Around 7,400 Nike employees will receive pay rises in the wake of an internal pay review undertaken following claims of misconduct and discrimination against women.
Workers had complained about gender-based office bullying, blatant sexual harassment and an atmosphere that discouraged career advancement for women. Following an internal revolt and after the mistreatment became public earlier this year, the company undertook a restructuring. Some 11 executives and senior managers were either fired or resigned.
Nike has now cast its changes to pay structure, which will affect about 10% of its global workforce, as part of its efforts to create a corporate culture in which “employees feel included and empowered”, in the words of an internal memo that was sent out to staff, according to The New York Times.
A spokesperson also told Forbes that the firm overhauled its employee reward programme in a bid to ensure it remains competitive across all job levels, geographies, functions and brands.
"We continue to monitor the data and adjust where appropriate, driving with 1:1 as our goal," the spokesperson said.
Nike has also announced changes to how it plans to award bonuses to eligible employees. In the past, bonuses were determined by a combination of company, team and individual performance. In future, they are expected to be based primarily on company-wide performance.
Stacy Strauser, director of compensation consulting at employee benefits consultancy OneDigital, said: "When big brand name companies like Nike put a stake in the ground and make a stand, smaller companies will follow suit because they’ll eventually have to in order to stay competitive in attracting top talent.”
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Around 7,400 Nike employees will receive pay rises in the wake of an internal pay review undertaken following claims of misconduct and discrimination against women.
Workers had complained about gender-based office bullying, blatant sexual harassment and an atmosphere that discouraged career advancement for women. Following an internal revolt and after the mistreatment became public earlier this year, the company undertook a restructuring. Some 11 executives and senior managers were either fired or resigned.
Nike has now cast its changes to pay structure, which will affect about 10% of its global workforce, as part of its efforts to create a corporate culture in which “employees feel included and empowered”, in the words of an internal memo that was sent out to staff, according to The New York Times.
A spokesperson also told Forbes that the firm overhauled its employee reward programme in a bid to ensure it remains competitive across all job levels, geographies, functions and brands.
"We continue to monitor the data and adjust where appropriate, driving with 1:1 as our goal," the spokesperson said.
Nike has also announced changes to how it plans to award bonuses to eligible employees. In the past, bonuses were determined by a combination of company, team and individual performance. In future, they are expected to be based primarily on company-wide performance.
Stacy Strauser, director of compensation consulting at employee benefits consultancy OneDigital, said: "When big brand name companies like Nike put a stake in the ground and make a stand, smaller companies will follow suit because they’ll eventually have to in order to stay competitive in attracting top talent.”
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Gender pay gap exists at 78% of UK organisations
US government undertakes new gender pay inequality review
Mixed reasons given for Estonia's huge gender pay gap
