John Lewis promises to restore staff bonus ‘as soon as possible’ following campaign
What: John Lewis pledges to restore staff bonuses while maintaining its enhanced base pay strategy, responding to employee campaign demanding recognition of their contributions.
Why it is important: The employee response to John Lewis's compensation strategy reveals how heritage retailers must carefully manage the human impact of organisational change, particularly in employee-owned businesses with strong cultural traditions.
John Lewis Partnership faces mounting pressure to reinstate its historic staff bonus system, suspended since 2022, as thousands of current and former employees campaign for its return. The retailer's leadership, including chair Jason Tarry, has committed to restoring the bonus "as soon as possible" while emphasising their focus on improved base pay rates, including a recent 7.4% increase in 2025. The company's decision to prioritise regular monthly support over annual bonuses reflects a broader transformation in its compensation strategy, having invested £114 million in base pay improvements and infrastructure development. However, employees argue that the bonus represented more than just financial reward, serving as a symbolic recognition of their contribution to the business's success. This tension comes amid improved financial performance, with the company tripling its profits, leading workers to question the continued suspension of the bonus scheme while dealing with reduced staffing levels and increased workloads.
IADS Notes: The current employee campaign for bonus reinstatement reflects a complex transformation in John Lewis's compensation strategy. In March 2025, despite tripling profits to £126m, the company prioritised a £114m investment in base pay, implementing a 7.4% pay rise for store staff. This shift from annual bonuses to enhanced monthly compensation coincides with broader modernisation efforts, including reaching 5,000 apprenticeships in February 2025 and revising the benefits structure in May 2025 to double eligible staff numbers. However, the June 2025 employee petition highlights the cultural significance of the bonus system within the partnership model, demonstrating the delicate balance between modernising employment practices and maintaining traditional values in retail transformation.
