Work in American Society: Discussion Blog

Gravity Payments is a credit card processing company located in Seattle. Last week, the company`s Chief Executive Officer, Dan price, announced his decision of reducing his profits in order to increase the company`s minimum wage to $70,000 per year (Patricia 2015). However, this decision has raised different responses, both positive and negative.

Nevertheless, I beg to differ with some of the skeptics that were raised by some individuals on this issue. For example, I differ with Mr. Limbaugh and Mr. Rogers` post that improving employees` happiness, through better payments does not result to an improved productivity (Patricia 2015). In most cases, increasing employees` level of income usually motivates them to improve their performance. In addition, increasing employees` income would enable them to meet their personal needs than before, and this leads to physical and psychological satisfaction (Saul 2014). This makes them concentrate with the allocated duties adequately, resulting to improved performance of the organization.

On the other hand, I agree with the contributions that are raised by economists such as Jeffrey Bussgang and Tim Kane. Mr. Price`s decision would not only enhance employee`s morale, but also reduce the rate of employees` turnover, and propel the company to the ranks of the most admired organizations in the United States (Patricia 2015). Mr. Price`s decision one of the positive move on human capital management, which greatly contributes to the success of an organization. Employees feel themselves as valued assets of an organization, and will always prefer working for that company than for others. The company also creates a good reputation, to the extent that most talented employees, especially from similar organizations would be willing to join Gravity Payment company (Albany Business Consultants 2013). I am sure that this is the core reason this company has received approximately 3,500 job applicants since the announcement of this decision. The combination of all these factors would result to improved performances of this company.

Work Cited

Patricia Cohen: Praise and Skepticism as One Executive Sets Minimum Wage to $70,000 a Year. Posted on 19^th April, 2015. Retrieved from, http://www.nytimes.com/2015/04/20/business/praise-and-skepticism-as-one-executive-sets-minimum-wage-to-70000-a-year.html?_r=2

Saul Mcleod: Maslow`s Hierarchy of Needs. Updated on june, 2014. Retrieved from, http://www.simplypsychology.org/maslow.html

Albany Business Consultants: Aligning Human Capital with Business Goals and Strategic Objectives. Published on 2^nd May 2013. Retrieved from http://albanybusinessconsultantsllc.com/wpcontent/uploads/2013/12/WhitePaper_HumanCapital1.pdf