Co-owners get share of benefit pool: collaboration success of John Lewis Partnership

The John Lewis Partnership business model means that everyone from management to the shop-floor are co-owners of the business and share in the profits of the company.

The bonus pool was announced yesterday which works out as 15% of the average salary for staff with a pre-tax profits increase of 10% and encouraging business results for the start of the year. The bonus pool is lower than last year and this is attributed to more money set aside to fill the gaping hole of the pensions deficit and to give back holiday pay to those who missed out due to mis-calculations over a number of years.

Even with slightly poorer results the alternative business model for a company with sales now reaching C£10 billions pa is a success story. To quote the JLP's chairman Sir Charlie Mayfield in the 2013 Sustainability report entitled "achieving more through collaboration he says:

"When John Spedan Lewis started his bold experiment in employee ownership, he understood that more could be achieved when people worked in collaboration with each other. Our sustained commercial success is the proof that he was right.By staying true to his vision and working together we will continue to meet our responsibilities to society and the environment in an increasingly complex,interdependent world."