Salonfocus March-April 2014

THE ESSENTIAL MAGAZINE FOR SALON OWNERS

Salons warned to expect minimum wage rise, and stiffer penalties Hairdressing facing pensions crunch Get involved in new NHF working groups!

Secrets of the perfect haircut revealed

March/April 2014 | ÂŁ3.50

Tickets just £35 each This is a fantastic opportunity to meet and learn from the creative talents of two of Britain’s leading hair teams – TIGI and Sassoon.

The Creative Teams have pledged not only their time but also their expertise, to ensure that all money raised from the ticket sales support HABB’s many beneficiaries.

15th April 2014 – TIGI Creative Team Bedhead Studios, Ransomes Dock Business Centre, 35-37 Parkgate Rd, London SW11 4NP

Giving hope in times of difficulty and need

14th July 2014 – Sassoon Artistic Team Wella Studio, 93 Mortimer Street, London W1W 7SS 3rd November 2014 – TIGI Creative Team Bedhead Studios, Ransomes Dock Business Centre, 35-37 Parkgate Rd, London SW11 4NP

Call us on 01737 212 494 or email teresa.frise@ntlworld.com Our supporters

PAGE 2 SALONFOCUS MAY/JUNE 2013

WAVELENGTH

It’ll hurt, but salons need to prepare for above-inflation rises in the minimum wage Of course it’s not a given this will happen. The Low Pay Just what are hairdressing salons Commission may make such a compelling case for the wage and barber shops supposed to be held unchanged that the government has no option but to make of this government’s to listen; equally it’s believed business secretary Vince Cable is attitude to our industry? On the much less keen on an above-inflation rise, and so there may yet one hand, as we report on page be considerable political haggling behind the scenes. nine, we’ve got the much-vaunted But, given the chancellor’s clout within government the Employment Allowance tax break industry does need to be preparing itself for this scenario, starting next month along with however painful. Moreover, the government’s vastly stiffer (also on page nine) a breakdown new regime of penalties, fines and “naming and shaming” has of the genuinely positive package emphasised non-compliance is most definitely not an option, of measures around business if ever it was. Salons need to be, and be seen to be, absolutely rates and national insurance sticking to the letter of the law when it comes to paying the contributions announced in the NMW, with the NHF’s standard employment contracts likely to Autumn Statement and by communities secretary Eric Pickles become an increasingly valuable resource, in December. All these are designed to, and and comfort, for salons in this context. probably will, support small businesses and ‘Salon owners are, rightly, On a separate note, please do encourage confidence, growth and jobs. deeply worried about how two check out our story on page 30, within The coalition government is putting Federation Focus, on the NHF’s new real commitment into reforming years of above-inflation rises specialist working groups on barbering, apprenticeships to make them “fit for beauty and Afro-Caribbean hairdressing. purpose” and more relevant to employers, in the wage might affect our in my view, are a great opportunity something the NHF has been pushing industry. The fear is it will bring These, for members to get stuck in and involved for for years and (as we very much hope) recruitment to a grinding halt, in the future direction, and priorities, will be closely involved with through the the Federation in these areas. What’s Department for Business, Innovation mean vacancies are left unfilled of more, online forums are being set up to and Skills’ apprenticeship “trailblazer” programme. Some of its proposed changes, and have a devastating impact feed into, and communicate back out members, the work of these groups, such as giving employers direct control on the ability, and appetite, of to meaning anyone can now have their say of apprenticeship funding and requiring a mandatory cash contribution, as we salons to take on apprentices, in a much more flexible, accessible way. So don’t be shy! outline on page 31, are causing concern potentially causing long-term Finally, I was taken with our rather but, nevertheless, the government’s engagement with the industry, and with harm, as well as doing nothing quirky story on page 14 about Toni&Guy’s research into what makes the perfect apprenticeships as a whole, is positive. to help ease high levels of youth haircut. Its conclusions were: once The government is also, quite clearly, every couple of months on a Saturday serious about tapping into the knowledge unemployment.’ afternoon; a cut or colour (but it needs to and expertise of hairdressers when it comes be able to work more than one way); around the £40 mark; and to revitalising and regenerating high streets, as evidenced by accompanied by hot drinks and a good natter. the NHF being invited to join the Future High Streets Forum So, what do you think? Does that tally with your experience? in December (see News, page eight). This is a real opportunity And have client expectations changed? I’d be interested to hear for hairdressing to make its voice heard on what is, of course, a your views, either through the NHF’s social media channels or at critical issue for the future health of the industry. sfenquiries@salonfocus.co.uk.

Yet, on the other hand, as we highlight on page five, the call by chancellor George Osborne for a sharp rise in the national minimum wage (NMW) has the potential to act as a real brake on the recovery finally being felt on the high street. Salon owners are, rightly, deeply worried about how two years of above-inflation rises in the NMW might affect our industry. The fear is it will bring recruitment to a grinding halt, mean vacancies are left unfilled and have a devastating impact on the ability, and appetite, of salons to take on apprentices, potentially causing long-term harm, as well as doing nothing to help ease high levels of youth unemployment.

www.nhf.info

MARCH/APRIL 2014 SALONFOCUS PAGE 3

CONTENTS OUR CONTRIBUTORS

News

Prepare for minimum wage hike, and stiffer penalties ‘Capacity crunch’ could cause pensions headache Waste red tape stifling high streets, say salons Employment Allowance tax break to launch next month Salons told: ‘plan for social media attacks’ Shared parental leave plan gets cautious welcome XP wind-down prompts call for computer review Secrets of the perfect haircut revealed (probably)

05

06 08 09

10 11 12 14

17-20

Julio Vildosola is chief executive of Liquid Finance, which specialises in providing investment capital for small businesses

Heidi Morton is administration manager at Coversure Insurance Services, the NHF’s preferred insurance broker Pritika Solanki is employment consultant at Croner, operator of the NHF’s Legal Lifelin

Brian Palmer is tax policy adviser at the Association of Accounting Technicians

Two-tone triumph – the latest collection from Lucie Monbillard, for seanhanna

Follow the money – the inside track on how to secure funding Don’t put off pension planning – NHF is planning now for auto-enrolment Business as usual? – the importance of business continuity planning

22 24

Tax needn’t be taxing – why it makes sense to pay for an accountant Put your back into it – ergonomic backwash chairs Tried and Tested – our panel testing page

28 29

REGULARS

03 06 11 14 16 30-31

Wavelength – It’ll hurt, but salons need to prepare for above-inflation rises in the minimum wage HairClips – HMRC tax guide Movers and groovers – HABB fundraisers Beauty spots – HABIA working groups Column – how to help HABB make a difference Federation Focus – get involved in new working groups Case confidential – a helpline call resolved Events – key dates for your diary @nhfederation – all the online gossip and tweets

PAGE 4 SALONFOCUS MARCH/APRIL 2014

EDITOR Nic Paton e: sfeditor@salonfocus.co.uk EDITORIAL CONSULTANT Andrew Don e: sfeditor@salonfocus.co.uk EVENTS Tori Priestley t: 01234 834386 e: victoria.priestley@nhf.info AD SALES Media Shed Ltd 22a Market Hill, Chatteris, Cambridgeshire PE16 6BA www.media-shed.co.uk Advertising Sales Manager Natalie Tuerena T: + 44 (0) 1354 818010 e: natt@media-shed.co.uk

While every care is taken in compiling this issue of SalonFocus including manuscripts and photographs submitted, we accept no responsibility for any losses or damage, whatever the cause. All information and prices contained in advertisements are accepted by the publishers in good faith as being correct at the time of going to press. Neither the advertisers nor the publishers accept any responsibility for any variations affecting price variations or availability after the publication has gone to press. No part of this publication may be reproduced in any form without the permission of the publisher, to whom application must first be made. The views expressed by contributors to SalonFocus are not necessarily those of the NHF, the publisher or its editor. © 2011 The National Hairdressers’ Federation.

