A major department store chain will eliminate commission-based salary for certain employees, a move that reflects a trend in the retail industry.
A company representative told Fox Business that the chain decided to make the change because it helps employees focus on the customers’ needs. The departments that will be affected include fine jewelry, shoes and men’s suits.
While commissions for salespeople have long been a standard in retail, that practice is ending. Commissions can create tension and conflict among a retailer’s staff. When salespeople try to secure additional business, it can be irritating to the customer and other salespeople. Instead, more retailers are focused on giving their salespeople customer service training and paying them a higher hourly wage.
The pay structure isn’t the only thing getting a makeover at the company. The store chain announced earlier this year that it will convert its department sections into “shops-within-a-store.”
The company also recently announced job cuts at both the store level, in a call center and at the corporate level. The move is a part of plan to make the company more streamlined, said the new CEO.
Source: Fox Business, May 2012