American Family Insurance said it has raised its minimum hourly rate to $20 per hour, a bid it hopes will help attract and keep customer service talent.

The Wisconsin-based property/casualty insurance company said executives expect the move would also create a positive impact for both its employees and their communities.

The increase in minimum wage will bring raises to nearly 1,700 employees at American Family group companies. The group employs nearly 13,500 employees across the country. Customer service, claims, administrative and other related employees will benefit from the change.

Plans call for enacting minimum rate increase from $15 per hour retroactive to Jan. 1, 2020.

Gerry Benusa, American Family’s enterprise chief people officer, said the increase is essential to helping the company meet its commitment to “exceptional customer service.” The increase, he added, will produce other benefits.

“Offering competitive wages not only helps ensure we attract and retain customer-focused employees, it also allows them to invest in their careers, dreams and communities.”

The increase applies to all companies within the American Family Insurance group, including American Family Insurance, based in Madison, Wisc.; Homesite Group, Boston; The General, Nashville, Tenn.; Main Street America, Jacksonville, Fla.; and other companies. It also applies to American Family Connect Property and Casualty Insurance Company, the proposed new legal name of a De Pere, Wisc.-based insurer (Ameriprise Auto & Home Insurance) American Family Insurance group acquired last October.

Source: American Family Insurance