Following the publication of the annual Retail Week retail pay index, we sat down with B&Q people director Andy Moat to talk about today’s competitive pay landscape, increasing expectations for retail staff, and pay transparency.
Retail used to be a standard minimum wage job. Why is it so competitive now?
“We all experience this when we walk into a shop or a restaurant—how that person who greets us (or actually greets us) has a big impact on how we’re feeling.
“If you’re having a bad day and somebody greets you with a big smile and says, “Hi” really genuinely and nicely looks after you, I always find myself remarking on that level of service. It doesn’t have to be something exceptional, but do they make you feel welcome and cared for and seen? Whereas if you get someone who doesn’t care, it can have a negative impact.
“I think that’s all part of consumers’ shopping habits. They’ll shop in places they enjoy the experience of shopping in, and as things become more and more competitive—online, offline—everybody’s looking for that edge.
“For retailers that have a mix of online and bricks-and-mortar, the people working in your shops that customers interact with are a big part of your brand. I suspect that’s part of the reason why it’s becoming increasingly important to attract and retain the best people you can for the kind of job you have.”
B&Q is one of the highest paying frontline retail jobs, do you find colleagues on that base rate recognise the higher pay rate compared to other retailers that offer minimum wage?
“Ultimately, pay is how colleagues are valued, isn’t it? Of course, there are lots of angles for staff. I always think a company, to some extent, puts its money where its mouth is. It’s easy to say some things; but it’s another thing funding it.
“But pay isn’t the only thing. Culture is incredibly important, and I think a big part of why we’re able to attract and retain people is because they want to come and work at B&Q. They like what we do and who we are, the opportunities they have to learn and grow and develop their careers, and the support we provide them.
“I think we’re an incredibly flexible employer, and that’s become more important for people. Clearly, in a shop, you’ve got rotas that you need to fill, but by and large, our managers and leaders do a good job of trying to accommodate people’s caring situations, school pickups and drop-offs.
“We’re issuing rotas further out than we have ever done in the past—up to six weeks now—which allows colleagues to plan their lives better.
“So I think it’s all part of a mix. I wouldn’t say pay is the only decision people make, but it’s pretty easy on a retail park—if you were a national minimum wage payer, I think it’s harder to hang on to your staff because they can walk a couple of hundred yards to the shop next door and increase their pay.
“You have to give yourself the best portfolio of things that you can offer a colleague—why should they come and work for you and stay with you?”
“I always ask the question: if you’re not prepared to be transparent, what is it you’re hiding?”
Do you think retailers expect more from their staff now than they did before?
“For sure, these are hard jobs. I grew up doing part-time roles in lots of different retailers and was treated in various different ways and paid various different amounts.
“I think everybody always expected you to work hard and have certain minimum standards. But it’s probably fair to say that with cost inflation and cost pressures, you’re a bit more stretched on labour, typically in most retail organisations. If there was over-deployment in some areas, it’s less likely to be the case now. So everybody has to pull their weight, for sure.
“Equally, from a service perspective, I do think that makes a real difference—it’s the simple things. For example: could you help that customer? Did you care about that customer?—That’s what differentiates people.
“Every business has some brilliant colleagues. It depends how many you’ve got and how consistent that experience is. It’s all about consistency. And then you’re into local leaders using the tools you’re giving them to try and hire the best people and look after the people they have, so you keep the best as well. It still comes back to good old-fashioned local leadership.”
Do you think it’s important for retailers to be transparent about pay?
“As an organisation, we always try to be as transparent as possible because we’re proud of what we do. So in a way, why wouldn’t you? I always ask the question: if you’re not prepared to be transparent, what is it you’re hiding?
“I can’t speak for others, but for us, we’ve put together a package that we’re holistically proud of, and we want as many people to know about that as possible so they can consider coming to work with us. So I’m all in for full transparency.
“Outside of the hourly shop floor rate, we internally advertise and share our salary bands. We try to be as transparent about all of our benefits as possible. I’m not sure why you wouldn’t be, unless you weren’t proud of your offer.”
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