Do you know what you should be taking into consideration when you‘re looking at hiring and implementing pay structures at your salon? We interviewed Trish Ross, owner of award-winning salon Ross & Co Hair Design and salon coach at First Class Services, where she shared strategies for pay structures, team communication and how to boost retail sales in your salon or spa.
Do you know what you should be taking into consideration when you’re looking at hiring and implementing pay structures at your salon?
We interviewed Trish Ross, owner of award-winning salon Ross & Co Hair Design and founder and salon coach at First Class Services, where she shared her tips for creating an engaged team and navigating conversations around pay rises in the hair and beauty industry.
Keep reading to learn the strategies around how much she decides to pay a senior stylist and what she uses to communicate with her team to reduce stress, boost retail sales, and create a great culture.
1. What should salons consider when hiring staff?
Discussing the need to hire staff can be an uncomfortable topic, but it’s essential for the growth and sustainability of your salon. Recognising when to bring in new team members is crucial, especially as existing staff members perform at higher levels and you need additional support.
Tracking key performance indicators (KPIs) is vital in this process, as it provides a clear picture of staff performance. This data helps you understand employee engagement, identify high performers who may need more support, or notice when a low performer might be considering leaving.
Where to advertise for new salon staff
Finding the right place to advertise for new staff is a common challenge in our industry. A great starting point is within your existing team, consider offering a referral fee for employees if they refer someone who is then hired. This approach often works well, as your team members are likely to recommend individuals who fit the salon’s culture.
Another effective strategy is to use social media platforms. Showcase your salon’s culture and environment to attract potential employees. Highlighting what a typical day looks like in your salon can help potential candidates visualise themselves as part of your team.
Preparing for the interview process
When preparing for interviews, focus on asking insightful questions that reveal the candidate’s attitude and potential fit with your team. For example, asking “How do you deal with complaints?” can give you a quick insight into how they handle stress and challenging situations. Which helps you understand their problem-solving skills and overall attitude.
Implementing a trial hire procedure for new stylists
A trial hire process is an invaluable part of the hiring process. While it can be uncomfortable to part ways with an employee who isn’t a good fit, holding on to someone who doesn’t contribute positively to the team can be detrimental to your salon.
A trial period allows both the employer and the employee to assess the suitability of the working relationship. This period helps ensure that new hires align with the salon’s values and can meet the demands of the role, ultimately protecting the business’s interests and maintaining a positive team dynamic. Just be sure to meet employment laws.
2. How much should you pay a stylist?
One of the most discussed topics in social media forums is the going rate for a senior stylist. While there’s no one-size-fits-all answer, it’s crucial to thoroughly analyse your finances before setting pay rates.
Offering a high hourly rate may seem attractive, but if your salon’s income doesn’t support it, it can create a toxic work environment. Therefore, it’s essential to establish a clear payment structure for all levels of staff, including senior, junior, and intermediate stylists. This structure ensures you are paying fairly and sustainably, avoiding the pitfalls of underpaying or overpaying.
Establishing your salon’s payment structure
A well-designed payment or commission structure can make discussing compensation with your staff straightforward and transparent.
By meeting with your staff monthly to review their performance and clarify expectations, you create a clear understanding of what is required to earn certain wages or commissions.
This transparency helps your team know exactly what they need to achieve, such as the number of home hair care units to sell, the rebooking rate to maintain, and the daily revenue targets to hit.
There are various payment structures common in the hair and beauty industry. Some salons use a fixed hourly rate with occasional pay raises, typically requested by employees every six to twelve months.
However, a more manageable and motivating approach may be to implement a commission structure. This can include a lower base rate complemented by achievable commission goals. Such a system not only incentivises staff but also aligns their earnings with their performance.
Communicating staff wages with confidence
Approaching wage discussions with confidence involves regular communication and clear expectations. The first step is to schedule monthly meetings with each staff member to discuss their current performance and pay structure.
The second step is to ensure they fully understand the performance metrics that influence their pay, such as retail sales, rebooking rates, and daily revenue contributions. This clarity empowers your staff to meet and exceed their targets, fostering a motivated and engaged team.
3. How can you motivate stylists to sell retail?
Many stylists feel awkward offering retail products, believing it might come off as pushy. However, studies show that 90% of clients actually want advice and recommendations from their stylists. This means they are waiting for you to suggest the right products!
Some team members might still think that selling retail is too aggressive, but salons with strong retail sales often have a more loyal clientele. To motivate your team, consider hosting a mini-education session. Focusing on the most popular retail items, discuss their benefits, and practice recommending them.
Another effective strategy is to implement a financial incentive or tailored rewards for those who excel in retail sales. Sharing retail sales results during weekly team meetings can also be motivating. When team members see the results, even those who aren’t currently selling much will often be inspired to improve their performance, when their results are being read aloud every week.
Additionally, you can shift your team’s mindset by asking if they’d feel comfortable using supermarket shampoos and styling products on their clients. This can help them understand that clients want to use high-quality products at home, just like those used in the salon.
Tracking retail sales progress
Tracking retail sales progress is crucial for a successful salon business. The Kitomba Targets feature is particularly useful for this purpose. It allows you to isolate and monitor each key performance indicator (KPI) relevant to your business, such as retail sales.
Using tools like Kitomba Targets makes it easier to have meaningful conversations with your team about the positive and negative outcomes of high or low figures. Keeping a close eye on these numbers helps ensure your business stays on track and continues to grow.
Learn tips for setting targets for your team.
By implementing clear communication and structured payment systems, you can foster a positive and productive salon environment. Remember, regular discussions about performance and pay help maintain transparency and confidence, ensuring your team knows exactly what is expected of them.
With these strategies in place, your salon can thrive, offering both excellent service to clients and a fulfilling work environment for your staff.
Learn more about Trish Ross here.
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