TOOLBOX

26

PUBLISHER Hilary Hall e: hilary.hall@nhf.info

DESIGN & PRODUCTION Rick Fraterrigo Matrix Print Consultants Ltd t: 01536 527297 e: rick@matrixprint.com

BUSINESS FOCUS

21

32 33 34

INSPIRED

Edward Hemmings is director of education and creative director of Alan D Hairdressing Education, which has a London salon and academies in London and Ipswich and has raised more than £15,000 for Hair and Beauty Benevolent (HABB) in just 18 months

SALONFOCUS IS PUBLISHED BY: National Hairdressers’ Federation, One Abbey Court, Fraser Road, Priory Business Park, Bedford MK44 3WH t: 0845 345 6500 t: 01234 831965 f: 01234 838875 e: sfenquiries@salonfocus.co.uk w: www.nhf.info

Front cover Hair: Lucie Monbillard for seanhanna Make-up: Dominique Heslop Styling: Bernard Connolly Photographer: Chris Chudleigh Products: L’Oréal Professionnel

Material for consideration in this section of the magazine should be submitted on CDROM as high resolution jpeg or tiff files to The Editor, SalonFocus. Submissions should be made on the understanding that the National Hairdressers’ Federation has the right to use the material in any part of the magazine and any of its other publications, promotions or website, free from any copyright restrictions, or appearance fees other than the issue of artistic and photographic credits where applicable. Please include salon name, photographer & stylist.

NEWS

Prepare for minimum wage rises, salons are warned, as fines get stiffer Salon owners are being warned to brace themselves for the possibility of sharp rises in the national minimum wage (NMW) this year and next, with many fearing it will lead to salons being forced to freeze GEORGE OSBORNE: recruitment, leave CALL FOR RISE vacancies unfilled and stop taking on apprentices.

At the same time, the government is cracking down hard on businesses that fail to pay the NMW, with much tougher penalties coming into force as of last month and ministers warning they’re looking eventually to charge employers £20,000 per employee wrongly paid.

It emerged in January that chancellor George Osborne had written to the Low Pay Commission (LPC), the body that advises on the rate at which the wage should be set, urging it to recommend an above-inflation increase, arguing the country could “now afford it”.

His recommendation is that the adult minimum wage, currently £6.31 an hour, should rise to £7 an hour by 2015, with one rise this October and another in October next year.

While the LPC will not necessarily heed the chancellor’s recommendation, the government does make the final decision, and last year even over-ruled the LPC’s view that the apprentices’ NMW be frozen.

The LPC was due to submit its report to government by the end of February, with ministers expected to announce their decision around the end of this month. The NHF in its evidence called for the wage to be left unchanged.

NHF members approached by SalonFocus were in little doubt the chancellor’s intervention was a strong signal as to the government’s likely thinking.

Guy Christian, who runs two salons under his name in Cardiff, warned that if the apprentice NMW also went up sharply the effect on a service industry such as hairdressing could be considerable.

“Realistically I cannot see us taking on apprentices in that scenario – which

www.nhf.info

The government has also said it will be real shame for young people who will bring in legislation “at the earliest want to get into this industry. I wonder, opportunity” to make the maximum too, if it might mean salons beginning £20,000 penalty apply to each underpaid to move towards things like zero-hours worker. The fines are on top of a contracts. Renting chairs might become more popular as an alternative to hiring tougher focus on “naming and shaming” people,” he said. announced last year.

“I’m less sure whether it will Business secretary Vince Cable mean salons actually making people said: “Anyone entitled to the national redundant, as that can be costly in itself. minimum wage should receive it. Paying But I do think salons will be less likely to anything less than this is unacceptable, take on new people or fill vacancies if illegal and will be punished by law.” someone leaves,” he added.

NHF chief executive Hilary Hall Jonathan Best, managing director of warned the change needed to be Janet Best Hair Design in Alverthorpe, seen as a warning shot across the Wakefield, said: “For a small business bows of the industry, given that last that employs perhaps three or four autumn hairdressing was singled out people, the predicted rise in in government research as the NMW is going to be a really, by far the worst offender really big hit. Larger industries when it came to failing to pay may be in a position absorb apprentices their correct NMW. this, but I do fear it discourages She urged salons to small businesses from creating be checking their systems, new job opportunities and may procedures and payroll as have a de-motivating effect a matter of priority – and on employees if salon owners switching to NHF standard review performance targets. employment contracts that “Salon owners I have include an obligation to pay the spoken to agree this may result VINCE CABLE: FINES NMW. in reductions of hours across the board.

“Rightly or wrongly, hairdressing The NHF definitely needs to continue already has a bad name for paying below lobbying on this,” he added. the minimum wage. Failing to pay the Kevin Huggins, of Fusion Hair & wage not only harms the reputation of an Beauty in Great Yarmouth, said: “This will individual salon and – now – could cost have a detrimental effect on how many them dear, it is also deeply damaging to people we employ as an industry. I would our whole industry,” she said. not say people are going to be laid off, The government has announced but there could be natural wastage. I significant changes to apprenticeships, think people will be very careful about including plans to put employers in re-employment.” charge of apprenticeship funding rather The possibility of sharp rises comes than training providers and levying a as the government in January outlined compulsory cash contribution from a significant stiffening of the fines and employers. More details on this are penalties businesses can now face if they outlined on Federation Focus, page 31. fail to pay the wage.

Previously employers that broke NMW law had been required to pay the Current hourly unpaid wages plus a financial penalty minimum wage levels calculated as 50 per cent of the total underpayment for all workers found to • 21 and over: £6.31 be underpaid. The maximum penalty • 18 to 20: £5.03 was £5,000.

• Under 18: £3.72 But as of February 2014, the Department for Business, Innovation • Apprentice (under and Skills raised the 50 per cent penalty 19s and for first year): £2.68 to 100 per cent and the maximum penalty to £20,000.

MARCH/APRIL 2014 SALONFOCUS PAGE 5

NEWS

Pensions ‘capacity crunch’ could cause auto-enrolment headache for salons For example, in the first two months The arrival of pensions auto-enrolment of 2014 it is expected some 4,000 within the hairdressing industry over the medium-sized firms will be going next 18 months could be accompanied through the process, while The Pensions by a “capacity crunch”, as the sheer Regulator (TPR) has predicted a further volume of businesses rushing to offer 30,000 will follow between April and the pensions overwhelms the number of end of this year. pension providers and advisers – This has led some pension providers at just the point when most small to warn they may not be able to cope salons will be looking to go through and could be forced to the process, a financial expert has close their doors to new auto-enrolment warned. business during 2015.

Bryan Stott, a consultant with Things will then accelerate still further, financial adviser Towergate Financial, with more than 300,000 companies is working with the NHF on developing anticipated to be needing to auto-enrol its own members’ pension scheme, a during the second half of 2016 alone. broad outline of which was due to have The government has put in place a been discussed by NEC last month, as safety net in the shape of the National SalonFocus went to press.

