Post by Deleted on Aug 4, 2015 19:51:22 GMT -6
Not that long ago, a Seattle CEO made major headlines by raising his Company minimum wage to $70,000. I didn't pay much attention because it was a rather reckless idea that wasn't likely to lead to anything but ruin. That was on first glance at the headline then, and just applying a little common sense. Companies can't do that and survive unless they truly are mega million or billion profit level companies with fairly LOW labor overhead....and how many are both, at once?
This one was apparently neither, and how it has failed so quickly SHOULD be instructive, IMO, for how others would see such wild fluctuations in wages by willy nilly 'Sounds good to me! Doh!' logic applied across the nation. Even good ideas can have unintended consequence as a result of ignorance. This example has a double dose of it.
Sounds kinda sympathetic there, huh? I wasn't sure if the guy was a well meaning saint (kinda like Carter), or just a foolish man with dumb ideas. Could go either way ...until the rest of the article puts a bit of focus to both sides of the matter.
When you lose your best people..I think that is something like the 'Business God' sending Moses some cool ideas on stone tablets. Its something wise folks would pay attention to...but then, I did say the question above was being answered, huh?
Source
Any humor I see here is in the ruin of the CEO, at this point. He gave everyone down to the newest hourly employee a bump to the sky in wages ...and proved in Super-Size, what so many have always said. If your wages outpace your revenue, you go out of business and NO ONE has a wage or paycheck to show it on.
He notes he may well have to raise customer rates ..and yeah, that is the OTHER half of what well meaning people seem to dismiss as silly, but is as plain as the laws of gravity for economic cause/effect. If a business doesn't accept ruin and bankruptcy, things have to get quite expensive. Only the Federal Government gets to print money like a monopoly game. Everyone else has to balance it out somewhere, somehow, regardless of the pain it causes or the end it brings.
Balance sheets gotta balance...as this CEO seems to be discovering in the most painful way.
This one was apparently neither, and how it has failed so quickly SHOULD be instructive, IMO, for how others would see such wild fluctuations in wages by willy nilly 'Sounds good to me! Doh!' logic applied across the nation. Even good ideas can have unintended consequence as a result of ignorance. This example has a double dose of it.
Dan Price, the 31-year-old CEO of credit-card processing firm Gravity Payments, told The New York Times that things have gotten so bad for him financially that he’s been forced to rent out his own house to make ends meet.
“I’m working as hard as I ever worked to make it work,” he said, The Times reported Friday. “I’m renting out my house right now to try to make ends meet myself.”
“I’m working as hard as I ever worked to make it work,” he said, The Times reported Friday. “I’m renting out my house right now to try to make ends meet myself.”
Sounds kinda sympathetic there, huh? I wasn't sure if the guy was a well meaning saint (kinda like Carter), or just a foolish man with dumb ideas. Could go either way ...until the rest of the article puts a bit of focus to both sides of the matter.
Now Mr. Price says the decision has cost him a few customers and two of his “most valued” employees, who quit after newer, less skilled employees ended up with bigger salary hikes than those who had been working longer for the company.
When you lose your best people..I think that is something like the 'Business God' sending Moses some cool ideas on stone tablets. Its something wise folks would pay attention to...but then, I did say the question above was being answered, huh?
“He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a a bump,” said Maisey McMaster, 26, Gravity’s financial manager, the Times reported.
Ms. McMaster, who has now quit the company, said that when she approached Mr. Price with her concerns about the wage changes, he treated her as if she was being selfish.
Ms. McMaster, who has now quit the company, said that when she approached Mr. Price with her concerns about the wage changes, he treated her as if she was being selfish.
Any humor I see here is in the ruin of the CEO, at this point. He gave everyone down to the newest hourly employee a bump to the sky in wages ...and proved in Super-Size, what so many have always said. If your wages outpace your revenue, you go out of business and NO ONE has a wage or paycheck to show it on.
He notes he may well have to raise customer rates ..and yeah, that is the OTHER half of what well meaning people seem to dismiss as silly, but is as plain as the laws of gravity for economic cause/effect. If a business doesn't accept ruin and bankruptcy, things have to get quite expensive. Only the Federal Government gets to print money like a monopoly game. Everyone else has to balance it out somewhere, somehow, regardless of the pain it causes or the end it brings.
Balance sheets gotta balance...as this CEO seems to be discovering in the most painful way.
