5/15/2009 10:28:00 AM
Carphone Warehouse kills off commission across all stores
Carphone Warehouse will undergo the biggest ever shake-up in mobile retail salaries by completely scrapping commissions across all of its 800 UK stores.
The removal of commission will be replaced by a lift in basic pay and a store profit share scheme.
Stores will have to reach 90% of their sales targets before they qualify ?for a bonus, which is made up of five metrics with particular focus on customer service scores.
The bonus figure will be 2% of the store’s gross profit divided between ?the staff.
It overhauls the once 50-50 split between basic pay and commission, to an 80-20 model of basic pay and a monthly bonus.
The scheme, labelled ‘The New Deal’, by sales and customer director Steve Blan, was first introduced to London stores in October 2008, ahead of it being taken nationwide in July.
Store manager commissions were also scrapped across the country last October.
Blan said: ‘We wanted to attract better managers and reduce variable pay.’
Basic pay in London jumped from £11,000 to £17,000. That figure includes London Weighting (a supplement to reflect the cost of living in London) ?and is likely to be slightly smaller across the country.
Blan (pictured) said the removal of individual store commissions in London had not led to an exodus of the best sales staff as had been predicted. He ?also stressed that the total cost of staff salaries has neither increased nor decreased as a result of the changes.
There was a mixed response from staff, with some welcoming the changes, while others questioned the complexity of calculating the bonus.
Blan said the London trial had increased teamwork in stores. Staff members ?who were once protective of their individual selling techniques were now sharing ideas in the team to lift the store’s profitability.