Tesco is to reward its staff up to 5% of their annual salary if they help the struggling retailer meet performance targets set out by Chief Executive Dave Lewis as part of his recovery plans.

A report by trade magazine The Grocer said the announcement was made after Tesco declared that staff would get bonuses of up to £2,000 in June amid “early signs of improvement in performance” at the retailer. The payout, under its Shares in Success scheme, is worth 1% of annual earnings for staff. However, the report said that Tesco now planned to offer bonuses five times this size under a new scheme to be revealed later in the year.

Alison Horner, Chief People Officer, is quoted by The Grocer as saying: “Looking forward to the end of this financial year, the Turnaround Bonus will reward UK colleagues if we are successful in delivering the turnaround plan,” adding that the detail of the bonus was still being developed.

Last week Morrisons revealed that it planned to launch a new staff bonus scheme which puts customer service at the heart of its turnaround efforts. The struggling chain will implement a scheme next March that takes into account the levels of customer service and overall performance delivered by each store. This is the first time that these two measures have been included by Morrisons when rewarding its employees with bonuses equating to up to 3% of each staff member’s gross annual earnings.