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Old Aug 1, 2015, 09:26 PM   #1
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clerick
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Default CEO who set firm's minimum wage at $70,000 hits hard times

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A CEO from Seattle has been forced to rent out his home after his business suffered when he raised the minimum wage to $70,000.
Dan Price, 31, made headlines in the US three months ago when he made the decision to increase the salaries of all 120 staff members at his Gravity Payments credit card processing firm.
However, the move, which included Mr Price taking a pay cut, has not ended well, with two employees resigning and several customers walking away as well as part of a backlash against the payrises.
“I’m working as hard as I ever worked to make it work,” he told the New York Times.
“I’m renting out my house right now to try and make ends meet myself.”
Mr Price lost two of his "most valued" employees when they became angry that lower-skilled workers were being paid a similar salary. Some customers left the company because they thought that raising the minimum wage was a political move that could also end up costing them more.
“There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” Mr Price said.
No surprise that it happened honestly.
http://www.telegraph.co.uk/news/worl...ard-times.html
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Old Aug 1, 2015, 10:03 PM   #2
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All I can say is: ****ing hell, people are retarded. And no, not the business owner.
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Old Aug 1, 2015, 11:06 PM   #3
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2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
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Old Aug 2, 2015, 12:54 AM   #4
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
Yeah, because heaven forbid you get paid based on your merit. I'd be pissed as well if some scrub newbie started making the same amount that I do.
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Old Aug 2, 2015, 12:58 AM   #5
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
Why should lower skilled, less time on the job and likely lower educated be paid the same? They shouldn't.

Just like the $15 minimum wage bullshit, employees are asking for LESS hours so they don't lose EBT. Instead of working more to make more with the increase, they're going to be working less hours, making the same and keeping bullshit benefits. Yeah, that really worked. It didn't raise them out of poverty, they're just abusing the system even more.
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Old Aug 2, 2015, 01:16 AM   #6
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Originally Posted by CoolNitro View Post
2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
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Old Aug 2, 2015, 01:21 AM   #7
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All I can say is: ****ing hell, people are retarded. And no, not the business owner.
^ Egos and fear, all around.
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Old Aug 2, 2015, 02:17 AM   #8
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Originally Posted by OzzieBloke View Post
All I can say is: ****ing hell, people are retarded. And no, not the business owner.
In a way, he is as well.

If you look at the business and personnel implications of his moves, and what he did, there was an expected downside that seems not to have been taken into consideration.

I applaud him for a brave decision, but there are aspects, internally, that are a little less palatable for some of the harder working employees.

For those who chose to stop doing business, THAT I don't get.
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Old Aug 2, 2015, 02:41 AM   #9
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I can't imagine the accountant's health is too good.
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Old Aug 2, 2015, 03:36 AM   #10
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Originally Posted by Sazar View Post
In a way, he is as well.

If you look at the business and personnel implications of his moves, and what he did, there was an expected downside that seems not to have been taken into consideration.

I applaud him for a brave decision, but there are aspects, internally, that are a little less palatable for some of the harder working employees.

For those who chose to stop doing business, THAT I don't get.
This is the thing though:

You're working in a job. Before the pay-rise of others, you were happy, or at least content with the income you had.

Then you become aware that others are getting as much (or almost as much) as you. Now you're not happy with what you have. All because of what someone else has.

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
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Old Aug 2, 2015, 06:58 AM   #11
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Originally Posted by OzzieBloke View Post

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
Sure, but it's just human nature. If someone is getting paid the same as you when you work more hours than them and have more responsibility would you really want to work there?
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Old Aug 2, 2015, 07:41 AM   #12
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Stupid CEO gets his ass handed to him. Wow, news.
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Old Aug 2, 2015, 07:49 AM   #13
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Originally Posted by nrs421 View Post
Sure, but it's just human nature. If someone is getting paid the same as you when you work more hours than them and have more responsibility would you really want to work there?
Well, what about the people on a higher level than you that get paid more, but are useless driftwood? I had one supervisor on my last job that did nothing all day. The only time anyone had any actual contact with her was when she needed to discipline someone. We worked harder than she ever did (and this is not just our opinion - she spent most of her days chatting with the supervisor that eventually replaced her when she left after having a baby).

