Employee going self employed

[bruc123]

I own a salon and one of my staff is wanying to ho self employed and has asked if i would allow her to rent a chair from me instead of her leaving her yo go elsewere... i have agreed to it and said as i would help her as we all start somewere and shes been loyal to me.. has anyone else had this before and has it went well?

 

[Anna from Toronto]

I own a salon and one of my staff is wanying to ho self employed and has asked if i would allow her to rent a chair from me instead of her leaving her yo go elsewere... i have agreed to it and said as i would help her as we all start somewere and shes been loyal to me.. has anyone else had this before and has it went well?

I'm not a fan of "self employed" people in the salon. Many times it's not even legal. What bothers me that the self employed person/renter can do whatever they want and you will not have control over quality or style of work, products used, hours they are working etc. Basically they are becoming your competition then.
Why is she wanting to be self employed?

 

[Beckybee]

She has proberly calculated how much she makes for you, compared what you pay her and thought, I would like some of that...

She's built up clients from your shop, will she now keep those clients?

My view is, she cannot lose, you've built up her business and now she want to take charge and take most of the money.

If you replace her, will you instantly get the same amount of clients she has already? I doubt it.

She will gain, you will lose out, simples.

will her chair rental cost,be the same as what she now makes for you?

Personally I think you are being too soft.

 

[beccascottx]

whaaaat! no way! She probably wouldn't have those clients if it wasnt for the reputation of your business and for your salon! You will be paying overheads for her to swan in and do as she likes, it's horrible I used to have a self employed girl who would go out for about 100 cigs a day, and would only come in for her clients meaning I had no-one to cover reception alot of the time if she didnt have someone in, if I asked her if she didnt mind covering reception she would be like "well no, i'm not gonna just work for free?" Making an employee self employed usually means that you lose all control of everything and they give themselves different rules to all other staff.. it causes so many problems trust me! Also I used to always have problems getting the money for the chair off her, and found that she was using alot of the salons products that I was paying for, her husband was in and out all day & she was giving her family and friends freebies in my shop using my time(i couldn't lock up until she had finished-sometimes 8pm), water and electricity and there was nothing i could do about it!
I'd never do it again, more trouble than it's worth! xo

 

[Debbsxo]

I think you need to look at this from a purely business point of view and do the calculations to make sure that you both benefit and not just her.

Ask yourself the following questions:

• How much rental could you feasibly charge her to make it worth your while (and would she pay this amount)
• Is she going to bring in any new business or would your clients that she currently does stay with her (and presumably move with her if she eventually left)
• How long do you realistically think she would stay (taking into account the fact that she's already looked at moving)
• What would you lose financially if she did leave

On the plus side, she knows how you work & should stick to the same rules and standards (make sure her contract says this specifically).

Perhaps you could look at a percentage instead of a fixed rental - & if she's not happy with this suggest it in the short term? After all, if she's going to be servicing the clients found within your business in the first place, then they are the Intellectual Property of you and your business - therefore you should get a cut.

I wouldn't totally dismiss the idea as I firmly believe in better the devil you know, but you need to make sure that it worth financially for you and your business and not just for her.

HTH
Debbs xo

 

[hazelb]

an outsiders point of view:

When I go to a hairdressers, I have never known if my stylist is self employed or employed. I will choose a hairdressers for its /convenience / location and reputation.

If I think the service I get is good I will go back and ask for that stylist again.
If it's an ok cut, I'll just go for a stylist that is available on the day I want.
I can't be alone in this.

What do you lose if she leaves? Maybe some clients will follow her, personally I would prob just change stylist.

How busy is she? Do many people ask for her by name? Run a few numbers and see the comparisons.

You would save on her staff costs, but it may be tricky working out how to allocate new clients or how she keeps her products separate.

 

[Anna from Toronto]

I don't think taking percentage is a good idea. It always leads to problems. I don't think the person can be legally self employed if you are taking a percentage on ongoing bases. I don't know how the rules are in UK but here it depends what Revenue Canada sees is what goes. It doesn't matter what the contract is and what I sign. The more control you have over the person and their business the more this can be employer/employee situation.
If you control the schedule, opening hours, products used, days off and the person works with you on ongoing bases- then you are an employer.

Independent contractor

In reality independent contractor person would do occasional jobs for you. For example: we do manicures, pedicures and brows. I have a wedding to do and I'm servicing 8 people. They all also want lashes. So I hire self employed person (independent contractor) for the day, she brings her tools, she does the job, she gets paid (she invoices me), I pay her, she leaves.


Booth renter

You rent a space inside of your salon for a set amount of money. You are just a landlord now. The person comes and goes as they please, they have the key, they charge the client, they take care of their taxes, ideally they have their phone number, they buy their products and set their prices.
This is a totally seperate business operating inside your location. That's all.

You see, you can't have your cake and eat it too. You can't expect your tentant do your reception and if you think that they should, the lines are too blurred.
If I rent an appartament I have a contract and rules to follow, yes, but the landlord cannot tell me when to come home and what do wear.
You can't have help (in form of reception) but not have any responsibility like you would for an employee.
If you want to have an employee then you have to pay their vacation pay, holiday pay, pay at least minumum wage for all the time they are available for you and all their deductions