How is the NMW and NLW effecting your salon?
The reputation of the hair and beauty industry has always been that stylists and therapists get paid a low wage. According to recent figures released by NHF (National Hairdressers Federation) this does not appear to be the case anymore.
Has the National Living Wage effected your business?
With the hourly wage rising again in April 2017 for all age groups including apprentices, this could see some salons having to cut back by reducing staff hours, staff being laid off or even some salons having to close their doors.
How can you avoid the struggle of increased wages year on year?
Monitor your wage % every single month. The wage % for each team member should be no higher than 50%. If it is higher than 50% it is costing you more to keep them on board than to let them go for what they are bringing into your salon.
Salons appear to be holding off on recruiting a number of apprentices at once, and instead utilising the younger stylists that are still growing their column.
Regular 1 2 1’s with each team member on a monthly basis (sometimes more frequent, depending on performance) will help hugely. We all get a little complacent at times and simply need a kick up the bum, some acknowledgement of our efforts in areas that we are doing well in or some guidance to help us improve in areas we are not hitting target on.
However letting complacency go too far, may then be difficult to claw back any hard work that had previously been given.