Salaries 06
Contents About this report... Executive summary... 3 The Retail Team... 4 Salaries... 5 Top Level salary... 5 Performance related bonuses for Top Level s... 5 Salary tables... 6 Impact of the introduction of the new National Living Wage... 8 Planned budget adjustments for salaries... 0 Wage setting criteria... Self-employed collection staff... Employee contract terms and benefits... Typical contracted hours per week... Holiday entitlement (excluding bank holidays)... Notice period... 3 Additional employee benefits... 3 Turnover, retention and absence... 4 Median average employee rates... 4 Median Shop turnover by region... 5 Recruitment... 6 Average staff recruitment costs... 6 Methods of staff recruitment used and effectiveness... 7 Training... 9 Average staff training costs... 9 Diversity... 0 Page /
About this report 74 members, representing 5,057 shops, responded to 06 s salaries survey. Subsamples have been used where data was missing or we have been unable to verify its accuracy. Definitions of charity size categories Charities are divided into the following categories for analysis - very small charities (those operating -0 shops), small charities (-0 shops), medium charities (-00 shops), large charities (0-300 shops), very large charities (over 300 shops) and hospices. Hospices are reported separately but also included in the relevant charity size category. Job Title Definitions Top Level - Head Office staff member with overall responsibility for all shops that the charity operates. Manages Second or Third Level s or, for the smaller organisations, directly manages Shop s. This would be Head of Retail for larger organisations and for smaller organisations this role may be combined with other areas of responsibility. Second Level - Regional. Reports to Head of Retail. Manages an area of Third Level s. For smaller charities, this level is likely to be missing. Third Level - Area, directly managing Shop s. Shop - of single shop or sometimes a few shops and responsible for day to day running of the shop. Manages any other staff/volunteers in the shop. Assistant Shop - Assists Shop in running a single shop. Reports to Shop. Sales Assistant - Paid member of shop staff, reporting to Shop or Assistant Shop. Collection staff - Paid member of staff (not self-employed) whose job it is to collect and deliver goods to shops and warehouses. A note on averages Averages have been weighted where applicable to take account of underrepresented charity retail chain sizes. We believe this makes for a better reflection of the charity retail sector. Median salaries are taken instead of a mean average, due to skew. Any extreme values (e.g. very high or low numbers outside the normal range) have been verified, and where necessary excluded, to ensure the average is reflective of the sector. Page /
Executive summary We estimate that the charity retail sector employs over,000 staff (FTE) and has over,000 volunteers (not FTE) nationwide. The average charity shop in the UK has.6 (FTE) paid employees and 9 volunteers (not FTE) 8% of charity shops have more than one (FTE) paid shop employee. 8.5% of current retail employees had previously been volunteers with the organisation. 96.5% of charity shops are managed by a paid Shop. Charities with less than 00 shops paid their Top Level s an annual salary of no more than 50k; whilst larger charities paid them above 4k per annum. 8% of charities provided their Top Level s with a performance related bonus. The median Shop salary is 6,065. For our matched sample, there was a % salary increase for Shop s since 05. The majority of charities had the same starting salaries across their shops for Shop s, Assistant Shop s, and Sales Assistants. 37% of respondents do not have collection staff. Only 9% of charities that have collection staff use self-employed collection staff. Most of charities have budgeted for a salary bill increase of between 0-%. Retail staff and Shop turnover (voluntary) were at 4.3% and.8% respectively. In the last year, respondents spent on average 47 per shop on recruitment including the whole retail team. The most effective methods of recruitment were: - The Charity Retail Association s website, recruitment agencies and internet (job boards) for higher level managerial staff; - The Charity Retail Association s website and internet for Shop s; and - Internet and the shop s own window for other shop staff. In the last year, respondents spent on average 85 per shop on retail staff training including the whole retail team. Paid staff tended to be 4-65 years old, female, not from an ethnic minority and not disabled. Page 3 /
