Bank of America Raising its Minimum Wage

Bank of America announced that they were going to raise their minimum wage to $20 per hour.
Although this wouldn't be right away, it would start a $17 per hour rate and then slowly increase
to $20 per hour by the year 2020. This urged me to think about how other companies would be
affected by this announcement? More specifically, whether or not other companies would feel
more inclined to raise their minimum wage. That being said, Bank of America employees would
be making roughly $41,000 a year. Which is enough to live a moderately comfortable life
depending on whether you choose to live in a city or a small suburb  (this is also not including
any money that you choose to save or use to invest).
According to the source cited below, the bank’s reasoning for increasing their minimum wage
partially comes from their desire to share their success with their employees and also ensure the
best work! Others say that it’s a tactic to get more employees however this raises another
question. Will it create competition amongst those who wish to apply for the job?

Unions have been created such as the Committee for Better Banks acknowledging the idea that
incentives are going to be the thing that improves the “banking experience.” Not only this but
the House of Representatives along is considering changing the minimum wage up to $15 per
hour from $7.25 per hour. How much of an impact can raise the minimum wage really have?

Comments

  1. AnonymousApril 25, 2019 at 2:05 AM

    Nice post Rashelle! In my opinion, I think that Bank of America is raising its minimum wage in order to improve its public image. Having a higher minimum wage makes it look like they care about the wellbeing of their employees, and a higher base salary will attract more potential workers and thus result in more applicants. Furthermore, the public will also think that Bank of America is an ethical corporation, potentially attracting more customers to their services.

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