These 8 Companies Are Increasing Wages to Attract More Employees

Now workers have more options for better paying work. Find out which companies have raised their pay rates.

Many companies are facing a shortage of workers due to the coronavirus pandemic. With plenty of demand for their products and services, they're having to find creative ways to attract more job applicants so they can continue to run their businesses effectively. To help bring in more employees, some brands are now raising what they pay.

These companies increased employee wages

For workers in states with low minimum wages, exploring other opportunities that pay better can improve their personal finances. Amid a pandemic, when workers are putting 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. Additionally, the company now requires its vendors to pay all their employees at least $15 per hour.

2. Best Buy

Best Buy announced its plans to increase wages in July of 2020. Beginning on August 2, 2020, the company raised the starting hourly wage for all domestic employees to $15 per hour.

3. Chipotle

In May, Chipotle announced that it would increase wages, resulting in a $15 hourly average wage by the end of June. Hourly workers will see starting wages of $11 to $18 per hour. The company also introduced referral bonuses.

4. Costco

More than half of Costco's hourly workers are paid more than $25 per hour. And in early 2021, Costco announced plans to increase starting wages from $15 to $16 per hour.

5. McDonald's

In May, Mcdonald's announced an average wage increase of 10% for its employees at company-owned restaurants. This increase will be rolled out over several months. The entry-level wage for crew members would be at least $11 to $17 an hour, while the starting wage for shift managers would be at least $15 to $20 an hour.

6. Target

Target announced an increase in its starting wage in June of 2020, permanently increasing wages to $15 per hour for United States team members.

7. Under Armour

In May, Under Armour announced an increase in the minimum pay rate for hourly employees in the United States and Canada. Workers saw an increase of up to 50% as the minimum pay rate went from $10 to $15 per hour. These changes went into effect on June 6.

8. Wells Fargo

In early 2020, Wells Fargo announced it would raise wages at most of its U.S. locations. The minimum hourly pay would range from $15 to $20 per hour depending on geographic area.

The federal minimum wage is $7.25

This shift in companies offering higher wages has gotten more people talking about the federal minimum wage and state minimum wages laws. According to the Economic Policy Institute, increasing the federal minimum wage from $7.25 to $15 per hour by 2025 would increase earnings for 32 million workers -- or 21% of the workforce.

It'll be interesting to see if more companies follow and pay workers better rates. Now that many businesses are paying better wages, people are being more selective about what companies they choose to work for and are considering whether they're getting paid a fair wage for the work they do.

Let your money grow

If you've recently received a raise through your company or have switched jobs to take advantage of higher wages, you might consider setting some of the funds aside in a separate savings account. Doing this can make it easier to establish an emergency fund or plan for a future big expense.

Setting up automatic withdrawals from your checking account will allow you to save automatically without any extra thinking or work. Plus, you can earn interest by keeping your money in your savings account. For more information, check out our banking resources.