Retailer will abandon incentive based pay scheme

Carphone Warehouse to drop commission

The Carphone Warehouse has announced that it will overhaul its payment structure and trial a profit share scheme in London, which if successful will be instituted in stores across the UK.

The move comes after retail director Stephan Blan said that variable pay, such as commission, constituted too much of the company’s overall payroll.

Under the new scheme, if a store attains it profit targets then all staff will receive a share of the profits, while store managers will be awarded a significant pay rise in lieu of target based commission.

"I’m expecting managers to be extremely delighted," said Blan. "Their motivation needs to change from selling to managing and leading the store. Some salaries will become quite substantial.”

Link: Mobile News

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