P4U revamps staff pay scheme


Phones 4U managers will now receive full bonus pay out if stores hit at least 95 per cent of monthly gross profit targets and 100 per cent of four key performance indicators (KPIs) – new contract connections, SIM-only connections, prepay connections and insurance.

Each KPI reflects 12.5 per cent of the manager’s bonus, while the store gross profit target is 50 per cent. For example, if a store achieves its gross profit target and three out of four KPIs, the manager will receive 87.5 per cent of the bonus.

However, bonuses will also be determined on a quarterly basis. For example, if a store does not achieve the target one month and then, over two consecutive months, makes up for the loss, managers will still receive the full pay out for the full three months.

Phones 4U sales consultants will now have their full commission entitlement paid out if the store hits a Net Promoter Score of 37.5. Previously, stores had to achieve a score of 35 for consultants to receive full commission.

If stores achieve this result, consultants will receive an additional 40 per cent commission. If they fail to hit the target, they will lose 35 per cent of their commission. Previously, consultants would either have an increase or deduction of 25 per cent of their commission. 

Phones 4U retail director Nick Fisher said: “Everything we do at Phones 4U is about championing the customer and putting them first. The new recognition and reward scheme is about enhancing our commitment and focus on delivering great customer service. Our store managers are the most important people in the business and the new scheme is about rewarding them for longterm and consistent good performance and service.”

The change to bonuses and commission took effect May 1.
Store managers said the new bonus scheme was confusing. “It’s very different to the previous method,” said one. “It’s difficult to tell at this time whether we will be better off with the change. But Phones 4U needs to make the new scheme clearer.”

Another manager said: “This puts more pressure on staff to perform. If one person in the store lets the side down, none of the staff will receive their full commission, nor will I as a manager receive my full bonus.”

Meanwhile Phones 4U has extended the £350 cashback deal which launched over the Bank Holiday weekend until further notice. Store staff said the deal, available with the Nokia 5230 and the Samsung Tocco Lite on 24-month tariffs, has been selling well.