If you’ve been following tech news lately, you’ve probably heard about the whole Gravity Payments situation. You can read about the original announcement here
, but we’ll give you the short and sweet version. Basically, Gravity Payments CEO, Dan Price, decided that he would raise the minimum wage within his company to $70,000 per year. According to Business Insider
, this equated to a quarter of the company’s staff seeing a new, doubled salary amount.
The article made its rounds and along with it, garnered a myriad of opinions, both positive and negative. Reactions
ranged from Price being hailed as a “hero” to debate
about the high productivity/value positions having to pick up the slack for employees previously below the $70,000 mark.
At this point, one thing is for sure: Price’s plan hasn’t come without its obstacles. Reportedly
, these include Price renting his house and more, trying to make ends meet on a $70,000 salary himself.
One has to wonder, was Price prepared for the struggles he and his company are now facing? In other words, was there a solid game plan that came along with this exciting, but apparently strenuous, decision? While the salary hike absolutely had both good and bad effects, there's one question we've discussed (and sometimes debated) for sure. What could Dan Price have done differently that might have eased some of the inevitable rocky road Gravity Payments is now faced with?
— Shared His Vision:
While Price announced his decision to hike the business's minimum wage in an all-company meeting, it didn’t seem like there was a ton of long-term information communicated. By sharing this vision beforehand (and the end-goal), employees could have been more in the loop and felt like they were a part of influencing the final decision. Not only would this have helped to create a more transparent environment, it could have assisted in solidifying a stronger level of trust.
— Allow for Feedback:
Again, by giving his employees the opportunity to respond to the idea well before he announced it, Price would have given himself the chance to evaluate whether his employees were on board with the plan, whether it would help get the company to its end goal, and more, could have provided additional ideas of how to get there. By getting people involved, this could have led to a more cohesive culture and an environment where employees felt like they truly had an effect on the direction of the company.
— Tactical Steps:
Price could have included a plan to help gauge whether this pay hike was actually helping Gravity Payments to reach its end goal (employee satisfaction, happiness, etc.). With this in place, various ideas could have been vetted out and put into place temporarily, and then reevaluated short-term to gauge effectiveness and results. Through that data, Gravity Payments would have had backup plans if the pay hike simply didn’t do the trick, and more, the ability to pivot fast if necessary.
In the end, only watching the story play out will give concrete insight into the success or failure of the $70,000 minimum wage hike decision. We’re watching the story pretty closely and hopefully, will see Gravity Payments pull through stronger, more experienced, and if necessary, with some lessons learned.