3 Ways to Improve Employee Retention at Salons | Fora Financial Blog
3 Ways to Improve Employee Retention at Salons
March 28, 2014

3 Ways to Improve Employee Retention at Salons

The salon industry is constantly looking for new ways to boost employee productivity, reduce costs and consistently impress their customers. Unfortunately, these objectives are some of the hardest hurdles business owners of the beauty industry face.

For small businesses that specialize in hair or cosmetology treatments, employee retention is a major problem. The nature of this business does not really allow for a small salon to have an official HR department. This can sometimes lead to employees feeling competitive with one another and worried that their compensation is not the same as others. When your employees feel as though they are being treated unfairly or their talents are not as valued as other employees, you will see a decrease in productivity. A decrease in productivity can lead to losing customers and forcing employees to leave. Because every city and town typically has an abundance of salons in the area, there are plenty of opportunities for technicians to leave and find a better opportunity. Here are 3 ways to improve your employee retention at your salon:

Make your expectations as a business owner clear to your staff and managers.

  1. Identify Your Best Employees

    As a small business owner there’s no way you will be able to do everything. You will need to have individuals on your team that you can trust and delegate tasks. These individuals should be the managers of your store, the ones who are responsible for the staff on a day-to-day basis. Whoever these individuals are you want to make sure they can work subjectively and alongside you so proper decisions for your team are being made.

  2. Provide Transparency

    Make your expectations as a business owner clear to your staff and managers. The expectations that you have should translate across to your managers and be presented to all employees upon hire. If this is communicated properly your staff should feel as though they have clear goals to aim towards.

  3. Set Goals

    We just spoke about providing transparency so that your staff has clear direction as to what is expected from them. The next step is to identify goals for your staff and the entire salon. These goals can be as simple as coming in when your shift starts, and leaving when it ends. Following a schedule and punctuality is probably one of the most important factors for customers who schedule an appointment. Identify revenue goals, give your staff a dollar amount they need to be producing so that everyone has a number to work towards and can plan accordingly. If this number is attainable and motivating for employees, there should be a correlation with customer satisfaction and retention.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].