The jobs in America continue to be tight as banks are trying to find candidates that want to work in their branches. Bank of America has announced that they will be increasing the hourly wages to $20/hour by the year 2020. This decision came earlier than expected as Bank of America recently increased the paychecks of their employee to $17/hour in May this year.
On Monday, BOA announced that the minimum wages for their 208,000 employees in US will be raised to $20/hour. They clarified that the process will be over by the end of first quarter in 2020. Previously, it was planned that this step wouldn’t be taken until2021. Bank stated that they are doing this to share their success with their employees who have worked very hard to achieve it.
Giving high wages in retail banking has become crucial due to the fact that the job market has become very competitive. The unemployment rate in America has come down to a 50 year low in October at 3.6% and the wage growth for the employees has also been solid.
Senior economist, Daniel Zhao says that the pressure is mounting on firms to give better wages as they are competing to secure talents to work for them.
BOA isn’t the only leading bank that has bumped up the wages of their employees as JP Morgan Chase plans to bump the minimum wages of their employees to $18/hour from the previous amount of $15/hour for 22,000 of their employees depending on the cost of living in the area they reside. Citigroup has also taken similar steps as they have increased minimum wages to $15/hour.
As employers are trying to navigate through the shortages of employees, the lower income employees have seen a faster than national average growth in their wages.Apart from banks, many other companies like Amazon, Walmart etc. have also increased their wages offered to employees along with other benefits.