Bank of America is taking another significant step to attract and retain talent in a fiercely competitive labor market by raising its minimum hourly wage to $24. The increase, which goes into effect in October, brings the bank closer to its previously announced goal of reaching a $25 minimum wage by 2025. This latest adjustment reflects the bank's ongoing effort to support its workforce, particularly in roles that are becoming increasingly difficult to fill, such as tellers and other customer-facing positions.
The wage hike will impact thousands of the bank's 212,000 employees, particularly those in hourly roles, including tellers and call-center workers. These positions, while crucial to the bank's operations, have seen a decline in interest due to their non-remote nature and relatively low pay compared to other opportunities in the market, such as in the booming technology sector.
Bank of America has been progressively increasing wages for its hourly employees over the past several years. Back in 2019, the bank's starting pay was $15 per hour. By 2023, this figure had risen to $23 per hour, with the latest increase marking a 60% rise over the last seven years. The bank's aggressive approach to wage increases contrasts sharply with the broader financial industry, where income disparities between front-line workers and high-earning executives remain stark.
According to the U.S. Bureau of Labor Statistics, the median hourly wage for bank tellers in 2023 was $18.10. Bank of America's new minimum wage of $24 per hour significantly surpasses this median, highlighting the bank's commitment to offering competitive compensation. However, this move also underscores the broader income inequality within the industry. For instance, the median annual compensation for a Bank of America employee in 2023 was $124,000, while CEO Brian Moynihan's pay package was valued at $29 million, or 230 times that of the average worker.
Sheri Bronstein, Bank of America's chief human resources officer, emphasized the importance of competitive wages in retaining top talent. "Providing a competitive minimum wage is core to being a great place to work, and I am proud that Bank of America is leading by example," Bronstein said in a statement. She also noted that the latest increase would result in full-time employees earning a minimum annualized salary of $50,000, up from the previous $48,000.
