Retail needs to take the lead on pay - there are too many followers and cost-cutters

In light of a story that has appeared in the news today about wealth, I'm looking at leadership on the issue of pay.

Oxfam report that the richest 1% now has as much wealth as the other 99% combined. This is a moral issue that affects every business, and I believe that it is a leadership issue. Every business has the moral obligation to look after the people that work for them. It's not just pay (which a lot of companies need to go much further on) but working conditions, time off, work-life balance and benefits.

At this moment in time, the UK economy is hugely skewed towards business - particularly big business. Media stories regularly show big business not paying their fair share of tax. The minimum wage has served it's purpose and needs to be replaced by the living wage. The taxpayer is subsidising people with a family to work for these companies through working tax credit.

It's time to take a lead.

Unfortunately many retailers are culprits when it comes to poor pay. The minimum wage seems to be the standard wage for national and multinational retailers. It really isn't good enough. Employees are being squeezed and customers are being squeezed in search of extra profits. Billion pound plus profits for shareholders and company owners while paying frontline employees the barest of minimum wage will be counterproductive in the long run. Having demotivated employees that don't give the same service as customers experienced in the past will lead to declining sales. The bottom line is about far more than just cutting costs.

If you are an independent retailer then look at what you pay end how you incentivise your team. If you work for a larger retailer then it's part of your commitment to your colleagues that you raise the issue if low pay in the correct forums.

Thinking about rewarding your team at this time of year

Little treats can make big differences to the morale of your team and how they work for you and interact with your customers - in the long-term this will mean more goodwill, trade and sales for you.

I have worked for many retail organisations, big and small; worked with retailers in an advisory role and run my own retail business.  Where you have people working for you, their morale implants heavily on their commitment to worm and their interactions with your customers. Approaching Christmas is a time where employers often look at rewarding their teams in various ways. I have experienced the following-

*10% of a weekly wage as a bonus. This smacks of a lack of inspiration and thought and unfairly penalises part-time and weekend-only team members

*a choice from a pre-set list of gifts. This takes a little more organisation, but can have the "wow" effect if the gifts are of a good quality.

*a team night out. This will have the added bonus of some team building, but each out for situations arising from too much alcohol.

*a day off work paid for Christmas shopping. The idea is great, but often the time just gets mixed up with annual leave. Try to mix it with a shopping voucher or an afternoon tea at a nice tea room in the local town to ensure it's fully enjoyed for what it's supposed to be.

*a box of chocolates, a box of biscuits or a bottle of wine. This can start to go down the same route as the money route at the top of the list.

In sure that all you inventive entrepreneurs can come up with really great ways of celebrating your teams contribution at this time of year, and inspiring them to greater things in the future.

Amazon's 13,000 seasonal staff