Carphone stretches store targets

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Carphone Warehouse has increased its terms for staff to qualify for a store bonus, adding pressure to staff to ensure sales and customer service is met.

Carphone abolished staff commissions in October last year in a London stores trial, replacing it with a monthly profit share bonus scheme, rewarding staff two per cent of their store profit.

Carphone originally set staff a target of 90 per cent of store targets to activate individual bonuses, but from July 5 it was increased to 100 per cent as the scheme launched across its entire retail estate.

The move requires staff to hit 100 per cent of store targets for new connections, upgrades, broadband, prepay and accessories, or else miss their monthly bonus.

Staff must also pass a monthly customer satisfaction survey, based upon feedback from 30 customers per store each month. Staff must score 96 per cent in the customer satisfaction survey. This target is expected to rise to 100 per cent also.

One staffer claimed Carphone is increasing the bonus qualifying percentage in a bid to identify quality staff and drive out poor performers. “We have to work harder for the team. Some staff have already expressed a desire to leave. But that’s the point; you’re either committed or not wanted.”

A Carphone spokesperson said: “The latest incentive plans are directly linked to delivering superior shareholder value and are divided into short, medium and long-term schemes. They are based on hitting certain EBITDA targets.”

 

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