One Company’s New Minimum Wage: $70,000 a Year

#26
#26
How many of you would start a business that grosses $500k a year, hire 7 employees, pay 3 $100k a year while you and the other 3 bring in $50k? Smart business there.

Same scenario except your company grosses $2mil a year. As the owner are you really making only $50k a year?
 
#27
#27
Kudos to the guy but I get the point Cdy is making.

If I was making $75K and someone else made $35K gets bumped to $70K and I get nothing I'm going to have to wonder what's going on.
 
#28
#28
Cdywolfe said:
This guy is obviously a smart businessman. Maybe he's figured out a way to make it work. I don't know.

With that said… I feel like it's really naïve to think the people that are making in the $70k to $120k range aren't rolling their eyes at this. The article said that there is 120 employees, 70 of which got a raise. That means that 50 employees didn't. Keep in mind that these 50, with a few possible exceptions, are certainly his most important and qualified employees.

If you're one of those 50 are you not a little (or even a lot) irritated that as the boss was handing out insane and undeserved raises, you got overlooked?

Now let's say next week when an opportunity presents itself at another company. Let's say it's a lateral move or even one that's a little better but you probably would've passed on due to loyalty before. Maybe you give a better look now.
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If it is me, I stay. Why leave a place that just gave out 50% raise to a majority of people that worked there to go somewhere else for a few pennies more?
 
#29
#29
volinbham said:
Kudos to the guy but I get the point Cdy is making.

If I was making $75K and someone else made $35K gets bumped to $70K and I get nothing I'm going to have to wonder what's going on.
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The reverse happens all the time, where someone making $100k gets a raise to $150k or some sort of package and the lower employees get nothing. Is there a difference?
 
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#31
#31
volmanbill said:
Kudos to the owner.



http://www.nytimes.com/2015/04/14/b...ing-a-new-minimum-wage-70000-a-year.html?_r=0
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No kudos.

He does not understand the issues he is creating.

Money came quickly and he is probably too young to understand what he is doing, regardless of his intelligence.

If these people were able to earn double their current salary, they would already be doing so. They aren't, thus they aren't worth it. Their productivity is going to drop like a rock in a few years when they get accustomed to this rate.
 
#32
#32
MG1968 said:
Is he really dropping his compensation down to 70k? Warren Buffet claims that his "salary" is 100 grand, but we all know he's worth billions and can buy a planet if the mood strikes him.
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My CEO does this too. He makes it look like he underpays himself, so he can underpay the other executives, but he makes a lot of rental income off the business. He's not lying when he says his salary is lower than theirs, but it's not really the truth.
 
#35
#35
n_huffhines said:
My CEO does this too. He makes it look like he underpays himself, so he can underpay the other executives, but he makes a lot of rental income off the business. He's not lying when he says his salary is lower than theirs, but it's not really the truth.
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Our former CEO topped out at $72,000,000 a year in total compensation, almost 50x higher than what his actual salary was.
 
#37
#37
Bigurnge said:
You're paying $70k to people that aren't worth it though. If a person is already making $75k what is their raise gonna be? Nothing? 3% vs 200%? It's just a publicity stunt and the company will fold or he'll start slashing jobs in 3 years.
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I don't disagree with you. If they worked for me i would tell them to pound sand. If i am paying you what you think is fair market value for the job you do then it doesn't matter what i pay the secretary.
 
#38
#38
volfanhill said:
I don't disagree with you. If they worked for me i would tell them to pound sand. If i am paying you what you think is fair market value for the job you do then it doesn't matter what i pay the secretary.
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In the real world you know that's not gonna be the case. There will be resentment and their work habits will change.
 
#39
#39
Bigurnge said:
How many of you would start a business that grosses $500k a year, hire 7 employees, pay 3 $100k a year while you and the other 3 bring in $50k? Smart business there.

Same scenario except your company grosses $2mil a year. As the owner are you really making only $50k a year?
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Of you are only grossing 500k you aren't paying anyone 1/5th of it
 
#40
#40
Bigurnge said:
In the real world you know that's not gonna be the case. There will be resentment and their work habits will change.
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Or... You just made those managers jobs way easier by creating a positive work environment where everyone does their job flawlessly. Less paperwork and less crap to deal with. And I keep my same pay, hells yea.

It's hard telling how this will effect his employees work habits. But my guess is for the better.
 
#41
#41
volinbham said:
Kudos to the guy but I get the point Cdy is making.

If I was making $75K and someone else made $35K gets bumped to $70K and I get nothing I'm going to have to wonder what's going on.
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If he is smart, he worked that part out ahead of the announcement.
 
#42
#42
Rasputin_Vol said:
Blue font?
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Certainly more merit based than simply being the beneficiary of some mad scientist CEO feeling sorry for his employees. I'd rather have a promotion that I can at least claim to have earned than a pity raise because my boss feels guilty.
 
#43
#43
TNsnyper20 said:
Or... You just made those managers jobs way easier by creating a positive work environment where everyone does their job flawlessly. Less paperwork and less crap to deal with. And I keep my same pay, hells yea.

It's hard telling how this will effect his employees work habits. But my guess is for the better.
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Yeah. Because giving people something that they didn't earn has worked out soooooo well in the past. If they weren't motivated to do a good job before thieir pity raises, they certainly won't be motivated afterward. Want an example of why this is a bad idea? See: welfare.
 
#45
#45
TNsnyper20 said:
Or... You just made those managers jobs way easier by creating a positive work environment where everyone does their job flawlessly. Less paperwork and less crap to deal with. And I keep my same pay, hells yea.

It's hard telling how this will effect his employees work habits. But my guess is for the better.
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Lol yea that's it.
 
#46
#46
TNsnyper20 said:
Or... You just made those managers jobs way easier by creating a positive work environment where everyone does their job flawlessly. Less paperwork and less crap to deal with. And I keep my same pay, hells yea.

It's hard telling how this will effect his employees work habits. But my guess is for the better.
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Maybe it works out I don't know. With that said, you are insanely naïve if you think the overwhelming majority of those 50 who didn't get a raise are thinking anything even remotely close to "hells yea". Now there may (notice I said may) be one or two who don't care. The rest of them are all at various levels of pissed off. I'm thinking the closer you make it to $70k the more frustrated you probably are.
 
#47
#47
Cdywolfe said:
Maybe it works out I don't know. With that said, you are insanely naïve if you think the overwhelming majority of those 50 who didn't get a raise are thinking anything even remotely close to "hells yea". Now there may (notice I said may) be one or two who don't care. The rest of them are all at various levels of pissed off. I'm thinking the closer you make it to $70k the more frustrated you probably are.
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In a larger company you're absolutely right. With this being a smaller company there's probably not that many that are upset. Few might jump over board.
 
#48
#48
SamRebel35 said:
Yeah. Because giving people something that they didn't earn has worked out soooooo well in the past. If they weren't motivated to do a good job before thieir pity raises, they certainly won't be motivated afterward. Want an example of why this is a bad idea? See: welfare.
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This is a far far cry from welfare.
 
#49
#49
Bigurnge said:
In the real world you know that's not gonna be the case. There will be resentment and their work habits will change.
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I have over 800 employees, and i would handle it how i described above, if this was what my owner wanted to do.
 
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