What should I include in a pay and benefits package?

Q: Business has increased at my store to the point where I need to hire a full-time clerk/salesperson. With the labor market so tight, what sort of pay and benefits should I offer to be competitive and attract a quality employee?

A: The Michigan Retailers Association's recent survey has established the first-ever benchmark for retail wages and benefits in Michigan.

The survey shows that the median salary for full-time retail clerks/salespeople is $15,000 to $20,000 per year, with some variation between regions of the state. That's without commissions or bonuses. Less than 30 percent of clerks receive commissions, but many receive bonuses, usually less than $1,000 annually.

One of the easiest and least costly benefits to offer is an employee discount on merchandise sold in the store. Almost all retailers offer such a discount, most frequently in the range of 11-25 percent, but often as high as 50 percent.

Paid vacation time is the next most common benefit, with more than 70 percent of retailers providing time off for full-time clerks/salespeople, typically one to two weeks. A majority of retailers also offer health insurance to employees.

If you really want to stand out from the crowd, consider offering less common perks like dental insurance or a 401(k) retirement savings plan. MRA's survey shows that few retail clerks receive such benefits.

The complete report on MRA's inaugural retail compensation survey, including statewide and regional data for seven employee classifications, is available for $75 to MRA members and $150 to non-members. To order, contact Retha Lachance at 800.366.3699 or rlachance@retailers.com.