Workers in the retail sector are set to receive an average salary increase of 2.8% next year, a rise that is below the current rate of headline inflation.
The survey by Mercer HR shows that the rise is in line with actual increases this year, but slightly lower than in 2002 when staff received a 3.1% pay rise.
The news also comes on the back of findings by pay specialists, IRS which says that pay awards are back at 3% for both public and private sector workers. At 2.8% retail workers are dipping out on higher settlements.
David Wreford of Mercer said: “If interest rates continue to rise there could be more pressure on companies to offer larger salary increases. It’s particularly important for retail companies to ensure their pay structures are regionally competitive, as they risk losing staff to other local retailers.”
Surveyed chief executives have a median base salary of £256,000 per year. While, base pay among this group was found to vary between £123,000 and £335,000.
Distribution directors hold the next best-paid positions, at a median salary of £121,400 a year followed closely by finance directors who earn £120,000.
Meanwhile on the lower end of the scale, sales supervisors were found to earn a median salary of £16,250 with sales assistants taking home just £12,250 a year.
Mixed-benefits schemes were in place for the majority of respondents with 85% operating a bonus scheme and 64% offering discounted meals through a subsidised canteen, 86% giving product discounts.
Less popular were flexible benefits programmes which only a quarter operated.
“The retail job market is highly transient as skills are easily transferred across organisations. More companies now realise that, to differentiate themselves from the competition, they have to offer flexible working arrangements to appeal to a wider range of recruits,” comments Wreford.
Final salary pension schemes were found to be rare with only 4 in 10 companies providing one with over half, 69% opting for defined contribution schemes.
