Best Buy to Pay Up to $1,000 in Bonuses to Workers
Best Buy announced it will hand out bonuses to more than 100,000 employees, joining a growing list of U.S. companies sharing savings from the federal tax overhaul with employees. USA Today reports the consumer electronics retailer will this month pay one-time bonuses of $1,000 to full-time workers and $500 to part-time employees. Company spokesman Jeff Shelman said full-time salaried employees on a bonus plan won't receive the extra funds.
Total Retail's Take: Best Buy is one of many retailers giving back to its workforce thanks to the tax overhaul bill passed at the end of last year. Apple, Walmart, Starbucks, Home Depot, Lowe's and other retailers have also announced similar bonus plans for their hourly employees, the vast majority of which work in their stores and distribution centers. An expected benefit from these one-time payouts is a bump in employee morale, which ultimately could lead to less employee turnover, a chronic problem for the retail industry. In addition to cash bonuses and wage increases, some retailers are using the money saved from tax reform to fund employee benefit programs, including extended maternity and paternity leave. For more of Total Retail's thoughts on this topic, check out this episode of Retail Right Now.