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Carphone staff fear £18k cut to bonuses after target hike

James Pearce
May 16, 2016

Retailer gets tough on staff’s customer service performance; Changes labelled “unfair”

Carphone Warehouse staff have been left furious – with some even threatening to quit – after the retailer made changes to its monthly bonus structure that could see them up to £18,000 a year worse off.

The changes, revealed to staff on May 4 – three days after they came into effect – relate to Carphone’s “World Class Service” measurement scheme, where staff are rated on the level quality of service given to customers.

According to staff who contacted Mobile News following the internal announcement, satisfaction level targets have been increased from 84 per cent to 89 per cent – a figure they claim more than half of Carphone’s 1,000 retail estate currently falls below.

Failure to hit the score, which requires staff to consistently receive a nine out of 10 score, will see managers working in its busiest stores losing up to £1,500 a month. Sales targets remain largely unchanged.

Moving the goalposts
A number of staff working in London Carphone stores said they were now considering leaving the company as a direct result of the changes.

One disillusioned store manager told Mobile News: “It doesn’t sound much, but to raise the bar from 84 per cent to 89 per cent is a massive jump, and more than half of stores are not achieving the 89 per cent goal already. That money isn’t going anywhere – it is money that should have been paid to the hard working staff.

“Obviously, the company wants to make sure we’re providing a very good service, but this change makes it a lot tougher to hit the target and will hit many hard in the pocket.”

Another consultant, who has worked for the retailer for almost a decade, said he’s grown tired of the way staff are being treated, accusing the company of frequently “moving the goalposts”, since merging with Dixons.

“I’m now considering my future with the company. I enjoy working here and am really passionate about the business, but with these changes, what we’re earning is next to nothing. I won’t be able to afford to keep working here, it’s just not worthwhile.”

Carphone Warehouse confirmed the changes had been introduced from May 1 and said it had begun informing staff following the May bank holiday.

A spokesperson for the retailer said: “Our bonus schemes are reviewed every year and since we introduced the current bonus scheme our stores have delivered improved customer service every single quarter.

“This change ensures we remain competitive and continue to stretch ourselves to deliver great service and value for our customers. Our complete benefits package is very competitive and fairly rewards all colleagues, at all levels, in all locations.”

Dixons staff are understood to be on a different bonus scheme and do not have their performance measured in the same way.

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