The John Lewis Partnership has warned staff that they may face smaller pay rises as part of a proposal to “reset” the company’s salary policies.

According to a report from the Times, the partnership is consulting on changes to its constitution in an effort to make the business more flexible and sustainable.

The proposals would, the report notes, give more power to chairperson Sharon White who would have greater oversight over performance-linked pay rises.

The company has reportedly told staff that the proposals would mean that fewer staff were likely to qualify for the highest tier of salary raises in the future, with the company needing to “radically shift” how it decides performance-linked pay rises.

Pay raises are set to be reserved for staff who “consistently make an exceptional contribution to the business,” with a recent presentation telling staff that “a smaller number of us will achieve this because we’re resetting expectations.”

Under the existing constitution, staff salaries are raised each year by a baseline and all staff can earn a bigger salary uplift based on achieving performance-linked targets. The new proposal would limit performance-linked pay rises “unless there are exceptional circumstances where this should not apply”.

John Lewis employs more than 76,000 staff across the UK.

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