Business guru: Drive down pub-boss salaries
Executive recruitment consultant Nigel Sapsed has called for tougher performance targets to protect jobs in the pub trade.
Sapsed, who advises many of today’s pubcos and brewers, has criticised pub bosses for putting up with poor unit performance.
“Every pub must pay its way and every executive must be made to perform,” he said.
Sapsed hailed the “traffic light” system employed by Whitbread.
This highlights areas where targets are not being met and ensures immediate action is taken.
“When a senior manager sees a lot of amber and red over his performance targets, he or she feels motivated to go away and do something straight away.”
Sapsed added: “For too long, senior management has tolerated unprofitable pubs so long as the whole estate is making money.
“This attitude is contributing to job losses and pub closures across the industry and must stop.
“In the vast majority of cases, pubs that are under-performing can be turned round. Often, it boils down to poor service standards or lazy management.”
Sapsed also urged pubcos to drive down salaries of executives such as operations directors and area managers.
“How can you motivate someone who can collect a salary regardless of the performance that they deliver.
"They should be on lower salaries, with a system of generous bonuses to reward genuine performance,” he said.
Sapsed added: “This is the best way to protect the livelihoods of publicans and their staff in today’s troubled times.”
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