Big companies like Amazon, Target and Costco are just a few that have increased the minimum wage of their employees to or near $15. On Tuesday, Bank of America announced they would increase their employee’s starting wages to even more than that, starting at $17 an hour.
In two years, the company said that minimum will go up to $20 an hour.
“I think we're gonna see significant change in income for a lot of folks, and that's gonna have an impact on the economy,” says Leo Gertner with the National Employment Law Project.
Gertner says that while we may not think of banking as a low-wage industry, the average wage for a bank teller is $13.52.
"Even the difference to $15, but then to $17 and then $20, that's a huge difference. That's, you know, over 50 percent increase, and that's gonna have a really huge effect on some workers lives,” Gertner says.
Molly Vigil, with staffing agency The Employment Firm, says in today’s job market, raising base pay is now a necessity for attracting applicants.
“A lot of places are having to increase their wages just to attract people to apply for the positions that they have open,” Vigil says. “There's so many jobs right now.”
Vigil says more and more companies will follow suit. In turn, that will yield better talent, who stick around the company longer.
“I think you're gonna get people with a little more experience in the field, probably people who will bring some great ideas, great motivation to your team, some great teamwork, and just a good employee morale, which is going to help your longevity of your employees overall,” Vigil says.