Employment Savings Trust (NEST), The detail of the NHF scheme has which has been specifically set up to help still to be agreed, but the aim is to firms meet their autooffer members a pension enrolment obligations but, scheme where they will be warned Bryan, a capacity guaranteed acceptance, crunch could mean meaning any future salons being faced with capacity crisis becomes limited options in terms of much less of a threat. pension provision at just It is intended the the moment they need scheme will be supported to be auto-enrolling their by free, easy-to-use employees. software that will help “The traditional salon owners identify which providers will not want of their employees will to engage with a vast be eligible, and therefore number of small companies who they will need to be each only employing a communicating with as PENSIONS: AUTO-ENROLMENT few people, often on low part of their responsibilities IS ARRIVING salaries and so only making under auto-enrolment. low contributions, which may mean The scheme, which the NHF expects businesses have little option but to use to pilot later this year, will also need to NEST or try and do it themselves. That’s be flexible enough to accommodate the why a scheme such as the NHF’s will be so complexities of salon employment, for example where employees are being paid important to the industry,” he said.

Although the biggest salon chains weekly and/or monthly. have already begun the process of “The idea is that you will simply go auto-enrolment, most smaller salons online and enter in your data and it is all (those with 30 employees or fewer) will done for you,” said Bryan. only need to begin auto-enrolling from The prospect of a capacity crunch June 2015 onwards. was a growing worry within the pension However, TPR has warned the process industry, he said.Since auto-enrolment can take as long as six to 18 months, started in autumn 2012 some 3,670 and from June will begin writing to small companies have been auto-enrolled but, salons, alerting them to the fact they are as the staging process is based on size potentially only a year away from autoand number of employees, this will now enrolment. increase sharply as many more smaller • Don’t put off pension planning, and medium-sized employees begin to Business Focus, page 22 need to go through the process.

PAGE 6 SALONFOCUS MARCH/APRIL 2014

HAIRCLIPS HMRC TAX GUIDE

HM Revenue & Customs has published a guide for small businesses about making tax support simpler. The Supporting Small Business guide was published in December and can be found online at www.gov.uk followed by searching under the term “Supporting small business”.

ROBERT RIX HONOUR

Many congratulations to Robert Rix, owner of The Master Barber’s Shop in Southport, who has been made a Senior Master Craftsman in Hairdressing by the Hairdressing Council. Robert said he was “truly humbled and honoured” at the award, which was “the culmination of a lifetime’s work and dedication to the craft I love”.

APPRENTICESHIP IGNORANCE

School children are still too often being steered away from apprenticeships by their careers advisers, a study has concluded.

A survey of more than 600 apprentices by the Industry Apprentice Council found a general lack of support for young people in schools who are interested in pursuing an apprenticeship, with too much of a focus on going off to college or university.

VOUCHER SCHEME

The government is to randomly select small businesses over the next 15 months to receive “growth vouchers” worth up to £2,000, with the business providing matching funds, as part of a research project. The scheme is designed to help gauge what works best when giving advice to business, the Department for Business, Innovation and Skills has said. More detail can be found at: https://www.gov.uk/ government/collections/growthvouchers-programme

RETAIL GOLD?

Property agent Jones Lang LaSalle has predicted “pockets of gold” such as Oxford, Colchester, Edinburgh, Winchester, Bath and Brighton will particularly benefit this year as the recovery takes hold. But it also warned that, with almost 80 per cent of high street leases due to expire in the next five years, we may not yet be out of the woods when it comes to shop closures.

UK’s Number 1 Supplier of Salon Furniture and Equipment Already the Best Prices for REM furniture We now offer

STOP PRESS! Excess on NHF legal expenses insurance reduced from £750 to £250 from March

Free Delivery! on all online orders for REM furniture above £150!

Come and visit our showroom now open in Crewe, Cheshire The NHF is delighted to announce that we have negotiated a £500 saving on the excess payable when you make a claim on the NHF legal expenses insurance.

The new policy will take effect from March 1, 2014.

Further details are available from the membership team, or the NHF website www.nhf.info

- Salon Supplies of Crewe 01270 848612 - www.salonhairsupplies.co.uk

BEAUTIFUL & HEALTHY HANDS FOR SALON PROFESSIONALS

Beautiful Hands for Salon Professionals

reamin.co.uk

“We are currently using REAMIN in our salon, but particularly on three assistants who have really bad skin and have allergic reactions to everything. Within a week we could really see the difference in their skin and I am personally really impressed with this product.

REAMIN really absorbs into the skin and does not wash off, making it ideal for hairdressers.”

- Errol Douglas

• • • • • • • • •

Natural protection based on beeswax Especially developed for salon professionals Recommended by dermatologists for over 30 years Reinforces the skin’s natural barrier function Keeps skin moisturized and smooth Quickly absorbs allowing continuous working Prevents development of dermatitis Helps in case of dry, red, cracked and itchy skin Also suitable for contour protection for colours and perms READ MORE AT WWW.REAMIN.CO.UK

HALF PRICE TRIAL OFFER £6.45 £12.90 (net of VAT) 300ml Dispenser (scented or unscented) ONLINE ONLY at WWW.REAMIN.CO.UK WITH DISCOUNT CODE SOSV3TY4Y3GO (exclusive offer for NHF members, strictly one per new registered customer)

REAMIN is available here:

Cs&

Chris & Sons Ltd Hair & Beauty Produts

www.reamin.co.uk FREE DELIVERY

NEWS

Salons vent frustrations over ‘unnecessary’ high street red tape The NHF has highlighted the frustrations many salon owners feel over “unnecessary” council bureaucracy, including waste disposal, recycling, signage and deliveries, in its first submission to the government’s Future High Streets Forum since being asked to join the body in December.

High streets and local government minister Brandon Lewis invited the Federation to join the retailers, business and property groups and council leaders already sitting on the forum because, he said, he wanted to bring in views from a wider spectrum of organisations and “strengthen its community voice”.

The forum was set up in February last year in the wake of the government’s response to retail entrepreneur Mary Portas’ review of the high street, and is examining ways to reinvigorate Britain’s high streets.

The NHF attended its first meeting, which was joined by Mary Portas herself, in January.

During January too the Federation submitted information to a forum “call for evidence” examining what “unnecessary regulation” members felt had a negative impact on town centres, but specifically excluding business rates, car parking and planning restrictions, as the government was already working to change those (see News, page nine).

While these excluded issues were by far the biggest bugbears for salon owners, pointed out NHF chief executive Hilary Hall, nearly two thirds (61 per cent) felt waste disposal and recycling laws too often created an unnecessary burden.

As one respondent put it: “Being unable to use the local recycling bins; because we have business waste not general household. Surely a cardboard box is just a cardboard box, no matter where it goes to? We are not encouraged to recycle, when 90 per cent of our waste is plastics and cardboard!”

A lack of street cleaning, restrictions on deliveries, footdragging on efforts to improve the feel or character of a high street and poor council communications were all highlighted by members, as was simply “general bureaucracy and decisionmaking” (see chart).

Street signage was a further area of frustration, as another respondent explained: “When I put up a banner stating that the business was celebrating a successful year of opening I was asked to take it down! Opening and being successful needs to be kept quiet???”

“It’s clear there are a lot of ‘niggles’ around,” agreed Hilary.

“But what’s positive is our membership of the Future High Streets Forum has given us a voice with the Department for Communities and Local Government on these topics.”

