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Friday, February 26, 2010

Carphone Warehouse says commission-free means committed staff

HR Magazine reports that staff engagement at The Carphone Warehouse has improved since the retailer's commission scheme was scrapped last year.

Caroline Edwards, head of HR for support functions at The Carphone Warehouse, is quoted as saying engagement scores – a measure of staff commitment - have reached 88%, which is up 20% since the launch of the new scheme six months ago. Average managers' salaries are said to be 30% higher and customer consultants' salaries are up 50%.

Instead of paying commission to individuals based on their personal sales achievements, the company now pays bonuses based on team targets and customer feedback from customers.

However some staff have disagreed with the figures, alleging online that many employees have seen a pay cut as the result of a "fundamentally flawed customer feedback system". [Sources: HR Magazine; Carphone Warehouse]

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