Amid the rising struggles of the employers to fill the vacant positions, Bank of America announces $1 billion worth of restricted stock for the employees from which even the junior employees are reportedly going to benefit.
According to a report carried out by HRD America, for the first time the bank is opening its stock awards program to workers who make up to $100,000 per year. Previously the employees used to receive only a one-time cash bonus.
The report further states that the eligible employees are going to receive between 65 and 600 restricted stock units, depending on their compensation. The units will be vested over four years commencing in 2023.
This depicts that a frontline worker will receive restricted shares of about $2,900 as per the current share price of $45. On the other hand, the senior employees will receive restricted shares valued at around $27,000 which will add to the compensation and benefits of the employees received as a part of the annual review process.
According to reports, the Bank of America gave $750 cash bonuses to the junior employees, last year but the estimated value of each stock that the employees are going to receive is much higher than that. About 97% of Bank of America’s employees globally will receive the reward, but not to those who make above $500,000 a year. The rest 3% of the workforce includes mostly part-time employees and workers in certain overseas locations, who will receive a cash award, totalling $750 apiece, according to the bank.
To HRD America, Richard Wahlquist, president and CEO of the American Statistical Association said, “US businesses are turning to the staffing industry for help in filling millions of current job openings. The staffing industry is playing an increasingly important role in today’s labour market by providing talent sourcing expertise and workforce flexibility to employers in need of workers, and helping candidates find roles that are the right fit.”
American employers have been struggling to retain and attract talent nowadays. In fact, the country witnessed a record-high 4.5 million resignations in November 2021, up from 4.2 million the previous month, according to the Bureau of Labor Statistics.