• Congratulations to Great Yarmouth salon owner and NHF member Kevin Huggins, who hosted a visit from communities secretary Eric Pickles in January. Kevin’s local MP is high streets minister Brandon Lewis, who arranged the visit, with the two politicians touring his salon, Fusion Hair and Beauty Consultants, and training academy, followed by lunch at the town’s Imperial Hotel. “Hairdressing needs to be listened to, particularly in regards to issues such as the national minimum wage and high streets,” said Kevin.

What sort of local red tape annoys you the most?

60% 40% 20% 0%

Environment and street cleansing Waste Disposal, recycling

Licensing laws

Opening or trading hours

General bureaucracy and decision making Access for deliveries

Barriers to changing the character or feel

Local communication and consultation

Government looking at ‘light touch’ alcohol licence for businesses The government is examining ways to make it easier for businesses, including hairdressing salons, to get a licence to sell or supply alcohol to clients.

The Home Office carried out a consultation over the autumn on plans to establish a new type of cheaper licence, called a Community and Ancillary Sellers Notice, that would allow businesses to sell “small amounts of alcohol to customers as part of a wider service in low-risk environments”.

Under the current rules any business that wishes to sell or supply alcohol must apply for a number of different licences, including a premises licence, which allows alcohol to be sold or supplied from that premises, and a personal licence, which nominates a designated premises supervisor.

Licences are normally purchased, for a fee based on the rateable value of the

PAGE 8 SALONFOCUS MARCH/APRIL 2014

premises, from the local council.

Rob Turner, of the Home Office’s Drug and Alcohol Unit, explained: “Hairdressers or salons who wish to offer a glass of wine to customers alongside haircuts or other treatments are often prevented from doing so given the cost and burdens associated with obtaining a licence under current licensing law.

Licensing law is such that alcohol offered on a ‘complimentary’ basis tends to constitute a sale in law.”

The new law would do away with the need to have a premises licence for such occasional, ancillary sellers.

The consultation ran from September to November but the government has stressed no firm decision has been made either way.

One NHF member responding to the high streets survey above indirectly highlighted how such a less regulated

approach might be popular with some salons. “It would be nice to have occasional cheese and wine promotion evenings, but [I] would have to apply for a licence,” the owner complained.

However, another NHF member has expressed his doubts about changing the law. Robert Rix, owner of The Master Barber’s Shop in Southport, said: “Personally I don’t think sharp tools and alcohol go together well. You do now see one or two salons doing this and I feel they are sailing a bit close to the wind.”

NEWS

Employment Allowance tax break set to launch next month

What the government has announced The high street

SALON STAFF: WILL ALLOWANCE HELP TO BOOST JOBS?

NHF members are being reminded that next month will see the launch of the government’s flagship Employment Allowance scheme, designed to offer small businesses a tax cut of up to £2,000 on their Employer Class 1 National Insurance Contributions (NICs).

The scheme was announced in the Budget this time last year and was described in January by chancellor George Osborne as effectively a “cash-back on jobs”.

It kicks off from April 6 and, ahead of its launch, the government has put together a number of resources for small businesses.

HM Revenue & Customs has developed an example payroll system, which can be found at www.hmrcdigital. org.uk as well as an Employment Allowance “calculator”, which can be found at www.employmentallowance.com/ allowance-calculator/ The government has estimated the new scheme could result in 450,000 small businesses being taken out of paying NICs altogether, including any business employing up to four people on the adult national minimum wage (NMW).

A business employing five staff members on the adult NMW would see its NICs bill cut by some 80 per cent, from £2,430 to £430, it added.

HMRC has confirmed the allowance will be delivered through standard payroll software.

Employers will simply confirm their eligibility through their regular payroll processes, after which, assuming they’re eligible, they will see up to £2,000 deducted from their NIC liability over the

www.nhf.info

course of that year’s PAYE payments, it said.

The arrival of the allowance comes hard on the heels of an array of new initiatives designed to help small businesses that were outlined by chancellor Osborne in his Autumn Statement in December, along with a package of reforms around high street parking announced by communities secretary Eric Pickles (see panel).

These included a promise to limit rises in business rates to two per cent and an extension of the Small Business Rate Relief scheme.

The government described its rates reforms as “the biggest package of business rates support in over 20 years”.

The statement also outlined some significant reforms to the funding of apprenticeships, the detail of which can be found on Federation Focus on page 31, and reform of NICs for under-21s.

NHF chief executive Hilary Hall described the package of measures as “very welcome”.

But she called a decision by the chancellor to defer discussion of wider reform of business rates until 2017 “a missed opportunity”, arguing that, with the retail environment rapidly changing and shops facing intense competition from online rivals (which don’t have to pay rates because they don’t have physical premises), there was a clear need for a debate around the future of rates.

“We’d like a model that takes better account of competition from online retailers, one that is more fairly balanced across town centre, out-of-town and online retail,” she said.

• Any increase in business rates to be capped at two per cent in 2014-15 rather than the 3.2 per cent rates would have gone up by if they had remained pegged to September’s Retail Prices Index.

• A business rates discount of up to £1,000 in 2014-15 and 2015-16 for retail properties with a rateable value of up to £50,000 and a 50 per cent discount for new occupants of previously empty retail premises for 18 months.

• Businesses to be able to pay rates bills over 12 months, rather than the current 10.

• An extension of Small Business Rate Relief (which had been due to finish in April) for another year, until April 2015.

• A consultation to tackle “aggressive” parking policies and a review of double yellow line policies.

• Legislation to be introduced to allow “grace periods” to allow people to get back to their cars after their ticket has run out before they get fined and a ban on the use of CCTV for enforcement.

• A cap to be put on increases in parking penalty charges for the rest of this Parliament, with immediate effect.

Employment

• National insurance contributions for under-21 year olds to be abolished on earnings of up to £813 per week, equivalent to the point at which higher rate tax is charged.

• All young people who have not achieved a Level 2 qualification in maths and English at 16 will now have to continue studying these subjects until age 19.

• A pilot scheme to be set up for young Job Seekers’ Allowance claimants, under which those without Level 2 qualifications in English and maths will be required to do up to 16 hours per week of training alongside their job search or risk losing their benefits.

• Taxation personal allowances to be increased by a further £560, to £10,000, from April 2014.

MARCH/APRIL 2014 SALONFOCUS PAGE 9

NEWS

Plan for social media attacks, salons are told

By Andrew Don Salons are being urged to put in place contingency plans for how they’d deal with a concerted social media attack, amid fears many small businesses remain ill-equipped to deal with the reputational damage that can result MARK BYE: CLEAR from social media-based GUIDELINES complaints or criticisms.

Last year the NHF’s standard contracts were revised to include an element on social media and advice was communicated through SalonFocus, (Business Focus, July/August 2013).

But now Mark Dye, who is managing director and leads the social and media training divisions at media agency White Label Media, has emphasised how vital it is salon owners take the time to establish a clear set of social media guidelines, both in terms of communicating to employees how and when to use social media at work and in how to respond to damaging online criticisms.

A recent study by international law firm Freshfields Bruckhaus Deringer has suggested half of all companies are not equipped to react quickly enough to a crisis that has the potential to damage their reputation severely.

That research focused on some of the world’s largest blue-chip organisations but could be just as relevant for smaller businesses, the company has argued.

