Six years after the founder and CEO of the American company Gravity Payments, Dan Price, cut his own salary to increase that of his employees, he now shows the excellent results he has obtained and urges other entrepreneurs to follow in his footsteps.
In mid-2015, Price decided to reduce his annual salary, which amounted to one million dollars, by 93% and increased that of his workers so that they earned no less than 70,000 a year. In a recent interview with CBS News, the businessman revealed that their policy has not changed and people continue to have the same benefits.
Contrary to what many critics warned at the time, faced with a decision considered risky, the payment processing firm is thriving and has even tripled its workforce, while the staff turnover rate has been cut in half.
Although at the beginning Price had to adapt his lifestyle, and even sell a second home that he had and use his savings, now he assures that he does not need so much money to live and has verified the benefits that this brought for his company, such as having very loyal employees.
Remember that when the Covid-19 pandemic began, the company went through a difficult time losing 55% of its revenue. However, his team voluntarily accepted a temporary pay cut, allowing them to move on. As the situation improved, they were compensated.
In view of the obvious benefits his policy brought to the company and the lives of workers, Price is urging other companies to do the same, while regretting that no large corporation has taken such an initiative. “My employees have done much more for me than I could do for them,” he concluded, recalling the Tesla Model S car that his workers gave him as a token of affection.