It's about time for the people who do the actual work to have a chance to get some of the money they're helping bring in. It shouldn't be just a privileged few who sit in big offices all day going "Yes, no, let's see a breakdown on that" that get all the perks.
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Old Aug 2, 2015, 08:21 AM   #14
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Originally Posted by wazman View Post
...

It's about time for the people who do the actual work to have a chance to get some of the money they're helping bring in. It shouldn't be just a privileged few who sit in big offices all day going "Yes, no, let's see a breakdown on that" that get all the perks.
That's called working hard and making sure you get noticed so you get a promotion. sounds like you want the salary of a higher paying position and any benefits of that position without actually doing the work to earn it.
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Old Aug 2, 2015, 08:24 AM   #15
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Originally Posted by Dave View Post
That's called working hard and making sure you get noticed so you get a promotion. sounds like you want the salary of a higher paying position and any benefits of that position without actually doing the work to earn it.
Dave buddy, you know as well as I do that it's less how much work you do, but who you know, that gets you advancement in many, if not most, jobs. I've seen plenty of knobs in cushy jobs that did not deserve to be there simply because they were in good with the right people.

And I work 7 days a week.
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Old Aug 2, 2015, 08:38 AM   #16
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No good deed goes unpunished.

Welcome to the human race. Now where's that extinction-level event button...
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Old Aug 2, 2015, 08:38 AM   #17
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I got to admit, lot of technicians, including myself, got annoyed when the Quality Assurance Specialist (QAS) went from a part time $10.00 an hour job, to a full time $60,000 salary job. The QAS now gets paid more than the technicians, and all the QAS does it drive to our jobs, takes pictures of the install and check marks things on paper to determine if we followed our procedures for installations/Troubleshooting. The QAS literally goes through the same exact training for their position as a technicians does, then they are given a camera and a check sheet and told to check our work. I have been trying to become a QAS, but every technician wants that position as well, and the QAS position opens up very rarely. But really, there is no reason for the QAS to be paid more than the technicians.
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Old Aug 2, 2015, 09:03 AM   #18
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People are dumb. Instead of being pleased/displeased for their own plight, they get pissy because people they view as Lesser share the same plight?

I don't even.
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Old Aug 2, 2015, 09:09 AM   #19
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People are dumb. Instead of being pleased/displeased for their own plight, they get pissy because people they view as Lesser share the same plight?

I don't even.
It's all about perception baby! And yeah, it is dumb.
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Old Aug 2, 2015, 09:14 AM   #20
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One of the biggest problems was that this was announced, so everyone at the company knew what some others were making. That's a big no-no in the corporate world, most employment agreements say that you can't discuss your pay with coworkers.
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Old Aug 2, 2015, 09:20 AM   #21
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Not surprised. Some one who goes to school and works hard is doing good making $70k. Then some lower level employee who never went to school or has much skills or developed analytic and critical thinking, makes $70k. If the CEO couldn't see this was going to be a problem, I'm not sure how the hell he's CEO. Our system is in place for a reason. The Matrix says if you go outside that system, things start falling apart.

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Old Aug 2, 2015, 09:26 AM   #22
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The idea of bringing employee salaries up to a level that allows a perceived standard of living isn't bad, when taken on its own. The problem is (and I have personal experience with a similar situation) that employees that work harder than others, and/or those that have been there the longest get the shaft. Merit-based pay raises are the best, IMHO.
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Old Aug 2, 2015, 09:30 AM   #23
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Originally Posted by ShaidarHaran View Post
The idea of bringing employee salaries up to a level that allows a perceived standard of living isn't bad, when taken on its own. The problem is (and I have personal experience with a similar situation) that employees that work harder than others, and/or those that have been there the longest get the shaft. Merit-based pay raises are the best, IMHO.
A one time bonus would have been better.
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Old Aug 2, 2015, 09:30 AM   #24
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2 left because the minimum pay rise that didn't affect them made them feel less important because lower skilled workers got paid almost as much as them...

