You are the HR manager for ABC Retail, an independent retail company exclusively located in St. Louis, Missouri. The company has ten stores and considers its primary competitors Target and Kohl's.
The company's market share in this area was 17.8% in 2011. They are a non-union organization and believe that their customers are the key to success, followed by their customer service provided by their carefully selected associates. The strategic goal for ABC Retail is to increase its market share in the St. Louis area to 20% by 2015.
For the purpose of the assignment, each store has the following staffing:
- One store manager
- Three assistant store mangers
- Seventeen department managers
- Twenty-four shift leaders
- One hundred and seventy associates
- Each store has a total of 215 employees when fully staffed
Turnover for management positions were 10%, shift leaders 25%, and associates 30% for 2011. Currently, pay for these positions was rated as "average" by management, "average to below average" by shift managers, and "below average" by associates based on a employee pay survey conducted in June 2012.
You have been tasked to develop a competitive pay policy for ABC Retail by senior management to support the strategic goal to increase its market share to 20% in the St. Louis area by 2015.