Bank of America $25 and hour, $250 for family benefits cost and 401k match this dropped their employ

Added: 2026-05-26

[00:00:00]Bank of America will now be paying all employees $25 an hour, making benefits more affordable, and increasing their 401k match. Now, they have done this in an effort to increase their employee retention, which was a very high turnover for them. They were able to drive it from over 20% down to 10% in just a few years of these practices. So, this is a lesson to all employers again.

[00:00:21]We've talked about this so many times for anybody that's ever watched any of my content. A few dollars an hour difference, a little bit more in benefits difference, and a little bit difference in employee appreciation programs will completely flip your employee retention model at your business. And if you are smart about it, the employees will stay a long time, and you will not spend money on turnover.

[00:00:38]Companies in general have no idea how much money they lose on turnover. The easiest way for a company to figure this out if they don't know is just to take every employee that they terminated, laid off, or quit the last year, and all those people's salaries, add them up for 1 year. That was your cost of turnover.

[00:00:52]If you don't believe me, go to bls.gov, Bureau of Labor Statistics, and they'll tell you it's 12 to 18 months of an employee's salary to be able to pay for their turnover.

[00:01:00]You guys are causing so many millions of dollars of turnover by not just paying a few dollars more in both the wages and in the um and in the benefits, like in in the 401k match, that you're completely missing out on the fact that you're losing millions on the back end not doing so.

[00:01:17]It's so much more expensive than you realize, and I will beat this drum as long as I continue to make these videos because if you look at something like um a Walmart, which has a 71% turnover rate, or a Costco that has a 7% turnover rate. Do you know what the difference in dollars per hour is between Walmart and Costco? It's $3.56 an hour.

[00:01:39]How much does it cost Walmart to have 71% of their on the floor population turnover every year? That's insanity, if you think about it.

[00:01:49]Costco 7%, they're keeping all the employees that they want to keep in general.

[00:01:53]You guys have no idea. You're You're wasting so much money. So, props to Bank of America, who I don't have a high opinion of because of all the lawsuits that they had several years ago about stuff that they did to customers, but I will say that this is a step in the right direction as far as I'm being an employer. So, let me know what you guys think. Are you guys like me who just wish employers would finally get the message, pay a couple bucks more an hour, pay a little bit more towards benefits, pay a little bit better for a 1K match, and they could keep us all long-term and we wouldn't have to move jobs every 3.4 years, which is what the American on average does right now. Let me know what you think.