A spokesman for the law firm explained that a salon launching a promotion on Twitter could find itself in hot water if it then found itself unable to keep up with demand, leading, in turn, to online criticisms and potential damage to its reputation.

However, the good news for smaller businesses, argued Mark Dye, is that, because they tend to be closer to their clients and are often less bureaucratic, they have the potential to react faster and more nimbly than big organisations – but only, again, if they’ve already got a well thought through contingency plan in place.

“This can often be the difference between firms being seen to be more personable and closer to their customer audience – so that immediacy can

PAGE 10 SALONFOCUS MARCH/APRIL 2014

give them the advantage over larger corporations,” he said.

Moreover, as NHF chief executive Hilary Hall pointed out, while it is never nice to get a complaint, salons can often improve by learning from and responding to criticism.

“Complaints can often be a great way of getting feedback which will help you improve your business,” she said.

Mark suggested salons take the following steps: • Invest in training. You would not trust a trainee to cut the hair of your most important client, so do not leave your reputation in the hands of someone inexperienced online.

• Establish a clear set of social media guidelines for employees. These should include tone of voice and what is considered acceptable behaviour in both a personal and business capacity online.

• Communicate the fact everyone using social media is representing your brand – your salon. Often social media will be the client’s first point of contact, so think carefully about your posts, your audience and the customers you are looking to attract. Think about your post from every conceivable angle before posting.

• Check your facts before posting, particularly when linking to, retweeting or voicing opinions on others. Defamation is still an offence online.

• Ensure you have clear set of procedures in place to address any form of complaint or issue. This will help to ensure a swift, effective response should you find yourself exposed.

• Listen to those who engage with you on social media. Respond quickly and thoughtfully to customer concerns or complaints, addressing their points and assuring them you are doing everything in your power to find a resolution. But also recognise some people do just try to cause problems online – these can be blocked, but appropriate legal advice should be obtained.

SOCIAL MEDIA: HAVE A PLAN

In a separate development, an IT company has warned that vendetta-style attacks on small business websites and online shops are on the increase, and that salon owners need to be vigilant.

Stack Group has said the cyber attacks, known as “distributed denial of service” attacks or DDoS will be a growing threat to all businesses in the future.

A DDoS attack is where criminals hack into computers, infect them with “Trojans” and then use them to launch a full-scale internet bombardment on a much bigger computer system.

Stack highlighted the example of NatWest in December, when the bank was forced to apologise after customers were blocked from accessing its online accounts because hackers had used a DDoS attack to bring down its banking system.

“It could be used JEFF ORR: VIGILANCE by anyone to take petty revenge because this is so cheap now.

All you do is name your target and pay your money. It takes place in the Cloud [on remote computers] somewhere and no one knows where,” said Stack chief executive Jeff Orr. The only way for smaller organisations to defeat a DDoS attack was to have a robust firewall in place, said Jeff. But he conceded many smaller firms balked at the short-term cost of such protection.

NEWS

Shared parental leave gets cautious welcome Government plans to allow parents to share parental leave from April next year have met with a mixed reception from the industry.

From April 2015, working mums and dads will have the option to share up to 50 weeks of parental leave, under plans included by the Department for Business, Innovation and Skills within its Children and Families Bill 2013.

The government is hoping the new rules NICK CLEGG: GOOD will result in fewer mothers losing touch with the FOR BUSINESS workplace, as it should allow both sets of parents to maintain links with work and be involved in childcare.

Women currently have to take two weeks off work after giving birth, for health and safety reasons, on statutory maternity pay (SMP).

Under the plans new parents will be able to share the further 50 weeks of leave, to which up to now only the mother has been entitled, including 37 of them on SMP. Alternatively, their partner can take KAREN WALDRON: the full 50 weeks.

QUICKER RETURN Employers will have to agree to the patterns chosen and, if it is deemed more convenient to the business, an employer will still be able to insist on one continuous block of leave being taken.

Deputy prime minister Nick Clegg said the “old-fashioned” assumption that women would always be the parent that stayed at home needed to be challenged.

“Many fathers want that option, too,” he said, adding: “This is good for families, good for business and good for our economy.”

Salon owners contacted by SalonFocus by and large welcomed the change, agreeing it would potentially make it easier to retain talented female staff.

William Robertson, director of Headcase Barbers, said: “It will be a great way for talented mothers to come back to the workforce at a time that suits them and their family and a great way for fathers to engage with their families a bit more.

“I can’t see any detrimental impact for business apart from a small business that employs one or other gender,” he added.

Karen Waldron, who owns The Barber Shops Group, said one advantage was salons potentially would get their employees back in half the time.

But a cautionary note was sounded by Hellen Ward, managing director of Richard Ward Hair & Metro Spa, who pointed out that, even if leave was evenly split, 26 weeks was too long because clients would simply go elsewhere.

“In hair and beauty it is hard to take anything more than six weeks off without it affecting your clientele,” she said.

“Most mums who have worked for me have taken their leave, come back and realised they have to work twice as hard to get back where they were. No legislation will change that,” she added.

And NHF chief executive Hilary Hall said it was as yet unclear how much of an extra administrative burden the new rules might add.

But she agreed making it easier for mothers to return to work earlier, “can only be good news for salons”.

www.nhf.info

MOVERS&GROOVERS HABB FUNDRAISERS

Hair and Beauty Benevolent (HABB) is running a charity golfing day at Gatton Manor in Surrey on May 19. The event costs £85 per person or £320 for a team of four and includes 18 holes, breakfast and a three-course dinner. In June the charity is organising a fourday fundraising bicycle ride in Marrakech. All levels are welcome, with the event costing £500 (not including flights) and a minimum sponsorship level of £350 required.

Anyone interested should contact HABB on 01737 212494 or email info@habb.org.

HOB POP-UP

Haircare brand Fudge and salon chain HOB Salons teamed up in January to run a pop-up salon during the London Collections: Men fashion week at the Hospital Club private members’ club and creative arts venue. The Fudge Fix salon was open daily over the three days of the show, offering complimentary haircuts and styling services.

NEW YEAR HONOURS

Scottish entrepreneur and founder of Edinburgh salon chain Cheynes Group, Jennifer Cheyne was made an OBE in the Queen’s New Year’s Honours in January.

Jennifer, who launched the sixstrong salon group in 1976, said she was “surprised, honoured and absolutely delighted”. Others from within the industry recognised with MBEs included Lino Carbosiero, who styles prime minister David Cameron’s hair, celebrity make-up artist Pat McGrath and Martin Kolton, veteran chairman of training provider Central Training Group.

BRA-VO!

A cancer charity is looking for hairdressing salons to get involved in an innovative bra recycling scheme. The Against Breast Cancer scheme involves businesses setting up pink “bra banks” into which unwanted bras can be recycled to help small businesses in Africa, with the charity raising £1,000 from every tonne donated. Salons interested in finding out more can contact recycling manager Emma Cousins on emma@againstbreastcancer. org.uk

AFRICAN CHARITY

Two employees from Welsh hairdressing and beauty training provider ISA Training were due to fly out to one of South Africa’s poorest townships last month.

Internal verifier and assessor Louise Morgan and team administrator Charmayne Williams both raised £2,200 through a series of fundraising events to take part in Challenge South Africa scheme, which will see them work with school-children and the local community in the township of Manenberg in Cape Town.

