Dan Price, CEO of Gravity Payments, was facing a tough decision. He had to cut 20% of his employees or go bankrupt. But instead he decided to ask his staff what to do and together they came up with a solution that kept everyone working.
Gravity processes payments for small businesses and with their sales down, Price estimates his company would be bankrupt in four to six months. So he had 40 hour-long meetings with groups of employees and they brainstormed strategies. The team agreed to take pay cuts and privately said how much they could give up.
Now Price encouraged other CEOs to consider talking with employees before laying them off. He says his team’s sacrifice will get them through eight to 12 months with no layoffs.
Source:Inc.