Large companies raise wages as competition intensifies



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Competition for workers becomes fierce.
Competition for workers becomes fierce. –

Bank of America is raising its starting salary to $ 20 an hour over a two-year period, starting with a rise next month. The company announced it would raise its minimum hourly wage to $ 17 on May 1 and continue to increase it to $ 20 an hour by 2021.

In the industry as a whole, bank counters earn more. The job site Glassdoor.com indicates that cashiers earn 6.2% more than a year ago.

"ATMs do not just give out money or things that an ATM could do," said Daniel Zhao, an economist and computer scientist at Glassdoor. "Banks are realizing that they really need ATMs, they need people to interact with their customers."

By raising wages, Bank of America is setting a high bar – higher than that of big box retailers like Target, which recently raised its minimum wage to $ 13 an hour and far exceeds the federal minimum wage, which is $ 7.25.

Ten years into the economic recovery, competition for workers is fierce.

"There are fewer and fewer unemployed and out-of-the-laborers who would like to work, and employers need to increase wages more and more," said Nick Bunker, economist at Indeed.com.

In a recent survey, Glassdoor found that cashiers' salaries were up 5.5% from a year ago and bartenders were up 13.5%.

Mike Murray, who serves drinks and manages the reception at a coffee brewery in the Seattle area, completed his university education in the Great Recession. He says things have improved a lot.

"In October 2017, I had started with $ 12 an hour and tips.In the middle of last year, I was at $ 17 an hour and a few hours ago. tips, "said Murray. it gives me a lot of weight. "

As workers' indebtedness rises, small businesses are losing out on the leveraging equation, said Anne Petrik of Vistage's business consulting firm. .

"Many CEOs are having trouble getting people to show up for the first day of employment," she said.

Employers who can not pay their employees between $ 17 and $ 20 an hour offer more and more benefits such as tuition reimbursement and training to encourage workers to stay.

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