The Retail Team 73 charities, representing 5,038 shops, reported their retail paid staff numbers, and 68 charities, representing 4,37 shops, reported the number of volunteers for their charity retail operation. The totals are shown in the tables below. Paid Staff (FTE ) Sample # % Sector estimate # % Within Shops 8,849 84.5% 8,8 80.0% Collection/Warehouse 550 5.3%,53 9.5% Area/Regional 654 6.%,7 5.4% Head Office 40 4.0%,70 5.% Total 0,473,667 Volunteers Sample # % Sector estimate # % Within Shops 95,890 99.% 6,74 97.7% Collection/Warehouse 55 0.6% 4,85.9% Area/Regional 50 0.% 7 0.03% Head Office 38 0.% 766 0.3% Total 96,68,838 We estimate that the charity retail sector employs over,000 staff (FTE) and has over,000 volunteers nationwide. This represents an increase of 6.4% in paid staff (FTE) numbers and an increase of.8% in volunteer numbers since 05. On average, a UK charity shop has.6 paid employees (FTE) and 9 volunteers (not FTE). Average # FTE shop staff per shop Average # shop volunteers per shop.5.4.5.4.8.8 0.7 5.8 6.0 8.0 6.8 4.5 Hospices Very Small Small Medium Large Very Large Hospices Very Small Small Medium Large Very Large 8% of charity retail operations have more than one (FTE) paid shop staff per shop (on average). Charities also reported how many of their shops are currently managed by a paid Shop. Proportion of shops with a Shop All small charities who answered this survey have Hospices Very Small Small Medium Large 93.7% 90.% 00% 94.3% 97.3% a paid Shop in each of their shops. Larger charity retail chain sizes also have a high proportion of their shops managed by a paid Shop. Very Large Sector 99.8% 96.5% For the sector, we estimate that 96.5% of charity shops are managed by a paid Shop. Sample = 73 charities, 5,05 shops (H = 4, VS = 38, S = 3, M =, L = 4, VL = 6) FTE: Full time equivalent. Page 4 /
Salaries Top Level salary We asked members to select the salary bracket Top Level s were paid in their charity. 59 charities, representing 4,996 shops, told us about their Top Level s salary. Top Level salaries, by charity size Hospice 3 9 6 3 Very Small 3 9 8 Small 4 4 3 Medium 4 5 Large Very Large 5 0-5k 6-0k - 5k 6-30k 3-40k 4-50k 5-70k 7k + Very large charities that answered this survey only paid their Top Level s above 5k per annum and large charities paid them above 4k per annum. Charities with less than 00 shops paid their Top Level s an annual salary of no more than 50k; which is consistent with 05 s survey results. Charities with twenty or fewer shops were the most varied, with Top Level salaries falling anywhere between 0k - 70k. Performance related bonuses for Top Level s 8% charities provided their Top Level s with a performance related bonus, compared to 4% in 05. There is no clear correlation between the size of the retail chain and the likelihood of Top Level s receiving a performance related bonus. This contrasts with 05 s survey results, which showed that the larger the retail chain size, the more likely it was that Top Level s received a performance related bonus. Do Top Level s get a performance related bonus? 00% 00% 67% 73% 33% 7% Very Large Large Medium Small In 06, only very large charities and medium hospices gave their Top Level s a performance related bonus. Whilst charities of all sizes that answered 05 s survey provided their Top Level s with a performance related bonus (not matched sample). 00% Very Small 95% 5% Hospices 9% 8% All charities No Yes Sample = 64 charities (H =, VS = 30, S = 3, M =, L = 4, VL = 6) Page 5 /
UK UK exc London England England exc London Northern Ireland Scotland Wales London South East South West East Midlands North of England Salary Tables The following tables show median salaries (35 pro-rata) across different regions, in different retail chain sizes, for various roles. Where cells are blank, we did not receive the minimum number of responses to be able to provide the median salary. Salaries by region Position nd Level 38,39 38,05 9,4 9,4 - - - 45,350-30,555 - - 9,633 3 rd Level 4,500 4,500 3,7 3,7 3,54 - - 3,800 3,567 9,3 8,7 9,098,783 3 rd Level (=>0 shops) 8,933 8,933,867,867 - - - 9,67 3,567 - - - 8,86 3 rd Level (<0 shops) 4,033 4,033 3,567 3,567 - - - 4,500,07 - - - 4,033 Shop 6,065 5,97 5,868 5,867 8,60 6,553 5,400 9,000 5,688 7,39 5,790 5,857 5,540 Assistant Shop 4,58 4,45 4,33 4,5 5,769-3,937 6,87 4,933 4,96 4,33 4,58 3,393 Sales Assistant 3,77 3,34 3,88 3,88 - - - 5,406 3,04-4,03-3,04 Collection / Warehouse Staff 4,770 4,668 4,668 4,668 8,875-4,363 7,73 4,335 3,90 5,6 4,735 4,339 Sample ranged from # to # charities: UK = 8 to 69, UK excluding London = 8 to 68, England = to 45, England excluding London = to 44, Northern Ireland and Scotland =, Wales = to 4, London = to, South East = to, South West = to 5, East = to 4, Midlands = to 5, North of England = to 3. UK average, max and min Position Min Average exc London Average Max nd Level 0,530 38,043 38,05 53,897 3 rd Level 3,650 5,458 5,483 36,837 3 rd Level (=>0 shops) 5,74 7,48 7,470 36,837 3 rd Level (<0 shops) 3,650,8,8 3,000 Shop 3,04 6,395 6,477,96 Assistant Shop,35 4,33 4,390 8,000 Sales Assistant 0,500 3,398 3,448 4,854 Collection / Warehouse Staff 0,99 4,9 4,95 3,750 8,60 Northern Ireland 6,553 5,400 Shop salaries, by region 9,000 5,688 7,39 5,790 5,857 5,540 Scotland Wales London South East South West East Midlands North of England Page 6 /
