An Emotionally Intelligent CEO

This is Dan Price, founder and CEO of Gravity Payments. First of all, it sounds like you are very unhappy at Gravity, would prefer not to be here, and judging by the fact that you say you are currently working at Gravity, my guess is that you think you are stuck. To me, it sounds like the comment about management relates to issues with pay. I know what it is like to be angry and feel mistreated, and I know it has a major impact on my happiness and life when it happens. Not sure how the financials are less savory (I assume you mean our bookkeeping?), but our CPA firm is reputable (they are the ones that provide direction on how to keep the books) and our bank seems to be very satisfied with our performance.

In designing Gravity, I have every intention of people being here because they want to be here and never because they are stuck. I am going to use your feedback as motivation to try to improve on just that. Although I agree people at Gravity are underpaid, hopefully they are underpaid less than they have been in our past.

You see, when I started this company, I had nothing other than a little bit of savings from my high school jobs and some credit cards and student loans. I am embarrassed to say that we didn’t even have health insurance for the first few members to join the team. I remember in 2008, we were in the red big time. We almost all lost our jobs that year, but the team pulled together and we were able to move forward without any layoffs, benefits cuts, and, importantly for our culture, we were the only company in the industry not to subject our clients to added fees.

I also acknowledge the sacrifice that it is to work at Gravity. The team here bends over backwards for our clients and doesn’t get enough acknowledgement, appreciation, compensation, etc. In 2010 I received feedback from one of our tech support representatives that he was underpaid. After evaluating this I wanted to acknowledge him and the rest of the team for their contributions to the company after getting through the 2008 recession. I was asked, “what if someone is underperforming and doesn't deserve the raise.” I said, either you figure out a way to help them perform or help them find a job where they can perform because this is not optional.

Since then, we have averaged between 13% and 14% raises for four straight years! Our competitors hate us because we are very disruptive with our business model. We charge so much less and provide much more. They are spending a lot of money trying to kill us. My solution is that if the goal is to increase pay, and it certainly is, perhaps we can push ourselves to constantly add more value and improve performance. We will constantly be getting significant raises, but yet still be in a way “underpaid.”

In addition, this tactic has the outcome of making sure people aren’t trapped at Gravity. Theoretically, if they are adding more value than they are getting, they should be able to find another job and leave if it isn’t a good fit. I don’t want anyone to leave, but I really don’t want anyone to be trapped. This philosophy has had mixed results, but here are some of them:

• Our turnover has been significantly below average for the positions, experience levels, age ranges of our team;

• We have averaged between 13% and 14% annual raises;

• To my knowledge, about 95+% of the people at Gravity are making more than they have ever made;

• Many employees that have been at Gravity for 3 to 5 years have seen their pay increase by 50% to 100%!; and

• Those who have taken a pay cut to work at Gravity did so because they valued our team/culture and think it will be a good long-term move. Please do know that I value direct feedback.

Here are the feedback mechanisms we have set up at Gravity:

• Promising to never punish negative feedback, ever ever. That has never been violated;

• I conduct open meeting hours twice a week and encourage everyone in our community to attend;

• Each team member is solicited for direct feedback twice per year and basically gets a confidential meeting with HR where they can say anything and also ask anything they want to be off of the record;

• We have an annual survey and periodic survey on these types of issues; and

• 100% open door/open office environment. If I had a door, I would keep it open, but I work in the open with everyone else.

I am going to do everything I can to improve this without jeopardizing everyone’s jobs by hurting the company’s financial stability. I have found in my own life that the more I give and sacrifice, the more I get back. It seems to be a universal law to me. I am truly thankful for the opportunity to work at this company and to work for our clients. I need to do a better job trying to work for the team as well, and will absolutely do so.

Hoon Kang, CPA, CFP®, ChFC, CLU is a practice management consultant with Elliott Bay Advisors. His practice focuses on helping founder-centric advisory firms transform from practices to enduring businesses with transferable enterprise values. His articles have appeared in AICPA PFP Planner, Leimberg Information Services and Journal of Financial Service Professionals. He can be reached at [email protected].

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