New Zealand’s most renowned retailing company, The Warehouse, has announced that thousands of staff will receive pay increases in a bid to encourage them to take up retailing as a career option. The increase will be introduced to staff working at its three main companies: The Warehouse, Warehouse Stationary and Noel Leeming – who was recently bought by The Warehouse last year. The Warehouse employs about 7,000 staff, and spent $169.4 million on employee expenses in the first half of the year, or about 15 per cent of its $1.11 billion revenue. Staffs who are eligible will receive increases of their wage to around $18.50 and $20 per hour, which would be an extra $50 to $100 per week.
Mark Powell, CEO of The Warehouse group, said the company’s action to lift wages would cost an extra $2 million to $2.5 million in 2014 and 2015 respectively. However, the move would not impact too much on company profits, due to increased team engagement, lower team turnover, improved sales and higher productivity. In order to qualify for the career retailer wage, staff must have completed all required training levels, have 3 years experience at the company or logged more than 5000 hours. Therefore would encourage people looking to work at The Warehouse to stay on for longer terms.
The whole idea of introducing the new wage is to help sway people into choosing a career with The Warehouse Group. This would definitely be a great opportunity for students who are leaving school and are unsure of what to do, as it will encourage them to take up retailing as a career and also thrive on the benefits it produces; i.e increased wage.
The first stage of the wage increase will begin at the start of August this year and the second in August next year.