Recently, a Seattle entrepreneur
that has started his business in his 19 from 2004 has been raising the minimum
pay of his employees. Before, the minimum pay was about $48,000 a year and
increased to $70,000. For this rising of payment, Dan Price the Founder and CEO
of Gravity Payment, has reduced his own payment about 90% and used 75 to 80% of
the anticipated $2.2 million in profit this year. The raise will be
significantly increased for about 70 workers and about 30 will get doubled
payment.
What make Dan Price do that? It
may become one of the numerous first questions. United State has one of the
world largest pay gaps. The CEO can afford three hundreds more payment than
average employees can. It is a very huge gaps and even higher than 20-to-1 ratio
recommended. Mr. Price sees this gap is ridiculous.
He grew in middle class
lifestyle family and saw the struggle in it. Therefore, he understands how hard
it is. Moreover, everyday he hear about how difficult to make an end meet with on
salary even it were well-above $7.25 federal minimum and how his workers talk
about raising rent cost, child education, and searching for home. He has done
the rising so his employees can focus on work without think of basic needs. For
the helping the company and the payment rising without charge more on the
customer, Dan Price has reduced his salary until the company profit back like
before. His target is two until three years.
His action invites not only
compliment but also criticism. Some said that it was too costly and cumbersome.
The company’s future is at stake in the moment Mr. Price realizing it. However,
he said that he would like to have this spark a conversation and have people
started to think about a different way of doing business.