Wage cut fears for Harrods staff as commission structure is overhauled

Some staff at luxury London department store Harrods are concerned that a new commission strategy could dent their take-home pay. The Qatar Holdings-owned company is currently overhauling sales commissions and management has been meeting staff to talk though the changes.


harrods.com


The details aren’t known but a source told the Mail on Sunday that commission could be cut by as much as 25%, which would potentially cut thousands of pounds from wage packets.

Harrods didn’t share details but had said that the commission and bonus schemes that it runs should “reflect future business requirements,” and that rewards should be linked to the performance  of staff.

The retailer said most of its employees would see total earnings this year “broadly in line” with what they earned in the prior year, while also saying that staff bonuses would be “variable”.

The company has been buoyant in recent periods and its last set of results, saw the Qatari Holding-owned firm turning an eighth successive year of record profits, as well as eight years of record sales.

In the year to January 2017, sales topped £2 billion for the first time and operating profit surged to £253.2 million from £178 million.

But while cash generation and profits have been rising fast, the company has been spending heavily too. Qatari Holding, which bought Harrods in 2010 has invested over £450 million in the store and the investment is continuing.

Copyright © 2018 FashionNetwork.com All rights reserved.

Luxury - MiscellaneousRetail