The CEO 0f a company who had raised his company’s minimum wage to $70,000 now says his revenues have tripled.
Six years ago Dan Price CEO of Gravity Payments, a credit card payment company, made news because he raised the company’s minimum wage to $70,000 a year. There are those who applauded him and those who thought he was foolish. What has happened since? We now know. The company has tripled its revenue. And that was last year, the year many companies lost money because of the pandemic. Their revenue was 11 billion dollars. This year it is slated to go to 13.5 billion. Price said recently that when you pay workers enough they are less stressed and worried about certain problems and can better focus on their work. And not only that he added they can also better focus on their career progressions, that includes expanding their capabilities. He further believes that when people make a living wage there is a sense of pride, a sense that their voice matters, and all that is good for productivity.
When Price made his announcement in 2015 many businesses were shocked. He had learned that some of his employees had second jobs. One of his employees was working at McDonalds in order to make ends meet. He decided no one should have to do that and came up with the $70,000 figure as what would be a living wage.
Now the number of his customers has grown so has the number of his employees. Also employees have felt more confident to have children and buy homes. Price calls it a baby boom. Employees were in addition able to pay down their debts and pay into their 401-k
Let’s hope Dan Price’s success begins a trend having proven the positive effects of a living wage.