Majestic has restructured its pay and reward scheme, increasing wages and offering extra bonuses to shop staff.
The wine retailer upped its basic rate for in-store employees to £10.60 from this month (April), with the average salary expected to rise by 6.7% in 2023/24.
A new incremental pay structure rewards staff for their Wine and Spirit Education Trust (WSET) qualification level, their length of service and experience, as well as the size of the store operated by managers and assistant managers. The initiative could mean that store managers earn an additional £11,700 per year.
According to the business, the structure has been put in place to “better reward those colleagues for that contribution, and allow them earn as they learn within the business”.
Majestic has also handed each employee an extra £250 bonus to thank them for their efforts in the past 12 months. They will continue to have the chance to earn uncapped performance-related bonuses. In 2022/23, Majestic experienced its second-biggest Christmas trading period, leading to staff bonuses reaching a record high.
CEO John Colley said: “We are aware that it has been an increasingly challenging 12 months for our colleagues, with the rising cost of living impacting all of us as individuals, and the cost base of the Majestic business. These have been key considerations for the Board over the last few months as we looked at the best way to reward our colleagues for their ongoing dedication and hard work.
“The restructuring of the pay, reward and recognition structure in our retail business marks the biggest investment we have ever made in store colleagues since the company was founded. The pay structure will not only help our people through current cost-of-living pressures, but also creates a scheme that gives all store colleagues the opportunity to earn more, learn more and progress their careers at Majestic.”
Store staff also have the opportunity to win incentive trips to boost their wine knowledge at wineries all over the world. This year, around a quarter of the company’s retail workforce are set to travel to countries including California, Australia, Chile and Mexico.
The company’s Board once again decided against taking a pay increase this year, as it did the previous year, and will put the savings to fund wage rises for those working at its Watford-based support centre, and Hemel Hempstead-based distribution centre. Lower earners on £30,000 or less will be awarded the largest salary increases, meaning that they will benefit the most.