The constant movement of stylists from one salon to another is actually bad business. So how do you, as the owner, prevent or minimize this employee turnover? The answer lies in basic employee desires and needs in comparison to the salon’s needs and priorities.
Each industry uses a compensation model to determine the amount of pay for an employee. This is commonly found in the commission based industries to include: hair salons, fishing, auto sales, shoe sales, some retail and the insurance/real estate brokerage.
One of the most fascinating business models is the hair salon industry. Many salons are poorly managed and rarely generate adequate profits. To make matters worse, the stylists are like professional sports players. One week they are playing for this team, and next week they are on a new team. In effect, they switch salons.