UK by retail chain size Position Hospices Very Small Small Medium Large Very Large nd Level 30,333 3,689 9,877 35,334 48,749 47,583 3 rd Level 3,567 3,567 4,67 4,80 34,348 3,796 3 rd Level (=>0 shops),447-4,67 4,80 34,348 3,796 3 rd Level (<0 shops) 5,00 4,033 - - - - Shop 5,939 5,867 5,56 6,7 7,79 6,36 Assistant Shop 4,45 4,073 4,879 4,05 4,5 4,655 Sales Assistant 3,738 3,3 3,406 3,436 3,36 3,93 Collection / Warehouse Staff 4,786 4,636 4,668 5,5 4,088 4,795 Sample ranged # charities: nd Level = 4, 3 rd Level = 47, 3 rd Level (=>0 shops) = 9, 3 rd Level (<0 shops) = 8, Shop = 69, Assistant Shop = 5, Sales Assistant = 6, Collection/Warehouse Staff = 47. UK (excluding London) by retail chain size Position Hospices Very Small Small Medium Large Very Large nd Level 30,333 3,689 9,877 35,334 48,749 47,583 3 rd Level 3,567 3,567 4,67 4,67 34,348 3,68 3 rd Level (=>0 shops),447-4,67 4,67 34,348 3,68 3 rd Level (<0 shops) 5,00 4,033 - - - - Shop 5,939 5,867 5,56 5,867 5,867 5,867 Assistant Shop 4,45 3,949 4,879 4,40 4,5 4,44 Sales Assistant 3,738 3,3 3,406 3,436 3,39 3,8 Collection / Warehouse Staff 4,786 4,636 4,668 5,5 4,088 4,569 Sample ranged # charities: nd Level = 4, 3 rd Level = 47, 3 rd Level (=>0 shops) = 9, 3 rd Level (<0 shops) = 8, Shop = 68, Assistant Shop = 50, Sales Assistant = 6, Collection/Warehouse Staff = 47. Matched sample - comparison of average salaries per hour between 05 and 06 UK excluding London UK including London Position 05 06 % change 05 06 % change nd Level 4. 6.3 8% 6. 6.7 % 3rd Level 4.7 5.4 4% 4.5 5.7 8% 3rd Level (=>0 shops) 5.5 6.0 3% 5. 6.0 6% 3rd Level (<0 shops) 3. 3.4 % 3. 3.4 % Shop 8.6 8.8 % 8.7 9.0 4% Assistant Shop 7.4 7.9 7% 7.5 8. 8% Sales Assistant 6.9 7. 5% 7.0 7. 4% Collection / Warehouse Staff 7.7 8.0 4% 7.7 8. 6% Sample ranged # charities: UK excluding London: nd Level = 4, 3 rd Level = 0, 3 rd Level (=>0 shops) = 6, 3 rd Level (<0 shops) = 4, Shop = 30, Assistant Shop = 6, Sales Assistant =, Collection/Warehouse Staff = 3. UK including London: nd Level = 8, 3 rd Level =, 3 rd Level (=>0 shops) = 8, 3 rd Level (<0 shops) = 4, Shop = 3, Assistant Shop = 7, Sales Assistant = 3, Collection/Warehouse Staff = 5. Page 7 /
Earnings have outpaced inflation in all shop level roles (the Consumer Prices Index rose by 0.6% in the year to August 06 ). Impact of the introduction of the new National Living Wage From October 05 the National Minimum Wage for and overs rose by 3% (from 6.50 to 6.70 per hour; i.e., 0p increase) 3. From April 06, the government introduced a new mandatory National Living Wage for workers aged 5 and above, set at 7.0 per hour; i.e., a rise of 7.5% (50p) relative to the adult rate of National Minimum Wage. The National Living Wage will likely exceed 9.00 per hour by 00. The CRA produced a full briefing paper on this changes in 005 which you can read here. In 05 s survey, the new National Living Wage featured heavily in the comments on budgeted salary increases; so in 06 s survey, the CRA asked our members about the implications that the introduction of the new National Living Wage is having for their organisations. 59 charities, representing 3,88 shops, responded to this survey section. Accredited Living Wage Employers are committed to pay at least the Living Wage on a voluntary basis to all staff aged 8 and older. Calculated by the Living Wage Foundation, the current Living Wage is 8.5 per hour across the UK and 9.40 per hour in London 4. As the level of the Living Wage is higher than that of the National Living Wage, it would initially appear that the reforms will have no current impact upon Accredited Living Wage Employers. Only 7% of respondents are Accredited Living Wage Employers; however, 30% are budgeting to commit to pay the Living Wage. Three members also mentioned that they are committed to pay the Living Wage but have not sought accreditation. Yes, ALWE before the introduction of the NLW, 4% Are you an Accredited Living Wage Employer (ALWE)? No ALWE but budgeting to commit to this, 30% Yes, ALWE after the introduction of the NLW, 3% No ALWE and do not intend to commit to this 53% Sample = 59 charities (H = 6, VS = 3, S = 0, M =, L =, VL = 5) We also informed our members that the Living Wage is calculated to reach a minimal acceptable once all work benefits are claimed; and that if these are cut, the level of the Living Wage may increase. Out of the ten charities that are Accredited Living Wage Employers, five charities are aware of this eventuality but only two of them have set aside funds to cover it, and the other five charities did not specify. ONS: UK consumer price inflation: August 06 - Consumer Prices Index 3 Gov.uk: National Minimum Wage 4 Living Wage Foundation: Living Wage calculation Page 8 /
