RG - Furnishings Salary Survey
Annual Salary Survey
Home Furnishings - May 2024
Summary
Our research has looked at the actual salaries being paid to candidates who have registered with us in the last year and the salaries offered to candidates hired through us. We also track salaries attached to advertised roles and the salaries offered to candidates moving to new roles, but not through us.
As in previous years, salaries are affected by supply and demand within the labour pool and there have been some exceptional salaries offered to key people by businesses that choose to make a big investment to someone who is expected to make an exceptional contribution.
Sales Representatives have been hard hit in recent years as their sales revenue often looks small compared to the account managers that deal with major multiples. Where some suppliers had previously reduced the number of regionally based Sales Representatives they employ, either asking the remainder to cover a larger area or moving to self-employed sales agents in low turnover areas, in the last 2 years, we have seen a significant increase in the recruitment of sales reps – largely led by an increased consumer interest in the independents led by COVID and suppliers realising the impact of having fewer ‘boots on the ground’.
We can all understand the pinch felt by someone who sees no increase in basic income, targets that are difficult to attain and the cost of living increasing around them. It won’t surprise you to hear that this type of individual will be looking at job advertisements and calling recruitment consultants.
Sales Representatives:
(Managing a regional sales territory as part of a sales team and generally report to a Sales Manager).
Sales Representatives were paid basic salaries of £35,000 - £55,000 with an average of £42,000 plus company car or car allowance.
The large variations we noticed here on basic salary were often marked by whether the candidates we retail, or contract/specification sales focused, with the contract market generally being at the higher end of salary scale.
All will have bonus or commission packages in addition to this with bonuses ranging from 15% - 25% or commission rates anywhere from 1% - 5% of territory sales, paid either monthly, quarterly or annually and often a combination of these periods.
Key Account Managers / National Account Executives:
(Managing a portfolio of key accounts or they may support a National Account Manager in the day to day management of larger accounts).
The range we experienced was basic salaries of £40,000 - £48,000 with an average of £44,000 which is an increase on last year. The average bonus available was 10% of salary and was paid quarterly or annually and the position, although not always, often comes with a car or car allowance included in the package. The lower end of this band has increased recently as several employers are tempting existing key account managers to move for improved pay.
National Account Managers:
(Managing a portfolio of national customers, usually reports to a Director).
National Account Managers in our survey have been paid basic salaries of between £50,000 - £65,000, with an average of £56,000. They generally have the potential to earn bonus of 10% - 25% of basic salary plus company car or car allowance. The wide range of salaries is largely as a result of sales value, as NAMs can be responsible for anywhere from £4m to £30m+ of sales, depending on the product category. At a higher level you would expect a NAM to have a broad skills base to include supply chain management, trade marketing, terms negotiation and an extensive network of key industry buyers.
A NAM at a smaller organisation that is fighting for listings may otherwise be called a Business Development Manager and receive an average basic salary of £48,000 with a larger commission incentive plus company car or car allowance.
As a generalisation, NAM’s seek to move upwards to improve the status of their customer portfolio or to a bigger brand or to create a better work / life balance (i.e. have a head office or customers that are closer to their home).
National/Field Sales Managers:
(With responsibility for a national team of employed sales representatives and/or self employed Sales Agents together with some key customers. Usually reporting to a Director).
There has been an increase in recruitment in this area in the last year and our sample is twice the size of last year.
The salary range was £55,000 - £70,000 with the average being £60,000 plus company car or car allowance. Bonuses ranged from 10% - 30% of basic salary.
Sales Directors:
(Fully accountable for UK and sometimes international sales. P&L responsible and managing the entire sales team whilst often also retaining high level contact with some key customers. Reports to the Managing Director/Chief Executive Officer).
The survey revealed basic salaries in the range of £85,000 - £140,000, with the average being £115,000 plus company car or car allowance. Bonuses at this level are often directly linked to profitability and share options are not uncommon as part of the salary package.
Marketing:
Depending on the size of company, Marketing Managers will either be solely responsible for the company’s marketing activities or in larger organisations be responsible for managing a marketing team. Salaries varied from £50,000 - £75,000 depending on the level of responsibility as above.
Remuneration packages will often include company car or allowances and have a bonus built in that reflects company performance and/or budget achievement. Marketing Directors can usually expect salaries in the range of £75,000 - £120,000+ with similar benefits and have board level responsibility for all marketing and product development.
Product Managers:
(Along with Product Development Managers has seen an increase in recruitment as more companies strive to maintain competitiveness in the market).
They will be paid £38,000 - £60,000, depending on their level of experience and responsibility, and will seldom receive a car or car allowance. They may have a bonus built in that reflects company performance.
Benefits:
In addition to basic salaries, bonus, company car/allowances stated above we have found that benefits packages are increasingly important to candidates. For example, it is now the norm for a minimum of 23 days (and most commonly 25 days) annual leave to be offered as part of a package and is often difficult to attract candidates where less than this is offered. Equally, private health and pension contributions are proving to be important to candidates when considering a move.
Whilst many of the roles that we recruit have always been home/field based, post pandemic we have noticed that candidates are increasingly placing importance on the opportunity of hybrid working models, for those roles that would have been fully office based prior to the pandemic. We recognise that there is a desire from employers to get their office-based staff back in the office more often, however, we have noticed that an employer who insists on full time office-based work is often less likely to be the first choice for most job seekers in today’s job market.