CAR dealership Phoenix is to give its sales staff a 50 per cent pay rise, increase commission on certain sales and reduce contracted hours by eight hours per week.
In an unprecedented move, which was announced to staff last night, the company’s chairman and chief executive John McGuire said he wanted to attract and keep the “brightest and best staff” in the country.
“We’re pretty excited about it; we think it’s industry-leading,” he said.
Mr McGuire, who founded the business in 1993, said management had been in discussions with sales staff and had concluded that the current model, with staff working long hours and receiving a low basic salary with earnings driven by commission, was “old fashioned” and not attractive to the millennium generation.
Mr McGuire said that a decade ago Phoenix became the first dealership in the UK to move to a five day working week at a time when six was the norm – and is still practised at some dealers: “We’re happy to challenge and disrupt and break away from tradition. It’s a big first, but we’re taking them back to a 40 hour week. Officially they are on 48 hours, so it’s eight hours a week less. We’re just asking them to work a bit smarter in the time they are here.
“What we’re hoping is that it gives them time to enjoy what will be a significantly larger wage – so while we’ve cut back hours, we’ve increased the basic wage by 50 per cent,” he said.
Phoenix pays the industry average of around a £12,000 basic salary to its 100 sales staff, which will now move to £18,000, resulting in a £400,000 investment. The company will also enhance commission on sales of extended warranties and service plans.
“We’ve always tried to attract the brightest and the best and we think this industry deserves that. Retail is the biggest driver of the economy and automotive retail is a major part of retail in the UK,” he said.
The company also gives staff the opportunity to develop. An MSc in automotive management is currently offered at Loughborough University. Mr McGuire said he is in talks with Strathclyde University to offer a similar course for Phoenix staff.
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