By the decision of the LPP Management Board, as of January 2022 all people employed in the company’s headquarters will receive a 10% pay rise. The Polish clothing manufacturer has also announced a new remuneration policy for the sales network and the semi-annual bonuses payout before the end of this year. The company’s management board has also decided that those who will be negatively affected by the tax changes announced at the beginning of the year can count on compensation. The current financial standing of the company is, according to the board, the result of a joint effort of all teams, and the decision on the mass pay rises is a token of appreciation for the work and contribution of each employee in maintaining the stable situation of the company.
The financial results recorded in the first quarters of this year and the growing potential of the omnichannel sales model are a signal to the management board of LPP that the company’s situation is stabilising after nearly two years since the outbreak of the pandemic. Customers are gradually returning to shopping in traditional stores, making well-thought-out purchases, and the collections of all the brands have matched their current expectations. On the other hand, the Polish clothing manufacturer has been recording steady growth in the e-commerce channel for many months and is strengthening its position on foreign markets. As the LPP management board emphasizes, what had the greatest influence on the current good standing of the company was the flexibility in action, but above all, the determination and commitment of all employees.
– When making the decision about the mass pay rises, as the management board of a Polish family company, we wanted above all to appreciate the determination and commitment of each employee of our headquarters and sales network who, together with us, took up the challenges posed by the pandemic. We are aware that it is thanks to the people who work and create LPP with us that today we can look into the future with optimism and take further decisions concerning our development. Appreciating the fact that they were with us in difficult moments for the company, today – as a company taking responsibility for its employees – we want to give them a sense of security, regardless of what is happening outside our organisation – says Marek Piechocki, CEO of LPP.
The 10% pay rises will apply to all employees at LPP headquarters, regardless of their positions. The management board of the Gdańsk-based company has also decided to grant a full, half-yearly base bonus still this year, regardless of the results achieved, as well as to introduce changes in gross salaries for all those who will lose out on the new tax changes applicable from January 2022. The company is also working on a new remuneration policy for the sales network. The changes including, among other things, rate increases and a new bonus system will be effective from the first quarter of next year.
– As a responsible employer we cannot stand still, forgetting that the world around us is changing. We have emerged from the pandemic crisis stronger than ever. However, we are aware that without trusted employees, ready to take on new challenges along with us, we will not be able to grow. And our plans for the coming year at LPP are ambitious ones, indeed. Further development of logistics and strengthening the potential of the sales network will require good employees. I hope that the conditions we offer them today will encourage them to continue their creative work and build a strong LPP with us – adds Marek Piechocki.
LPP Group currently employs 27 thousand people, including almost three thousand at the company headquarters. Taking into account the plans for development and strengthening the omnichannel sales in those markets where the offer of LPP brands is available, next year an increase by even 750 people as regards the employment at the headquarters is expected, especially in such areas as logistics or in teams responsible for implementing IT solutions.
LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collections on 26 stationary markets, including in such prestigious capitals as London, Helsinki, Tel Aviv or Moscow. The online offer is available on 31 markets. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 2000 stores with the total area of over 1.7 million sq.m. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs 27 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.