SEANHANNA AWARDS

Salon chain seanhanna held its annual awards ceremony at London’s Courtyard Theatre in January, designed to recognise and reward the achievements of its team over the past 12 months. seanhanna Bristol won five, including three Creative Image Awards. The chain’s artistic director Yesmin O’Brien received a “special recognition” award for her 25 years with the company. Salon of the Year was the Canary Wharf branch.

BARBARELLA BONUS

Congratulations to Northampton salon Barbarella Hair, which won the Customer Service Award at the Northamptonshire Business Excellence Awards in December.

The awards, in their 23rd year, showcase the achievements of local Northamptonshire businesses.

MARCH/APRIL 2014 SALONFOCUS PAGE 11

NEWS

Salons urged to review computers as Microsoft winds down XP Experts are advising hairdressing salons still using Microsoft’s Windows XP operating system to strongly consider upgrading their computers before next month.

From April 8 Microsoft will stop supporting the system, which has long been superseded by more advanced Windows systems, notably Windows 7 and 8, with Microsoft tipped to launch Windows 9 next year.

Microsoft’s decision does not mean computers using XP will stop working, just TROY GILL: RISKS that the system will no longer be supported by Microsoft if it develops a problem or data gets corrupted, lost or hijacked. Unsupported versions of Windows also no longer receive software or security updates. Salons that lose data, and which are running an unpatched, less protected system, could also be vunerable under the Data Protection Act. XP first launched 12 years ago and, as NHF chief executive Hilary Hall pointed, out it is still widely used in the small business community.

“The advice from Microsoft is to upgrade to Windows 7 or 8, but feedback from members suggests that Windows 8 is a very different user experience and takes longer to get used to,” she cautioned.

Nevertheless, there was a good chance anyone using Windows XP was also using outdated computer equipment, meaning the new financial year could be a good moment to re-assess anyway and consider whether it would benefit the business to upgrade, she advised.

David Pickering, managing director of salon management system company SalonGenius, agreed that, for most salons,

Hairdresser develops ergonomic hairdryer An ergonomic hairdryer designed by a hairdresser has been winning industry plaudits.

The OTT Hairdryer has been produced by hairdresser and inventor Tony Waithe, from Hendon in north-west London.

It has an innovative curved handle that hairdressing motivational guru Alan Austin-Smith, founder and partner at The Fantastic Hairdresser Company, has argued could help reduce some of the back, arm and musculoskeletal problems long associated with many conventional hairdryers.

PAGE 12 SALONFOCUS MARCH/APRIL 2014

it would be a question of upgrading to Windows 8.1 “We are upgrading salons’ hardware as required,” he added.

Troy Gill, security analyst for email and web security company AppRiver, warned that after the final April patch there would be “a huge gaping hole” between users and cybercriminals bent on stealing personal and financial information.

“These criminals often attack vulnerable systems to access your machine and infect it with the malware of their choosing.

What’s more, the longer you continue to use XP, the more significant the threat will become,” he warned.

Troy added that many companies had already stopped developing software for XP, and many more would soon follow suit as they began to wind down their support of XP-based applications.

“This will mean more unpatched vulnerabilities as some companies shift focus away from software designed for an operating system at its end of life,” he said.

Aside from Windows 7 or 8, options including upgrading to Mac, Linux and Chrome products.

But Troy added: “For businesses that want to stick with Windows, simply upgrading older machines to a newer version of Windows might be the best option.”

• The government is encouraging small businesses in 10 UK cities to apply for grants of up to £3,000 to help them switch to faster broadband. The scheme, under the government’s Super Connected Cities initiative is putting aside £100m initially to help firms in Belfast, Salford, Portsmouth, Cardiff, Derby, Bristol, Edinburgh, Newport, London and Manchester, with the aim to extend it to 22 cities during this year. More details can be found at: www.connectionvouchers.co.uk/.

“I believe that this Tony, who was a product has a future and partner at Positive I’m looking forward to Image Hair salons in seeing it in production,” the 1990s until the said Alan. middle of the last Peter Stonebanks, decade, approached head of hairdressing at Alan after attending the College of North one of his seminars, West London, where Be Fantastic, with his Tony trained, said he was idea for a hairdryer keen to test the OTT on that could improve his students, while the health and safety vocational training provider within salons.

VTCT said it was also eager The curved to test the model out. handle of the OTT INNOVATIVE: TONY WAITHE WITH And Dale Herne, head Hairdryer means educator at RUSH Hair there is less twisting of HIS HAIRDRYER Group wrote on Tony’s Facebook page: the arm at awkward angles while drying “I liked it. When you hold the handle, the hair, so lessening the chances shoulder is low so there is no strain.” of developing long-term shoulder or Tony is now working to raise the elbow problems. £500,000 capital needed to begin a first There is, argued Tony, also potential manufacturing run, as well as speaking for retail, in that it can be easier for to wholesalers about the possibility of clients to blow-dry the back of their stocking the product. hair at home.

NEWS

Secrets of the perfect BEAUTY SPOTS haircut finally revealed (probably) HABIA CALL

Industry skills council Habia is seeking therapists, nail technicians and make-up artists to join its specialist working groups reviewing the current National Occupational Standards for beauty therapy, spa therapy, nail services and advanced practices. The review starts next month and all meetings will be held at Habia’s Doncaster offices during April, May, June and October. Anyone interested should email, or send their CV to, qualifications@habia.org by Friday March 14 or call 0845 2306080.

HEALTH REVIEW

KIRSTY JEWSON: EXPRESS BEAUTY FORMAT

SACHA MASCOLO-TARBUCK: SMALL TOUCHES MAKE ALL THE DIFFERENCE

International hairdressing giant Toni&Guy believes it has come up with the ingredients for providing the “perfect haircut”.

Its conclusions are based on a survey it commissioned of 2,000 women to mark the group’s 50th anniversary.

The survey found the ideal hair appointment takes place at about 12.30pm on a Saturday afternoon and, ideally, every nine weeks. It comprises a cut or colour, or just a trim.

Women want to be able to style their hair several ways, preferring a cut that can have at least two different looks, the survey revealed.

It also found the average woman wants to pay £38.56 for the perfect cut, spending another £6 on product at the end of their appointment.

Salon comforts are important – with tea and coffee and a head massage while they read a magazine all going down well.

Salon tittle-tattle is a must: women want to hear an average of two pieces of gossip from their hairdresser, said the salon chain.

Local news, television shows and celebrities are the most popular topics of conversation.

However, a quarter of those questioned said they preferred to relax and enjoy a bit of peace and quiet, without any conversation with their stylist.

Even if conversation is not on the wish-

PAGE 14 SALONFOCUS MARCH/APRIL 2014

list of three-quarters of women, almost all said their perfect haircut would mean seeing the same stylist each time.

Sacha Mascolo-Tarbuck, global creative director for Toni&Guy, said: “These results show as well as wanting to have the perfect style, it’s the little things like the drinks and topics of conversation which can make a big difference to their appointment.”

In a separate survey, also to mark the salon chain’s half century, pollsters discovered that the average woman will spend more than £14,000 on her hair between the ages of 18 and 50.

Blondes pay more than the average, spending more than £16,000, the survey found.

The study revealed that seven women out of 10 enjoyed getting their hair cut and styled at a salon, and almost four out of 10 liked to make sure they kept up to date with the current hair trends and styles rather than staying with the same look each time.

Meanwhile, research by market research Mintel has highlighted the growing popularity of home colouring.

Its report Hair Colorants and Home Perms – UK found that 88 per cent of people who colour their hair do so themselves in the home rather than in-salon.

