Lowe’s Home Improvement announced it will offer $55 million in bonus incentives to its employees to help offset record-high inflation rates.
During the company’s quarterly earnings call, Lowe’s chairman, president and CEO, Marvin R. Ellison, said the company recognized the difficulties that both the industry and consumers faced as prices remain high on everything from gas to groceries and lumber. Despite the challenges faced by the company as discretionary spending slowed, Ellison announced salary bonuses for Lowe’s front-line workers.
“To help our hourly front-line associates during this period of high inflation, we are awarding an incremental bonus of $55 million,” Ellison said in a press release following the call. “I’d like to thank our associates for their continued hard work and dedication.”
According to the Washington Post, a company spokesman confirmed the bonuses will be taxed, and they’ll be paid out on Sept. 9.
Lowe’s employs more than 300,000 associates, according to the most recent numbers on its website.
In addition to the pay bonus, the company will offer special employee discounts on items as another incentive. This includes up to 20% off on everyday household and cleaning items.
“We will continue to look for meaningful ways to improve our associates’ work-life balance while providing them with the tools to build a career at Lowe’s,” Executive Vice President Joe McFarland said during the earnings call, according to NBC News.
Other companies, including the financial firm USAA, Exxon Mobil, Microsoft, and T. Row Price Group, have also given some or all of their employees mid-year financial bonuses or raises to help workers make ends meet as paychecks aren’t stretching as far these days.
The U.S. Inflation Calculator reported a national inflation rate of 8.5% for the 12 months ending July 2022. This means that prices for goods and services today are 8.5% more expensive than they were 12 months ago. This is down from the recent 40-year high rate of 9.1% measured last month.