The movement to pay workers a living wage has encouraged a number of companies to boost their employees’ pay. But few have gone as far as Megan Driscoll. The chief executive of PharmaLogics Recruiting, a life sciences recruiting firm in Quincy, gave her 35 entry-level employees a 33 percent raise at the beginning of 2016, bumping up their annual base pay from $37,500 to $50,000. They retained the ability to make up to $20,000 in commissions.
After attending a talk by Dan Price, the CEO of a Seattle credit card processing company who boosted his workers’ salaries to at least $70,000 a year, Driscoll started asking around at work, and found some of her employees were struggling to buy a house and start a family. Then she did the math. And her calculations are paying off.
The raises cost the company half a million dollars, but revenues are up by more than 50 percent. The growing economy is certainly helping, but PharmaLogics recruiters are also working harder, screening one-third more job candidates a week than they were before. They are also living happier lives, Driscoll says.
“With more expendable income, they’re able to take their parents out to dinner, meet their friends after work more frequently, live in a nicer apartment, and those things lead to them telling their friends about how great of a place they work at. We’ve seen the snowball effect.”