Penetration of at-home colorants was highest for under 45-year-olds, at 92 per cent, it added.

Health body Health Education England last month conducted a review of the qualifications required for people carrying out non-surgical cosmetic procedures, one of the recommendations in last year’s review of cosmetic interventions carried out by NHS medical director Professor Sir Bruce Keogh.

Its findings are due to be published early next month but anyone interested in receiving project updates can email cosmetics@nwl. hee.nhs.uk

MALE MARKET...

A third of male consumers use more than 10 skin and hair products in their daily routine, a study has argued. A poll of 540 men by money-saving website netvouchercodes. co.uk concluded 57 per cent used six to 10 items a day, with shaving balm and shaving gel among the most popular items to improve skin. A quarter used between 11 and 15 products and seven per cent used more than 16 products a day.

...IS MAKING MONEY

Men spend £146.23 a month on cosmetic products and clothes, just £55 less than women, according to a poll by website freedeliveryland.co.uk. The most popular items were post-shave balms, body sprays and hair products. Research by retail chain, Debenhams, meanwhile has concluded men in their thirties spend £100 a month on skincare and grooming products.

BOTOX LICENCE

Facial injectable Botox has been approved for use on crow’s feet by the Medicines and Healthcare products Regulatory Agency (MHRA), the government agency responsible for standards of safety, quality and performance in this area. The granting of a licence to Allergan, manufacturer of the injectable drug, for this treatment, follows a similar move in the US by the Food & Drug Administration.

TAN LOVERS

A poll by holiday firm Virgin Holidays has shown Wolverhampton is the UK city that most loves a tan, whether this is achieved on holiday or in a tanning salon. Three quarters of those polled in the West Midlands city said having a tan made them feel better in themselves, followed by people in Aberdeen, Glasgow, Manchester, London, Birmingham, Newcastle and Bristol.

NEW

s n o i t i t e Comp

NEW Venue

NEW Judges

NEW Spo

nsors

t s e B s ’ n i Brita r o f g n i h Somet Y D O B Y R EVE

BE CREATIVE...

N FASHIO -UP

THE COUNTDOWN HAS STARTED! www.britains.best.me

NAILS

Britain’s

ises to b

k and prom Best is bac

an ever...

d better th e bigger an

MAKEOUR GLAM SY FANTA

AFRO

COLUMN

Giving something back Alan D Hairdressing has raised more than £15,000 for the charity Hair and Beauty Benevolent (HABB) in just 18 months. Edwards Hemmings explains how it’s done it, and how the industry could do more to help HABB’s extremely worthwhile work.

Much as the NHF has always been a key supporter of Hair and Beauty Benevolent (HABB), including sitting on its management committee, so we at Alan D Hairdressing Education have always been huge fans of this extremely worthwhile charity.

As hairdressers, the majority of us earn a good living and have a great life – we all love what we do.

But if the worst comes to the worst it’s remarkable how quickly, for anyone, things can go wrong.

So, knowing there is an organisation out there that is completely apolitical and which will be there for any of us should we, or our families, fall on hard times is a great reassurance.

Salon support

A lot salons, of course, support HABB through specific fundraising events or having collecting tins or boxes at reception, which is all great.

We, however, wanted to do things a bit differently. We wanted a simple, unobtrusive yet effective way of giving over the long term rather than just doing one-off events.

How HABB helps

We have around 200 models a week going through our training academies, who we were charging around £2 a time for a haircut. Would we miss that? No. So we simply make the charge direct to HABB instead.

In the past 18 months alone we’ve raised more than £15,000. In fact I’m shocked at how much it’s brought in!

Collecting on the till is worth it – and every pound raised helps – but we wanted to get away from the embarrassment people, staff and clients, can often feel about asking for donations, however worthy the cause, especially if you have to first explain what HABB is.

For us, it was about trying to come up with something that wasn’t going to take a lot of time and effort, wasn’t going to distract from the business but which also had the potential to make a real difference, which I think our scheme does.

Industry potential

What I would like to see is more industrywide initiatives. If we got every salon owner to do something similar to what we’re doing – or just getting models to put £1 in a tin – then, wow, think of the

Sarah is 13 and has been a beneficiary for four years.

Sarah’s mother has been a hairdresser for more than five years. Her father has mental health issues and is currently sectioned.

Sarah was born with partial blindness is both eyes and has endured many operations during her young life. Her mother is now a full-time carer as Sarah needs help with all aspects of life. HABB provided special equipment for Sarah and she receives monetary gifts as a child beneficiary.

Cameron suffers with epilepsy and severe developmental delay and has been a HABB beneficiary for 14 years.

His father left when he was born and his mother has brought him up alone, while working part time (when he is at school) in a salon. She has been a hairdresser for 29 years.

HABB has provided Cameron with special equipment worth more than £2,000 plus pocket money, Christmas and holiday allowances.

Jayne has been a beneficiary for just eight months. She worked in the beauty industry for 12 years but 12 months ago was diagnosed with breast cancer and is now unable to work.

To make matters worse her partner had a car accident five years ago, which has resulted in severe back pain that prevents him from working.

HABB is financially supporting Jayne until she is able to return to work.

PAGE 16 SALONFOCUS MARCH/APRIL 2014

money you could raise; it’d probably be millions.

Individual fundraising efforts should not be discouraged, of course. But if we can encourage salon owners, and the wider hairdressing Edward Hemmings and barbering is director of industry, to look at education and supporting HABB creative director of in a totally different Alan D Hairdressing way, through their Education, which day-to-day business has a London salon activities, that and academies in will make a huge London and Ipswich difference.

Not only will it give HABB the means to support everyone who needs its help today, it’ll ensure it’s there for all of us now and well into the future should the worst happen.

SUPPORTER: ALAN HEMMINGS HANDING OVER THE LATEST CHEQUE TO HABB, AT THE OPENING OF THE CHAIN’S LONDON ACADEMY

How to help HABB

One of the simplest ways salons can raise money is through in-salon collection boxes. Another option is through the sale of products, though the salon should first gain an agreement from HABB. For example, if a company states in any promotional or marketing material that an amount of money will be donated to HABB on every sale made, HABB would need to have a written agreement with that company.

Another way is through fundraising events. HABB advises salons to contact the charity by email, info@habb.org, informing them of the date of the event in order that it can be promoted online.

Upcoming events include a golf day in May and a bike ride in Marrakech in June. Full details can be found within Movers & Groovers on page 11.

As well as email, HABB can be contacted by phone, on 01737 212494, or followed on Facebook (www.facebook.com/habbcharity) or Twitter (@habbcharity).

INSPIRED

Two-tone

triumph The latest collection from Lucie Monbillard, for seanhanna Credits: Hair: Lucie Monbillard for seanhanna Make-up: Dominique Heslop Styling: Bernard Connolly Photographer: Chris Chudleigh Products: L’Oréal Professionnel

www.nhf.info

MARCH/APRIL 2014 SALONFOCUS PAGE 17

INSPIRED

PAGE 18 SALONFOCUS MARCH/APRIL 2014

INSPIRED

www.nhf.info

MARCH/APRIL 2014 SALONFOCUS PAGE 19

INSPIRED

PAGE 20 SALONFOCUS MARCH/APRIL 2014

BUSINESS FOCUS

Follow the money Even with the economy starting to turn, owners and would-be salon owners can struggle to access funding.

