Some employees have shared an open letter urging the partnership to reconsider its decision to pause staff bonuses.
In the letter, staff said: “We’re working harder than ever, with fewer staff and growing workloads, but getting less recognition. The bonus meant something more than just money. It was a sign that the company saw and appreciated us.”
John Lewis revealed in March this year that it would not pay employee bonuses for another year, despite profits tripling to £126m.
Withholding bonuses can result in a decline in trust in the business from employees as well as an increase in discontent, explained Virgile Raingeard, CEO of compensation benchmark application Figures.
He told HR magazine: “In the case of John Lewis and Waitrose, employees are seeing that even in a year where the business reports a record £126m profit, bonuses are being withheld. This breaks the very promise bonuses are meant to uphold: 'If you perform, and the company performs, you’ll be rewarded.' The result? A deep breach of trust.
“When this happens, employees begin to see bonuses not as performance-based incentives, but as unreliable and discretionary. It damages the credibility of future compensation packages, no matter how attractive the variable element may seem on paper. Discretionary bonuses that can be pulled last minute, especially when performance targets are met and profits are high, only reinforce employee cynicism and disengagement.”
Read more: ‘Iceberg’ of discontent over flexible working expected post-pandemic
Employers should offer their employees rewards, even when financial rewards are not possible, in order to boost team morale, added Charlie O’Brien, head of people at HR software provider Breathe HR.
Speaking to HR magazine, she said: “As one John Lewis Partnership employee put it [in the Financial Times report], it’s ‘disheartening’ when bonuses are withdrawn. It risks eroding team morale and motivation. So, employers should offer financial rewards to their hard-working teams wherever possible.
“That said, in the current economic climate, not every organisation is in a position to do this. Employers in this situation must clearly and empathetically explain their rationale for pressing pause on bonuses to staff, and give them as much notice as possible. Then, they should look for other meaningful ways to show their people appreciation. For example, introducing new flexible working policies, impactful benefits, or learning and development opportunities to support employees with their career goals. Offering benefits that genuinely add value can help ensure staff feel seen, valued, and stay engaged, even when bonuses aren’t possible.”
John Lewis and Waitrose staff have also launched a petition to further urge bosses to reconsider the decision.
The campaign has attracted almost 4,000 signatures from current and former John Lewis and Waitrose employees, as well as members of the public.
John Lewis stated in a press release in March: “As employee-owners, we have a shared responsibility to ensure the partnership is sustainable over the long term. We've consistently said that, at this point in our transformation, this is best served by investing in our retail businesses and in partners' base pay. So, after careful consideration, we do not believe it would be right to award a Partnership Bonus this year.”
Read more: When should employers offer a pay rise?
Research published yesterday (2 June) by recruitment firm Robert Walters found that 47% of business leaders have reported an increase in employee turnover due to the delay in pay rises.
More than a third (36%) of business leaders also said that delayed pay rises led to disengagement within their teams.
Both the content of benefit packages and the way they are communicated to the wider workforce significantly impact how well these packages are used, explained Chris Eldridge, CEO of Robert Walters UK and Ireland.
Speaking to HR magazine, he said: “The topic of pay and bonuses feels more critical than ever, given the persistent high cost of living. HR leaders who deeply understand which benefits resonate with their employees can enhance their accessibility and usage even further.
“It is crucial that HR and business leaders have a transparent and unified policy around how pay rises and bonuses are both calculated and awarded. A considerable amount of discontentment arises due to unclear pay and reward structures.
“HR leaders should also regularly assess the effectiveness of their current benefits packages, and explore adjustments to better meet the diverse needs of their workforce. Blanket approaches don’t work with reward schemes. Instead, HR leaders should seek ways to tailor benefits to better align with employee expectations. This doesn't necessarily entail significant costs but requires thoughtful consideration and time.”
Robert Walters surveyed 300 business leaders and 1,200 UK professionals in May 2025. All participants came from white-collar industries such as HR, accounting and tech.
