4 ms·

It will be interesting to see if the salary increase (for some it will be double) will result in overall better workplace happiness, higher retention rates (mea

It will be interesting to see if the salary increase (for some it will be double) will result in overall better workplace happiness, higher retention rates (meaning less resources required to train replacements) and a better end product as a result of employees being happier. This is really great, other startups and companies should take note of what is happening here. While it will result in a temporary downfall because profits are being used to fund this in combination with Dan Price's pay-cut, I think the long-term results will mean the company eventually makes that money back and then some more. We need more risk like this in the business world, invest in your employees who in turn will want to be at work and want to do a good job to keep their salary.

cmdkeen 12y ago
I imagine he'll be getting calls from management theorists wanting to do some long term studies to see what happens to happiness, motivation etc. Traditional management theory has that money is a poor motivator because the effects wear off quickly and people soon come to believe they are "worth" their pay increase. Other perks / benefits are often valued disproportionately more than money. Now a massive pay rise that takes people out of a problematic income zone may completely upend that, or over time it might have unintended negative consequences. Off the top of my head I wonder what consequences might be for the workers who were on higher salaries now perhaps feeling relatively under compensated.
- wwweston 12y ago
  If I recall correctly (I'm thinking this is from some of Daniel Pink's work), some recent studies show that more money does help up to the point where employees basically don't have to think about their own material problems... and can therefore focus on solving their employer's problems. And beyond that, it's a poor motivator. My guess is that the ~$70k mark is about right for ensuring middle class security outside of major metro areas.

cmdkeen 12y ago

I imagine he'll be getting calls from management theorists wanting to do some long term studies to see what happens to happiness, motivation etc. Traditional management theory has that money is a poor motivator because the effects wear off quickly and people soon come to believe they are "worth" their pay increase. Other perks / benefits are often valued disproportionately more than money. Now a massive pay rise that takes people out of a problematic income zone may completely upend that, or over time it might have unintended negative consequences. Off the top of my head I wonder what consequences might be for the workers who were on higher salaries now perhaps feeling relatively under compensated.

wwweston 12y ago
If I recall correctly (I'm thinking this is from some of Daniel Pink's work), some recent studies show that more money does help up to the point where employees basically don't have to think about their own material problems... and can therefore focus on solving their employer's problems. And beyond that, it's a poor motivator. My guess is that the ~$70k mark is about right for ensuring middle class security outside of major metro areas.