Pay and benefits
We aim to be a market leader in how we reward Partners. Our policy is to pay a competitive rate of pay to Partners for good performance and as much above that as can be justified by better performance. When we add to that the annual bonus, our pension scheme, the Partner discount and all the other benefits Partners enjoy, we believe our total reward is market leading.
Every Partner has the right to know the range of pay for their type of work and what is required to improve their performance and therefore their pay.
At the annual pay review we look at each Partner's pay rate to make sure that it reflects their performance and contribution to the business. We encourage Partners to discuss their pay review with managers so that they understand fully the pay decision and have a transparent approach to communications when conducting pay review.
We enable and incentivise Partners to increase wages through our Pay for Performance framework, which links performance with pay. Launched in 2014, our framework has enabled us to ensure a fair and consistent approach to the application of pay awards across the Partnership. Reward is not just about pay, and our package aims to provide Partners with a range of relevant benefits.
The most tangible advantage of being a Partnership is the annual bonus, where we distribute a proportion of profits equally to Partners as a percentage of salary. But the John Lewis Partnership has always believed that there should be more to a job than just work and pay. Hence our extensive range of benefits.
In line with our aim to provide a market-leading range of benefits, the Partnership continuously explores ideas for new policies and benefits. Our Buying Holiday scheme launched in 2015 and enables Partners across the Partnership to buy additional holiday. In 2016 4,898 Partners applied to the scheme which equates to 5.5% of all Partners. This is a 48% increase on 2015. We also introduced salary sacrifice schemes where Partners can obtain benefits such as a new bike to cycle to work or the latest mobile device. Additionally financial education seminars and 1:1 financial advice is now available through the new My Financial Choices programme.
Here is a summary of the valuable benefits, on top of pay and bonus, that we receive as Partners.
The John Lewis Partnership is one of the few companies that still offer a non-contributory, final salary pension scheme.
After three months' continuous service, all Partners are entitled to full discount in John Lewis and Waitrose on most products. The discount rates in John Lewis are 12% and 25% depending on the product, and in Waitrose 15%.
Paid holiday in a full year is 22 days plus public and bank holidays for Partners working five days a week up to section manager, rising to 25 days after three years' service. Department managers and above receive five weeks holiday in a full year. After ten years' service, holiday allowance increases to six weeks for all our Partners.
Partners with more than 25 years' service can take paid leave for six months. This is seen by many Partners as an opportunity to learn new or develop existing skills or talents in sports, the arts and languages and to travel extensively. On their return, Partners come back eager to share the ideas and experiences they have gained during their leave.
All Partners are automatically provided with free life assurance cover up to age 75. If a Partner dies in service, our scheme will pay three times his/her annual salary to the Partner's family or nominated beneficiary.
Most of our sites have subsidised dining facilities that offer a wide range of good quality, healthy food.
After three months' continuous service, Partners can stay at a subsidised rate, with their families and friends at one of our Partnership hotels or caravans. These are located in some of the most beautiful and interesting areas of the country including the Lake District in the north and Brownsea Island in the south. Partners can also enjoy the use of our golfing facilities in Berkshire and Hampshire.
We support a large number of subsidised sports clubs and societies at local and Partnership-wide levels. Partners can choose from a variety of sports including abseiling, climbing, football, gliding and golf, to mountain biking, netball, racquet sports, riding, skiing, surfing and swimming.
Members of our sailing clubs have the use of five Partnership-owned yachts on The Solent in Hampshire throughout the sailing season. The clubs are open to all Partners regardless of their level of sailing expertise. The club is also a recognised Royal Yachting Association (RYA) sailing school. Partners can work their way through the RYA syllabus to train and ultimately become a skipper.
In addition our subsidised non-sport clubs and societies are also open to all Partners and offer to get involved in activities such as drama, photography or art.
The Partnership Music Society incorporates five performing groups, choral, orchestral and theatrical, and has a full time Musical Director. The society gives around 15 performances a year, many of which are open to the public.
Partners can get a 50% subsidy on tickets for the theatre, opera and music performances, up to a maximum amount per year. This subsidy is also available for entry to exhibitions and museums. We also have corporate membership of English Heritage, Kew Gardens, the Wildfowl and Wetlands Trust and the Royal Academy of Arts.
The Partnership gives generous financial support to Partners who want to continue their education or learn new skills whether work related or of personal interest. Many Partners take advantage of this benefit when on extended leave, using the subsidy available to them to learn a new skill or language.
The Partnership provides support and financial help of up to £5,000 per year for Partners who are currently performing, representing or competing at a national or international level. One Partner to be awarded financial help is Mark Harris who is a World Freediving Champion.
Partners can apply for a full- or part-time volunteering secondment with a UK registered charity for up to six months as part of the Golden Jubilee Trust (GJT) scheme.
Specialist Partners are available by phone six days a week to support working and retired Partners experiencing difficulties in their working or personal lives. This includes employment, working relationships, health, finance, bereavement or family. In cases of particular need, we will help Partners with a loan or grant. Qualifying retired Partners continue to be eligible for many of the leisure benefits above as well as specific retirement welfare and social benefits.
We have negotiated a range of benefits for Partners such as discounted private healthcare and a car purchase scheme, along with a number of one-off deals with hotels, amusement parks and so on. We also look to join corporate membership schemes.