In this case study, written and researched by e-reward, we examine how Tesco’s approach to reward has evolved over the last decade, from the principles agreed by the board ten years ago to arrangements now, and how the organisation’s reward principles are being implemented internationally, in Tesco’s 12 overseas markets. We also discuss how it feels to be at the receiving end of a large UK company’s international reward policy, and the differences between Tesco UK and Tesco Korea’s ways of doing things.
Company profile
Employees: 450,000 worldwide.
Location: Central departments in Welwyn Garden City and stores across the UK. Tesco also operates in 12 different countries in Eastern Europe, Asia and USA, including Poland, Thailand, South Korea, Turkey, Japan and China.
Business activities: Tesco currently has 3,728 stores worldwide, nearly half of which are outside the UK. There are six store formats, differentiated by size and the range of products sold. These are Extra (hypermarkets), Superstores (standard large supermarkets), Metro (high street convenience stores), Express (small convenience stores, for example in high streets or attached to petrol stations), One Stop (the very smallest stores) and Homeplus (large stores offering all Tesco products except food).
REPORT CONTENTS
Overview
Underlying principles
People Promises
International reward team
Business background
Reward in the UK
Reward overseas
Progress overseas
Korean reward journey
Recruiting and retaining talent in Thailand
Improving pay satisfaction in Turkey
What has and hasn’t worked?
Tesco in Korea - A Korean perspective
Open culture
Korean reward plan
A final word
LIST OF BOXES
Box 1: Korea - reward journey
Box 2: Korea - measuring success