Latest news with #teamleaders
The Independent
2 days ago
- Business
- The Independent
‘Another kick in the teeth': Avon sellers are walking away after huge commission cuts
Avon is facing growing anger from its legion of sellers after cutting commission rates in a move that some workers say has wiped out more than two-thirds of their income. Changes to pay structures, which affect thousands of representatives across the UK, have been introduced alongside shifting targets and reduced incentives – leaving many reps feeling misled, and prompting some to walk away from the company altogether. The cosmetics and homeware brand, known for its historic door-to-door model, has long relied on a network of representatives to sell products across the UK. But many of those reps now say they're being forced to leave, unable to make the numbers work. The Independent has seen internal company emails that appear to downplay the impact of the changes. One message claimed earnings in a particular category would fall by 'two to three per cent' – but in fact this referred to a drop of up to three percentage points, which in some cases equates to a real-terms loss of 33 per cent. For example, team leaders previously earned between 7.5 and 9 per cent commission from the sales of those in their team. That has now been cut to between 5 and 6.5 per cent. Coordinators saw similar reductions, with earnings in some cases dropping by as much as 40 per cent. Commissions slashed One of the most contentious changes relates to Avon's fashion and home category, which accounts for around 15 per cent of its UK sales. Commissions in this area have been capped at 10 per cent, down from a previous maximum of 32 per cent – a cut of more than two-thirds (68.75 per cent) for top-tier earners. The company said the change was due to 'continued rising manufacturing and supply costs'. Elsewhere, most sellers are estimated to earn between 20 and 25 per cent commission for product sales, with the starting rate at 10 per cent. But it's not just commission rates that have shifted. Sellers say the entire earnings structure is becoming harder to navigate, particularly under the company's multi-level marketing (MLM) model, which rewards both direct sales and team recruitment. More sellers, less money Under Avon's tiered system – from bronze to VIP – reps can move up the ranks based on performance and monthly sales. Some also earn a cut of sales from those they recruit, up to three levels down. There are further bonuses available for 'leaders', though these depend on hitting personal sales targets and maintaining a team of at least five active sellers. One estimate shared with this publication suggests that, under the new structure, a VIP-tier seller would need to recruit around 60 new reps just to match their income from the previous year. Several Avon workers, speaking on condition of anonymity, said they felt left in the dark about changes, with little clear communication from management and frequent shifts in expectations. Some said they had built teams and invested time training others, only to watch their earnings shrink. One added that sellers are now forced to choose between working significantly more to stand still — or walking away altogether. That loss, in turn, affects the income of those who recruited them, compounding the pressure across the network. Hidden costs and unpaid roles New starters must sell at least £100 worth of goods in their first quarter to qualify for commission. The Independent has heard reports of both new and returning workers being denied payments, sometimes without explanation. Meanwhile, some reps say they've been asked to take on roles as 'training ambassadors' – coaching new recruits, at times without realising the work is unpaid. Avon's public messaging also appears inconsistent. On its website, the company promises prospective reps: 'If you sell £400 a month you'll earn about £100.' But a disclaimer further down the page warns: 'It is illegal to promote or participate in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join… Do not be misled that high earnings are easily achieved.' The note adds that earnings are based on 2023 actuals and depend on 'criteria achievement'. On social media, dissatisfaction is spilling out. One Facebook group for reps is reportedly moderated by Avon, with sellers claiming that posts critical of the company are blocked. A separate, public group paints a starker picture, with posts ranging from deflated to furious. One seller described the latest cuts as 'another kick in the teeth', having already stepped down from a senior role. Another said their team had halved over the past year despite regular recruitment. Multiple posters cited shrinking pay, burnout and a decision to walk away altogether. Others detailed the cumulative impact of smaller changes. One source said that over just six months, Avon had removed rewards, raised brochure prices, increased minimum spend thresholds for free delivery, hiked the handling fee, changed the returns credit process, and cut commissions — all without adequate support. That seller has since left the business. Alongside earnings cuts, some sellers say they were hit with unexpected bills due to technical issues over the new year period. In at least one case, legal action is believed to be under way, with the seller claiming they had already paid for goods Avon was attempting to bill for. Avon, which was bought by Brazilian parent company Natura in 2019 for around £1.6bn, said: 'Avon has a proud 138-year history of providing flexible earning opportunities to all. 'We have recently changed our commission structure for Sales Leaders to better reward those who are proactively growing their independent Avon businesses. Representatives are paid commission on the volume of product sales and are rewarded fairly and transparently.'
News.com.au
20-05-2025
- Business
- News.com.au
‘Emphasis on office attendance': NAB changes WFH policy
National Australia Bank is increasing the number of days staff are expected in the office. Most employees will need to increase from two to three days a week, while team leaders are required to make an appearance in person four days a week instead of three. The most senior leaders at NAB are already required in the office five days a week. It is a move the Finance Sector Union has slammed as 'completely unnecessary'. In an internal memo announcing the new rules last week, seen by the Australian Financial Review, the bank's group executive of people and culture Sarah White said the company was building towards an 'office-based working model,' according to the publication. The email stated NAB's current 'ways of working are evolving' as the bank aims to bolster the number of hours staff work in the office since Covid-19 lockdowns. Ms White told in a statement the changes would happen 'later in the year' and NAB would consult with employees before implementing the push for more office time. 'We continue to evolve our ways of working to foster an engaging work environment that is fair and flexible for colleagues and good for customers,' Ms White said. 'NAB is implementing an increased emphasis on office attendance because it supports collaboration, teamwork and problem solving for customers.' Ms White claimed the bank was 'taking an approach that ensures flexibility and supports all colleagues to respond to personal-life circumstances'. 'NAB is commencing a period of consultation with colleagues prior to the implementation, and we are committed to listening to, and considering, colleague feedback regarding our ways of working before any changes come into effect,' she said. The Finance Sector Union (FSU) has labelled the change to working from home as 'completely unnecessary,' highlighting that it came only a week after the bank revealed a $3.5 billion half year cash profit. 'These profits prove we can (and do) deliver results no matter where we work,' the union argued. The FSU has written an open letter to NAB CEO Andrew Irvine strongly opposing the increase in mandatory office attendance. The letter said any move to scale back flexible working in 2025 was 'regressive'. It highlighted concerns for workers' mental health and morale, those employees with family and caring responsibilities, and the financial pressure some may face with the added cost of commuting. FSU national president Wendy Streets told The Australian 'a lot of members' said they would quit. ANZ and Commonwealth Bank require staff to spend half their work time in the office, while Westpac's policy is at least two to three days a week in the office. Earlier this year, launched The Great Aussie Debate, a wide-ranging, 50 question survey that has uncovered what Australians really think about all the hot topics of 2025. Over two weeks, more than 54,000 Australians took part in the survey, revealing their thoughts on everything from the cost of living and homeownership, to electric vehicles and going shoeless in supermarkets. From the survey, it was clear the majority of Aussies prefer a hybrid approach to work, where possible, with 61.59 per cent favouring between 1-4 days at home. The most popular response was 1-2 days at home at week, with a further 21.11 per cent preferring 3-4 days working remotely. Of the respondents, 28.77 per cent believe full time office work is best. However, there was an interesting detail in the statistics. The age group most likely to choose this option have hit retirement age. More than half (51.18 per cent) of the 70+ group want people in the office five days a week.
