Why the John Lewis Bonus Campaign Matters - And What It Reveals About Employee Ownership Today

The John Lewis Partnership, a pioneer and champion of employee ownership in the UK, is facing renewed scrutiny - not from shareholders, but from the very people who own it: its employees, known as “partners.”

After three years without staff bonuses, nearly 4,000 current and former employees—and members of the public - have signed a petition urging leadership to reinstate this hallmark of the partnership model. Their message is clear: the annual bonus has always been more than just a financial reward; it’s a symbol of shared success and mutual recognition in an employee-owned business.

The Bonus as a Cultural Touchstone

John Lewis last paid its staff bonus in 2022. Despite recently reporting a 73% rise in pre-tax profit (£97 million), the company chose once again to withhold the bonus in order to prioritize reinvestment in its turnaround strategy. While £114 million has been invested in raising base pay, partners have expressed frustration that the symbolic and motivational power of the bonus has been overlooked.

In a model built on shared ownership and democratic voice, this discontent signals more than short-term dissatisfaction - it reflects a tension at the heart of employee ownership: balancing long-term resilience with the immediate expectations of those who keep the business running.

What Research Tells Us: Tax-Free Bonuses Drive Engagement

The broader employee ownership community should take note. Recent HMRC-commissioned research into Employee Ownership Trusts (EOTs) found that the £3,600 tax-free annual bonus—a feature of the EOT model—has a tangible impact on employee engagement. While not always seen as the primary motivator for transitioning to EO, the bonus was widely recognized by trustees and staff as a visible, practical way of reinforcing employee-centric values and deepening emotional investment in the business.

In EO firms, the bonus isn’t just compensation—it’s a participatory mechanism, helping employees feel connected to a company’s performance and future.

The Bigger Picture: EO Is Not Immune to Disillusionment

John Lewis’s current dilemma underscores a critical truth: employee ownership is not a silver bullet. Without sustained investment in recognition, governance transparency, and shared rewards, even the most iconic EO businesses can find themselves at odds with their own principles.

This moment offers an important lesson for new and established EO firms alike: symbols matter. Staff bonuses, especially in times of recovery, play a vital role in affirming trust and reinforcing the unique social contract at the heart of EO models.

Closing the Gap

This case exemplifies the need to move businesses from awareness of employee ownership to a deeper understanding of what sustains it - particularly in times of stress. It is critical to help firms embed the values of EO through practical support, shared insights, and a sharper focus on long-term engagement levers like the tax-free bonus.

As firms explore employee ownership as a succession or growth strategy, understanding what makes it work—from governance to recognition—is critical. This is about more than ownership. It's about participation, pride, and purpose.