Car Dealer magazine announced that they have been inundated with calls from furious sales staff who have not been paid properly under the furlough scheme.
It is understood that some dealerships are withholding commissions earned in March. By taking such action this has clearly unsettled many employees and has many implications in terms of loyalty and future engagement of their sales teams.
Some dealerships are refusing to include commissions when calculating furlough payments, even though government advice that it should be. Dealerships are relying on the clause in contracts stating that commission is ‘discretionary’. Whilst this may be the case, they should also consider whether it is custom and practice, especially for employees who have been employed for many years and haven’t had contracts updated for a long period of time.
Mel Stead, Managing Director of Optimal People & Business Services says “We have seen a significant increase in the number of Car Sales Executives registering with our recruitment agency over the last few weeks and many have expressed their disappointment in the way these dealerships have treated them. Long term, this will have a significant impact on dealerships both from a brand and an employee engagement perspective. Whilst the automotive industry has been impacted immensely due to lockdown, making costs savings like this can only be detrimental to the business”
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