Hair stylists often earn commission based on their services and product sales. Medioimages/Photodisc/Photodisc/Getty Images Many salons have a commission-building system in place to encourage stylists to bring in business and compensate them for their work. While commission is common among salons, the type, amount and structure of the commission varies significantly from salon to salon. Some salons establish set rates for every stylist, while others increase rates for stylists with seniority or stylists who exceed certain monetary amounts. The exact percentage of commission that a stylist earns can vary based on seniority, with junior stylists typically earning the lower end of the commission scale. Some salons use a graduated commission scale in which stylists who meet certain monetary goals receive an increased commission rate for the additional business they bring in above that amount. In 2012, hairdressers, hairstylists and cosmetologists earned an average of $12.88 per hour, including commission, according to the Bureau of Labor Statistics.
This comes to about $26,790 per year. Commission Structure Some salons pay stylists on a commission-only basis, meaning they receive no salary or hourly pay. However, this structure can be difficult for newer stylists who may not have a large customer base. Some salons offer a salary or hourly wages for the first few months before switching to commission-only pay. Other salons implement a hybrid salary-commission system in which employees receive a minimum salary or hourly pay, along with commission. Stylists working within a hybrid system often receive lower commission rates than those working in commission-only salons. Commission-Earning Services Salons often give stylists commission for both styling services and hair-care product sales. Stylists are expected not only to attract clients for shampoos, cuts, colorings and stylings, but also to promote certain products and encourage their clients to purchase them from the salon. Some salons have different commission rates for salon services and product sales.
As with styling services, commission from product sales may work on a set rate or a graduated scale. Booth-Rental Salons Rather than hiring employees, some salons simply rent out chairs in their salon to independent stylists for a flat monthly fee. In this model, the salon owner is effectively just a landlord, collecting monthly rent from each stylist. Booth-rental stylists do not receive a commission, but they are typically able to pocket 100 percent of the earnings from their services. This model provides very little incentive for stylists to sell the salon’s products, as they are typically unable to earn commission from the sales. : How to run a beauty salon: costsHairdresser Career Development Systems: Booth Rental: Is it Right for You?Bureau of Labor Statistics: Hairdressers, hairstylists and cosmetologists Photo Credits Medioimages/Photodisc/Photodisc/Getty Images Suggest an Article CorrectionHairdressing businesses are being urged to ensure they have the right cover – not only for the wellbeing of their workers, but also to avoid potential penalties should they be found to be uninsured or under insured.
If you have a business in Queensland and employ workers, you are required to insure them against workplace accidents with WorkCover Queensland. In 2013, the definition of a worker was changed to align with the Australian Taxation Office (ATO) definition. This also changed employers’ requirements on who they need to cover for workers’ compensation.A ‘contract of service’ is a standard employer and employee relationship. A worker is likely to be a person who performs the same work in the same way as an employee. Even where a person calls themselves a ‘sub-contractor’, if you engage them for work, they may be a worker under the Act.Individual hairdressers may be deemed 'workers' even if they have their own Australian Business Number (ABN).A hairdresser has a contract with a salon to work on a piece work rate (based on the number of clients they service). The hairdresser agrees to provide her tools of trade (scissors, blow dryers) and the salon provides all other materials. The hairdresser agrees to also pay her own taxes, superannuation and a percentage of her takings as ‘rent’ for the space they use in the salon.
Whilst performing work, the hairdresser injures her back whilst raising the chair with her leg for the client and lodges a workers’ compensation claim with WorkCover. The claim gets accepted as the hairdresser is determined to be a worker as per the ATO decision tool and she did sustain a work-related injury, based on medical evidence.The employer (salon) in this instance did not have a current WorkCover policy and was required to pay back all the uninsured claims costs to WorkCover as a penalty for operating uninsured.Operating uninsured can expose businesses to substantial costs.Workers are still eligible for workers’ compensation if their employer is uninsured (employing without a policy) and we must pay compensation to the worker if they are entitled to compensation. If we are required to pay a claim when you are uninsured, in addition to the unpaid premium, we are entitled to recover from you the amount we have paid out on the claim plus a further penalty based upon the amount paid on the claim (s57 of the Act).
