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MYTRAVEL TO BOOST PAY

(19 April 2002)

MYTRAVEL is preparing to shake up its pay structure following an eight-month review of how it rewards staff.

UK managing director retail distribution Dave Harris is set to add at least £1,000 to basic salaries for shop staff from October after a working party of senior managers decided starting pay was too low.

Altering the way agent pay is constructed was a central theme of findings unveiled by MyTravel last week, which saw Harris admit that the company had failed to address employee concerns in the past.

He said: “The review hasn’t just been about pay - it’s about motivating staff and looking after their wellbeing. In the past we were found lacking when it came to the basics.”

An immediate pay rise of £500 for staff on the current basic pay level of £8,000 a year - around 30% of MyTravel’s 4,500 consultants - has been approved to bring the shop staff in line with those working for non-travel retailers on the high street. Staff not affected by this will receive a 2% rise. But Harris said further increases to the basic level were on the cards when a new pay scale is introduced in October.

“The scale will reflect on how well people do their job and on their experience, and will dovetail with the new staff and managers’ training programme,” said Harris. “A typical staff member might earn the basic £8,500 and then get £1,500 in commission and bonuses on top. We could incorporate part of the bonus into the basic. It has to be a reasonable and realistic basic - why pay people to sell when that is part of their job? We want to reward people for exceeding our expectations.”

New bonus packages for individual stores will be introduced on May 1 for managers and staff in an effort to build teamwork.

Harris stressed targets would not concentrate on bookings made in-store but would focus on the volume of business generated - fitting in with MyTravel’s desire to drive sales through a range of distribution channels.

Juliet Dennis and Neal Baldwin