Fifth Third Bancorp announced it will raise its minimum wage to $18 per hour for approximately 4,900 employees beginning Oct. 28.
“Our employees continue to be our greatest asset,” said David Girodat, Regional President of Fifth Third Bank in Eastern Michigan. “I’m extremely proud to be the first regional bank to announce a wage increase to $18 an hour. This will help us attract and retain the best employees, who will ultimately help improve the lives of our customers and the community.”
The increase recognizes the contributions of employees in driving not only the Bank’s success, but also the success of its customers.
“We’re pleased to invest in the people who, every day, deliver banking that is a Fifth Third better,” said Chairman, President and CEO Greg D. Carmichael. “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 and enables us to serve our customers with distinction.”
With this increase, Fifth Third will have raised its minimum hourly wage by 50% over the past two years. In January 2018, the Bank raised its minimum hourly rate from $12 to $15. That increase contributed to a 16% year-over-year reduction in employee turnover in 2018 in those jobs most affected by the minimum wage. Notably, the new $18 minimum hourly wage will primarily benefit employees in retail branches and operations support functions such as customer contact centers. The increase will not apply to employees who work on a commissioned basis, whose earnings are typically above the new minimum wage. For full-time employees currently making $15 an hour, the increase will amount to roughly $500 more per month on a pre-tax basis. It represents an additional investment, on an annualized basis, of approximately $15 million the Bank is making in its employees.
“This wage increase will make a meaningful difference in the lives of our employees,” said Chief Human Resources Officer Bob Shaffer. “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 program, parental bonding leave, and a robust health and financial wellness program – enables Fifth Third to be an employer of choice. That’s a differentiator that pays off for customers, as they benefit from the experience, talent and engagement of a committed workforce.”