Strategic Compensation Insights to Inform Nike’s Labor Strategy

Abstract

The global apparel and footwear industry does not have a standard definition for a “fair wage” throughout supply chains. Globally, legally mandated minimum wages typically fall short of providing a livable wage for workers and their families. Nike’s Labor Capability team within Responsible Supply Chain seeks to better understand key trends in their strategic source base related to compensation benchmarks and structure. Therefore, to develop strategic steps to advance compensation practices and capability building throughout Nike’s supply chain, this report analyzes the meaning of a mature and competitive wage in the garment supply chain through a comprehensive literature review, a competitor landscape evaluation, and a review of regional initiatives. Following this analysis, key takeaways were compiled to inform labor strategies that effectively implement supplier capability building and drive holistic, fair wages.