Spedan Lewis, son of the founder, John Lewis, in 1929 took a bold and revolutionary decision to transform his business to the John Lewis Partnership (JLP), an employee owned company!
The visionary recognised the importance of Employee Engagement hence built a business model around it. JLP is a great case study for the strength in the industrial democracy. Spedan was convinced that the next generation of employees can take the business to new heights and the time has proven him right.
JLP, gross sales of over £11.7bn, is an employee owned UK company which operates John Lewis & Partners department stores (51) , Waitrose & Partners supermarkets (349), its banking and financial services, and many other related activities. The company is owned by a trust on behalf of all its employees, Partners (83,900), who have a say in the running of the business, and receive a share of annual profits, which is usually a significant addition to their salary. JLP puts people first, involving the workforce in key decision-making and realising the potential and commitment of their employees.
Tony Greenham, the head of finance and business at the New Economics Foundation says it is important that employees should have a greater say in how their businesses are run. The idea that workers have nothing useful to contribute to management belongs to the 19th century, not the 21st. He adds, both privately held and employee owned businesses can contribute to an economy that does a better job of creating social and environmental value over the long run. A successful economy is one where private interests ultimately serve the broader public interest. What companies like John Lewis demonstrate is that this does not have to come at the expense of commercial success.
For 2018-2019, JLP will be distributing a bonus totaling £44.7 million to its staff !
Cheers mate!
