Wages problem

[Clair78]

Hi Geeks

I know there have been numerous posts about staff wages but I would like to double check what other people are paying their staff as I seem to be having a lot of problems at the moment with regards to wages.

I own a small 3 chair hair salon and my pay structure is as follows:
No matter the age, qualification's or experience I pay a flat basic minimum wage then I offer a commission structure hit a £500 target get 5%, £750 get 10%, hit 1000 get 15%.
I have recently had someone leave which I think has upset the balance and made everyone uneasy and now other staff are questioning wages.

I just wanted your opinions from both business owners and team members as to what you guys do/get and see if im way off with what im paying? I don't think I am but then again I don't know.
Im a good boss and am always being flexible with hours and understanding when children are ill etc, I offer incentives for staff and pay 10% retail com.

HELP!!!

Clair

 

[sallysally]

Hi Geeks

I know there have been numerous posts about staff wages but I would like to double check what other people are paying their staff as I seem to be having a lot of problems at the moment with regards to wages.

I own a small 3 chair hair salon and my pay structure is as follows:
No matter the age, qualification's or experience I pay a flat basic minimum wage then I offer a commission structure hit a £500 target get 5%, £750 get 10%, hit 1000 get 15%.
I have recently had someone leave which I think has upset the balance and made everyone uneasy and now other staff are questioning wages.

I just wanted your opinions from both business owners and team members as to what you guys do/get and see if im way off with what im paying? I don't think I am but then again I don't know.
Im a good boss and am always being flexible with hours and understanding when children are ill etc, I offer incentives for staff and pay 10% retail com.

HELP!!!

Clair

Hi Clair,

Are the targets achievable ? As many years ago I left a beauty Salon as I was on exactly the same pay structure...but the targets were completely un achievable so it was the owners way of keeping wage costs down as she would never have to pay out..

Also do you think more experienced staff should be rewarded with a higher hourly rate as they are bringing more expertise to the work place?

Do also remember though that hairdressers and beauty salons can be very gossipy with employees and when someone leaves everyone always speculates why they left etc.....

Xx

 

[surf girl]

Are we talking mnw? As in £6.50 an hour? & then the week if they take £500 in sales of service they get 5% of the £500? Do they actually reach £500 in sales?

 

[daydreams01]

I do a similar thing based on NMW per hour to give them their basic monthly wage. Added to that is 10% on takings above 1.5 x their basic and also just introduced 20% on takings above 2.5 x their basic, plus 10% on any retail sold. There hasn't been a month yet since I introduced it where the 1st target has not been reached.
From what I have heard, some of the larger chain salons make the target 3x their basic which seems a bit steep for someone just starting out without a big clientele yet but maybe their hourly rate is higher. I think as long as the targets are realistic for your salon then don't worry, but you can't pay them more if their not bringing it in!

 

[Zooks]

Just bumping this. I currently do 3.5 Their wages and when they hit target they get 10% of whatever they earn over target. I feel this is slightly unachievable and am looking a to change.

Debating doing it weekly instead of monthly, dropping the target and instead of making it a percentage of whatever they earn over target just making it a flat fee. It'd be simpler for me to figure out and more of an incentive for them if they can hit it!

 

[daydreams01]

I do a similar thing based on NMW per hour to give them their basic monthly wage. Added to that is 10% on takings above 1.5 x their basic and also just introduced 20% on takings above 2.5 x their basic, plus 10% on any retail sold. There hasn't been a month yet since I introduced it where the 1st target has not been reached.
From what I have heard, some of the larger chain salons make the target 3x their basic which seems a bit steep for someone just starting out without a big clientele yet but maybe their hourly rate is higher. I think as long as the targets are realistic for your salon then don't worry, but you can't pay them more if their not bringing it in!

Yeah for me 3.5xwages would have been unachievable for a new business which I think then ends up demotivating staff as if they don't get close, they think what's the point in trying. so I went with 1.5 = 10% and also introduced a 2.5 with 20%. So far my stylist has hit the 1.5 every month but not quite the 2.5 although I don't think it will be long as she gets busier over the Xmas months. Would love to pay more but I don't pay myself the min.wage yet so not really possible!

 

[Zooks]

Yeah for me 3.5xwages would have been unachievable for a new business which I think then ends up demotivating staff as if they don't get close, they think what's the point in trying. so I went with 1.5 = 10% and also introduced a 2.5 with 20%. So far my stylist has hit the 1.5 every month but not quite the 2.5 although I don't think it will be long as she gets busier over the Xmas months. Would love to pay more but I don't pay myself the min.wage yet so not really possible!

Do you include retail and treatments lumped in together?

I'm definitely going to change it, just not entirely sure what to.

 

[daydreams01]

Do you include retail and treatments lumped in together?

I'm definitely going to change it, just not entirely sure what to.

I have a separate one for retail 10% on everything but tbh we r both so bad at retailing products, I try but I'm just happy to get them rebooking their next hair appts, really hate it when people try to sell me products so I don't want to appear pushy or make people uncomfortable as I know it would put me off going somewhere!

 

[squidgernetball]

I pay 5% on every treatment done without targets. This is because I want them to work. I want them to try and win clients over and get them to rebook. If there is no incentive or an unachievable incentive, there is no incentive to rebook clients. You may as well book them in with anyone.

This was also an opportunity to increase wages directly with the amount of money generated by the therapist.

I also do 10% on retail with no targets.

Vic x

 

[AcidPerm]

Personally, I believe that you need to focus on getting the right balance when recruiting staff.
A mix of experienced and junior staff rather than all on the same level. (I also prefer a mix of male/female staff as it helps neutralise excessive behaviours from either sex.)

The senior experienced staff set the tone for the Salon and influence the junior staff on how to interact with clients and colleagues in a professional manner as well as providing a mentoring opportunity.

Therefore, the pay needs to reflect this in order to recruit and retain the best staff you can.

I expect very few well qualified and experienced staff would consider applying for a position in a Salon on NMW, let alone be persuaded to help mentor new staff if their starting pay was the same. Imagine how demotivating that would be after all their years of training and building up their knowledge and confidence.

 

[chery19]

Just bumping this. I currently do 3.5 Their wages and when they hit target they get 10% of whatever they earn over target. I feel this is slightly unachievable and am looking a to change.

Debating doing it weekly instead of monthly, dropping the target and instead of making it a percentage of whatever they earn over target just making it a flat fee. It'd be simpler for me to figure out and more of an incentive for them if they can hit it!

Hi Zooks,

I'm just wondering how you got on with your pay structure? Did you introduce a flat rate? X