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Hutchison 3G UK's incentives raise turnover

Hutchison 3G (UK) has reported a 20% increase in turnover since launching a new incentive scheme for its 1,800 sales staff.

The incentive scheme divides all products in the firm's 300 stores into bands from A to E. If an employee sells an item in band A they receive a commission of £7 scaling down to 30p for selling an item in band E.

Sales staff are also encouraged to help customers make the right purchasing decision, as they do not receive commission for returned items.

This replaces a more complicated volume-based scheme, where staff were incentivised by reaching sales targets.

Emma Leadsom, reward manager at Hutchison 3G (UK), said: "The previous system was points-based. There was not a clear line of sight and staff were often having to jump through flaming hoops to receive a bonus. We weren't sure if it was working."

The new plan was devised following market benchmarking, views from a large working party consisting of employees throughout the company and a series of smaller focus groups.

As part of her research Leadsom also spent time working on shop floors in a sales role.

Hutchison 3G trialled the scheme in 100 stores from June, and was communicated in all pilot stores in a roadshow before the scheme was rolled out company-wide. It plans to review the scheme on a monthly and quarterly basis.

Leadsom added: "In the business everyone has been excited and there is a real buzz. We have been able to align our bonuses with our business 100%. And the scheme fits in with our ethical selling beliefs as staff are incentivised to help customers pick the right products.

"This can only work by taking a holistic view - HR has to understand the customer and company perspective and we have built up a great relationship with the retail sales team."