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hhgregg, Inc. Message Board

  • the_late_great_polyester_pete the_late_great_polyester_pete Feb 11, 2009 4:36 PM Flag

    Good Companies Cheat Employees in Tough Times

    Well.. I heard from a buddy today that HHGregg is lowering his commission rates. For a company posting gains and supposedly doing so well.. growing and supposedly building new stores with cash and not credit (opening 15 stores this year)(company officers claim to be "virtually debtfree"), it seems a little nasty, trite, and cruel, in this econony, to be dropping the commission rates on their employees. "Leverage" is definitely the word. With job prospects drying up, I suppose they figure they can get away with it.. and they probably will. Starts in March from what I hear. Circuit City's demise began with screwing with their sales staff. (Actually, historically, quite a few companies in this industry have arrived at the "beginning of their ends" by screwing over of their respective sales staffs). All in all, HHGregg has dropped their employees commissions about 4 times in the last 5 years (definitely not keeping with inflation, oddly enough, the longer one stays at HHGregg, as a commissioned employee, the less pay one receives.) They claim to have the most professional and well trained sales staff in the country.. It's a shame they do not intend to pay commensurately. Ironically, the manditory 200 or so hours of training HHgregg requires their sales employees to attend are also unpaid hours (how would you like 5 unpaid workweeks a year). I guess, in the short term, it means better cashflow not to pay employees what they are worth, but eventually, I would think, and maybe soon, company management will hit a threshold whereby quality sales staff will begin to make career choices that do not include a future at HHGregg.

    Anyway, long story short, I told him this might be better than just being fired. He said they already did that 4 weeks ago with about 400 people companywide. At least if he was fired, he says, he could accept being paid less somewhere else. He said this is worse, everytime he sells something, he'll be thinking about what it used to pay him.. and now what it actually pays him.. it's like being fired a little bit daily. I'm thinking maybe the company's bottom line isn't as rosy as they claim it to be??

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Is that all you got shorty?

      LL

    • No cheating. Just sell instead of "clerk". and as for this quote=
      "All in all, HHGregg has dropped their employees commissions about 4 times in the last 5 years (definitely not keeping with inflation, oddly enough, the longer one stays at HHGregg, as a commissioned employee, the less pay one receives.)"

      This is incorrect and a lie. Get the facts straight before spewing numbers.

      Also- do not forget to add something valuable about this stock and not "employee complaints"

      HHG is not perfect but they are growing when no one else is. WHY? Because they are not debt strapped.......

      Good luck to your "buddy" hope he learns how to "sell".

    • Yeah they started paying the sales person .5% less on volume and 2% more on profit. As well as 3% volume on open box items as opposed to the 1% of the past. What a bunch of jerks, they actually want the sales people to sell with more profit and offer an incentive to do so. What are they thinking.

    • Well at least you understand your position. Unless it is your company (in ownership) then it is your responsibility to work for the company in the capacity you've been hired for. You sell to create revenue and the rest of the company hopefully takes a good chunk of that down to the bottom line to make some profit.

      Your employer - if you're speaking of an actual person - a boss, has the job of trying to get you to do a better job of selling.

      What's wrong with that?

    • Retail is all about selling. Sales people make the difference. Keep them happy and fulfilled and you will succeed. Start your budget cuts with them you you will end up like Circuit City. I just sold all 2600 shares of HGG today.

      • 2 Replies to millionairerooster
      • Keep salesmen happy and all is well. What poppycock. It is the entire workforce that needs to feel involved in a successful venture not just one segment. For as soon as management shows favoritism to one segment of their workforce resentment sets in with other segments and you end up with at least one part of the organization uninvolved. I can hear the dock worker say it now, "Let those high priced jerk of a sales force we have do my job and see if it works around here."

        For those that just cannot feel as though they contribute to the enterprise it would better for both parties for them to "seek oportunities elsewhere."

        How did this forum turn into a treatise on work force relationships? I thought it was to be on the merits or the lack thereof of HHGregg stock, not even the company but the stock of HHGregg..

      • HH Gregg is a high cost model, which is a very vulnerable concept in todays value oriented economy.

    • I think your buddy needs to talk to a lawyer, and get some "pay back".

      (sorry for the pun)

      • 1 Reply to offensive_is_my_name
      • Yes, they lowered commission, but the decrease isn't as bad as you make it out to be. It equals out to be about $30 a week. This is easy to overcome, just wait on a few more customers a week. We make are own paychecks. It is a numbers game, the more people you help the more you make, that simple. There are plenty of times when sales people take themselves off the floor. They go watch tv, have a smoke, or go to the warehouse to talk on their cell. So like I said the difference in pay is easy to over come. It still sucks that we have to do this, but it is better than the alternative, closing stores. Yes the company is doing well right now, but that can change at any time. Maybe the company did this so they can keep growing and openning doors for it's people to grow with them.
        The bigger we become, the bigger slice of pie we will get.

 
HGG
5.49-0.19(-3.35%)Jan 30 4:04 PMEST

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