What happened to the company that gave all employees the minimum annual salary of about 8.5 million yen?

ByKaje

"The minimum annual income of 70,000 dollars (about 8.5 million yen) will be guaranteed to all employees" in September 2015, the American / Seattle credit card processing companyGravity PaymentsAt the same time as the announcement attracted the public's attention the first time. The CEO himself talks about how half year later the policy of the minimum annual income brought about changes to the company.

Here's What Really Happened at That Company That Set a $ 70,000 Minimum Wage | Inc.com
http://www.inc.com/magazine/201511/paul-keegan/does-more-pay-mean-more-growth.html


Mr. Dan Price, CEO of credit card processing company Gravity Payments, joined the university in 2004 and founded a company in collaboration with his elder brother Lucas Price. Gravity Payments grows into a company that is capable of paying an average of $ 35,000 per year (about 2.8 million yen at that rate) on average per employee in 2011, 7 years after its establishment I heard that an employee who just joined the company claimed to Mr. Price that "his salary is too stupid for being too low". Mr. Price explained that he decided the salary amount based on the market price in consideration of the influence of Lehman shock, but the employee said "Even though it is computationally correct, it is the minimum life in current salary I can not send you a message. " Mr. Price seemed to have been extremely shocked, as he was proud of giving employees sufficient treatment.

Mr. Price reviewed over the company's earnings over three years and succeeded in raising salary by 20% on average for all employees in 2014. In the spring of 2015, we announced that "We will guarantee salaries of at least 70,000 dollars per year over the next three years for all 120 employees." In an effort to raise employee salary, Mr. Price plans to lower its salary from 1.1 million dollars (about 130 million yen) to 70,000 dollars and increase the minimum wage without firing employees , 70 employees received a raise, among them 30 salaries could be increased more than doubled.

ByTax Credits

This announcement has brought shock to the world, the total number of SNS sharing and video playback of news programs reached 500 million in total. Gravity Payments employees complained about Mr. Price and people who wished to work for Gravity Payments appeared one after another and it seems that more than 4,500 resumes have been sent in a week from the announcement of the minimum wage .

Also, Mr. Price not only grabbed the hearts of its employees with announcement of "minimum wage of 70,000 dollars", but also in various parts of the United States, a discussion saying "How much should the minimum amount payable to employees should be?" Held. In the United States, the situation that workers' wages did not rise at all as a result of the depression of recession since 2000 has continued, but as Professor Price held a debate, professional knowledge also penetrated the general people He said that he helped improve the working environment.

Meanwhile, American news broadcasters Fox News and Times magazine blamed "Mr. Spreads spread his company's reputation using news and SNS". Mr. Price's older brother, Mr. Lucas Price, has tried as "CEO had set his fee high until now." As a result, Mr. Price sells all the holdings, empties the pension savings, places two real estate mortgages, and we will invest a total of 3 million dollars (about 360 million yen) private property to the company It was.

However, after half a year from announcement, Gravity Payments' revenues and net income have increased doubling the previous year, and we are continuing to operate smoothly with almost no loss of customers. Mr. Price positively tells us that "I reduced my salary considerably to realize the minimum wage, but if the company's earnings increase, I will be able to recover it."