Wolseley introduces bonus scheme
Published: 27 September, 2011
LEAMINGTON SPA: Wolseley has introduced a performance-related profit-share scheme that will pay out up to £4.5m in bonuses to compensate for low salary increases.
The scheme is available to 80% of the organisation's 7000 UK staff. The other 20%, including branch and sales managers, already have access to 30 bonus schemes, some of which are linked to performance.
The firm's annual pay review last August saw a 1.5% salary increase.
Neil McCawley, reward and benefits manager said: "Some employees already get an opportunity to share through their bonus scheme, but 80% of our staff do not. It links into our pay review. Inflation is quite high and times are tight, so how can we reward our employees when we cannot afford to give them more in terms of pay?"
The scheme, branded Sharing Success, will make a cash payment based on the profits of each part of the business. For example, if a branch exceeds its target, its staff will get a share of the extra profit.
The payments, capped at £4.5m will be made in November 2012. "It will depend how well the business does but, at the end of July next year, we will take a look at each of those parts of the business to see how well they have done against target. As long as everyone has achieved above target, everyone will get a payment," Mr McCawley commented. Wolseley plans to continue the incentive payments every year.