Bank of America is raising its hourly minimum wage to $24 for full-time and part-time employees. This could be good news for the banking industry and customers in general, Florida Gulf Coast University Assistant Professor of Economics Krishna Regmi said.
The wage increase for the bank’s U.S. employees goes into effect in October, said Matthew Daily, Bank of America’s senior vice president of external communications. This is the seventh consecutive year the Charlotte, North Carolina-based bank increased its employees’ wages, during which time its starting salary for full-time employees rose nearly $20,000.
Bank of America operates 36 locations in Southwest Florida.
The financial institution also committed to raising the hourly minimum wage to $25 by 2025.
Regmi, who works in FGCU’s Labor Economics and Economics of Education department, said there has been a large turnover among younger workers in the banking industry, and higher wages might entice bank employees to stay who might otherwise have left their field in search of higher salaries.
Krishna Regmi
He said Bank of America’s wage increases “will improve service,” as higher wages “increase productivity and workers would feel more motivated to work harder.” This, in turn, would improve service to customers, he said.
The minimum wage increases to $24 per hour will bring the minimum full-time salary for employees to nearly $50,000 per year.
Meanwhile, other financial institutions may be driven to raise their minimum wage to be competitive in recruiting workers, Regmi said.
A job search on ZipRecruiter on Sept. 19 revealed hourly wages for banking jobs in Southwest Florida fell short of $24.
In Charlotte County, full-time banker positions were posted at hourly wages of $15.25 to $22. Part-time positions for tellers and other positions were listed at $13.25 to $18.50 per hour.
The trend was similar in Lee and Collier counties.
Some of Lee County’s part-time and full-time wages for tellers ranged from $15.25 to $19 per hour.
In Collier County, part-time and full-time hourly wages for jobs at banks and a credit unions were posted at $14.75 to $22.75.
“Providing a competitive minimum wage is core to being a great place to work,” said Sheri Bronstein, the bank’s chief human resources officer. “I am proud that Bank of America is leading by example.”