I call for internet justice to slap the crap out of those two and insure they never get paid more then anyone else.
So you'd be happy for people to receive the same salary as yourself even if those people have not had to go through the education, training or dedication that you have to arrive at your current position?

It would definately annoy me. It would attract the wrong kind of employee, who is very likely to be a liability.
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Old Aug 2, 2015, 09:36 AM   #25
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Yeah, because heaven forbid you get paid based on your merit. I'd be pissed as well if some scrub newbie started making the same amount that I do.
They were already getting paid what they are skilled for, its not like their boss raised salaries across the board and left them out. It's pretty F-ed up for an employee to demand payment based on how much more they are getting paid vs the rest of the workers even more so if they where happy with what they where being paid before hand.

btw the whole internet justice thing was sarcasm.
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Old Aug 2, 2015, 09:36 AM   #26
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A one time bonus would have been better.
It might have been fairer, but it would not address the issue of raising the standard of living on a long-term basis.
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Old Aug 2, 2015, 10:05 AM   #27
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Originally Posted by OzzieBloke View Post
This is the thing though:

You're working in a job. Before the pay-rise of others, you were happy, or at least content with the income you had.

Then you become aware that others are getting as much (or almost as much) as you. Now you're not happy with what you have. All because of what someone else has.

That, to me, is just stupid. If they weren't happy with their current pay before the pay-rise, they should have said something. Who knows, maybe they did and they were knocked back. They could have walked then. But to bitch about it afterwards just smacks of "Wah, Wah, Wah, I feel more superior than THOSE people so I should be getting more!" And sure, maybe their job position is more demanding, or has more responsibility. But it seems ludicrous to me to walk out on a job you already have for the reasons I've already mentioned.
This is ridiculous. You get paid on the merits of your skills and what you bring to the table. Someone doing CS all day doesn't have the same value as an engineer.

Paying everyone no matter their skill set a 70k salary will kill the moral of the harder working more deserved employees.

I said this would happen when the $15/hr minimum wage discussion came up. If suddenly "may I take your order" is worth $15/hr then that plumber or electrician that was charging $50/hr is now worth $60-70/hr or more.

Why? Because he brings more to the table. He has more value, all people are not equal. To even suggest such a thing is lunacy.
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Old Aug 2, 2015, 10:14 AM   #28
CoolNitro
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This is ridiculous. You get paid on the merits of your skills and what you bring to the table. Someone doing CS all day doesn't have the same value as an engineer.

Paying everyone no matter their skill set a 70k salary will kill the moral of the harder working more deserved employees.

I said this would happen when the $15/hr minimum wage discussion came up. If suddenly "may I take your order" is worth $15/hr then that plumber or electrician that was charging $50/hr is now worth $60-70/hr or more.

Why? Because he brings more to the table. He has more value, all people are not equal. To even suggest such a thing is lunacy.
That is not the case though he didn't set everyone at a flat 70k he simply raised the minimum to 70k those already getting paid higher had no changes to their salary. It was a decent idea from the boss but it was undermined by people expecting to be paid a percentage based pay vs other employees.
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Old Aug 2, 2015, 10:18 AM   #29
bacon
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That is not the case though he didn't set everyone at a flat 70k he simply raised the minimum to 70k those already getting paid higher had no changes to their salary.
Exactly the point. What motivation does someone have to work hard and go into a better paying field when their co workers are getting paid 70k to do the simple tasks of an entry level position?
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Old Aug 2, 2015, 10:36 AM   #30
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Exactly the point. What motivation does someone have to work hard and go into a better paying field when their co workers are getting paid 70k to do the simple tasks of an entry level position?
I love this argument, as if earning more money doesn't appeal to everyone because of what someone else makes.
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