Randolph-Brooks Raises Minimum Pay to $20, Following a Nationwide Trend
Other banks, credit unions have also been raising pay as inflation erodes earnings.
The largest credit union in Texas has raised its minimum wage to $20 as inflation cuts buying power and other financial institutions also raise pay.
Randolph-Brooks Federal Credit Union of San Antonio ($15.5 billion in assets, 1.1 million members as of June 30) announced Monday that it is increasing the starting pay for employees to $20 per hour from $18.
President/CEO Christopher O’Connor said the increase reflects the credit union’s commitment to attracting talented employees. Current eligible employees will also receive a pay increase.
“Our employees are dedicated to our mission of improving our members’ economic well-being and quality of life,” O’Connor said. “In turn, RBFCU’s leadership is investing in our employees’ financial wellness and overall well-being.”
Employees at the nation’s 11th largest credit union also receive a benefits package that includes paid time off and paid holidays, a 200% company match on “entry tier” contributions to a 401(k) program, and medical, vision and dental coverage from the first day of employment.
“RBFCU is committed to improving the lives of our employees by providing a positive work environment that prioritizes employees’ health and happiness,” O’Connor said. “Ultimately, our employees are what help set us apart.”
The move comes as inflation has eaten away 8.2% of Americans’ buying power in the past 12 months. The U.S. Bureau of Labor Statistics’ last measure of pay by occupation was for May 2021. Inflation over the 16 months ending in September was 9.9%.
Pay at RBFCU exceeds the averages for tellers in Texas and nationally. With inflation, $20 per hour is also about on par with the average pay for all occupations in Texas.
In Texas, median hourly pay for tellers in May 2021 was $14.52, which was 77% of pay for all occupations there. To keep up with inflation, that pay would need to have risen to at least $15.96 in September. Average pay for all occupations was $18.47 in May 2021, which would adjust to $20.30 with inflation.
Nationally, median hourly pay for tellers in May 2021 was $17.46, which was 79% of pay for all occupations. To keep up with inflation, teller pay would need to have risen to at least $19.19 in September. The national average for all occupations was $22, which would need to rise to $24.18 to keep up with inflation.
Minimum pay for U.S. Bank employees is rising to $20 in November. The Minneapolis-based bank announced the pay hike Aug. 24, following an announcement in June that is was raising base pay to $18 from its previous level of $15.
The bank said the move was in response to inflation, and was accompanied by a 3% base pay increase for roughly 35,000 hourly and salaried employees.
Charlotte, N.C.-based Bank of America raised its minimum wage to $22 in June. The $1 raise followed another $1 raise in late 2021.
In January, SchoolsFirst Federal Credit Union of Santa Ana, Calif. ($28.1 billion, 1.2 million members) raised its minimum wage to $18, while Notre Dame Federal Credit Union of Notre Dame, Ind. ($965 million, 62,111 members) raised its minimum to $17.