1. Hi Guys
Here is some stuff I have managed to lift from various websites and I have tried to add some
theory which might or might not tie up with the JLP structure have a look and let me know what
you think. I will keep on researching more and if you guys agree with some of the findings we can
go on and edit this and compile smaller compact version.
John Lewis Partnership aim to be a market leader in how they reward Partners. Their policy is to
pay Partners according to the market rate for the job they are doing, and as much above that as is
justified by performance. When they add to that the annual bonus, pension scheme, the Partner
discount and all the other benefits Partners enjoy, they believe their total reward is market leading.
Pay
Every Partner hasthe 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 is consistent with the local market rate and reflects
the Partner's contribution to the business. We encourage Partnersto discuss their pay review with managers so that they understand
fully the pay decision.
Benefits
The most tangible advantage of being a Partnership is the annual bonus, where we distribute a proportion of profitsequally to Partners
as a percentage of salary. But the John Lewis Partnership has alwaysbelieved that there should be more to a job than just wo rk 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. Here is a summary of the valuable benefits, on top of pay and bonus, that we receive as Partners.
Pension
The John Lewis Partnership is one of the few companies that still offer a non-contributory, final salary pension scheme
after three years’ service. Partners with less than three years' service have the option of joining a defined contribution
section of the Partnership's pension scheme, where both you and the Partnership pay contributions into an investment
fund.
Discount
After three months' service, all Partners are entitled to discount on most purchases from John Lewis and Waitrose.
Paid holiday
Paid holiday in a full year is 22 days plus public and bank holidays for Partners up to Section Manager rising to 25 days
after three years’ service. Department Managers and above receive 25 days in a full year. After ten years' service,
holiday allowance increases to 30 days for all our Partners.
Life assurance
If you die in service, our scheme will pay three times your annual salary to your beneficiary.
Subsidised dining facilities
Most of our sites have subsidised dining facilities that offer good food at reasonable prices.
Holiday and leisure facilities
We have five locations around the UK exclusively for Partners with three months’ service or more, where they can take
holidays with their families at a subsidised rate. The holiday centres are located in some of Britain's most beautiful areas
including the Lake District in the north and Brownsea Island in the south. Each centre offers its own individual style and
facilities both indoors and out.

2. Golfing Partners can enjoy the use of our facilities in Berkshire and Hampshire while members of our sailing clubs make
the most of the five yachts that we have available on The Solent in Hampshire throughout the sailing season. Our
sailors frequently take part in regattas and races in the area.
Partners in Sport
This programme enables Partners to engage in sport, touch the spirit of the Olympics and have a healthier lifestyle in
the run up to 2012. Partners will be able to apply for anything from training to coach in a sport, to help in setting up
fitness clubs and facilities in their branch and even involvement in national sports associations. Partners of national or
international level can apply for support to help them in their bid to compete in the 2012 Olympics.
Clubs and Societies
We support a large number of subsidised sports clubs and societies at local and Partnership wide levels. Partners are
encouraged to join the clubs covering a wide range of sports which include abseiling and climbing, football, gliding, golf,
mountain biking, netball, racquet sports, riding, skiing, sailing, surfing and swimming.
Our subsidised non-sport clubs and societies are also open to all Partners and include drama, photography, music and
art. The clubs help and encourage Partners to develop their talents and provide a platform to demonstrate them in the
form of plays, concerts and exhibitions.
All the clubs organise events and activities with many of these events including training and advice for Partners new to
the sport or activity. In the spirit of the Partnership, Partners are able to enjoy opportunities that might not otherwise be
possible.
Ticket subsidies
Partners can get a 50 per cent subsidyon 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, the National Trust, the Wildfowl and Wetlands Trust, and the Royal Academy of Arts.
Career Development
The Partnership offers business, technical and personal development through a range of flexible opportunities. New
Partners begin with a comprehensive induction, then agree a personal development plan with their line manager which
identifies development objectives and how they can be achieved. Partners drive their own development and career with
the support of a variety of learning resources.
