Bangor Savings Bank said on Wednesday it would raise its minimum wage for employees to $ 18 an hour, $ 2 more than the current rate of pay, in an effort to attract and retain workers.
The increase, effective October 18, will apply to approximately 475 of the bank’s 1,100 employees.
“We continue to attract top talent. The change we have seen is that we used to have over 10 applicants per opening and now we have about five. The pool of potential applicants is not that large,” Bob Montgomery – Rice, chairman and CEO of Bangor Savings Bank, told Mainebiz in an interview. “There is definitely a tight job market. ”
The current hourly wage of $ 16 is already well above the state’s required minimum of $ 12.15, which will drop to $ 12.75 in January 2022.
The bank said its own raise offered raises to all employees currently earning $ 16 to $ 21.99 an hour. Employees, including those receiving raises, remain eligible for annual performance pay and incentive pay.
The increase stems from an annual compensation review the bank has carried out since 2015. The bank is revising its compensation plan, including benchmarking and positional data, in order to maintain competitive compensation.
During the pandemic, Bangor Savings saw its revenue cut in half, Montgomery-Rice said. The bank recently saw its turnover return to normal levels before the pandemic. It has also experienced a continuous acceleration in the retirement of people at the end of their careers.
“I don’t know if it’s that their 401 (k) worked well or if they want to do something else, but we’re seeing a lot of retirements,” Montgomery-Rice said.
He said Bangor Savings, as well as any business, must recruit continuously to maintain a healthy flow of employees.
“You have to be very active in recruiting on a constant basis. Even when all of your positions are filled, you continue to recruit,” said Montgomery-Rice.
In a press release, Bangor Savings said the salary increase reflects the bank’s “dedication to its employees and its commitment to attracting and retaining talent, while providing fair and equitable compensation regardless of the position. , location or full or part time status “.
With more than $ 6 billion in assets and more than 60 branches in Maine and New Hampshire, Bangor Savings is the largest bank in Maine, according to the Mainebiz Book of Lists 2021.