BofA hopes that generous employee benefits will draw top-notch talent and attract customers who want a bank with sustainable practices:
The wage hike was originally scheduled for 2021, but was accelerated as "part of the company's commitment to delivering sustainable, responsible growth by being a great place to work," according to a statement cited by CNBC. The impending increase follows a move by BofA earlier this year to increase its minimum salary from $15 per hour to $17 per hour.
BofA isn't the only bank with a recent upgrade to employee benefits — Goldman Sachs recently overhauled its parental leave policy. The bank now offers 20 weeks of paid parenting leave to all new parents — whether through birth, surrogacy, or adoption — regardless of their gender or caregiver status, per a memo The changes apply across the globe and represent an increase from 16 weeks off in the US, Asia Pacific, and other locations .
Generous employee benefits can attract strong talent, but also makes in-branch interactions more expensive. The ability to draw more skilled employees to branches can help banks provide better customer experiences, which in turn can improve loyalty. However, paying more for each branch employee means the cost of in-branch customer interactions increases, which can incentivize banks to offer strong digital or ATM interactions in a move to reduce costs elsewhere: Chase, for example, says that processing a check through its mobile app is 96% less expensive that doing so in a branch, The Motley Fool.
Treating workers well could drive customer acquisition by appealing to consumers who want a bank with sustainable practices. Young consumers in particular care about brands' values, and failure to meet expectations could lead them to take their business elsewhere: For example, the majority of younger consumers say that a brand's association with a social cause would affect their likelihood of purchasing that brand, according to a survey of 1,908 DoSomething.
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