Amid a chorus of complaints that the US labor force has an unprecedented shortage of workers, Nike is finally doing the only thing possible to address it: it is hiking pay. According to the WSJ, Nike will raise salaries for more than 7,000 employees after an internal pay review, and is also changing how it awards annual bonuses to its global staff, as part of a broad overhaul of compensation at the sportswear giant.
The changes which were announced Monday in an internal memo, are the latest example of efforts by Nike management to address concerns about pay equity and reshape the company’s culture, which was jolted this spring by complaints of inappropriate workplace behavior and an executive purge.
The salary increase will affect about a tenth of Nike's workers: the company counts more than 74,000 employees around the world; of these, 10% will receive "competitive-pay adjustments" in the coming weeks to ensure equity of compensation between the same job functions around the world.
In the memo, the company said the changes seek to ensure “more competitive pay” and to “support a culture in which employees feel included and empowered."
CNBC adds that the changes to compensation are just the latest attempt from Nike to improve its corporate culture for women, although those expected to receive salary adjustments include both men and women and employees across “all levels, geographies, functions, and brands,” a Nike spokeswoman said. The adjustments will begin in August and will be annualized over the balance of the fiscal year, which began June 1.