Tesco's US venture has begun recruiting for its Fresh & Easy Neighborhood stores - but experts have warned the retailer it may need to offer more generous terms to attract the right calibre of people. Tesco is offering entry- level workers in California $10 (£5) an hour, with a quarterly bonus of up to 10%. It will also contribute at least 75% of the cost of "affordable healthcare" and all part-time workers will be offered at least 20 hours a week of work. The hourly rate exceeds entry-level positions in the unionised grocery trade, which start at $7.75 an hour. But the package offered little incentive to attract good-quality workers, said David Livingston, managing partner at analysts DJL Research. "I think Tesco will find itself struggling to get the quality of employees it's after at $10," he said. "California is an expensive place to live and other grocers offer more. Wal-Mart has an average hourly pay of $10.50. And the small format Trader Joe's, which is really successful at recruiting, offers more than double that." Another retail analyst, Mike Griswold from AMR Research, said he believed Tesco would get employees in the door, but warned that there could be difficulties with retention. "Part-time turnover in the US can run at 100% and is very costly." Fresh & Easy chief marketing officer Simon Uwins said the terms on offer were part of a trial to ensure the retailer pitched its rewards package correctly.

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