Many companies are facing a labor shortage due to the coronavirus pandemic. With high demand for their products and services, they need to find creative ways to attract more candidates so that they can continue to run their business effectively. To help attract more employees, some brands are now increasing what they pay.
These companies have increased employee salaries
For workers in low-minimum-wage states, exploring other opportunities that pay better can improve their personal finances. In the midst of a pandemic, when workers put their health at risk, wage increases can make a significant difference.
Here are eight companies that have chosen to increase their wages to attract more workers.
1. Bank of America
In May, Bank of America announced that it would increase its minimum wage in the United States to $ 25 by 2025. In addition, the company now requires its suppliers to pay all their employees at least $ 15 an hour. .
2. Best buy
Best Buy announced plans to increase wages in July 2020. Effective August 2, 2020, the company increased the starting hourly wage for all domestic workers to $ 15 an hour.
In May, Chipotle announced that it would increase wages, which would translate to an average hourly wage of $ 15 by the end of June. Hourly workers will see a starting wage of $ 11 to $ 18 an hour. The company has also introduced referral bonuses.
More than half of Costco’s hourly workers are paid more than $ 25 an hour. And in early 2021, Costco announced plans to increase the starting salary from $ 15 to $ 16 an hour.
In May, McDonald’s announced an average pay rise of 10% for its employees at company-owned restaurants. This increase will be rolled out over several months. The base salary for crew members would be at least $ 11 to $ 17 an hour, while the starting salary for shift supervisors would be at least $ 15 to $ 20 an hour .
Target announced an increase in its starting salary in June 2020, permanently raising salaries to $ 15 an hour for members of the U.S. team.
7. Under the armor
In May, Under Armor announced an increase in the minimum wage rate for hourly workers in the United States and Canada. Workers have seen an increase of up to 50% as the minimum wage rate is increased from $ 10 to $ 15 an hour. These changes came into effect on June 6.
8. Wells Fargo
In early 2020, Wells Fargo announced it would increase salaries at most of its locations in the United States. The minimum hourly wage would vary from $ 15 to $ 20 per hour depending on the geographic area.
The federal minimum wage is $ 7.25
This shift in companies offering higher wages has led more and more people to talk about federal minimum wage and state minimum wage laws. According to the Economic Policy Institute, increasing the federal minimum wage from $ 7.25 to $ 15 an hour by 2025 would increase the incomes of 32 million workers, or 21% of the workforce.
It will be interesting to see if more companies follow along and pay workers better rates. Now that many companies pay better wages, people are more selective about which companies they choose to work for and wonder if they are getting a fair wage for the work they do.
Let your money grow
If you’ve recently received a raise through your business or changed jobs to take advantage of higher salaries, you may want to consider putting some of the funds aside in a separate savings account. This can make it easier to create an emergency fund or to plan for a major future expense.
Setting up automatic withdrawals from your current account will allow you to automatically save without any thought or additional work. Plus, you can earn interest by keeping your money in your savings account. For more information, see our banking resources.