10/9/2008 6:05:00 PM
3 is latest to drop targets and move to ‘per sale’ commissions
3 has changed its rewards system for staff in stores to be based on individual sales margins.
The scheme, which started on 1 October, means that staff will be paid commission per sale instead of being paid according to volume-based targets.
Discussions had been running for several months as the management team responded to feedback and criticism from store staff.
The old system of volume-based targets was criticised in some quarters for creating the ‘wrong behaviours’, where staff would be distracted by targets rather than the needs of the customer.
The new system will prevent a tendency by employees to sell high-end phones to meet targets and will encourage them to sell lower-end phones where appropriate.
Trials were carried out in 103 stores earlier this year over a short period but will now be a permanent fixture in all 307 stores, 18 of which are concessions.
Retail director Ian Parpworth said: ‘This is a simple and effective way of motivating our staff while rewarding the right sales behaviour to ensure the best customer experience.’
According to 3, volume-based targets were more complicated for 3 employees.
The operator says focus groups were set up to determine a response from staff about the new system.
Mobile revealed last month that T-Mobile has also overhauled its commission structure, ditching targets and target-based commission and instead opting to pay staff per unit sold. The changes also started on 1 October.
Carphone started piloting its new pay scheme in London stores at the beginning of this month, in which all commission will be ditched in favour of giving staff a higher basic wage and a bonus percentage of store profits. The scheme is expected to be put into action nationwide from next year.