Growth and Good Jobs Aren't Mutually Exclusive
Why (and how) we’re paying a living wage in an industry rife with labor issues.
We believe that treating our people well matters. A lot. In the age of the gig economy, where 1099s and high turnover rates are the norm, we’ve chosen to invest in our people for the long term, adding hundreds of good jobs to our hourly operations team with healthy wages, generous benefits, and full equity in the company.
Today, we take that one step further: we will now pay every single member of our team, starting on day one of employment, a living wage.
If this sounds like a given, it should. But to so many in our industry, it doesn’t.
The on-demand boom that promised to save jobs has killed the good ones, a lethal side effect of profit-before-people mentality. Our industry has quickly become synonymous with unfair compensation and labor issues — a quick web search surfaces poor safety standards and violations at Blue Apron, and grueling work conditions at Amazon. All of this falls on the backs of contract workers who are forced to rely on the unsteady flow of tips and surge pricing to supplement below-livable wages in the most expensive region in the country. We all rely on these services for their convenience, but more often than not, that convenience comes at the cost of others.
That’s why we’re forging our own path.
After raising $50M in our latest funding round, our first major investment went straight back into our team, providing raises to over 215 members of our operations team and increasing pay for entry-level positions to meet standards for a living wage.
To sustain this promise as we continue to grow our team and scale into new markets, today we’re adding a $3.99 Good Jobs Fee* to every order placed on Good Eggs. This isn’t a delivery fee, or a service fee, or another ambiguous or hidden charge that’s tacked on to bolster the bottom line. Funds from this fee go directly toward our labor costs and programs that ensure we grow with purpose, with our people first.
Transparency has always been a cornerstone of Good Eggs, and we’re taking the same approach with this fee. Here’s a breakdown of what the Good Jobs fee funds:
In San Francisco, the living wage for a single adult is $19.63, assuming the company doesn’t provide meals or cover the majority of fees for health insurance.
We do both: every employee gets full benefits including generous health care insurance and free meals, as well as generous paid parental leave.
With these benefits included, the hourly wage that meets living wage standards is $16.00 — our new hourly wage for entry-level positions.
And we’re just getting started. In addition to our new pay structure, we’re investing in programs that provide upward mobility for our team:
Multiple learning and development programs to help our employees leap to the next level in their career.
A new bonus structure with incentives for performance, attendance, and tenure that far surpass living wage standards.
We want life at Good Eggs to be sustainable, worthwhile, and inspiring for every employee, whether they’re delivering Dinner Kits to families that rely on us week after week, receiving palettes of this season’s first strawberries at the crack of dawn, or picking and packing every order placed by hand and with care.
In the midst of the tectonic shift rapidly changing the food industry, we have two options as we scale: follow the pack and pay bottom-of-the-market rates that foster a toxic culture of high turnover and burnout, or, reward the folks that enable us to deliver the high quality of service we do, and remain a strong advocate for fair and just labor.
We unequivocally choose the latter. When we invest in our team, they invest in all of us. Our people have gotten us this far, and will continue to take us even further — we’re one team, one mission, and we’re in it for the long haul.
* In April 2019 we updated the Good Jobs fee to $4.99 to stay in line with the rising cost of living in the Bay Area.