Inspired by Captain America... The North Carolina based bank is jacking up its minimum wage to $17/hour on May 1st, rising to $20/hour by 2021. Boom. Compared to the too-low minimum wage of $7.25/hour nationwide, we're impressed. Bank of America shareholders weren't, because higher pay could affect profits.
The economy needs this... Americans in the bottom 60% of the wage scale haven't enjoyed a real income raise since 1980. Pay promotions have happened, but barely covered the increased cost of living. But record low unemployment of 3.8% is changing things:
- Since available workers are so scarce, they've got serious leverage in pay conversations with their bosses.
- So Bank of America is paying workers (a lot) more because they could probably go somewhere else.
Treat tellers right... With digital-based banks sprouting up, Bank of America's building 500 more physical branches to remind customers that it's physically there for them. Branches need human tellers. This pay raise ups morale for "tens of thousands" at BoA — And happier tellers charm customers.