Applying for a policy with us is easy and can be done online at a time that is convenient for you.It is also important to ensure you have the right cover. If employers are found to be underinsured (because wages have not been correctly declared), WorkCover is entitled to recover from you the unpaid premium together with a further penalty based upon the value of the unpaid premium (s57 of the Act). Read more about renewing your policy and declaring correct wages.Please see our website for more information on your rights and responsibilities and who you should cover for workers’ compensation, or call us on 1300 362 128.Powered by CSC, your membership card allows you to access discounted rates at a selection of national outlets. NZARH members are entitled to join the Koru Club with a payment of $155 joining fee and $525 membership fee (representing a saving of $155 on the individual rate). Jim’s Test & Tag can assist you comply with safety obligations under the Electricity (Safety) Regulations 2010, Health and Safety at Work Act 2015 and AS/NZS 3760:2010.
By initiating a comprehensive program of testing electrical items in the workplace, Jim’s should assist you to identify possible risks before a potentially fatal injury occurs. Call 0800 454 654 for preferential NZARH member-only rates, but be sure to mention that you are an NZARH member! If you are an NZARH member you receive a special subscription rate of $35 per year. CallPlus is the Business arm of Sling Shot – Orcon – 2 Talk – Flip we understand New Zealand Businesses, because we’ve been one and have served others for 20 years. We’re big enough to deliver but we’re also small enough to care and all our support and technical teams are New Zealand based. If you are an NZARH salon, contact Davina.Williams@vocusgroup.co.nz for an appraisal of your salon services. Davina is happy to offer unlimited advice and support to NZARH members as part of their Business Services package. CallPlus has a special offer for NZARH members unlimited calling within NZ and unlimited broadband normally $120 +GST reduced to $105 +GST.
We know that one size does not fit all so we have a range of Small Business products that can add value and keep more money in your pocket. Visit CallPlus or phone Davina on 09 930 1709. HITO annual employer fee for individual apprentices is reduced by 50% to $217.50. This is a huge cost benefit for employers of apprentices. Non-Association members are required to pay $435 per apprentice. Blue Jacket can review your current digital and brand assets, build you a new website, and custom design themes to suit your brand - all this at a total saving of $1902+GST for NZARH members. Check out the offer in more detail here. If you are interested in growing your business and taking advantage of this offer send an email to studio@bluejacket.co.nz with the Subject Line of “NZARH Offer” and one of our team will get in contact with you. Great member only deals through our Business Partners and Liaisons: The Insurance Brokers (TIB) have been the insurance partner of NZARH for many years.
If you are an NZARH salon,contact jonathan@tib.co.nz for an appraisal of your salon insurance. They provide bsuiness packs, the most heavily discounted medical insurance, the most most comprehensive Liability and Indemnity Insurance in the marketplace, as well as the Workplace Sickness and Accident Scheme, not to mention wholesale premiums and no increase if you make a claim. All this is specifically designed and priced at our special member rate. Visit www.tib.co.nz or phone TIB on 09 360 4219. Beany.biz are an online accounting firm specialising in small business tax. Their qualified accountants offer unlimited advice and support to NZARH members as part of their package. Watch this space for more info shortly or visit http://beany.biz/ for more info. Achieve your goals and network with industry professionals and beyond. NZARH members receive 20% off seminars and workshops. NZARH have negotiated an exclusive marketing package deal with FindUS for our associated members in all 15 regions.
The FindUs App is the latest technology that captures the smartphone market designed for salons and ensures that NZARH members maintain highest brand recognition over their competitors. FindUs™ are proposing each associated member receives: (Savings valued at thousands)A Gold Package for $380+gst per annum (normally $580 +gst p/a)Each their own unique FindUs™ QR Marketing CodeEach some stickers of their FindUs™ QR Marketing Code to display on their styling mirrorsEach a digital copy of their FindUs™ QR Marketing Code to put on business cards, flyers, etcEach a free plastic, personalised DLE counter stand with their FindUs™ QR Marketing Code .nz or go to http://www.findus.co.nz/advertise.html for more information. Including Certificate of Registration, and the iconic NZARH window sticker. Include the NZARH logo in all your advertising for your salon; let the public know that you are a member salon and you stand by the Guarantee of Professional Hair Care.
This guide has been specifically developed for your salon's needs. Endorsed by WorkSafe and provided at a greatly reduced rate to members. The Services of an Industrial Lawyer with many years experience dealing with the hairdressing industry is available, with the first 15 minutes being paid for by NZARH! This is a once only offer on your initial consultation with our lawyer per year, following your membership renewal or on a new membership. A template is available to purchase for members to tailor to their specific needs. We have templates available for rent-a-chair, casual, permanent and temporary staff. Designed specifically for salon owners to up-skill them in the areas of Human Resources and Management. The guide is only available to members and includes templates from writing a business plan to job descriptions for staff members. Members are eligible to enter into their Regional Competitions, Editorial Stylist and Patrick Cameron Photographic & Business Awards.