Asda’s people director has boasted the company’s low turnover rate is thanks in part to its share scheme, which last week paid out £43m to 16,500 employees.
Shareholders who have saved a maximum of £250 per month for the past three years will pocket around £13,800, which was over £4,500 more than their original £9,000 investment, or a 150% return.
It is the largest payout at the retailer since it was taken over by Wal-Mart in 1999.
Sarah Dickins, retail people director, said the share scheme had played a large part in reducing turnover to less than 20%, which is 10% below the industry average.
“We have industry-leading retention because of the way we run our business and reward our staff,” she told Personnel Today.
“In the current economic climate, for those who can’t afford a holiday or to replace the car, this definitely is a retention tool, and an effective one at that.”
Last month, Tesco announced a £98m payout for 207,000 staff, although it would be kept in a trust until 2014.
“Five years is a long time to wait for a payout,” Dickins said. “Our staff have said they want the payout immediately, and when 95% choose to cash their shares immediately, we believe there would be no benefit in delaying it.”
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