We're co-owned: shouldn't our performance be the best?
Progress so far
In the Partnership, pay is managed in line with our policy as set out in Rule 61 and Rule 62 of our Constitution. We believe that our approach to pay and benefits is a real area of differentiation. Our co-ownership model includes a Partnership Bonus which is unique to the market. In addition, we offer a range of other benefits. 92% of Partners say they value the range of benefits available to them. Pay for Performance, now in its second year, has been instrumental in developing our successful ownership culture and reflecting our Constitutional Principles to reward Partners fairly based on their contribution.
National Living Wage
As a result of the National Living Wage announcement made in the summer of 2015, we have made significant changes to pay ranges, with those closest to the National Living Wage changing most significantly. These changes came into effect on 1 April 2016. In the long-term, and as outlined in the '4Ps: A manifesto for change', the National Living Wage will raise the base pay of most of our Partners. If we want to maintain our position as a market-leading retailer with a differentiated total reward approach we must be proactive. It would undermine our performance and pay principle if we found ourselves in a position where most of our Partners were paid the same regardless of their individual performance, skills and/or achievements.
To enable us to continue to invest in our best performing Partners, we have simplified and refreshed our performance guidance in line with feedback from Partners and line managers. We have removed steps from the process to make it more streamlined and easy to use. At Waitrose, we have implemented 'Let's Talk, Not Type'. This encourages on-the-spot feedback between line managers and Partners, reducing the amount of time line managers spend on administering appraisals. As a result, 61% of Partners surveyed felt they could complete more appraisals than expected. 84% felt they spent less time on the administrative process.