USAA sets $16 minimum wage, adds parent benefit

By David Hendricks
Updated 12:18 pm, Tuesday, April 11, 2017



Photo: San Antonio Express-News File Photo

Some San Antonio businesses are finding that fully paid health insurance and a generous 401(k) plan are not enough to attract and retain top talent in today’s tight labor market.


San Antonio-based insurance and financial services giant USAA has established a $16-an-hour minimum wage and is adding a new parental leave benefit, the company announced Tuesday.

The new minimum wage was established Feb. 5 companywide and affected less than 1,000 of its 30,000 employees. USAA employs about 18,000 people in San Antonio.

The increase means the annual minimum wage is now above $33,000 for a full-time employee.

Those receiving a boost in pay were mainly entry-level call center workers, called member service representatives, USAA spokesman Matthew Hartwig said. The company did not have a set minimum wage before Feb. 5, Hartwig added. “Most employees earn well more than $16 an hour,” he said.

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The minimum wage does not reflect overtime or eligibility for the annual bonus available to all USAA employees, which was 16.8 percent this year based on the company’s 2016 performance.

Also, USAA will provide all eligible new parents up to 12 weeks of full pay when a child is born or is adopted, beginning in July.

“These expanded benefits are about creating conditions for our entire team’s success,” Mark Reid, USAA executive vice president for human resources, said in a prepared statement. “This helps USAA to bring in and keep a talented and diverse group of people.”

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Among other pay benefits, USAA offers a holiday bonus equal to two weeks of pay.

Other USAA benefits include a 401(k) retirement savings program with a company match of 100 percent of employee contributions up to 8 percent of wages, plus another retirement savings plan in which USAA puts in an amount equal to between 3 and 9 percent of wages with no employee contributions required.

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