Nike (NYSE:NKE) announced on Tuesday that the company would be giving a raise to roughly 10% of its employees, which amounts to roughly 7,000 workers around the world.
The athletic apparel company made the decision as part of a plan to bolster worker morale and improve the company culture following concerns from workers regarding the company’s pay equity. The company conducted an internal review of its pay practices earlier in 2018 and decided to change the way it approaches compensation practices.
Nike said that roughly 10% of both male and female workers will receive pay hikes as the company seeks to ensure that everyone is getting equal and competitive compensation for the same roles around the world.
“With movement of internal talent, and the demands of a dynamic market, we analyze pay each year. This year, we have conducted a deeper analysis of all roles, at all levels globally,” the memo said. The company added that its benefits program is designed to “support a culture in which employees feel included and empowered.”
Nike added that it will now offer bonuses to workers based on company-wide performance rather than by examining a combination of team and individual performance. This new compensation plan will begin when fiscal 2019 kicks off.
The move is also seen by some as a way of improving the company culture and compensation towards women.
NKE stock was down about 1% on Tuesday following the news.
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