Pay structure implementation advice

[DavinKarinSalon]

I have a pay structure I wish to offer my skilled stylists above 8+ years and scale it down for those between 3-5.

I want to post my pay scale and ask for professional business owner's opinions on how/if it will work. Also give advice on what I should change or consider changing if anything.
Please keep in mind we are expected open Oct 1 2015 and still under construction. Also the major factor here is, we are in Yuma, AZ where the median income is under $30k and the average education here is HS diploma.

We are independently owned and operated and an exclusive Bumble and Bumble retail salon in Yuma and will only retail Bumble. We only use Pravana for color. Our salon is top of the line and we spared no expenses in putting together a successful place for our stylists to make money. Freestyle hair dryers, (6) 40"x80" full length mirrors and stations, amazing sound system, brand new equipment, brand new furniture, MindBody software, Mac computers, reclaimed wood and iron fixtures, literally beautiful salon.

Here is my pay structure for 8+ year stylists:

•Hair Designer Position (Part-Time)
•32 hours per week (approx)

Compensation
•Paid Weekly
•Commission with Draw
•$8.50 per hour draw
(Commission scale for Services)
47% Commission $0-$1000.00/week
52% Commission $1001-$1500/week
57% Commission $1501-$2000/week
65% Commission >$2001/week
(Commission for Retail)
•7% Commission on Retail products

*commission is not retroactive
**(Other Bonuses and Spiffs offered at Manager's discretion periodically for prebooking ratios, educational benchmarks, retention percentages, etc)

 

[surf girl]

What does draw mean?

 

[DavinKarinSalon]

What does draw mean?

A draw is a pay plan where you make your hourly wage first. If you commission exceeds you hourly wage weekly then you pay back your hourly wage and make anything above the hourly wage. Essentially it's 100% commission with an hourly guarantee. If your commissions do not exceed your hourly wage then you make the hourly wage.

If your commissions in a week equate to $450.00 and your hourly equates to 400.00, then you make $50.00 for the week.

So after reading what I just wrote I don't think this will work. That's more of a sales pay structure where you could potentially make $1000.00-$4000.00 per sale. This would offset an hourly wage/draw with much less impact.

So maybe I should remove the term "draw" and simply offer an hourly wage & commission and the stylist would get whichever is highest at the close of pay period.

 

[surf girl]

Or maybe just a set hourly wage & then a commission amount when over a certain amount of services sold..

I.e if stylist takes over £1000 they make 10% of that on top of their wage

Not suggesting 10% is a go to figure for £1000 of services (there are threads on here that can be more help with that figure tho, use the search function to find them)

What is the regular way of doing this in the country your from? I know some countries have to do tax on every service etc, are there rules like that?

In the UK we just have & wage and commission on top then we pay tax @ 20% on the whole amount out of the pay check before the employee gets it.