Sears - Employee Relations

Employee Relations

Sears has struggled with employee relations. One notable example was the shift in 1992 from an hourly wage based on longevity to a base wage (usually anywhere from $3.50 to $6 per hour) and commissions ranging from 1% to 11%. This new base wage, often constituting a substantial (up to 40%) cut in pay, was done "to be successful in this highly competitive environment."

In early October 2007 Sears cut commission rates for employees in select departments to anywhere from 1% to 4% but equalized the base wage across all Home Improvement and Electronics departments. In 2011 commission rates on non base items were cut by 2% in the electronics department. This cut was furthered in late 2009 to a 1% commission rate on selected "base items" in the electronics departments of Stores. Appliances, vacuums, and mattresses are the only departments left where wages are based solely on commission sales. The jewelry department associates receive a low base salary with 1% commission on their sales. This model does not apply to all stores. Many stores now simply pay an hourly wage in the fine jewelry department, with no sales-based commission. In early 2008 Sears also converted Lands' End from commission to a straight hourly wage. Stores that feature a 'Lands' End Shop' are based on an hourly wage and a 3% commission on all catalog/internet sales placed from within their store. Associates receive an associate discount. 20% off on clothing, shoes, and jewelry. They also receive 10% off on everything else in the store, including Great Price items. Any associate orders done through the Lands' End Internal site receive 30% off with the associates paying a $6 fee for shipping and handling of any size order.

The domain sears.com attracted at least 240 million visitors annually by 2011 according to a Compete.com survey. Sears saw profits drop 13% during the fourth quarter of 2010 but still has total assets of $26.05 billion as of the first quarter of 2011.