Originally inspired by an article on happiness. Dan Price, the owner of American credit card processing company Gravity Payments surprised his 120 staff on Monday by announcing he’s raising the minimum salary of everyone who works at the firm to $70,000, equivalent to £47,779. Even the company’s lowest-paid admin assistants and customer service reps will be included.
The New York Times reports how Dan Price, owner of Gravity Payments, had read that, for people earning less than $70,000 a year, extra income tends to make a big difference to their happiness. Above this level, the effect of having more money becomes much less.
Under the change, around 70 employees will see their pay increase, with 30 having their pay doubled.
Dan, who started the company in 2004 when he was just 19, reportedly said he would pay for these increases by cutting his own salary from nearly $1 million to $70,000, and using a large chunk of the company’s anticipated profits.
Dan’s no stranger to radical moves like this, either. Gravity Payments staff already enjoy an unlimited holiday policy.
But introducing the new $70,000 minimum salary is a bold step even for Dan. Will we be seeing owners of UK companies following suit?