The article in the url below follows up on an encouraging story from 2015 (see Strategic CSR - $70,000):
"Six years ago, Dan Price, the founder and CEO of credit-card processing company Gravity Payments. made waves when he announced that he was raising the firm's minimum salary to $70,000 for his 120 employees. To accommodate the change, Price slashed his own $1 million salary."
Six years later, the results are in:
"In the following years, revenue soared, and staff had many more babies and bought more homes, Price [said]."
And these results are contrary to what many predicted at the time:
"The move inevitably drew skepticism. 'The media in general said we would fail. Or even in some cases, rooted for us to fail,' Price said. But he believes he's proved them wrong: 'It's been over six years and we've had really fantastic results. We've had a 10 times increase in the number of first-time homeowners every year and 70% of our employees were able to pay down debt,' Price said. About a third of his staff reported they were debt-free. 'Our employees had a 10x boom in terms of the number of babies they were having. We went from having between 0-2 babies born per year among the entire team, to over 65 born or announced over the last six years,' he added."
Having survived the COVID pandemic, Price believes the lesson from the exercise is pretty clear:
"His employee-centric business model, which includes unlimited parental leave and unlimited paid time off, has led to more than 300 applications per vacancy this year. 'It gives a little perspective that paying a living wage is a huge factor in keeping and finding employees,' Price said."
Take care
David
David Chandler
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After this CEO raised his company's minimum wage to $70,000, he said the number of babies born to staff each year grew 10-fold and revenue soared
By Zahra Tayeb
February 15-16, 2020
Business Insider
