TRENDS IN WAGE INCREASES

Cash

As a corollary to my earlier post about Trends in Leave Policies, I wanted to highlight two large companies who have committed to raising wages for their employees.  Starbucks CEO Howard Schultz sent a letter to employees on Monday announcing that all employees and store managers in U.S. company-run stores will enjoy a base pay raise of 5 percent or more come October.  These raises will affect employees in approximately 7,600 Starbucks locations in the United States.

Jamie Dimon, the CEO of JPMorgan Chase, wrote an op-ed in the New York Times today discussing the upcoming wage increases for JPMorgan Chase employees.  The company currently honors a $10.15 hourly minimum wage for all of its American employees (the federal hourly minimum wage is $7.25, as is Iowa’s), which will increase to between $12 and $16.50/hour for 18,000 employees over the next three years.

Dimon cites rewards for both JPMorgan Chase and its employees as reasons for the wage increases:

“A pay increase is the right thing to do. . . . Above all, it enables more people to begin to share in the rewards of economic growth.  And it’s good for our company, helping us attract and retain talented people in a competitive environment.”

Hats off to Starbucks and JPMorgan Chase!  I hope more employers follow your lead in the near future.

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photo credit: <a href=”http://www.flickr.com/photos/49502995517@N01/27919875642″>The Kitty</a> via <a href=”http://photopin.com”>photopin</a&gt; <a href=”https://creativecommons.org/licenses/by-nc/2.0/”>(license)</a&gt;

 

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