39 members that are not Accredited Living Wage Employers commented on the financial impact of the introduction of the new National Living Wage in April 06 to their charity: 59% said that the introduction of the new National Living Wage has not have any financial impact for their charity, because they already pay their retail employees aged 5 and above an average salary that is equal or above the new National Living Wage. 36% mentioned that they have faced increased costs. Half of these charities also provided information on the level of wage bill increase consequent to the introduction of the new National Living Wage; which on average rose by 3.5%, and ranged between 0.% to 9.5% increase. Our members commented: [Employees in] higher levels had more of an increase to reduce distortion of wage differential caused by living wage, very small charity. We were already implementing a new salary structure which was going to see an increase in our total budget of approximately 500k. However, we had to increase the bottom of our salary scales to bring in line with the NLW, so we did see an increase [in costs] because of this, but this was part of a wider organisational review of reward, very large charity. Nine charities told us about the tactics that they are using to offset the new costs arisen in 06 from the introduction of the new National Living Wage. Out of these: - Four charities are hiring fewer retail employees; - Three charities have reduced the number of hours worked by their retail employees; - One member has reduced the number of retail staff; and - Two respondents have increased their prices to pass over the cost of higher wages to customers. A medium charity said: We are looking to offset [the] cost by bringing pricing in line with competitors, being more commercial in stores to drive better stores, and expanding the retail portfolio to generate new revenue streams. - Other tactics to offset the new costs arisen included: increasing the volunteer base to address staffing shortfalls, re-evaluating retail roles and salaries, and considering the adoption of new trading formats. Related comments from our members were: Where we have future staffing shortfalls we would have a preference for filling these rolls with voluntary roles or providing placements the opportunity to work with us from other organisations, very small charity. We have not actively reduced any numbers of paid staff; however, in line with good practice, we are continuing to review all vacancies and analysing salary costs and income when making any decisions on replacing staff. We are continuing to increase our volunteer base and increase the overall number of hours each shop receives from volunteers. This will offset against any loss in staffing numbers, very large charity. We have recently conducted a total re-evaluation of our roles and salaries to ensure that they meet requirements and are planning to revaluate shop staff salaries again this year, medium charity. Page 9 /
[We have] changed job descriptions - increased responsibility given to shop staff, medium charity. [We are] closely looking at restructure and potential job losses. [We are in] acceptance that the profits will fall as this cost is uncontrollable, medium charity. [We are] moving to larger more profitable shops and closing the smaller shops which do not have significant income, or changing them to clearance shops and retaining [them] as long as they have a reasonable income, medium charity. [We are] looking at new trading formats, large charity. 8% of respondents estimated a profit reduction in 06 due to the introduction of the new National Living Wage. Nine of these members provided information on the estimated profit reduction; which on average decreased by 9.%, and ranged between % to 0% decrease. 0% of respondents said that the introduction of the new National Living Wage has resulted in other consequences such as the need to restructure their workforce and remove their bonus scheme. Planned budget adjustments for salaries 49 charities in the sample responded to our question: What is the percentage adjustment for salaries that you are budgeting for at the next increase? (Excluding performance related adjustments). 