Whether the unemployment rate is high or low, businesses have a clear incentive to hire the best and brightest employees to work toward a common company goal. When there are fewer people looking for a job, however, many businesses need to get creative to attract the right staff members. As the following examples show, one particularly effective strategy involves increasing how much a company is willing to pay new and existing employees.
Costco
Unlike many other retailers and big box stores, Costco has invested heavily in raising the average hourly income of its employees. Even as the federal minimum wage remains stagnant in America at just $7.25 per hour, that rate is $25 or more for a majority of the staff members at this members-only big box store.
Bank of America
Not only did this financial institution recently confirm that its corporate minimum wage in the U.S. would be $25 per hour by 2025, it has also implemented a requirement that every vendor with which it works must pay its respective staff members a minimum of $15 per hour.
Best Buy
There has been a push in recent years to hike the minimum wage to at least $15 per hour, and Best Buy has heeded the call. Since August 2020, no hourly employee working at locations within the United States has made less than $15 for one hour of work.
Chipotle
A number of fast casual restaurants have also sought to bring in new employees by offering a higher starting pay rate. As of mid-2021, the average hourly wage at Chipotle was $15 and some employees are now joining the team at a rate of $18 per hour. Furthermore, there have been some attractive referral bonuses offered to those who help bring in needed staff members.
Notable Additions
A number of other large corporations have similarly announced increased wages in recent months and years. Among the most prominent examples include McDonald’s, Target, Wells Fargo, and Under Armour. As more and more businesses choose to hike their respective pay scales, it will likely become necessary for companies in all industries to keep up with the trend in order to bring in the right talent.