Education subsidies
The Partnership can give 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.
Extended leave
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.
Voluntary benefits and discounted deals
We have negotiated a range of benefits for Partners such as discounted private healthcare along with a number of one-
off deals with hotels, amusement parks and so on
Pension
The John Lew is Partnership is one of the few companies that still offer a non-contributory, final salary pension scheme
after three years’ service. Partners w ith less than three years' service have the option of joining a defined contribution
section of the Partnership's pension scheme, w here both you and the Partnership pay contributions into an investment
fund.
Discount
After three months' service, all Partners are entitled to discount on most purchases from John Lew is and Waitrose.

3. Paid holiday
Paid holiday in a full year is 22 days plus public and bank holidays for Partners up to Section Manager rising to 25 days
after three years’ service. Department Managers and above receive 25 days in a full year. After ten years' service,
holiday allow ance increases to 30 days for all our Partners.
Life assurance
If you die in service, our scheme w ill pay three times your annual salary to your beneficiary.
Subsidised dining facilities
Most of our sites have subsidised dining facilities that offer good food at reasonable prices.
Holiday and leisure facilities
We have five locations around the UK exclusively for Partners w ith three months’ service or more, w here they can take
holidays w ith their families at a subsidised rate. The holiday centres are located in some of Britain's most beautiful areas
including the Lake District in the north and Brow nsea Island in the south. Each centre offers its ow n individual style and
facilities both indoors and out.
Golfing Partners can enjoy the use of our facilities in Berkshire and Hampshire w hile members of our sailing clubs make
the most of the five yachts that w e have available on The Solent in Hampshire throughout the sailing season. Our
sailors frequently take part in regattas and races in the area.
Partners in Sport
This programme enables Partners to engage in sport, touch the spirit of the Olympics and have a healthier lifestyle in
the run up to 2012. Partners w ill be able to apply for anything from training to coach in a sport, to help in setting up
fitness clubs and facilities in their branch and even involvement in national sports associations. Partners of national or
international level can apply for support to help them in their bid to compete in the 2012 Olympics.
Clubs and Societies
We support a large number of subsidised sports clubs and societies at local and Partnership w ide levels. Partners are
encouraged to join the clubs covering a w ide range of sports w hich include abseiling and climbing, football, gliding, golf,
mountain biking, netball, racquet sports, riding, skiing, sailing, surfing and sw imming.
Our subsidised non-sport clubs and societies are also open to all Partners and include drama, photography, music and
art. The clubs help and encourage Partners to develop their talents and provide a platform to demonstrate them in the
form of plays, concerts and exhibitions.
All the clubs organise events and activities w ith many of these events including training and advice for Partners new to
the sport or activity. In the spirit of the Partnership, Partners are able to enjoy opportunities that might not otherw ise be
possible.
Ticket subsidies
Partners can get a 50 per cent 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, the National Trust, the Wildfow l and Wetlands Trust, and the Royal Academy of Arts.
Career Development
The Partnership offers business, technical and personal development through a range of flexible opportunities. New
Partners begin w ith a comprehensive induction, then agree a personal development plan w ith their line manager w hich
identifies development objectives and how they can be achieved. Partners drive their ow n development and career w ith
the support of a variety of learning resources.
Education subsidies
The Partnership can give financial support to Partners w ho w ant to continue their education or learn new skills w hether
w orkrelated or of personal interest. Many Partners take advantage of this benefit w hen on extended leave, using the
subsidy available to them to learn a new skill or language.

4. Extended leave
Partners w ith 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.
Voluntary benefits and discounted deals
We have negotiated a range of benefits for Partners such as discounted private healthcare along w ith a number of one-
off deals w ith hotels, amusement parks and so on
This article was published in the Strategic HR Review Volume 5, Issue 47 May/June 2006 and is reproduced with the
permission of Melcrum Publishing.
