Gravity Payments CEO Dan Price has been hailed as a hero after slashing his own salary by $ 1 million to boost his employees’ salaries.
Some of the businesses that thrive today are run by selfless leaders who choose to invest in their people. Among them is Dan Price, CEO of Gravity Payments.
Six years ago, Price learned that one of his employees had to do extra work at McDonald’s to make ends meet. According to the employee, her salary was not enough to cover the bills in Seattle.
Dan Price smiles in a head photo. | Source: instagram.com/danpriceseattle
Wanting to retain talent while helping his employees, Price made a bold move and cut his own salary by a million dollars. The allowance has increased the salary of its staff to at least $ 70,000 per year.
Reducing her salary also meant changing her lifestyle. It meant selling a second home and using one’s own savings for personal expenses. While some called him a hero, others thought Gravity would go bankrupt.
However, the opposite has happened and the company has since almost doubled the size of its employees. In fact, Gravity is booming and has tripled since.
Andrew Hafenback, an assistant professor at the Foster School of Business at the University of Washington, says Price’s decision goes against the norm.
In fact, there are many ways for a business to have both success and profit. He added:
“Are you paying what you can get?” Or are you paying for what you think is ideal, reasonable or fair? “
Gravity’s turnover rate has also been halved, which helps increase talent retention and skill development. The company’s loyal employees have since contributed to the company’s growth.
“Zero big business is following suit because the system values ​​the highest return with the lowest risk and the lowest amount of work,†Price said of his leadership style and decision.
Yet Gravity has been spared the effects of the pandemic. In March 2020, the company lost 55% of its business and was completely unsuccessful.
However, his employees helped save Gravity by voluntarily agreeing to pay cuts. When the business rebounded, they were given back what had been lost.
Many Gravity employees are grateful for their boss’s sacrifices and leadership style. As a sign of gratitude, they all came together to buy him a new car. Shared Prize:
“My employees did a lot more for me than I could ever do for them. Hence they wanted to give me an incredible and unreal gift.”
Price isn’t the only business leader to have done a kind gesture to his employees recently. Recently, Pio Imperati, owner of Connecticut’s New Haven salon, sold his business to an employee for $ 1.
Kathy Moura, the lucky hairdresser, was thrilled to be the first to have a business in her family. At the time, Moura had worked in the establishment for over a decade.
