Lowe’s on follow rival Home Depot in giving thousands of its hourly wage-earners a one-time bonus of up to $1,000 due to new tax legislation, according to an internal company memo studied by CNBC on Wednesday.
The bonuses will be based on an employee’s length of usage with Lowe’s, and more than 260,000 part- and full-time particulars are set to receive the payouts, the company said. Lowe’s declined to comment on how the largesses would be broken out based on tenure.
Effective May 1, Lowe’s purposefulness also be expanding its benefits package for full-time workers to include feed maternity leave for 10 weeks, paid parental leave for two weeks, adoption succour of up to $5,000, and faster eligibility for health benefits, the memo said.
“We’ll maintain to make investments to improve the employee and customer experience,” Lowe’s wrote to its hands.
The company said it will provide more details on those investments in the sign in weeks. Lowe’s is set to report fourth-quarter earnings Feb. 28.
Lowe’s now marks one of numberless companies, and notably many retailers, touting bonuses and wage hikes in 2018. But the labor call for retail businesses is increasingly under pressure, making it more life-or-death for companies to attract and keep talent with incentives like these.
The word comes just days after Lowe’s board approved a reservoir repurchase program of up to $5 billion. The company also just recently designated two independent board members and plans to add a third following “constructive” talks with hedge finance D.E. Shaw Group, which now maintains an activist stake in the home betterment chain.
D.E. Shaw is concerned about Lowe’s performance relative to its colleagues, sources have told CNBC. Shares of Lowe’s are up about 43 percent from a year ago, while Where it hurts Depot’s stock has soared roughly 46 percent over the that having been said period.