O2 wants its new retail pay structure trial to create a service-led environment in its stores as well as provide opportunities for staff to develop.
The operator is to commence the trail, which will see basic pay increase to £16,000 per annum, on 2 February after a request by the the Communication Workers Union to review its pay rates. Mobile understands the pilot is the result of 12 months of planning to enhance store experience for staff and customers. The new conditions will be tested in 51 stores across Kent, Essex, East Scotland, Bristol and South Wales. Although basic pay will increase, bonus payments will reduce pro rata by 10%, and the CWU has said 'no advisors participating in the trial will lose out financially'.
Nationwide implementation will be decided following the trial period. Success will be measured with feedback from both the trial group and customers. Franchise stores, which make up almost half of O2's retail estate, will not be included, although Mobile understands that the operator will share knowledge and experiences with franchisees.
An O2 spokesperson told Mobile: ‘At O2 we’re committed to providing greater rewards and opportunity for all our store staff. This pilot is the culmination of over 12 months planning and will help us offer an even greater in-store experience to our customers.
‘We believe that in order to continue to offer a great customer experience we need to create a truly service-led environment with a pay structure that supports our aim and that offers greater developmental opportunities for our people. A key goal is to attract, retain and develop the best people and we believe the trial supports this.’
CWU assistant secretary, Sally Bridge, added: ‘We welcome this trial as we believe it will demonstrate the business can move towards a more service-led culture with a pay structure that supports this. This is what the vast majority of our members want so that they can progress through the salary range to the maximum pay point.
‘Over the years the CWU has consistently argued to Telef?nica regarding the pay reward structure which has resulted in this trial. Sally added: "The purpose of the trial is to better understand the impact that the new proposed reward mechanism will have on both the customer and employee performance when base pay is increased and bonus is reduced.’
What impact will the new pay structure have on customers and employees?