The Ed.
Well-Known Member
The hair and beauty industry is cautiously optimistic about its future, but the recession and government cuts have put its reputation for training at risk. Those are the findings of a new report by Habia.
The latest Habia Employer Skills Survey - carried out every five years by Habia, the government appointed Sector Skills Council and industry authority for hair and beauty - shows that whilst a majority of businesses are positive about the future, less are investing in training and development.
Across the board, the report finds that over a third of salons are two years or younger, suggesting that the recession has not deterred aspiring entrepreneurs from opening new businesses, whilst over three quarters of businesses have maintained or increased staffing levels (and think the trend will continue). Likewise, two thirds reported that client numbers had increased or at least remained stable.
However, client spend was down for nearly half of all businesses (44%) compared to over two thirds who had experienced increased client spend in 2007, indicating that whilst client visits have held up, spending has not. More worryingly, only six in ten think that spending will increase or at least remain stable. The reduction in client spend has clearly also put a brake on retail levels, with just 10% of the average salon's turnover coming from selling products - barely any increase since 2007.
The biggest concerns, however, come in training. Just 43% of businesses had a training budget, whilst only 34% had a training plan - all down since 2007, with the cost of training to the business cited as the main barrier (65%). Spending on external training is lower than the UK average, whilst the average spa or salon spends £1050 across their entire business on training compared to £1775 for other sectors. Across all respondents in the hair and beauty sector, 47% have never employed an apprentice.
Much of this is attributed by Habia to a combination of reliance on government funded training, free training from suppliers and pressures on turnover due to reduced client spend. Indeed, 83% of respondents suggested they would be willing to take on an apprentice if a government subsidy was available. This indicates more promotion and information is needed as the government already does contribute to cost of apprentice training, and offers financial incentives.
One positive on the training front is that 44% of businesses had staff with formal business training, and 41% with formal business qualifications - a substantial increase since 2006, and one that suggests the industry is no longer willing to rely simply on experience.
In terms of social factors, there were again mixed messages. There appears to have been no increase in the number of men working in the sector, whilst the number of businesses using IT has taken a step backward. Although 54% of businesses use a computer, in hairdressing that figure has fallen from 49% in 2007 to 42% in 2012. However, there is higher engagement with social media, and people in the sector are more likely to use Twitter (30%) than the national average (16%).
A further concern was that 40% of beauty salons offered waxing treatments to under 16s, with 8% offering the service to children as young as 10, suggesting guidance is needed in this area.
Andrew Darby, Habia Director of Policy, said, "Whilst the industry is sometimes referred to as recession proof, the drop in client spend and the reduction in training budgets show that there have been consequences in terms of commitment to training. This puts at risk the UK hair and beauty sector's status as the world leader in education and standards."
Until then...geek on!
The Ed
The latest Habia Employer Skills Survey - carried out every five years by Habia, the government appointed Sector Skills Council and industry authority for hair and beauty - shows that whilst a majority of businesses are positive about the future, less are investing in training and development.
Across the board, the report finds that over a third of salons are two years or younger, suggesting that the recession has not deterred aspiring entrepreneurs from opening new businesses, whilst over three quarters of businesses have maintained or increased staffing levels (and think the trend will continue). Likewise, two thirds reported that client numbers had increased or at least remained stable.
However, client spend was down for nearly half of all businesses (44%) compared to over two thirds who had experienced increased client spend in 2007, indicating that whilst client visits have held up, spending has not. More worryingly, only six in ten think that spending will increase or at least remain stable. The reduction in client spend has clearly also put a brake on retail levels, with just 10% of the average salon's turnover coming from selling products - barely any increase since 2007.
The biggest concerns, however, come in training. Just 43% of businesses had a training budget, whilst only 34% had a training plan - all down since 2007, with the cost of training to the business cited as the main barrier (65%). Spending on external training is lower than the UK average, whilst the average spa or salon spends £1050 across their entire business on training compared to £1775 for other sectors. Across all respondents in the hair and beauty sector, 47% have never employed an apprentice.
Much of this is attributed by Habia to a combination of reliance on government funded training, free training from suppliers and pressures on turnover due to reduced client spend. Indeed, 83% of respondents suggested they would be willing to take on an apprentice if a government subsidy was available. This indicates more promotion and information is needed as the government already does contribute to cost of apprentice training, and offers financial incentives.
One positive on the training front is that 44% of businesses had staff with formal business training, and 41% with formal business qualifications - a substantial increase since 2006, and one that suggests the industry is no longer willing to rely simply on experience.
In terms of social factors, there were again mixed messages. There appears to have been no increase in the number of men working in the sector, whilst the number of businesses using IT has taken a step backward. Although 54% of businesses use a computer, in hairdressing that figure has fallen from 49% in 2007 to 42% in 2012. However, there is higher engagement with social media, and people in the sector are more likely to use Twitter (30%) than the national average (16%).
A further concern was that 40% of beauty salons offered waxing treatments to under 16s, with 8% offering the service to children as young as 10, suggesting guidance is needed in this area.
Andrew Darby, Habia Director of Policy, said, "Whilst the industry is sometimes referred to as recession proof, the drop in client spend and the reduction in training budgets show that there have been consequences in terms of commitment to training. This puts at risk the UK hair and beauty sector's status as the world leader in education and standards."
Until then...geek on!
The Ed
