Maintaining a stable team as a small-business owner can be tough. As a small-business owner in the beauty industry, we’ve got it particularly rough. The beauty industry has a 37 per cent staff turnover rate compared to the suggested goal of 20 per cent for successful businesses to be sustainable. Beauty industry employees often encounter low pay, internal communication issues, long hours, high workloads, and poor work-life balance.
However, as a business owner, you have the power to diverge from the industry “standard”. And why wouldn’t you want to do things differently? After all, nobody wants to continue the costly cycle of attracting, training, and then losing employees to competitors.
Finding solutions
At my skin clinic, Oi Cosmetic Studio, we’ve faced similar staffing challenges head-on, but have managed to turn things around. We now have a high retention rate of 95 per cent – which is practically unheard of in the industry.
Here are my 3 tips to improve the attraction and retention of a high-quality team.
Issue 1: Miscommunication and dramas among team members
Solution: Spend time and energy fostering a culture where team members feel valued and motivated on a day-to-day basis. I recommend running daily, weekly, fortnightly, and monthly meetings. It might sound like a lot, but it ensures everyone is across the salon’s latest priorities and updates. These meetings also offer sounding board opportunities to address minor issues before they have the chance to erupt into chaos. Obtaining leadership, life, and/or business coaching certifications can also help enhance your managers’ leadership skills and improve overall communication with the team.
Results: Our team now communicates very effectively and shows respect for each other. We’re all on the same page and any conflict is resolved quickly. We also organise regular team-building activities and trips to industry conferences, such as a retreat in Hayman Island, which has strengthened our bonds and kept everyone inspired.
Issue 2: Low wages and limited career opportunities
Solution: I strongly believe in investing in people and their growth. It might sound simple, but if you can afford to increase your staff salaries, they’re more likely to stick around. But if you’re not in a position to up their pay just yet, I totally get it. Offering incentives, like vouchers, to reward efforts can still have a big impact.
Ultimately, your team wants to feel acknowledged and valued. While there might be limited opportunities to move up the career ladder, you can still invest in team training. This keeps them motivated and their brains stimulated as they become the best possible consultant they can be.
Don’t be afraid of your staff then taking this newly acquired knowledge and skills and going elsewhere. That’s the wrong mindset. Instead, focus on creating a fun and supportive work environment, with continual training and incentives, so they never want to leave!
Results: Our base salaries now start at $70,000, with exceptional performers earning over $100,000. We invest heavily in continuous personal and professional development too, ensuring our therapists are proficient with every device and treatment offered. We allocate over $350,000 annually for training, with every team member receiving a personalised 12 month career progression plan.
While you can’t have a successful salon without clients, you also need high-quality staff. Showing your appreciation really makes a difference.
Issue 3: High workloads and long hours
Solution: If possible, I recommend looking into four-day workweeks for full-timers, flexible days/hours to suit their personal circumstances, and enforcing scheduled lunch breaks. This can help prevent burnout, improve overall job satisfaction, and maintain a healthy mindset. Ensure you’re regularly checking in with your staff about their schedules and how they’re coping with the workload. Keep an eye out for signs of burnout and exhaustion. When they pop up, offer emotional support or alternate ‘harder’ and ‘easier’ tasks if possible – so they’re not all go-go-go all the time.
Results: My team is now so much happier. Everyone feels much more comfortable to ask for support and time out when needed.
Time for change?
Making minor operational tweaks at your business can be incredibly rewarding, for you as the owner and for those who look after your clients and customers. The more you help your team thrive, the more loyalty and proactivity you’ll see in return.