Greggs employees will each receive a one-off bonus up to £300 following a successful year for the business.
Around 25,000 staff will receive the bonus along with their wages this month, costing the company around £7 million.
Pret’s £1,000 employee bonus: Do short-term rewards achieve anything?
According to the Guardian, the amount employees receive will depend on how long they have been with the bakery chain.
Some 19,000 staff who have been with the company before March last year will receive the full £300, while the remaining staff will be given £75 for every quarter they have been with the company. Shop floor staff and managers will receive the same amount.
Greggs announced the bonus in its trading statement this morning, which revealed a 13.5% increase in sales in 2019, partly due to the success of new products including its vegan sausage roll.
Chief executive Roger Whiteside said: “Our record financial performance in 2019 has enabled us to enhance returns to shareholders.
“I am delighted to announce that we will also be making a special additional payment to all of our colleagues across the business who have worked so hard to deliver this success in what has been a phenomenal year.”
However, Whiteside expressed concern that the planned increase to the national living wage from £8.21 to £8.72 an hour is likely to have an impact on the organisation’s costs.
Commenting on the minimum wage rate increases announced earlier this month, the CBI warned that some organisations could find paying workers at the wage floor a challenge in the face of tough economic conditions.
Compensation and benefits opportunities on Personnel Today
Browse more compensation and benefits jobs
This is totally in line with Gregg’s corporate values of being “being honest and appreciative” and “treating everyone with fairness”. They are clearly displaying a desire to win the hearts and minds of their employees that matches their commitment of doing the same for their customers. Moreover, it is another brilliant symbolic move that grabs headlines and reinforces their increasingly positive reputation across the nation.
Stephanie Matthews, Director, Brandcap.