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Gravity Payments
Floor Salary
"Gravity Payments
exists to stand for the
little guy or gal who
believes in the
American dream and
is willing to chase it."
Founded in 2004
Private Company
CEO and Founder: Dan Price
Introduction
Case
Why did
Dan Price
change the
policy?
Positive
Effects
Negative
Effects
Negative
Effects
Equity Theory
Conclusion
Some entry level employees feel that they have not earned
the raises they have been given.
The performance of employees increase based on their own
perception of equality among the employees and the market.
Equity Theory
The equality measure comes about how much experience,
effort and skills you have related to the salary, recognition and
benefits the company gives to employees.
Conclusion
Herzberg Theory
New salary offered by Gravity Payments is above the market
standard.
Conclusion
Recommendati
on
The minimum salary should reach the $70,000 but whether or not
to get this amount will depend on your performance.
Gravity Payments should introduce a graduated pay scale that
allows employees to quickly move up the salary ladder as they
earn experience.
The new minimum salary can be a promise within an allotted
amount of time and allows the employee to earn their higher
compensation without upsetting more experienced coworkers.
Recommendati
on
Questions?