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Bank of America’s announcement that it will raise minimum wage to $20 per hour has big implications for other banks

April 11, 2019

Over the next two years Bank of America will have incremental pay increases to its minimum wage. On May 1, 2019, the minimum hourly wage will increase to $17, and will continue to rise until it reaches $20 in 2021.

Sheri Bronstein, the company’s chief human resources officer, said in a statement that the bank is raising its minimum wage “because we believe that to best serve our customers and clients, we need the best teams.”

Attracting and retaining the best employees is one of the biggest challenges HR departments face and offering competitive compensation is always a top-ranking concern. There’s no doubt other banks have taken notice of Bank of America’s recent plans. With its well over 4,000 branches, the pay increase will impact communities sprawling across the country, some with significantly less average hourly pay rates.

In the white paper titled, How High-Performing Organizations Compete for Talent, Kronos lays out tactics banks can do to improve their talent acquisition strategy. Spoiler alert, it’s more than just having the highest pay rates.

High-performing organizations’ recruiting strategies:

  • Emphasize the development of strong internal pipelines for talent just as much as external pipelines
  • Are more likely to offer comprehensive total reward packages, developmental opportunities, and flexible work arrangements
  • Have a robust integration of technology solutions that manage workforce complexity
  • Market the employer brand by increasing investments in the talent acquisition process
  • Customize processes for talent segments to effectively and frequently reach different types of candidates

Download this white paper today to learn how the right talent acquisition strategies can help your financial institution source thoughtfully and hire effectively.

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