Yes to Salary Equality, No to Gender Equality?
In the fall of 2015, a little-known company in Seattle called Gravity Payments made a big splash in the media and at the water cooler: the CEO of the company, Dan Price, announced that the starting salary at the small payment processing company would be $70,000.
The CEO’s reasoning; a fair starting salary would accommodate Seattle’s high cost of living. Fair wages, he believed, would help the company keep qualified people. I was intrigued. I am a proponent of Jaques’ Felt Fair Pay(FFP) system.
I immediately contacted Mr Price, eager to introduce him to FFP–and suspecting I'd found a kindred spirit. I thought to myself, finally, a CEO had intuitively recognized what Dr. Jaques had uncovered in his years of analyzing organizations and meeting with workers in different roles at different levels. Briefly, the FFP system recognizes ranges of salary that are based upon what is called levels of work of the role. The FFP system does not differentiate between functional areas such as marketing, finance, and manufacturing.
Fast forward to late August 2022, when an expose of Dan Price and Gravity Payments appeared in the Seattle Times, talking about this CEO’s alleged sexual harassment of his female employees. You can read more here.
The story also appeared in the Sunday Business section of the NY Times, commanding the cover story plus four full pages inside! One might think this is significant coverage for the CEO of a small company. However, Price used social media platforms for company recognition and allegedly to harass women.
The names of women who have accused him of assaulting them appear in the New York Times article. How sad to learn that a smart, perhaps brilliant CEO is allegedly a sexual predator.
You might ask why am I making this the subject of my blog? As a proud feminist and female business owner, I am totally supportive of women coming forth about sexual assaults. What may have been acceptable years ago is no longer acceptable thanks to the “Me Too” movement. I welcome prosecution of sexual harassment and assaults.
That being said, as a business consultant, one who is passionate about transforming people’s experience at work, I am thrilled when I encounter an innovative, progressive CEO. Although Dan Price exhibited these qualities, he has also proven to be regressive. How disappointing to learn that he doesn't respect gender equality as much as income equality. I hope more CEOs will embrace the managerial acumen of the FFP system.
One way to build trust in organizations is to create transparent compensation systems that focus on the kind of thinking that is required in a role, rather than focusing on whether the role is directly related to bringing in revenue. In other words, the roles are valued by the capability required to do them as well as the knowledge, skill, and experience. FFP is such a system.
Over the span of my career, sharing salary information has always been taboo, especially amongst women. NYC recently put into law a requirement that salary ranges must be included in hiring ads. Unfortunately, the starting date keeps getting pushed back. Like me, you may feel happy but frustrated about this.
So, my fellow sisters and supportive men, we are making progress. We must continue to fight for fairness and equality in the workplace while nurturing innovative practices that can transform the work-life experience for all.
I'd love to chat about this conundrum. Contact me today.