JP Morgan CEO: Why His Firm is Raising their Minimum Wage
- haightshaggies
- Jul 12, 2016
- 1 min read
Yesterday the JP Morgan Chase CEO, Jamie Dimon, announced plans to gradually raise worker compensation over the next few years, until the firm's lowest earning U.S. wage workers are paid between $12.00 and 16.50 an hour by 2019. The current minimum wage for JP Morgan bank tellers and customer service representatives is $10.15 an hour, and the company boasts of comprehensive benefits, including a considerable medical plan and paid leave.
Dimon stated that a wage increase is “the right thing to do,” and a good investment for his company. These competitive wages may increase employee loyalty and satisfaction, thereby decreasing employee turnover. Dimon also emphasized the need for a more accessible and focused education system in order to fight inequality, and supported expanding the Earned Income Tax Credit supplement for low-income workers and families.
While JP Morgan Chase has most likely not raised wages out of the goodness of Dimon's heart (rather a reaction to rising social and economic pressures is far more likely-- image is everything these days), Dimon’s logic does hold true. Higher pay could increase employee productivity, loyalty, and satisfaction in any industry, including fast food, which would help, not hurt, company profits.
Dimon, Jamie. "Why We're Giving Our Employees a Raise." The New York Times, July 12, 2016, The Opinion Pages.
