Carphone Warehouse has completely overhauled its store staff commission structure.
From October, store managers will no longer receive commission. Instead they will receive a much improved basic wage and a share of store profits.
Carphone is to trial the scheme with store staff in the London area. They will lose their commission payments, receive a rise in basic salary and, if their stores hit targets, a share in a percentage of the store’s profits.
Depending on success in the London area, the new scheme will be rolled out to all store staff country-wide early next year.
The change is a result of feedback gathered from store staff over the past six months.
Carphone retail director Stephen Blan said Carphone recognised "variable" pay such as commission comprised too large a proportion of staffers’ overall pay.
Carphone came bottom of an informal Mobile News retail salary survey in March, which showed the average minimum wage for a staff member outside London aged 21 was about £10,600 a year.
It came top in the commission stakes, with staff taking home around £700 a month. Mobile News understands under the new scheme staffers in London could earn up to 50 per cent more in basic salaries.
“We needed to get the proportion between the basic and variable salary right," said Blan.
“Benefits will be that a staff member’s take home pay won’t experience highs and lows at various points of the year. They’ll stand better chance of getting mortgages and will be able to manage their finances better.
“The new store profit share scheme will encourage teams to work together more to help each other reach the store’s profit target. This is costing us more than what the current scheme does, so it’s not a cost cutting exercise, it’s an investment. It’s also not driven by the company’s performance."
Blan said the changes would assist managers to run stores more efficiently without the extra pressure of making sales. "I’m expecting managers to be delighted," he said.
“The odd manager might question it but they will be a minority. Their motivation needs to change from selling to managing and leading the store. Some salaries will become quite substantial.
“We wanted to do this to make Carphone a better place to shop and work. With higher basics we can also attract better staff and managers. We’d be flattered if our competitors followed our move."