You could continue training apprentices and give them the option to rent a chair by the hour and provide them with the freedom to rent from other salons if they wanted to. Doing so will create a flow of revenue as competition with other salons and turnover would be irrelevant. It would eliminate the hostage syndrome that the clients, salon owners and beauty professionals feel.
When Beauty Professionals are free to rent from other like-minded salons, it eliminates competition and creates a constant revenue stream.
Stop wasting time and energy explaining how business works to retain staff, or worse, arguing with them over pennies when the flat rate for the hour is more profitable for everyone.
Introduce the opportunity to purchase their client list and rent a chair in your space by the hour. This does 10 very important things:
1. It opens up the dialogue (a fearless conversation) about what the company has provided as value thus far and also gets their thoughts onto the table at this point. You will discover what they truly want, either continue as an employee or freelance.
2. If they choose to rent a chair by the hour in your salon, you both win as the company can still profit while the employee stays or has a chance to move on ethically without loosing half of their clients.
3. If more like minded salons adopt this idea, there would be infinite quality tenants because they are coming from similar cultures and mindsets. This would help solve the turnover crisis in our industry.
4. The salon owner wins because the hourly rent is more than what they would actually profit from an employee when you factor in any payroll taxes, administrative work or benefits if any…
5. The employee wins because they can earn more and do not feel capped. They have complete autonomy over their career and schedule which is exactly what most are looking for yet they can still work as part of a team.
6. The client wins because prices can be more manageable without leaving the salon owner and stylist at a loss. Pricing today is not sustainable for salon owners and stylists who want to earn beyond $45 per hour when you compare it to the cost of servicing your vehicle.
7. Any artist renting a chair cannot assume ownership of the chair as it is based by the hour and not monthly. There is no contract or lease. The salon chair can be utilized for more than the traditional 8 hours so the rent may seem lower at first, but if the hours are maximized, it would prove to be more profitable than a traditional chair rental.
8. It is an opportunity for artists leaving on maternity to get back on a very part time basis at the convenience of their schedule so they can remain in contact with clients.
9. If an established stylist has to move on or move to another city, they have an opportunity to plan ahead and build up clients in advance thanks to technology and social media. This done on a part time basis so they are not starting over completely.
10. It also offers an opportunity to make a transition from city to city gradually, or build up clients and increase the rate of pay in less time as the stylist would need less clients when renting the chair by the hour while earning more than if they were a paid employee.
