I have been in the retail business for 15 years. I first started off at
Target as a cashier and then moved up to Area Manager. I left Target and started
working at Wet Seal Inc. as a Store Manager. Now I am currently at Dots
Fashions. I like retail but I want to go back into a big box environment as a
manager. Can you please tell how I could do this?
Thanks,
Tiffony
Hello
Tiffony,
If you are
a successful Store Manager - meaning you have demonstrated your ability to
increase sales and maintain costs within the budget set out for you - then you
should go ahead and send your resume to 'big box' retailers. Be sure to list
your accomplishments on your resume. You should consider a 'Highlights' or
'Accomplishments' section near the top of your resume.
Do some
research to determine what kind of company you would like to work for. Shop the
stores, talk to the employees about their company and job satisfaction -
discreetly, of course - and then obtain the names and contact information of the
Regional or District Managers. Go ahead and send your resume even if the company
is not currently advertising. As you probably know, turnover in retail is
generally quite high and most retailers are always on the lookout for good
people. More importantly, retailers love to hire competent people who enjoy
retail as a career.
Good Luck,
Bobbie
Dear Bobbie,
In my company I have learned that a few of the managers
are capped. One has been with the company for 6 years
and the other for 8. I have been in retail management
for over 20 years and have never worked for a company
that capped anyone. This company is also beginning to
cap Assistants, too. Is this a common practice that I am
unaware of or could it be the beginning of the end?!
Robin
Dear Robin,
First of all, let me congratulate for being one of the
few lucky retail people who have a compensation package
so lucrative that it needs to be capped. Most people,
working in the retail industry, do not have an
opportunity to make a lot of money.
Companies usually resort to capping compensation when
they realize that some of their employees are earning a
lot of money while the business unit, usually a store,
is not making target. Of course, that results in a
higher than desired wage cost. Their first reaction is
that the employees need to be stopped. They question why
it is happening and what can be done about it.
Unfortunately, they come up with the wrong answers. So,
they put roadblocks (compensation caps) in place.
Now, not only do they have business units missing
targets but they also have employees who are no longer
motivated. A ceiling has been put on their earnings.
This generally causes the business unit to achieve even
less of their target. A vicious circle.
Here are some of the contributing factors which inspire
retailers to cap compensation:
1) They cannot continue to increase salaries of long
term management personnel because it becomes too much
for the business unit to bear. They can still, however,
avoid overall compensation caps since a large part of
the compensation should be tied to performance anyway.
In fact, for long term experienced management personnel
earning high commissions/bonuses should be much easier
than it is for newer people.
2) They are afraid that some employees will find a way
to manipulate the compensation system. For example, if
one employee makes the major share of the sales, s/he
may get a significant commission/bonus. If the employees
have decided to manipulate the system, they will arrange
it so that one employee gets credit for everyone's sales,
makes a lot of money and divides it up with the other
employees. In this case, sales do not go up but a large
commission of bonus is paid out raising overall wage
cost. This is easily dealt with by having a good manager
in place.
3) Even without manipulation of the system, one or two
employees may make hefty commissions/bonuses while other
employees do not. Perhaps the one or two are receiving
plum shifts, better leads, more coaching, better
training, more management attention in general. Again,
this is easily dealt with by having a good manager in
place.
4) The compensation plan is seriously flawed and no one
knows how to fix it so the quick and easy (but totally
wrong) fix is to put caps in place to stop the bleeding.
5) They don't know any better. Perhaps an accountant
with no understanding of sales is running the show. Or
maybe wage cost is something that is not properly
understood in the organization - don't laugh - you would
be surprised how many retail organizations have less
than competent people at the executive level.
Here is the bottom line: any organization planning high
and continuous growth in revenue can not put
compensation caps in place. Compensation caps are
counter productive. They can only produce negative
outcomes in the long run. Instead, they should seek to
find the very best, very lucrative compensation plan,
show everyone how it works and how they can make lots of
money and then, assuming the company is well managed,
watch sales happen!
Bobbie
