Would making $70,000 a year make you happy? Content? Good to go?
Employees at Seattle-based credit-card payment processing firm Gravity Payments unexpectedly had a great day at work recently as their boss announced that everyone in the entire firm will soon earn a minimum salary of $70,000 a year.
So, why that specific figure?
The idea came from CEO Dan Price who recently read that employee’s happiness is directly affected by the amount that they earn, and according to research a $70,000 is the sweet spot.
Price decided to take this information to heart and made instant changes.
The CEO, who started the financial company 11-years back, surprised his team of 120 staff on Monday morning by announcing that salary increases throughout the company would rise to a minimum of $70,000 over the next three years.
And it isn’t just high-flying execs who can expect to benefit from the promised increase. Even the lowest-paid staff in the company from the clerks to the customer service representative have been promised that they’ll see their wages increase to a minimum of $70,000.
"Is anyone else freaking out right now?" Mr. Price asked his employees following his announcement. "I’m kind of freaking out."
The announcement means that the pay checks of around 70 employees will increase, with 30 Gravity Payments staff seeing an increase of 50 percent, according to Ryan Pirkle, a company spokesman. The average salary at Gravity is currently $48,000 year.
While sceptics may wonder how the company plans to pay for the increases, CEO Dan Price has it all mapped out. He has announced he plans to reduce his own salary from 1 million to $70,000 and will make up the shortfall with 75 to 80 percent of the company’s projected $2.2 million in profit this year.
Would you like your boss to follow suit?