Question

Wilson’s is a small chain of low-cost retailers based across Scotland and the North of England. It has no stores in London. It has 30 outlets, typically medium-sized shops (around 10,000 square feet) selling low cost items such as household products, cleaning products, and general homewares. Its main competitor is the larger chain of B&M stores. The brand was established 15 years ago, just before the financial crisis by an entrepreneur, Mr Khan. The Khan family still own and run the firm and have managed its successful expansion from the headquarters in Glasgow.

The headquarters has the following staff:

• An Executive Team headed by Mr Khan who oversee the strategic direction of the company. The Executive Team comprise of : Mr Khan as Chief Executive, a Chief Finance Officer who has been hired from a local competitor retailer, a Chief Marketing Officer and Chief Buying Officer. There is also a Chief Logistics Officer who oversees the warehouse and distribution network. Each function has a small team of expert staff based in the headquarters and the CLO oversees the warehouse staff (based near Carlisle) and distribution staff who drive lorries and who are based at the Carlisle warehouse.
• You have just been recruited as the Chief People Officer to help the company professionalise its HR policies and practices. You have taken over from a good predecessor, who has moved on to a new role in a different, larger company. You have a small team of 2 members of staff to assist you, but they are very junior and have relatively little HR experience.

Each store has a Manager and Deputy Manager and approximately 80 staff, most working on flexible part-time contracts which can be flexed to accommodate leave and staff turnover. Core team members are paid just above the National Living Wage, although approximately 1 in 10 are supervisors who have additional responsibilities such as handling cash, dealing with customer complaints, and managing the allocation of tasks to team members during shifts.

Stores are staffed very flexibly. They open between 8am and 6pm, 6 days per week and between 9am and 4pm on Sundays. All stores must have a Manager or Deputy Manager present on site at all times during opening hours because of health and safety regulations. Other staff are scheduled depending on their availability and, where feasible, preferences.The typical pay structure of a store is:

1 x Manager: £30,000 to £40,000 per annum depending on the size of store. Few opportunities for progression. No fixed hours. Contracted for 40 hours per week, but expected to work as needed – often up to 50 hours per week.

1 x Deputy Manager: £25,000 per annum. Some opportunity for progression but depends on expansion or managers leaving. No fixed hours. Contracted for 40 hours but expected to work as needed. Rarely work 50 hours unless illness or manager’s holidays require. 45-48 hours per week is more common.

8 x Supervisors: £10 per hour worked. Most on 15 hour contracts but expected to work flexibility and recruited for their ability to do so. Most work longer than 15 hours and some work up to 35 hours per week as required. At least one supervisor is needed for all store opening hours.

70 x Team members. Most on 10 hour contracts although many work up to 35 hours per week as required. In line with UK law, pay rates vary by age:

• Aged over 25: £8 per hour worked. 60% of team members.
• Aged 21-24: £7.50 per hour worked. 25% of team members.
• Aged 18-20: £6 per hour worked. 10% of team members.
• Under 18: £4.50 per hour worked. 5% of team members.

The UK has laws setting the minimum legal hourly rate that workers in all industries can be paid. This is called the National Living Wage. The UK government announced in 2018 that the National Living Wage will increase.Details can be found here. A summary of changes is below.

YEAR	25 AND OVER	21 TO 24	18 TO 20	UNDER 18	APPRENTICE
2019	£8.21	£7.70	£6.15	£4.35	£3.90
2018	£7.83	£7.38	£5.90	£4.20	£3.70

• What are the pros and cons of increasing the pay rates for team members ABOVE the National Living Wage?

Answer 1

Csass scatland and the Nalh Englard Sotdo to do So. on Ißuger than 15 his Sanne hjakarto red 35 hs per oes as seqgavd Gas ofen Compla

tuad (b) Kstoi talud 。(H-touw a courdrtile Codreasaton Poukase.tohag ouy be twakist defiend by adkieving Pesuk aualty Comflt aith a uPor Could, in (ous Cauca, welt inotor Copeutaden,