RETAIL COMPENSATION

Overview:

The retail industry is primarily driven by competition and consumer demands – from product prices to employee wages to marketing campaigns. Retailers not only need to develop viable compensation plans that will make their company more appealing to job seekers, they also need to be able to retain productive staff once hired. Well-designed compensation packages provide the basis for efficient operations and a competitive presence in an ever changing landscape.

As compensation consultants, Compensation Resources has extensive experience working with retail, wholesale, and distribution companies to develop effective compensation programs that motivate employees and are aligned with organizational goals and objectives.

The services that we provide include, but are not limited to:

Base Salary Administration
- Salary Structure Design
- Staff Compensation Studies
Board of Directors’ Compensation Studies and Advisory Services
Executive Compensation Studies
Incentive Plan Design
- Annual Incentive Plan
- Long-Term Incentive Plan (LTIP)
Job Description Development
Market Pricing / Salary Data
Performance Management Programs
Sales Compensation Program

Case Study: Sales Compensation Program

Issues:

The current sales process very cumbersome and hard to administer.
The company wanted to streamline sales compensation process.
The new plan needed to inspire sales team to push new products and services.
The company wanted to recognize account size with different incentive potentials.
Compensation levels not aligned with competitive market.

Solutions:

Adopted a sales compensation philosophy that integrated sales compensation with the business objectives and marketing direction of the company.
Evaluated the competitive market to determine base salary and commission levels.
Designed sales incentives based on the desired mix of fixed and variable compensation.
Determined appropriate commission levels based on size and complexity of sales responsibilities.
Developed sales compensation guidelines and procedures to ensure consistency.
Communicated with employees regarding the new program via training guides.

Please read our article about the effects of COVID-19 on the retail industry: Retail COVID article

We are available to answer any questions you may have and to provide the necessary compensation consulting support to your organization. For more information, please contact:

Mary A. Rizzuti, CCP, PHR, SHRM-CP
Partner
201-710-6476