What to pay a stylist/manager

[salonoasis]

Please advise! I just lost two of my hair stylist, (who are friends). Now a 3rd stylist is thinking of leaving and it is hard to find anyone in this town, so to keep her, I want to offer her to be the manager. I am the owner/manager, but am not there very much as I work at my other business. I currently pay her 50% commission. She said she talked to another salon owner that she knows who told her all hair stylist should be getting 60% commission anyway! I know that is not the going rate in this town, as a salon similar to me only pays 40% commission. What should I offer her to be fair. I want to keep her, but I can't go broke either!

 

[Piercednige]

work out what her current hourly rate is based on her average commission each month and then see what you can afford to increase salary to.

if you know the 60% isnt the going rate then call her bluff and let her leave, is there a reason why the other 2 have left together? it might not just be money as the reason for leaving??

 

[salonfrog]

I would find out if it’s only the money that’s making her want to leave and also what would motivate her to stay (other than money). Also do you know why the first 2 left?

Another option is to maybe offer her a profit share? A % of the net profits or total sales each month, or similar.

Is she employed at the moment or self employed? 50% commission sounds like self employed? If so, by making her manager, she’ll be moving to employed, along with all the admin and costs of PAYE, holiday pay etc.

 

[BannerPenguin]

Paying a percentage sounds like self employed and not employed so very iffy in HMRC eyes.

Also, 60% commission for a self employed person is standard. They should be getting the majority as you are just a landlord if self employed so should be on a slimmer percentage.

If employing her, negotiate a decent hourly rate, holiday pay and all the usual employed perks.

 

[AcidPerm]

OP is based in the States so a lot of the great advice given on this thread may not apply as employee benefits are far less generous in the US than in Europe.

 

[BannerPenguin]

OP is based in the States so a lot of the great advice given on this thread may not apply as employee benefits are far less generous in the US than in Europe.

Very good point. Well spotted

 

[salonfrog]

Good to know we’re international!