Nike to Raise Wages for Thousands After Inequality Claims
More than 7,000 Nike employees will be getting raises after an internal pay review, undertaken after claims of workplace misconduct and discrimination against women shook the company and forced out several of its top executives. Nike cast the pay changes as part of its effort to maintain a corporate culture “in which employees feel included and empowered,” according to an internal memo sent to staff on Monday. The company, which is based in Beaverton, Ore., said the changes would affect about 10 percent of its 74,000 employees worldwide. In an internal revolt this year, women at Nike said they were fed up with a company that they accused of tolerating bad behavior and excluding women from its top jobs. At least 11 senior managers have left in the aftermath of an investigation into widespread allegations of harassment and discrimination.
Total Retail's Take: Nike is taking further steps to address its alleged discriminatory practices against women. First was the removal of executives with ties to the alleged misconduct and discrimination, and now the athletic brand is following that action with pay raises for nearly 10 percent of its workforce. The gender wage gap plagues the retail industry, much like other industries, as evidenced in Total Retail's 2018 Salary Benchmark Report. Nike is taking steps to address the issue within its organization, but more must be done by itself and other retailers to ensure that gender and racial pay inequities are eliminated. A positive work environment and culture is integral to the success of today's brands and retailers. Nike is trying to correct past mistakes and get it back on the right track; others should take note and follow its lead.