0 Planned budget adjustment for salaries 6 3 6 Most of the charities have budgeted a salary increase that is between over 0% and %. Both the average and median budget adjustment for very small and large charities is.0%; and for very large charities is.8%. Planned budget adjustment (median) Hospices.0% Very Small.0% Small.3% Medium.0% Large.0% Very Large.8% Sample: 49 charities (H = 8, VS =, S =, M = 7, L =, VL = 6) The average budget adjustment for medium charities is 3.8%; whilst the median is.0%. Of the ten charities who are not planning any budget adjustment, half of them already pay employees aged 5 and above an average salary that is equal or above the new National Living Wage, one member is currently going through a job evaluation process which might result in budget adjustments in the upcoming months, and the other charities did not specify. Providing higher contribution to pension scheme, the increase of the National Minimum Wage in October 06 (i.e., 3.7% increase to 6.95 an hour for to 4 year olds, and 4.7% increase to 5.55 an hour for 8 to 0 year olds 5 ) and the cost of living (the Retail Prices Index -month rate for August 06 stood at.8% 6 ), featured in the comments on budgeted salary increases. 5 Gov.uk: The Government accepts minimum wage rate recommendations 6 ONS: UK consumer price inflation: August 06 - Retail Prices Index Page 0 /
Wage setting criteria The majority of charities had the same starting salaries across their shops for Shop s (6%) and Assistant Shop s (65%). Smaller chains were more likely to use this criteria, whilst larger charities were more likely to set their salaries by the performance of the shop. Wage setting criteria for Shop Manages Wage setting criteria for Shop Manages, by chain size By region/area, % Multiple 9% Other criteria 5% Very Large Large 4 Same across the board 6% By shop performance 3% By shop turnover 9% By shop profit 4% Medium Small Very Small Hospices 7 5 3 8 6 Same across the board Multiple By shop turnover By region/area Other criteria By shop profit Same across the board Multiple By shop performance By region/area Other criteria Wage setting criteria for Assistant Shop Manages Wage setting criteria for Assistant Shop s, by chain size By region/area % Same across the board 65% Multiple 6% Other criteria, 0% By shop performance 7% By shop turnover % By shop profit 6% Very Large Large Medium Small Very Small Hospices 7 8 7 4 4 5 Same across the board Multiple By shop turnover By region/area Other criteria By shop profit Same across the board Multiple By shop performance By region/area Other criteria The two large charities that responded gave two different criteria to set Sales Assistants salaries; whilst the majority of charities of other sizes had the same starting salaries across their shops. Wage setting criteria for Sales Assistant Wage setting criteria for Sales Assistants, by chain size Other criteria, 4% Multiple, 3% By region/area, 4% By shop turnover, 3% Same across the board 76% Very Large Large Medium Small Very Small 4 3 9 5 Hospices 7 3 Same across the board Multiple By shop turnover By region/area Other criteria By shop profit Same across the board Multiple By shop performance By region/area Other criteria Page /
A strategy to attract high calibre candidates that was mentioned by smaller charities was to set retail employee salaries higher than the average salaries. Related members comments were: [We] recently appointed [the] first paid manager salary set at a level to ensure that we recruited someone with experience and an excellent track record in the retail charity sector. [We] pay a higher salary than average and this was a conscious decision when starting our retail operations in 05, to attract higher calibre of candidates. We went with a top end salary because we were opening our first shop in [a location] where there were already 3 charity shops. Self-employed collection staff 7 charities, representing 5,038 shops, provided information about self-employed collection staff. 37% of respondents do not have collection staff. Out of the 45 charities (63%) that have collection staff, only four charities (9%) said that they use self-employed collection staff. Two of these charities pay their self-employed collection staff an hourly rate, and the other two members pay them per number of sacks delivered (on average, 0.3 per sack). Employee contract terms and benefits Typical contracted hours per week Hours Top Level nd Level 3 rd Level Shop Assistant Shop Sales Assistant Collection/ Warehouse Staff Min 7 3 3 6 7 6 Average 35 36 36 35 7 5 34 Max 4 40 40 4 4 43 40 Sample # charities: Top Level = 5, nd Level = 5, 3 rd Level = 43, Shop = 67, Assistant Shop = 49, Sales Assistant = 8, Collection/Warehouse Staff = 44. Holiday entitlement (excluding bank holidays) Days Top Level nd Level 3 rd Level Shop Assistant Shop Sales Assistant Collection/ Warehouse Staff Min 0 0 0 0 0 0 0 Average 6 6 5 5 5 4 5 Max 3 30 30 30 30 8 30 Sample # charities: Top Level = 5, nd Level = 6, 3 rd Level = 43, Shop = 64, Assistant Shop = 47, Sales Assistant = 8, Collection/Warehouse Staff = 45. One charity told us they increase holiday entitlement with length of service. Page /
