Close Ad

CEO Who Gave $70K Minimum Wage To All Employees Saves Team From Layoffs
CEO Dan Price Saves Team Layoffs
Everyday Heroes

CEO Who Gave $70K Minimum Wage To All Employees Saves Team From Layoffs

2020 has been a tough year for many businesses, and some companies have had to do the unthinkable and lay off employees to survive. But one smart and compassionate leader had a better idea.

Sometimes communication really is the name of the game. When CEO Dan Price realized his company, Gravity Payments, was in a precarious position, he turned to his team. Instead of eliminating roles right off the bat, he asked employees for their opinions on what to do.


“Your team is so much smarter than you,” Price told Entrepreneur, reflecting on his trust on the people he hires. “Give power to your people, be honest and democratic. They will find solutions that you can’t see.”

An unusual CEO move

Price has always looked at business a bit differently. A few years ago, he took a giant pay cut so that he could instate a $70K minimum wage for his employees. So now he turned to those same employees for advice on how to to save their jobs.

He gathered his team of 200, and together they came up with an idea. Rather than laying off anyone, they were all going to volunteer for a pay cut. “I thought it was crazy,” Price says. “I figured we’d waste a week’s worth of time to learn it wouldn’t work.”

Prioritizing people paid off

However, it ended up working. And by the end of summer, he was even able to pay back all his employees for the cut they had taken.

“Businesses love to talk about caring for people,” reflected Price, but at the end, it’s their balance sheet businesses tend to prioritize.

“Leaders will do layoffs deeper and quicker than needed,” he said, highlighting that it's usually the best way to recover quicker and turn things around.

Business doesn't have to mean sacrificing humanity

Price was determined to find a better option than making the gut-wrenching decision of letting his people go during an economic crisis. The best part? He turned to them for the solution, involving them in the process.

 “We’re here because of our people.”

More uplifting stories:

Hot Stories

Leonardo DiCaprio Told Kate Winslet To “Let The Fat Girl Thing Go”
Leo Dicaprio Told Kate Winslet To “Let The Fat Girl Thing Go” …

Forced to feel ashamed for her weight and appearance, Kate Winslet struggled with her body image for years. The media loved to tease her for being “the fat girl,” but there was ONE PERSON who saw the real her. What did Leo see in Kate? And what important message does Kate have for young women everywhere?


Keep ReadingShow less
Videos
dave chappelle and wife elaine

Dave Chappelle may be one of the most popular comedians in the world, but to his wife Elaine, he's just Dave.

Chappelle had his big break with his Comedy Central Show Chappelle Show which ran from 2003 to 2005. The show was enormously popular and put Chappelle on the map. Chappelle’s Show was scheduled to have a third season after the success of the first two seasons but that never happened.

Keep ReadingShow less
Celebrities
41 Daughter Quotes That Will Touch and Melt Your Heart
daughter quotes

Having a daughter is undoubtedly a blessing. However, raising a girl with high self-esteem can be quite challenging. Between social media's filtered reality of perfect women and society's shifting expectations, parents face the daunting task of nurturing authentic self-worth in their daughters.

These carefully selected daughter quotes help provide a starting point. They're simple reminders that whatever accomplishments you may have to date, raising a daughter is probably your biggest one.

Keep ReadingShow less
Family