Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employee-shareholdersBonusesLatest NewsRetail

John Lewis bonuses hit lowest level since 1953

by Adam McCulloch 7 Mar 2019
by Adam McCulloch 7 Mar 2019 Photo: Shutterstock
Photo: Shutterstock

A slump in profits has seen the John Lewis Partnership cut its staff bonus to the lowest level in 66 years, the retailer has announced.

The bonus, usually a percentage of salary, is paid to the Partnership’s 84,000 employees at John Lewis and Waitrose – known as “partners” – at the end of each financial year.

This year the bonus will be worth 3% of annual pay. All employees, from warehouse staff and shelf stackers to top executives receive the same percentage bonus.

Staff bonuses

John Lewis warns over bonus levels for 2019

How to implement and manage a discretionary bonus scheme

Pret’s £1,000 employee bonus: Do short-term rewards achieve anything?

The reduction is the result of a 45% fall in annual profits to £160m with the employees now sharing a pot worth £44.7m, down from £74m last year.

Chairman Sir Charlie Mayfield warned in January that although funds were available to pay a modest bonus this year “the board will need to consider carefully in March… whether payment of a bonus is prudent in the light of business and economic prospects at that time”.

Last year staff were awarded 5% of their salary – then the lowest percentage bonus the company had paid out since the late 1950s. Bonuses fell below 10% in the economic dips of the 1990s and 2000s but had recovered to 15% in 2014 when there were 91,000 staff.

The company has also announced it was selling a further five unprofitable Waitrose stores with the loss of 440 jobs. These five are in Torquay, Teignmouth (both Devon), Barry (Glamorgan), Ashbourne (Derbyshire) and Blayby in Leicestershire. Five stores were also closed last year.

These closures were announced despite the release of news showing that operating profits at Waitrose had improved significantly, climbing 18% to £203.2m.

It is thought likely by retail analysts that a relatively good Christmas performance from John Lewis saved the firm from the possibility of having to announce there would be no bonus at all – for the first time since 1953.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Mayfield said the bonus cut “enables us to continue debt reduction, maintain our level of investment, and retains solid cash reserves to cope with the continuing uncertainty facing consumers and the economy”.

The retailer has been publicising the level of bonus since 1918. The highest bonus it has given out was 24%, in 1979, 1987 and 1988. Over the years the average has been around 11.5%.

John Lewis
Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
Amazon unveils strategy to increase women in STEM roles
next post
Expecting staff loyalty during Brexit? Think again

You may also like

Poundland jobs at risk as parent group seeks...

19 May 2025

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

Tribunal finds need for degree in redundancy selection...

14 May 2025

Burberry puts 1,700 jobs at risk in cost-cutting...

14 May 2025

M&S pauses hiring as it deals with cyber...

2 May 2025

M&S unfairly dismissed pregnant bakery worker

29 Apr 2025

Retail HRDs say Employment Rights Bill will have...

29 Apr 2025

Primark boss resigns after ‘error of judgment’

31 Mar 2025

Asda increases hourly pay and enhances family-friendly policies

28 Mar 2025

WH Smith confirms sale of high street shops...

28 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+