Notice period Weeks Top Level nd Level 3 rd Level Shop Assistant Shop Sales Assistant Collection/ Warehouse Staff Min 4 4 4 4 4 Average 8 6 4 4 4 4 Max 3 3 8 8 8 Sample # charities: Top Level = 50, nd Level = 4, 3 rd Level = 43, Shop = 66, Assistant Shop = 45, Sales Assistant = 7, Collection/Warehouse Staff = 44. Two charities told us that notice periods increase with length of service for certain roles. Additional employee benefits Out of the 7 charities that provided information on additional employee benefits, 65% offered additional benefits to their employees. The majority (66%) provided a pension scheme that was above the minimum contribution necessary. Over half of the charities (5%) provided a pension contribution of 5% or over. Other popular benefits included childcare vouchers (57%) and death in service (5%). These additional benefits were also heavily featured in 05 s survey. The proportion of charities offering a private medical insurance has increased, from 9% in 05, to 5% this year; whilst only % of charities provided higher rates for Sundays and bank holidays in 06, compared to 3% in 05. Additional employee benefits Life insurance Private medical insurance Death in service Childcare vouchers Sabbatical leave HIgher rates for Sundays and Bank Holidays Higher than minimum contribution to pension scheme 5% or over 0% or over Other % 6% 5% % 7% 8% 5% 5% 57% 66% (Please note that these comparisons are not from a matched sample) 33% of respondents offered additional employee benefits not listed in the chart above, including: - Additional annual leave purchase scheme - Enhanced maternity pay - Employee assistance line; i.e., a confidential service to support any employee issues, including both work-related and personal issues - Health Cash Plan - Cycle to work scheme - Car lease scheme - Discounts such as 5% staff discount, discounted complementary therapies (massage, acupuncture, etc.), and discounted gym membership Page 3 /
Turnover, retention and absence Definitions Retention The proportion of current employees who have worked for the organisation for a year or more. Turnover (crude and voluntary) The number of employees who have left the organisation in the last year out of the total number of current employees. Crude includes all leavers whereas voluntary indicates resignations only. Absence rate The proportion of work days lost in the last year due to absence. This does not include holiday entitlement. Median average employee rates Retention Rate Crude Turnover Rate Voluntary Absence Rate All shop employees 83.3% 4.8% 4.3%.9% Shop s 85.% 4.8%.8%.8% Since 05, retail employee retention rate has increased to 83.3% from 8.7% in 05; whilst Shop retention rate has decreased by.5 percentage points (from 86.7% to 85.%). 5% of charities reported 00% employee retention rate, and 9% reported 00% Shop retention rate. Retail employee turnover rate was 4.8%; i.e.,. percentage points lower than in 05. As in previous years, the majority of this staff turnover was attributed to employees leaving voluntarily (4.3% in 06 and.5% in 05). 9% of charities reported 0% retail employee turnover rate. Shop turnover rate has slightly increased, from 4.3% in 05 to 4.8% in 06 s survey. 5% of charities reported 0% Shop turnover rate. Retail staff absence rate has increased to.9% from.7%, and Shop absence rate is 0.5 percentage point higher since 05. Please note that these comparisons are not form a matched sample. Page 4 /
England Northern Ireland Wales London South East South West East Midlands North of England Median Shop turnover by region The following table shows the Shop turnover (crude) for the different regions in the UK. All shop employees Shop s.8% 7.4% 8.3% 5.8% 6.7%.8% 6.7% 33.3% 8.4% 4.3%.7% 7.0%.% 6.4%.9% 8.3%.% 7.% Sample # charities: all shop employees: England = 4, Northern Ireland =3, Wales = 4, London = 3, South East = 0, South West = 5, East = 3, Midlands = 5, North of England =. Shop s: England = 39, Northern Ireland =, Wales = 4, London = 3, South East = 0, South West = 4, East = 3, Midlands = 5, North of England =. We did not receive sufficient data to report on Scotland. The highest retail employee turnover rate was found in the Midlands at 33.3%; whilst the lowest was found in the East at 6.7%. The highest Shop turnover rate was found in Wales at 7%, and the lowest in the South West at.9%. Page 5 /
