Ohio-based financial services organisation Fifth Third Bancorp will increase its minimum hourly wage to $18 (£14.86) an hour from 28 October 2019.
The pay increase, which is not applicable for employees who work on a commissioned basis, is expected to benefit approximately 4,900 staff members, primarily employed in the organisation’s retail branches or in operational support function roles, for example at customer contact centres.
Full-time employees who currently earn $15 (£12.38) an hour will see their pay boosted by around $500 (£412.67) a month, before tax deductions, as a result of the newly announced pay rise. This totals a $15 million (£12 million) investment on the part of the organisation.
Bob Shaffer, chief human resources officer at Fifth Third Bancorp, said: “This wage increase will make a meaningful difference in the lives of our employees. It could ease a car payment, facilitate a student loan payment or signal the start of a savings plan for the future.
“Moreover, the increase, combined with other benefits such as the maternity concierge programme, parental bonding leave and a robust health and financial wellness programme, enables Fifth Third [Bancorp] to be an employer of choice. That’s a differentiator that pays off for our customers, as they benefit from the experience, talent and engagement of a committed workforce.”
Over the past two years, Fifth Third Bancorp has raised its minimum hourly wage by 50%. This included a pay increase from $12 (£9.90) to $15 an hour implemented in January 2018; this contributed to a 16% year-on-year reduction in employee turnover in 2018 for job roles most affected by the minimum wage.
Greg Carmichael, chairman, president and chief executive officer at Fifth Third Bancorp, added: “A competitive compensation and benefits package is essential to our ability to attract and retain the industry’s best and brightest. It is that talent that differentiates Fifth Third [Bancorp] and enables us to serve our customers with distinction.”