This will be the third year in a row that its staff will not receive a bonus. Instead, the retail giant has announced that it will invest in business transformation and workers’ base pay.
The employee-owned company had seen an increase in profits for the year ending in January 2025, with profits increasing from £56 million to £96 million.
Although financial rewards are naturally welcomed by employees, there are also other ways of recognising hard work, stated Steph Hind, co-founder of employee benefits provider, Heka.
Hind told HR magazine: “Employees value a holistic array of benefits beyond purely economic rewards, be it additional holidays, wellbeing support such as access to health services, nutrition supplies, exercise aids, or products that align with their interests outside of the workplace.”
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With the increase in national insurance costs looming, businesses may be looking for other ways to reward their employees, Alex Voakes, CEO of employer of record provider, Peak PEO, added.
He told HR magazine: “There are so many other ways to reward employees outside of financial bonuses, that will be hit by the increase in national insurance.
“An ever-increasing amount of people are now looking beyond the money in the bank and searching for benefits packages, health insurance with family cover, generous pension packages, and access to further education, for example.”
More customers shopped with John Lewis brand this year: a 2% increase from the previous year. The retailer has also stated that it will continue to invest in improving the customer experience through store refurbishments and openings, technology upgrades and supply chain modernisation.
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A decline in staff bonuses may also contribute to low engagement and morale, and this is something HR leaders should work on mitigating, Matt Russell, CEO of employee benefits platform Zest, added.
Speaking to HR magazine, he said: “Clearly, in a financially challenging climate where budgets are expected to stretch further, this is an area that employers should be looking to improve.
“Employers must embrace benefits technology – detailed data and insights can help employers better understand their workforce while also creating a more personalised offering, enabling targeted communications to ensure the right benefit reaches the right employee at the right time.
“This creates a more compelling employee proposition with improved support while also creating a better ROI for businesses with happier, more engaged and more productive employees.”
John Lewis has been contacted for comment.
The retailer stated in a press release: “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.”