Recruitment Average staff recruitment costs Roles Count Min Average Max Cost as a % of average salary Min Average Max Top Level 6 300 3,09 8,000 % 6% 8% nd Level 7 0 86 3,675 0% 3% 0% 3 rd Level 4 0 838 5,355 0% 3% 9% Shop 3 0 377 3,50 0% % 9% Other Shop Staff 0 58,000 0% % 6% Warehouse/Collection Staff 4 9 433,000 0% % 4% Office Staff 4 0 383,000 - - - 37 charities, representing,58 shops, told us how much they spent on recruitment over the last year. On average, 47 per shop was spent on recruitment including the whole retail team (i.e., from Top Level s to office staff). In 05, 430 per shop was spent on recruitment; therefore, charities have reduced their recruitment costs by 66% per shop over the last twelve months. Overall, compared to 05 s survey results, our members spent less throughout the year on higher level managerial staff recruitment; whilst the average recruitment costs for shop and warehouse/collection staff have risen: nd Level average recruitment costs have decreased by 8% compared to 05 (from 4,43 per role filled in 05, to 86 per role filled in 06). Office staff and 3 rd Level average recruitment costs have also decreased by 59% and 6% respectively. The amount spent on Top Level recruitment remains unchanged since 05. Warehouse/collection staff recruitment costs have increased by 79% compared to 05 (from 4 to 433 per role filled). The average amount spent on recruitment per role filled for Shop and other shop staff this year is also higher compared to the costs reported in 05; i.e., 3% and 3% higher respectively. Three members also told us that they have minimised their recruitment costs by filling up their vacant and new roles through word of mouth recommendations and referrals. Over the last year, our members reported that they had on average recruited for 0.7 roles per shop; when in 05 they had on average recruited for 0.5 roles per shop. Please note that these comparisons are not form a matched sample. Page 6 /
National Press Local Press Industry Press Recruitment Agencies Charity Retail Association Job Centre Own Website Internet (other) Window (own) Methods of staff recruitment used and effectiveness Charities told us which methods of recruitment they had used in the last year, and how effective they rated the method out of 5 (0 = not effective at all, 5 = excellent). We asked the charities to consider response rate and quality of candidates when assessing effectiveness. Where a method was not used by any charities, the cell has been left blank. Roles Top Level.7 3. 3.0 4.0 4.5.5.6.9 3.0 nd Level 3.0.0.0.0 3.3.0.6 4..0 3 rd Level 3.0.0.0 3.3 3.0.8 3.0 3.4.3 Shop.0 3..0.8 4.8.4 3.4 3.9 3. Other Shop Staff.0 3.3.5.9 3.6 4. 3.8 Office Staff.5 3.0.0 3.6 3.7.5 Warehouse/Collection Staff 3.3.0.8.9 3.3 3.3 The most effective method of recruitment for Top Level s was via the Charity Retail Association and recruitment agencies. To recruit nd and 3 rd Level s, internet (job boards) followed by the Charity Retail Association s website were rated best. The Charity Retail Association s website and internet were also the most effective methods to recruit Shop s; whist other shop staff was most successfully recruited via internet, the shop s window, and the charity s own website. Office staff recruitment was found more successful if done online, either through the charity s own website or through other job advertising websites. Advertising in the local press, internet or the shop s window were equally successful to recruit warehouse/collection staff. On average, 8.5% of current retail employees had previously been volunteers with the organisation, compared to 3.8% in 05. Charities with twenty shops or fewer have a higher proportion of retail employees that had previously been volunteers (.4% on average), than charities with or more shops (.9% on average). Page 7 /
Thank you! You have assessed our recruitment page as the most effective place to advertise your Top and Shop jobs. Not advertising with us yet? Then put your job in front of those who are actively looking for work in the charity retail sector by placing an advert on the Charity Retail Association website. Members can advertise for as little as 00 (with discounts for multiple orders). The advantages your advert will be: Read by your target audience in the Charity Retail Sector Featured on our website for 4 weeks Circulated weekly to people who have specifically requested new job details Mentioned on our Facebook page / Twitter account Interested? Contact: Sarah on 00 7697 4080 or email: sarah@charityretail.org.uk Visit the recruitment page: Charity Retail Association Jobs Page 8 /