Andy Street, Personnel Director, reveals how his company's unique organisational structure affects its unusual
approach to employee rewards and truly reflects the cultural values of the company.
John Lewis Partnership (JLP), which includes Waitrose stores, a UK supermarket and John Lewis, a high-street retailer, is wholly owned
by its 63,500 employees (called 'Partners' at JLP). This unique structure sets a framework for a corporate culture that balan ces
democratic ownership and management accountability with the sharp business focus necessary to succeed in the UK's highly
competitive retail sector.
Shareholders rights and ownership
As JLP is a private company, the shares are held in trust for the benefit of all our Partners. Co-ownership has been the foundation of
the JLP culture since our corporate structure was established 77 years ago by our founder, John Spedan Lewis. All Partners ar e entitled
to three main benefits in this area, which he termed 'the sharing of gain, knowledge and power'. These are the annual bonus program
and other benefits, access to corporate information and partner councils.
1. Annual Bonus Program
There are no individual performance bonuses at JLP, as they would be inconsistent with our overall culture of joint ownership and
democracy. All Partners receive an annual bonus based on their qualifying pay and the profitability of the company. This perc entage is
at a level set by the board, having judged the amount of profit produced by the company overthat year. Last year , that was 15 per
cent - worth eight weeks of pay to all Partners.
For reasons of fairness, bonuses are also irrespective of the individual profit of each store or function. This is because ir respective of
how hard or effectively one group of Partners work , their shop may be particularly successful or struggle, for example because of local
economic factors.
2. Access to Corporate Information
As part of its duty to shareholders - in our case all employees - management's required to inform Partners of company activities.
Weekly updates in company publications and websites include information such as comparative figures for the previous year's
performance and budget, and details about strategic plans and objectives. In the feisty 'Letters Page,' any executive c an be asked to
describe or defend any decision, so there's absolutely no hiding place.
Partners at JLP receive more information than their counterparts at other organisations would typically get - this again encourages the
ownership culture that exists at JLP.

5. 3. Partner Councils
A network of elected councils provide the method by which 'power is shared.' Executives are accountable to these councils in their
capacity as representatives of the owners. Twice a year the Chairman faces tough questioning. The co uncils also have real authority.
For example, the 'Partnership Council' recently decided that the company's pension age would increase to 65. This is a great example of
shared responsibility working well at a time when many UK companies are struggling to come to terms with the pensions 'crisis'.
The ultimate purpose
JLP's ultimate purpose is quite simply, 'the happiness of all its members, so long as that depends on worthwhile, secure and satisfying
employment.' Many a conventional boardroom may regard this as 'barmy' or a utopian ideal that can't possibly be met. But our
experience over the last 75 years suggests otherwise as while there's no room for complacency, this different business model is proving
successful in a tough climate. Recently our shops were voted the UK's most popular and best for service by two acclaimed independent
researchers - Which? and Verdict.
Ownership structure and commercial advantage
JLP's unique ownership structure puts us at a commercial advantage as we can choose to make long-term or short-term investments
without having to address the concerns of potentially unhappy external shareholders - those who would be eager to see immediate
profits instead of acknowledging the benefits of a steady long-term approach.
Moreover, our structure removes any potential conflict between Partners' interest and our commercial goals. In our model, the Partner
and profitability objectives are utterly inter-dependent. We've termed this the partner-customer-profit circle. Many companies can show
linear relations, but ours is circular because the greater the commercial success, the more Partners share in that. Personnel's ro le is to
drive that circle by ensuring our employment practices are best in class. We term this ambition 'Employers of Distinction'. As part of this
we seek competitive pay and market-leading benefits. Personnel's role includes measuring our progress towards this ambition, through
surveys answered anonymously, which include questions on pay, benefits, career development and working co nditions.
Reward strategy
The personal motivation for working hard and maintaining high standards of service comes from the individual Partner's pay, w hich is
set by the standard market figure, but can be raised depending on a Partner's performance. For example, the pay range for a selling
assistant at John Lewis in central London is from £6.10 to £12.10 per hour.
