Salary or Commission?

We thought it would be interesting to poll studio owners for direct insight into which structure works best for them and why. Whether the goal is incentivizing stylists or business stability, the feedback from the owners proves they have strong reasons for why a certain method works for them. Here are some examples:

How do you pay your staff?

Salary/Hourly 30%

Commission Only 10%

Salary + Commission 60%

Why did you choose to pay your staff that way?

(Both) "My salon has always been on a straight commission. If we are training someone new, they are placed on a base pay with a small commission, and it increases as we see potential and creativity."- Susan Kettering HRI of Pennsylvania

(Both) "We believe in strong financial incentives as a means of keeping team members happy and motivated. If your business is winning, they should be too!"- Deborah Long Elite Hair Loss Solutions

(Both) "In hair replacement we work more as a team. We help each other any time and anyway needed. However, a commission can inspire motivation to work more. Also, some stylists are more in demand and can work faster. Years of experience is not considered as much as number of satisfied clients. Some people get stuck in years but not growth. I feel rewarding your staff based on all of the above. Years of experience, quality of service, number of satisfied clients, retail, dependable, dollars generated, continuing education, team player. All need to be compensated."- Sara Lou Manning Custom Design Hair

(Both) "So I could incentivize them as well as offer stability."- Anndrea Argyle Argyle Hair Solutions

(Both) "It gives them a base salary and an incentive on commission for wigs, toppers and misc. sales. The productivity has been great."- Jack Morlan Studio 409, Inc.

What advice do you have for owners who are considering a change in how they pay their employees?

(Salary/Hourly) "People today do not want to work on a commission basis. They need to know how much they’re going to make on a weekly basis. Basically, they aren’t able to take the risk of not knowing what commission will bring."- Randy Clark Randy Clark and Associates

(Both) "Don’t just jump into a change. Look at all angles before you move. There are lots of nice owners in the industry that have good systems in place. Ask the pros. You don’t have to re- invent the wheel."- Sara Lou Manning Custom Design Hair

(Both) "I give them something to work for on top of a base salary."- Jack Morlan Studio 409

(Commission) "If it works for you, don't change."- Roberta Kozel Salon IAOMO

(Salary/Hourly) "Pay them well or they will leave."- Jennifer Reiland-Meath Reiland's Hair Clinic

(Both) "Allow them to have a base pay while being bonused with commissions. Make sure they understand the structure. Many stylists get caught up on the percentage but cannot recognize how much more they will be making."- Anonymous