Nordstrom employees, particularly those working on the sales floor, are primarily compensated through a commission-based pay structure. This means their earnings are directly tied to the total value of the sales they generate.
Understanding the Commission Model
Under this system, a significant portion of an employee's income comes from a percentage of the sales they successfully complete. This model is designed to incentivize sales performance and customer engagement.
- Direct Earning Potential: The more sales an employee makes, the higher their potential earnings. This creates a direct link between individual effort and financial reward.
- Performance-Driven Compensation: Unlike a fixed hourly wage or salary, the commission model encourages employees to be proactive in assisting customers and closing sales.
Impact on the Sales Floor Dynamics
The commission-based system can significantly influence the working environment and employee interactions within Nordstrom stores.
- Competitive Atmosphere: This compensation structure often fosters a highly competitive atmosphere among floor associates. Employees are motivated to secure customer interactions and sales before their colleagues do.
- Aggressive Customer Engagement: Sales staff may actively and assertively approach customers, particularly in departments featuring high-priced merchandise, with the goal of "hooking" a customer and earning the associated commission. This drive can sometimes lead to an intense, competitive atmosphere among the sales team.
- Focus on High-Value Sales: Employees may prioritize assisting customers interested in more expensive items, as these sales yield higher commission amounts.
Key Aspects of Nordstrom Employee Compensation
To summarize the unique aspects of the Nordstrom pay structure for sales associates:
| Aspect | Description |
|---|---|
| Primary Pay Method | Commission on sales made by the individual employee. |
| Earning Basis | A percentage of the total dollar amount of goods sold. |
| Work Environment | Can be characterized by intense competition among sales associates striving to maximize their sales. |
| Sales Strategy | Employees often proactively seek out customers, especially in pricey departments, to secure sales. |
