New Zealand department store chain The Warehouse Group has stepped up to execute the first phase of an innovative, new strategy set to transform its operations.
As previously reported by ragtrader.com.au, The Warehouse Group pledged earlier this year (May 2013), that it would introduce significant pay rises across its empire as part of a ‘Career Retailer Wage’, to both attract and retain valuable workers.
While the complete scheme is not set to launch until August 2014, the company – currently the country’s largest general merchandise retail group – has now finalised detailed implementation plans for the first stage of the initiative.
Specifically, the Career Retailer Wage will be applicable to all The Warehouse Group team members that have completed the full training for their role and have worked 5,000 hours or more – slightly more than two years full time.
Using the ‘living wage’ campaign data as a benchmark, the first completed stage of the strategy represents an initial investment of about $3 million, with the second and final stage to be implemented in August, 2014.
From August 1 this year, this first stage will give around 3,800 employees at The Warehouse Group as much as $30 to $65 more in their pay packets each week.
Around 200 additional team members every quarter would thereafter qualify to move onto the rate, according to The Warehouse Group CEO Mark Powell.
“By the end of this year, about 60 per cent of all permanent team members across the group will be earning the Career Retailer Wage or higher” he said.
“The second stage, in one year’s time, will give a further significant pay increase to the full Career Retailer Wage level.”
Commenting on the milestone for the initiative, Powell said this month marks the start of a larger change across the company.
He added that the Career Retailer Wage is a key element of the company's strategy to make retail a more attractive career, alongside comprehensive training and a great workplace environment, where a person’s full potential can be realised.
The extra pay will go to team members across all the group’s businesses, including The Warehouse, Warehouse Stationery and Noel Leeming, in towns and communities throughout the country.
“Today, the details of the first stage of the Career Retailer Wage are being communicated to the team members who benefit from the change.
“As well as making retail a more attractive career, as a major employer, we’re pleased that this positively impacts the wider community, as some of this extra pay will in turn benefit other businesses and the wider economy,” said Powell.
“It supports our belief that flourishing societies need flourishing businesses, and in turn flourishing businesses need flourishing societies – we truly value our team members and the communities we operate in and we feel we have a responsibility to take a lead, this is tangible evidence of our commitment to do this.”