Dan Price, CEO of Gravity Payments, raised the minimum wage for all his employees six years ago and it has clearly paid off.
Price runs the Seattle-based company and decided to cut his own wage by 90 percent in order to increase that of his employees to a $70,000 minimum salary.
Commentators mocked Price’s selfless decision, claiming it wouldn’t be sustainable for the business, but the Gravity Payments CEO opened up about how beneficial his decision has been.
Price also came fully prepared with irrefutable mathematical evidence to support his claims.
“Since out $70K min wage was announced 6 years ago today: Our revenue tripled, head count grew 70%, customer base doubled, babies had by staff grew 10x, 70% of employees paid down debt, homes bought by employees grew 10x, 401(k) contributors grew 155%, turnover dropped in half”Dan Price, @DanPriceSeattle/ Twitter
Dan said that the pandemic hit the company hard, but because he had created a workplace culture that made employees know they were valued, everyone chipped in to ensure that the company survived these hard times.
As a result of the wage increase, Dan Price realized how relieving his decision actually was to some of his employees. One of his employees revealed that they had taken up a second job at a McDonald’s in order to get by.
Price claims that no one should have to take up a second job when they are already working full-time and so he cut back his own salary to provide a fairer one for all his employees.
He’s also encouraging other companies to invoke similar changes and watch their businesses grow.
“I don’t miss anything about the millionaire lifestyle. Money buys happiness when you climb out of poverty. But going from well-off to very well-off won’t make you happy. Doing what you believe is right will.”Dan Price, @DanPriceSeattle/ Twitter