L Brands Invests in Employees

Apparel giant L Brands (Columbus, Ohio) will soon be increasing its hourly wages and benefits, primarily for workers at its stores.

In a conference call last week with analysts, the company’s evp, president and cfo, Stuart Burgdoerfer, said it will invest $100 million to give out raises and improve maternity and paid time-off benefits, according to the Columbus Dispatch. While L Brands has been considered a leader in this area, as pointed out by an analyst on the call, Burgdoerfer said the move is intended to keep up with the competition, many of which who have made similar moves in wake of recent corporate tax cuts.

The main goal of the reinvestment is employee retention, leading to a “more capable” and “stable” workforce with lower turnover, ultimately increasing the company’s productivity, which he says will take several years to achieve.