John Lewis is considering smaller pay rises for staff amid a turnaround plan.
The retailer, which includes the department stores and grocer Waitrose, told staff it wants to ‘radically shift’ its approach to salaries.
A presentation to employees recently said ‘smaller number of us will achieve this because we’re resetting expectations,’ and that performance-linked pay bumps would ‘likely be smaller than in the past’.
Change of direction: John Lewis told staff it wants to ‘radically shift’ its approach to salaries
Its staff council will make a final decision at a vote in March, the Daily Telegraph reported. The partnership has been hit hard by a triple whammy of the pandemic, rampant inflation and the cost of living crisis.
John Lewis booked losses of £234million last year and told its 76,000 staff, known as partners, that they would not be getting their annual bonus.
A spokesman said: ‘We are simply being transparent with partners – creating a level playing field and setting clear expectations around what they need to do to achieve additional performance-related pay.’