Employee recognition: A tale of two companies - BrewDog and Lidl
Last week, BrewDog faced negative press for dropping their commitment to the Real Living Wage. This was in stark contrast to the recent headlines about Lidl's decision to pay up to 17% above the National Minimum Wage, starting in April.
This move by BrewDog has raised concerns about their approach to employee recognition. On the other hand, Lidl has made a significant investment in staff pay, demonstrating their commitment to recognising and rewarding their employees.
Lidl has announced a £37 million investment, ensuring that its 26,000 hourly-paid colleagues will receive the "highest rates of pay" in the sector. This substantial investment will result in entry-level roles increasing from £11.40 to £12 outside the M25, with further increases to £13 based on length of service. Within the M25, staff will see a pay rise from £12.85 to £13.55, increasing to £13.85 over time. These new entry-level rates will be "up to 17% higher" than the upcoming National Minimum Wage.
In addition to the pay increases, Lidl is introducing a bank holiday premium of £2 per hour and boosting its night shift premium to £3.50 per hour, further enhancing the rewards for their employees. This announcement brings Lidl's total investment in pay to almost £60 million over the past 12 months.
Lidl's commitment to its employees is evident in their approach to employee recognition. The supermarket's Chief Executive, Ryan McDonnell, attributes their success to their colleagues' commitment and performance, stating, "Customers are switching to Lidl from every other supermarket, and it’s our colleagues' commitment and performance that is making this happen. It’s only right, therefore, that we thank them for their incredible work and reward them for their efforts."
Stephanie Rogers, Lidl's Chief Human Resources Officer, emphasises the importance of offering competitive pay and creating a great work environment, stating, "Offering competitive pay and being a great place to work for our colleagues is crucial to our success."
From these stories, we can draw important conclusions. While increasing pay is undoubtedly a positive step, effective communication and a culture of trust and reciprocity are equally crucial. Lidl's decision to pay above the National Minimum Wage and attribute their success to their employees demonstrates their commitment to fostering a positive working environment.
In contrast, BrewDog's recent decision to drop their commitment to the Real Living Wage has received negative attention and raises concerns about their approach to recognising and rewarding their employees.
Lidl's substantial investment in staff pay, combined with their focus on employee recognition, sets them apart as a company that values and rewards their employees. It is evident that recognising and rewarding employees for their contributions is essential in creating a motivated and engaged workforce, which ultimately leads to success in the market.