Other employee incentives
In a modern marketplace where employees are seeing increasingly extravagant rewards for their efforts, JLP retains what some call an
"old fashioned" approach to benefit options, but I see this as absolutely right for our culture. This is best illustrated by our pensions
promise, which is now unique in retail.
JLP operates a non-contributory final salary scheme, whereby it contributes approximately 10 per cent of a Partner's pay per month to
the pension.
Contrasting with other companies, this plan's open to all newcomers, and is a strong contributory factor to recruiting and retaining
employees.

6. All Partners also have access to our own holiday centres, clubs (ranging from sailing to drama), subsidies for learning and cultural
activities. All are designed to reinforce the collective feel.
At senior level, we reject share options and long-term incentive plans. Thus, our Partners' total reward is less than elsewhere. Does this
matter? No. We rarely lose senior Partners, we recruit and retain outstanding Partners who want to be part of a better way of doing
business. Indeed the utopians amongst us may even argue that it's a more moral workplace with a fixed difference between top
executive pay and junior pay.
The bottom line - does it work?
All JLP's policies reflect our democratic culture and must be consistent. Indeed, tough choices are involved, but the evidenc e suggests
that the model has worked well over 75 years.
Our high staff retention levels (for Partners with three years' service and over, turnover is only five per cent) and low absence levels (a
rate of 3.4 per cent) are good traditional indicators. Our recently introduced employee survey suggests good levels of Partner
engagement, while the recent external recognition confirms the high levels of service we provide. Finally, financial analysis suggests
we're matching, but not yet beating, the average returns in the UK retail market.
Financial performance
Financial year Turnover Profit before tax Net profit Partner bonuses Profit retained
2009–2010 £7.4billion £389million £306.6million £151.3million (15%) £155.3 million
2008–2009 £7 billion £279.6 million £580 million £125.5 million (13%) £146.0 million[6]
2007–2008 £6.8 billion £379.8 million £320.4 million £181.1 million (20%) £198.7 million
2006–2007 £6.4 billion £319.2 million £263.2 million £155 million (18%) £164 million
2005–2006 £5.7 billion £251.8 million £215.1 million £120.3 million (15%) £94.8 million
2004–2005 £5.3 billion £215.3 million £175.9 million £105.8 million (14%) £70.1 million
2003–2004 £5.0 billion £173.5 million £148.8 million £87.3 million (12%) £61.5 million
2002–2003 £4.7 billion £145.5 million £108.6 million £67.6 million (10%) £41.0 million
2001–2002 £4.4 billion £141.5 million £103.3 million £57.3 million (9%) £46.0 million
2000–2001 £4.1 billion £149.5 million £120.4 million £58.1 million (10%) £62.3 million
1999–2000 £3.7 billion £194.7 million £161.0 million £77.8 million (15%) £83.2 million
The John Lewis Partnership's financial year runs from February to January the next year. The percentage figure
in the bonus column shows the bonus'value in relation to a partner's salary. 8.33% would mean one additional
month's salaryand 16.66% would mean two months'salary,showing thatthe staff has received more than one
month's additional salaryas bonus each year since 2000.This is an attractive facet of the company, which has a
reputation for looking after its staff (including paid secondments whilstpartners conductcharity work; subsidised
canteens and staffexcursions amongstother benefits).
Vroom’s Valence x Expectancy theory
The theory argues that the strength of a tendency to actin a specific way depends on the strength of an expectation that
the act will be followed by a given outcome and on the attractivenessof that outcome to the individualto make this simple,
expectancy theory says that an employee can be motivated to performbetter when there is a belief that the better
performance will lead to good performance appraisaland that this shall result into realization of personalgoalin form of
some reward. Therefore an employee is:

7. Motivation = Valence x Expectancy.
The theory focuses on three things:
 Efforts and performance relationship
 Performance and reward relationship
 Rewards and personalgoal relationship
This leads us to a conclusion that: