It was late 2011. Haley was a 32-year-old phone tech earning about $35,000 a year, and he was in a sour mood. Price had noticed it, and when he spotted Haley outside on a smoking break, he approached. "Seems like something's bothering you," he said. "What's on your mind?"
"You're ripping me off," Haley told him.
Price was taken aback. Haley is shy, not prone to outbursts. "Your pay is based on market rates," Price said. "If you have different data, please let me know. I have no intention of ripping you off." The data doesn't matter, Haley responded: "I know your intentions are bad. You brag about how financially disciplined you are, but that just translates into me not making enough money to lead a decent life."
Price walked away, shocked and hurt. For three days, he groused about the encounter to family and friends. "I felt horrible," he says. "Like a victim." An entrepreneur since he was a teen, Price prided himself on treating employees well at Gravity, which he co-founded in 2004 with his brother Lucas Price. Three years before, as a 16-year-old high school kid, Dan Price saw bar owners being gouged by big financial firms every time they swiped a patron's credit card. By first outsourcing technology, and then building its own systems, Gravity offered lower prices and better service, and grew rapidly for four years -- until the Great Recession nearly wiped it out. Traumatized, Price kept a lid on wages even after the economy recovered -- to save the company, of course! Why can't employees see that? Yet the more people tried to cheer him up about his wage policy, the worse Price felt. Full story. Paul Keegan, Inc.com