gravity payments salary analysis

7/25/2019 Gravity Payments Salary Analysis

1/13

Case:

Gravity PaymentsFloor Salary

Team 12:

Kevin Pfeifer, Guido Perez, Ghanshyam Thakkar,Helen a!ata, Feli!e "#$llister, Kelly %i&olini

'Ge(islittl*eli$mis )


2/13

ntrodu#tion

Founded in 2--.

Private Com!any

C/0 and Founder: an Pri#e

ndustry Se#tor: ankin& 3Finan#e

4um*er of em!loyees: a*out1--

Produ#t: Credit #ard !ro#essin&

%evenue: 5 16- "illion 72-1.8

Pro9t: 5 2+2 "illion 72-1.8


3/13

Case

2-16: C/0 an Pri#e de#ided to #han&e the !oli#

Floor salary of 5 -,--- for all em!loyees *y 2-1

Some em!loyees rea#hed a dou*led salary

$ll em!loyees )ith a salary over 5 -k didn;t &et in#reasin&

Pri#e;s idea #ame from a study *y $n&us eaton Kahneman

Threat that em!loyees are fa#in& in terms of lon&motivation


4/13


5/13

Positive/?e#ts

Pro9ts has *een dou*led sin#e the announ#eme

Customer retention rate &ro)s from A1B to A6B

Ha!!iness of em!loyees has &enerally in#rease

Gravity Payments is no) #onsidered to o?er ve#om!etitive #om!ensation !a#ka&es that allo)em!loyees to maintain a hi&her standard of livi


6/13

4e&ative/?e#ts

Short term sa#ri9#e

Some #lients )ere u!set *y the !oliti#al messa&e thindi#ates and feared that !ri#es )ould in#rease

Sha#kles hi&h !erformers to less motivated em!loy

Former em!loyees are not ha!!y )ith in#ome distri

ue to hi&h salary hike, their o)n !ro9t of 52+2" )dedi#ated to the salary in#reases

Com!any more #harity than !ro9t orientated D *aat


7/13

4e&ative/?e#ts

His o)n *rother, Eu#as !ri#e, -B sharehold#om!any suin& him

Cut do)n his o)n salary of 51 million to 5-

He has to mort&a&e his )on house to !ay hem!loyees a !ay#he#k+

;s it fair=;, "ana&ers say


8/13

/uity Theory

/m!loyees )ho )ere very e(!erien#ed )ere unhtheir salaries )ere not in#reased as mu#h as those(!erien#e+

Some entry level em!loyees feel that they have nthe raises they have *een &iven+

The !erforman#e of em!loyees in#rease *ased on!er#e!tion of euality amon& the em!loyees and

Con#lusion


9/13

/uity Theory

The euality measure #omes a*out ho) mu#h e(e?ort and skills you have related to the salary, re*ene9ts the #om!any &ives to em!loyees+

This !oli#y #han&e is disru!tin& the normal hierarem!loyees are ha!!y for no) )ith their raises, inem!loyees )ill *e frustrated as the foundations otheory states this+

Con#lusion


10/13

Herz*er& Theory

4e) salary o?ered *y Gravity Payments is a*ove standard+

/ven *efore the !oli#y, hy&iene fa#tors of the em*ein& met and !oli#y #han&e #aused strain on emsatisfa#tion+

Hy&iene fa#tor only kee! em!loyees from *ein& doesn>t ne#essarily motivates themI

They didn>t try to 9nd out a#tual #ause of dissatisem!loyees if any+

/ven if they in#rease the salary, they mi&ht *e un*e#ause of motivation fa#tors of Herz*er& theory+

Con#lusion


11/13

%e#ommendation

The minimum salary should rea#h the 5-,--- *utto &et this amount )ill de!end on your !erforman

Gravity Payments should introdu#e a &raduated !aallo)s em!loyees to ui#kly move u! the salary laearn e(!erien#e+

The ne) minimum salary #an *e a !romise )ithin amount of time and allo)s the em!loyee to earn t#om!ensation )ithout u!settin& more e(!erien#ed


12/13

%e#ommendation

/very sin&le Jo* !osition !erforman#e should *e m#orre#tly and eventually the salary risen to 5-,--

0n#e on the 5-,--- a##ordin& to the euity theor

Payments should in#lude a *onus to make sure the#ontri*ute the more *ene9t you &et+


13/13

uestions=

gravity payments salary analysis

Documents