Training Average staff training costs Roles Count Min Average Max Cost as a % of average salary Min Average Max Top Level 3 0 453,000 % % 4% nd Level 4 0 80,500 0% % 3% 3 rd Level 4 0 47,800 0% % 6% Shop 0 40 666 0% % 4% Other Shop Staff 9 0 60 30 0% % % Warehouse/Collection Staff 0 7 500 0% % 3% Office Staff 5 0 76 55 - - - 43 charities, representing,879 shops, told us how much they spent on training over the last year. On average, 85 per shop was spent on retail staff training including the whole retail team (i.e., from Top Level s to office staff). These members also told us about the types of training they provide to their retail employees. The training offered to both higher level managerial staff and shop staff included: Training about the charity Health and safety / asbestos awareness First aid Equality and diversity Safeguarding Gift Aid compliance Data protection Customer services Visual merchandising Additional training offered to higher level managerial staff included: Persuading / influencing / leadership / management skills. A small charity mentioned that they also provide the opportunity to nd Level s to get the IML Level 5 qualification. E-commerce / online selling Attendance to retail operations meetings and to the Charity Retail Conference Additional training offered to Shop s included: Volunteer / staff management Manual handling Tills PAT testing Computer skills (Microsoft Office / Outlook) Social media Pricing Attendance to regular management meetings and to the Charity Retail Conference Page 9 /
Diversity 6 charities, representing 4,77 shops, told us about diversity amongst their paid retail staff. Paid retail staff tended to be 4-65 years old, female, not from an ethnic minority and not disabled. This is consistent with 05 s survey results. Paid staff gender diversity 6% Age diversity 7% Ethnic minorities Registered Disabled 5% 77% 3% % 66% % Female Male 5 and under 6-40 4-65 65 and over Using the 0 Census, we can compare charity retail employee profiles to the profile of the population. This is shown in the graph below. Since 05, retail staff diversity has seen the proportion of 5 and under year olds and 65+ year olds stay the same. The proportion of 6 to 40 years old staff has decreased by five percentage points (from 6% to %); whilst the proportion of 4 to 65 year olds has increased by four percentage points (from 6% to 66%). Population profile versus profile of paid staff in charity retail 5 and under 6-40 4-65 65 and over Male Female 6% 6% 7% % 4% 0% 3% 40% 49% 5% 66% 77% There has been a slight increase in the proportion of retail employees from ethnic minorities (from % to 5%) and a slight decrease in the proportion of retail staff that are registered disabled (from 3% to %). Ethnic minority Registered disabled 5% 8% % 3% 06 Census 0 Members of varying retail chain sizes told us about specific actions their charity is taking to increase diversity in their retail teams: Employee diversity actions: Collecting and monitoring diversity data from new employees Having an equal opportunities policy in place Training hiring staff on equality and diversity Participating in schemes like the Two Ticks (guaranteeing interviews for disabled people) Page 0 /
Related members comments included: We have a pro-active approach to recruiting blind and disabled volunteers and paid staff. Braille touch screen tills and deaf/blind communicators are used to facilitate this, very small charity. We have a Diversity working group at the Hospice which staff can volunteer to attend. The group focuses on our diverse workforce, how we reach out to our diverse community, and how we educate our current employees on diversity, very small charity. All applications, [for] employment or volunteering, have a valuing diversity policy and record sheet with it. As an organisation we welcome anyone regardless of heritage or disability, being a leading disability charity in our region, very small charity. We have a Two Ticks policy: whereby anyone who classes themselves as disabled and fulfils the minimum criteria for the role will be guaranteed an interview, small charity. [Our] website provides contact numbers and [an] email address to support applications. We advertise in our shop windows encouraging interested persons to speak to our team. [We support diversity by] leading by example; promoting from within where skills are developed and recognised, small charity. All [our] interview Q's include diversity questions so that this can be recorded and monitored, medium charity. We make clear statements on [our] website about being an equal opportunities employer and specifically welcoming applications from disabled people. We are a Two Ticks employer which means [that] we guarantee interviews for disabled people who meet our essential criteria. We advertise on general job boards (i.e., Job Centre Plus) which is a neutral site. We are a member of the Business Disability Forum, and have used their Disability Standard to develop our practice across all business functions, from recruitment and retention to communications and facilities management, large charity. Three members said that they are not taking any specific action to either increase or decrease workplace diversity. Our sincere thanks to the charities who participated in the Salaries 06 Survey, without which these reports are not possible. Page /