#004 THE DILEMMA OF RENTING A CHAIR OR HIRING EMPLOYEES FOR YOUR SALON? Renting a chair is now common practice for the hair and beauty industry. The long-term success is heavily reliant on the terms agreed being good for both parties. However, the security of hiring employees has proven to be highly attractive for salon too. Whether you rent a chair or hire your own employees, naturally both paths will have their pros and cons. Salons should take time to consider the positives and negatives of each to ensure that they make the right choice for their business. Regardless of either path chosen, salons must have a clear written agreement in place, which is in everyone’s best business interests. This allows any misunderstandings around business arrangements to be easily cleared up and resolved. The written agreements should be as follows: • Salons renting a chair should have a service contract between themselves and the independent stylist. • Salons hiring employees should issue all employees with a contract of employment upon the date of which their employment commences.
While hiring employees does have its negatives too: 1.Can be costly when employing stylists as subjected to employment law such as managing annual leave, maternity leave and sick days etc. 2. Salon’s have marketing responsibility to attract new clients for their employees. 3. Risk of investing in employees who slack off in the salon and negatively impact the workplace. A salon knows what works best for their business; therefore, the decision to rent a chair or hire employees is entirely up to the salon. However, it is recommended that they ensure a service agreement, or a contract of employment is signed by both parties involved, outlining terms and conditions whilst also providing clarity on expected expectations.
Chair rental can be advantageous for various reasons: 1.Salons can save money 2.Avoid the headache of employment laws 3.Independent Stylists bring new clients
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2.Impact on business brand and reputation.
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3.Create negative atmosphere and working environment for existing team members.
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However, chair rental can also have its drawbacks: 1.Independent Stylists work on their own terms not the salons.
Hiring employees for salons has its positives: 1. Control over hired employees, allows salons to manage their brand’s reputation and overall image. 2. Employees are trained to expected standards of the salon, and able to train employees as they please. 3. Employees are invested in salon, making them more likely to go above and beyond and having the salons best interests in mind.
