without stressing. “I’m able to afford the small (things) that put my mind at ease,” she says. She also can focus more intently on her job. “It really just cleared my mind,” she says.
So raising the wage at Gravity Payments sent profits soaring and made employees happier and more loyal overall. They even saved up (a little easier when making 70k a year than 30k) and bought their boss a Tesla.
What are the chances that YOUR boss would do the same? And how many of you appreciate your boss so much that you’d buy him or her a car?