Half of retailers use broadbanding

BROADBANIDNG

Half of retailers use broadbanding

Half of the retail organisations surveyed by Mercer Human Resource Consulting said they used broadbanding to determine salary levels, while 42% use competency-based pay. 

Bonuses

Bonus schemes are operated by 86% of the companies surveyed. These are discretionary for senior employees and a combination of discretionary and profit share based for more junior staff.As many as 43% of companies offer a save-as-you-earn (SAYE) scheme.

Benefits

A quarter (25%) of the companies surveyed operate a flexible benefits programme, where employees can select from a range of benefits to fit their lifestyle. Almost two-thirds (64%) offer their employees discounted meals through a subsidised restaurant or canteen, and 86% offer product discounts to all levels of staff. 

Other key survey results

• A quarter of respondents (25%) offer lump-sum merit payments and a third (33%) use team incentives. Less than one in ten employers surveyed (8%) use profit-sharing.
• Retail staff are likely to receive an average salary increase of 2.8% next year. This rise is in line with actual increases this year, but slightly lower than in 2002 when staff received 3.1% pay rises.
• The median base salary for chief executives surveyed in the retail sector is now £256,000 a year. However, base pay can vary from around £123,000 to £335,000 depending on the size of the organisation.
• Distribution directors hold the next best-paid positions, at a median salary of £121,400 a year followed closely by finance directors who earn £120,000. Buying directors can expect to be paid £102,800, while marketing directors earn £90,300.
• Sales supervisors are paid a median of £16,250 and sales assistants, £12,250.

Median base pay for a cross-section of staff in the retail sector

Job title	Median salary, £pa*
Chief executive	256,250
Distribution director	121,400
Buying director	102,800
Finance director	120,000
Marketing director	90,300
Buying manager	58,050
Merchandising manager	54,300
Brand manager	37,350
Store manager	35,350
Sales supervisors	16,250
Sales assistant	12,250

* Salaries have been rounded to the nearest £50.

Want to know more?

Title: 2004 Survey of Pay, Benefits and Human Resource Policies in Retail, Mercer Human Resource Consulting.

Sample size: The survey covers 18 major UK organisations, including food, furniture and fashion retailers, and some 7,000 employees. Of the companies participating in the survey, a third have an average annual turnover of more than £1 billion and a third have a turnover of between £100m and £500m. Pay data is current as at 1 July 2004.

Availability: The survey reports costs £950 for non-participants. Copies are available from Aliza Pinczewski, tel: 020 7423 5585. To view the press release visit www.mercerhr.com/pressrelease/details.jhtml/dynamic/idContent/1152555

Mercer Human Resource Consulting is the largest consulting firm of its type in the UK, "helping organisations create business value through their people". It employs some 3,000 staff in 16 office locations in the UK. For more information visit www.mercerhr.com

Posted 1 September 2004