Don’t miss Talent Management Asia, HR strategy conference – top HR management issues solved with cutting edge techniques from respected HR leaders. In Hong Kong, Kuala Lumpur, Philippines and Singapore in March - Register Now
Troubled retailer DSC’s Hui Ming Shun might have left his employees in dismay by not paying their wages before folding the company – but thankfully, not all bosses are so bad.
Here are three cases of selfless bosses showing willingness to share the pie.
Dan Price founder of Seattle based credit card payment company, Gravity Payments announced in April he will take a 93% pay cut from US one million a year to $70,000 in order for his 120 employees to get a pay raise.
Now even the most junior staff is making $70,000 a year which is what Price made.
Price’s decision made several headlines in the media but three months after the new salary policy the company is in disaster.
Clients are worried that they company may increase charges to cope with the higher salary and two of Price’s top men had decided to leave because they are not happy with the new policy. Price ended up renting out his own house in order to make ends meet.
“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 bump,” said Gravity financial manager Maisey McMaster who quit.
“There’s no perfect way to do this and no way to handle complex workplace issues that doesn’t have any downsides or trade-offs,” said Price.
While Price is finding it hard to please everyone, other selfless bosses seem to be doing fine.
For instance, founder of food delivery company Yemeksepeti, Nevzat Aydin shared part of the US 590 million he he received with his 114 employees after the company was sold to Germany company Delivery Hero. Each employee received US 240,000.
WhatsApp also divided US$3billion among its 55 employees after receiving a whopping 19 billion buyout from Facebook. Each employee is expected to get no less than 55 million US.