Show me some money - but a bit of lifestyle wouldn't hurt either
By Geoff Shaw, Director of Swann Group
With media stories about five percent wage increases, budget surpluses and corporate profits lifting, staff are expecting more remuneration from new appointments and salary reviews. For FMCG marketers this is particularly the case at the senior and upper mid range, such as senior product managers.
Remuneration increases for marketers have been partly distorted by several companies moving to a total package approach to remuneration, whereas many positions previously attracted company cars or allowances. That aside, marketing positions, particularly at mid to senior level, have all jumped reasonably strongly this year.
The most positive aspect of such moves is the recognition that marketing has a medium to long term impact in taking a business forward. For example marketers have to respond to the growing presence of house brands by introducing new and innovative marketing campaigns to keep margins healthy yet remain price competitive for consumers.
In contrast it can be argued that sales positions have more tactical and trade relationship focus.
Who hasn't done as well over the last year?
Senior sales managers, key accounts and front line sales roles all had only effective "cost of living" increases. This follows several years of good package growth in many of these roles. We expect further changes in the retail industry to impact sale structure and hence packages over the next 12-18 months. There will be more focus on higher quality sales management capable of understanding and influencing supply chain efficiencies and "cost to serve".
The Emphasis on Lifestyle as Part of the Total Package
We are also seeing more demand for lifestyle balance and flexibility in hours. Reduced hours (not necessarily part-time) are also more prominent and we have had several occasions where people are trading off package for a four day working week. This is hard to deliver in our seven day a week retail sector, particularly for sales roles. A case in point is Carters' move to shift to a six day trading week earlier this year. The change was intended to reflect the company's commitment to their staff and to help with staff retention. The flow on effect is that customers are more likely to receive knowledgeable and friendly service.
Tools such as virtual private networks for working from home, flexitime to miss the traffic and summer hours are increasingly common benefits (which sit outside measurable remuneration) that will enable companies to differentiate their offering. Companies will also need to sell such benefits to staff in a better way.
For further information and advice on sales and marketing remuneration and trends, contact Geoff Shaw on (09) 358 7412.
