John Lewis uses profit sharing as the way of financial motivation combined a wide range of other valuable benefits, and in return have a low labour turnover which is half that most of their competitors.
(Thursday, 20 August 2009www.independent.co.uk/news/business/analysis)
Being a partner is "a strong motivating factor," "You're not just an employee; you are an owner of the business. That makes you feel differently about everything."(Tom Miller department store director at JMP)
"Partners" are paid more generously than employees at other retailers. They receive five weeks' annual holiday, a 25 per cent discount and a final salary pension.
There are other non financial motivators also. Partners can rent subsidized rooms in two large country estates, or stay at lakeside hotels in Snowdonia and the Lake District, or in a 16th-century castle in Dorset. Five cruising yachts can be rented cheaply. And then there is the £60 annual subsidy on exhibitions, theatres, visitor attractions and comedy shows.
Although senior management, are paid less than their peers in City-run firms. It is about £400,000 to £500,000 a year – half the £939,000 earned last year by Debenhams chief executive, with a business of a same size. But what they believe is that managers decide with John Lewis if they want to be part of that industrial experiment. And if they fail to be motivated by that then