Retailers in all channels are doing more—from reducing work hours to offering performance-based bonuses, employee discount programs and 401(k) plans—to try to reduce turnover among store managers, according to a study by retail executive recruiting firm Career Management (East Brunswick, N.J.).
“The industry’s moves to make store management positions more appealing was underscored by the fact that over 80 percent of the companies surveyed indicated that their managers now average under 50 hours per week,” said Lloyd Lippman, chief executive officer of Career Management. “Not too long ago, most managers we were placing typically worked at least 55 to 60 hours per week.”
Furthermore, store managers were eligible for performance bonuses at 92 percent of companies, according to the survey. Bonuses usually were paid on top of salaries that averaged less than $60,000.
“Although our experience has shown that base salaries for store managers have been on the rise, one could still argue that compensation is not commensurate with leadership positions at other businesses generating the level of annual revenues produced by stores,” Lippman said. “Retailers have sought to shake their longstanding reputation as ‘mediocre payers’ by offering considerable bonuses tied to store sales, profits, shrinkage and other metrics, along with a variety of other benefits.”
Surveyed companies provided liberal employee discounts for store managers: 29 percent offered discounts exceeding 40 percent; 27 percent gave discounts of 30 percent to 39.9 percent; 25 percent, discounts of 20 percent to 29.9 percent, and 19 percent, discounts up to 20 percent.
Moreover, a full 96 percent of surveyed companies offered 401(k) plans for store managers.
Finally, 38 percent of surveyed companies offered compensatory time to store managers who exceed their allotted hours for a week. The typical vacation policy for store managers at responding companies was two weeks after one year, three weeks after five years and four weeks after 10 years of service. [February 2008 PET AGE]
