Poll: Flattening Salaries — A Great Idea?

Paraphrasing the NY Times article by Pat Cohen:

… (Gravity Payments CEO Dan Price) surprised his 120-person staff today by announcing that he planned over the next three years to raise the salary of even the lowest-paid clerk, customer service representative and salesman to a minimum of $70,000.

The happiness research behind Mr. Price’s announcement on Monday came from Angus Deaton and Daniel Kahneman, a Nobel Prize-winning psychologist. They found that what they called emotional well-being — defined as “the emotional quality of an individual’s everyday experience, the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one’s life pleasant or unpleasant” — rises with income, but only to a point. And that point turns out to be about $75,000 a year.

One Company’s New Minimum Wage: $70,000 a Year – NYTimes.com



Thanks for the summary.

In coming days, others will join me in relating how destructive to Gravity Payments culture this move will be in the course of time.

Market forces are inexorable. Understanding future impacts begins from thinking about how flattening pay scales entrap workers … In this case organizational stratification and stagnation are inevitable.

I will post on this again at my blog tomorrow (InterWestIT.com) – wherein I will relate a first person account of encountering this very issue with a well known / leading private company in 1999. Collins and Poras writing in ‘Built to Last’ established some of the particulars Gravity Payments ignores.

Employee churn is essential to creativity. Businesses are truly living organisms.

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Google to promote “Mobile Friendly” Sites in Search Results

Late in February Google announced that it regards websites that are “Mobile” friendly as more relevant in search results — over websites that are not mobile prepared.

Google Search SlateWe’ve been predicting this for more than two years.  The simple fact is that the growth in ownership and sophisticated use of mobile devices is driving how Business Web Presence design is implemented.

There are many alive now who may never own or even use a desktop computer.

Google says:

“When it comes to search on mobile devices, users should get the most relevant and timely results, no matter if the information lives on mobile-friendly web pages or apps. As more people use mobile devices to access the internet, our algorithms have to adapt to these usage patterns.”

View the complete text of the February announcement on the Google Webmaster Central Blog.

SMB’s: Why moving to the “Cloud” makes sense.

A recent dialogue with a SMB client involved discussing how to transition to a new Book Keeper.

The person "retiring" from the role had been operating Quickbooks on her PC. They were struggling with how to reconfigure a box (from their storage closet) and install Quickbooks, import the files, hand it off to the new resource to "take home."

The advice given: Consider Quickbooks online. The response was painful to encounter. Bottom line: this is how we’ve done it and how we’re going to do it.

We can’t sometimes help.

But this example represents a context deserving elaboration on this Blog.

By not taking this online, here are but a few negative consequences:

  1. There is no control over consistently keeping the files backed up.
  2. There is no control to assure security (if the person browses bad sites, malware is certain.)
  3. There is no ability for others to access the files for auditing.
  4. There is no ability for "successors" to be groomed and "coverage" during absences
  5. The ability to bill online, receive payments online remains clunky

By not taking their books up to the "Cloud", management has assured the most risky scenario imaginable:

That by malware or malfeasance critical banking and personally identifiable (customer) information may escape their control.

Quickbooks online is but one example of a solution "In the Cloud" that conveys much of the security and operations burden to a provider.

$12/month … it’s a great buy.

Besides, moving this to the cloud eliminates the cost the of time and hassle/struggle to reconfigure an operating system on the used machine, purchase Quickbooks (and keep it updated.)

If you can’t do it in the Cloud, Mr/Ms SMB Operator? You should be asking yourself if you need to do it at all.