On top of the £89m investment in retail pay, M&S will spend an additional £5m annually on a new six-week paternity leave policy, while also doubling maternity and adoption leave to 26 weeks at full pay, effective 1 April.
“While the increase comes with a big cost, it is also commercially savvy as it will allow M&S to retain good staff, attract new ones and keep the company at the top of the most desirable UK retailer to work for,” GlobalData retail analyst Neil Saunders told Just Style.
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Saunders is of the opinion that shop floor service is a vital part of M&S’s proposition, particularly at a time when the UK retailer is pushing “premium brands” and building a new approach centred around “added value”.
“It’s key for M&S to have highly trained, engaged people to deliver the experience shoppers want,” Saunders added.
Also effective 1 April, M&S will raise the pay for its UK customer assistants. The hourly rate will increase from £10.90 to £12.00 per hour, aligning with the UK’s Real Living Wage, which is higher than the current statutory National Living Wage.
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This is a 10.1% increase from the previous year and a 26.3% jump since March 2022.
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By GlobalDataLondon-based customer assistants will also see their hourly rates increase, with hourly pay rising from £12.05 to £13.15, reflecting a 9.1% increase on the previous year. For Team Support Managers across the UK, hourly rates will increase from £12.20 to £13.05 per hour, with their London counterparts enjoying a raise from £13.35 up to £14.20.
According to Saunders, M&S has a record of treating all workers within its supply chain and business fairly.
“This may not be the primary reason as to why customers come to M&S,” he said. “But it throws a very warm halo around the brand.”
Stuart Machin, chief executive of M&S, commented: “Our vision is to be the most trusted retailer – and that starts with being the most trusted employer.
“Since March 2022, we’ve invested more than £146m in our retail pay offer and increased our standard hourly rate by more than 26%. But creating a great place to work isn’t just about pay; it’s about the overall package and colleagues feeling valued and able to be their best.”
In addition to the pay raise, M&S is also upgrading its benefits package to include a 20% staff discount, enhanced pension contributions, Sharesave schemes, life cover and a number of health and wellbeing perks.
Last year, M&S introduced a Neonatal Leave Policy, offering up to 12 weeks of fully paid leave to employees with babies requiring specialist care.
In January 2024, M&S saw clothing and home sales increase 4.8% to £1.24bn in its Q3 results, thanks to improved customer perceptions of style, quality and value as well as a re-energised omnichannel service.
