Kogan won’t cut staff wages, gives workers $500 bonus
Online marketplace Kogan has confirmed to staff it has no plans to stand any workers down without pay during the COVID-19 crisis – and instead is planning on expanding the team to better weather the storm.
In an email sent to all staff members, published on EFTM, founder and chief executive Ruslan Kogan thanked the business’ employees for rising to the occasion.
“In recent weeks, many Aussie retailers have needed to lay off thousands of hard working Australians, and many others have imposed deep pay cuts or stood down workers without pay,” Kogan said.
Kogan went on to state that while the market was uncertain, the business will make no pay cuts, and there will be no COVID-19 related redundancies.
In fact, the business offered all staff – domestic and international, part time, and casual, and “those that just started last week” – a $500 bonus to help each team member support themselves and their families.
And the business has plans to continue hiring through the crisis, putting out a call for staff to recommend “someone brilliant who will cut the mustard.”
The online retailer is perhaps in a better position to make such decisions, having delivered a 16.4 per cent growth in sales and a 20.8 per cent increase in net profit for the first half of 2020.
Sales rose to $322.9 million and profit rose to $8.9 million over a Christmas period that saw many retailers struggle.
And while the business said during its half year announcement that any impact on its international suppliers and manufacturers would likely impact its second half results, Kogan lauded the marketplace’s sourcing and logistics team for keeping the business going.
“Right now, the ability for us to source what people need is central to our role in the community,” Kogan said.
Inside Retail reached out to Kogan for comment and clarification, but hadn’t received a response by publication.