If you run or manage a hairdressing salon then I wonder if you have encountered problems motivating your team at one time or another? It is a problem that I have had and one which prompted me to get creative and think of business systems that I could implement to get my stylists revved up again.I turned to business books and courses in an effort to find some of the best ways to keep my people producing great results.
Money is always a good motivator but how can we pay more if the salons income doesn’t increase? The answer is by taking less wage ourselves or by making cutbacks on services in the salon, neither of these are good ideas I am sure you will agree?
So we need to bring more income in so that we can increase wages and hopefully create a happy motivated team. There are only 2 ways that we can do this.
Charge more or do more, or maybe a bit of both. Charging more is a huge subject which will be covered in another article at a later date. Today we are going to concern ourselves with doing more.
Create a commission scheme – commission paid on income is probably the most obvious way of increasing wages but how much should we pay? If your salon is vat registered the maximum commission you can afford to pay and still cover your bills and make a profit is around 35%. If you have a computer system which I highly recommend then you can look over the stylists last year of takings and work out once you have taken into account the vat whether or not the stylist would be any better off being paid 35% commission. If the answer is yes then its an easy fix. If you have decided to go ahead with the scheme you could call a meeting and explain to the team that they will be paid either their regular wage or the 35% commission which ever is the greater. This in itself should motivate them to bring in more income by working harder or staying later to do those end of the day clients.
Retail commission – If you have any retail products in your salon such as Paul Mitchell, Tigi, GHD OR Cloud 9 then you can afford to give your team 10% commission on sales, once you’ve taken the vat off of course!Hairstylists tend to have their favourite products so lets say the stylist loves Paul Mitchell Super Skinny Serum and uses it on a lot of clients, when doing the clients hair the stylist could explain what they are using and the benefits of the product and then when the client see’s the finished result they may want to purchase the product for take home so creating a commission for the stylist,a profit for the salon and a happy client who can now reproduce the look at home. So everyone wins and now the stylist has an ongoing way to increase wages.
Extra holidays for hitting targets – This is a great way to encourage your team and as some people value their time over money it widens the appeal to your team. You could set performance targets over the month and if the stylist hits the goals then they could be given say an extra day off a month. The targets should be reasonable and achievable but obviously not too easy. You will need a way to measure performance and this can be done manually but a computer system would really come in handy for this motivational technique.
Promotion – If you have different levels and prices available for your clients then you can introduce a promotional criteria so that they can move up through the ranks and earn more money. One system would be to monitor the number of clients attended by the stylist weekly, the average bill for each client and whether the clients had requested the stylist. These 3 criteria should be tracked over 3 months and if the targets set are achieved then the stylist would be ready for promotion to the next level so improving moral, giving a cause for celebration and enabling the stylist to earn more money.
A competition in salon for stylists is another way to improve performance. One such idea would be to offer a prize such as an iPad or a short break away to the person that produced the best results. To make it fair you should consider how busy each stylist is before the competition is started and work out a system that would be reasonable and achievable such as a 20% increase in takings. The extra money brought in should cover the cost of the prize and raise the bar in the salon for future incentives.
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