Julio Vildosola looks at how to maximise your chances when going to a lender.

Obtaining access to finance in the current economic climate can be challenging for any business, and for hairdressers in particular the options can be limited.

This is largely because, as many Julio Vildosola is salon owners lease chief executive of their premises on a Liquid Finance www. short-term agreement, liquidfinance.co.uk, they are unable which specialises in to borrow against providing investment the value of their capital for small premises. businesses The example of Lauren Taylor is probably a pretty typical one within the industry.

Lauren is a freelance hairdresser based in Hertford.

Having established a viable hairdressing business she is now keen to open her own salon but securing finance has LAUREN TAYLOR: been something of a FINANCE AN OBSTACLE stumbling block.

“There have been a number of lease premises that have been suitable for my salon but I can’t get the finance quick enough to secure one. Banks aren’t willing to lend in the current economic climate, and I don’t have access to funds from friends or family,” she explains.

So what’s the answer? The first point to make is there’s no magic wand solution here. Just being passionate about your business may not be enough to secure you funding.

You need to do your homework. If you have a clear idea of where you stand currently, have put together realistic projections and have even a basic grasp of the options most likely to be on the table you are going to be in a much better position.

www.nhf.info

You may still, like Lauren, find it a battle but at least you’ll be vastly improving your chances.

Secured lending

Secured finance is only available to owners who own the premises in which they are based.

If you are able to go down this route you’ll need to provide a valuation of the premises and take a loan at a percentage of the valuation, which will be added to the existing mortgage on the property.

This type of loan can be secured against equity on your home; however this is not advised as you will be at risk of losing the property if your business subsequently experiences financial difficulty.

The advantage of taking out a secured loan is you can expect lower interest payments and long repayment schedules, as well as options for debt consolidation.

But don’t neglect to account for the associated extra costs you’ll probably incur. These are likely to include the cost of getting the valuation as well as legal fees. There will also be a limit on how much you can borrow against your existing assets.

Secured loans don’t tend to take ongoing company cashflow performance into consideration, therefore your asset – your premises – is at risk if repayments aren’t met. It is important you are aware of the terms of your fixed repayments and confident you will be able to keep up.

Unsecured finance

Unsecured finance is normally considered if you don’t own your premises or if you are looking for a faster and more flexible cash injection.

In contrast with secured financing, unsecured funding does consider the value of the company’s cashflow, potentially making it attractive to owners who don’t want to offset against personal assets.

Not only does this mean the risk is shared between you and the lender, there are no hidden legal fees or valuation

costs. But the same detailed preparatory leg-work is required in terms of having a clear idea of where your business is financially and realistic projections for the future.

You normally agree a fixed interest rate and repayments for the life of the loan, but do be aware there is likely to be an upfront arrangement fee. There may also be an option to repay the loan early, though some lenders will charge an additional interest fee for doing this.

Friends and family

The final option to consider, and one of the most popular, is friends and family. If you are able to borrow a sum of money from a family member or friend it will normally be a cheap and easy way of securing finance.

However, it is important to be aware of the impact bringing money and debt into the equation could have on your friend or family relationships, especially if the business does not go as well as hoped.

Three questions to help you decide the best funding option 1) Do you own your premises?

If “yes”, a secured loan may be your best option. Visit your bank and determine if there is any funding available or, if you have reached your loan limit, alternative options. If “no”, and you don’t have the option of borrowing from friends and family, it is best to look at unsecured options.

2) When do you need the money by?

Secured finance typically takes 90 days from application to receipt.

Therefore, if you have an immediate cash requirement a faster and more flexible finance option, such as an unsecured loan (which can be approved in as little as two weeks), may be a better bet.

3) What are you using the money for?

When considering alternative funding, think about what you plan to spend the money on. This may sound obvious but, for example, if you are looking to secure a new leasehold then it can prove difficult to do this without already having existing finance in place!

MARCH/APRIL 2014 SALONFOCUS PAGE 21

BUSINESS FOCUS

Don’t put off pension planning The Pensions Regulator will from this summer begin contacting small salons to warn them they need to start preparing for the arrival of pensions auto-enrolment.

The key, as SalonFocus has found, is to begin early.

Salon owners are being advised to act now to prepare for automatic enrolment, or the new statutory duty gradually being rolled out to all businesses requiring them to enrol workers into CHARLES COUNSELL: TAKE IT a work-based ONE STEP AT A TIME pension.

The biggest salon chains have begun this process already. Although smaller salons (those with 30 employees or fewer) are only due to go “live” from June 2015, the experience of employers so far is that preparing for auto-enrolment can take many months.

So salon owners, especially those without HR or payroll support, are being strongly urged to get a head-start and begin preparing sooner rather than later.

Lack of awareness

Historically, pension provision for employees has not been commonplace within hairdressing, and there is still a lack of awareness that auto-enrolment is looming over the horizon.

Take the example of Peter Kavanagh, a hairdresser who owns two salons in east Sussex, Peter Kavanagh Salon in Hove and Boutique by… PK in Brighton.

Peter fully recognises the value and importance of saving into a pension.

“When I was 22 and started out in hairdressing, I was lucky because my employer encouraged me to join a pension scheme. I didn’t give it much thought at the time but now I am in my 40s I am really pleased I did. I think it’s important to encourage staff to save from

PAGE 22 SALONFOCUS MARCH/APRIL 2014

an early age,” he explains.

But even someone as clued up about pensions as Peter concedes autoenrolment remains something of an unknown quantity.

“Certainly I think we hairdressers and employers need a ‘call to action’ with regard to auto-enrolment. I know I’m not alone in having worries about the cost of the change. More information would be welcome,” he says.

Moreover, hairdressing is an industry with a lot of casual employment, where people are often paid weekly rather than monthly and where staff tend to move around a lot, all of which can make auto-enrolment more complicated to administer.

Get the facts

So, what do salons need to do? From June onwards, The Pensions Regulator (TPR) will begin writing to small salons, alerting them to the fact they are potentially only a year away from autoenrolment. This means doing nothing and hoping it all goes away is not an option, especially as non-compliance could, at worst, lead to expensive penalty notices and fines.

But hairdressers can help themselves by, first off, simply visiting TPR website www.thepensionsregulator.gov.uk.

As Charles Counsell, executive director for automatic enrolment at the regulator explains, here they will find links telling them their staging date (or the date when they need to begin auto enrolling employees), what auto-enrolment is likely to cost them and advice on key steps, such as how to assess which workers will be eligible to be auto enrolled.

“Failing to plan ahead will lead to complications and risks non-compliance, which can come at a cost. TPR is alerting hairdressers that the clock is ticking

PETER KAVANAGH: PENSIONS ARE IMPORTANT

and they need to start preparing. The first thing they must do is visit our website and find out their staging date.

Employers should then use our handy timeline planner,” he says.

“Planning for automatic enrolment may sound a little daunting to smaller employers who may not have experience of pensions but I would urge them to take it one step at a time,” he adds.

Auto-enrolment: the basics

Under auto-enrolment, employers of all sizes will have a statutory duty automatically to enrol eligible workers into a work-based pension and make an employer contribution towards it.

Eligible workers will be those over 22 and under state pension age, who earn more than £9,940 per year and ordinarily work in the UK. They must enrol and pay minimum contributions for any workers aged 16-74 who earn more than £5,668 annually and ask to be enrolled. Any workers aged 16-74 who earn less than £5,668 and who ask to be enrolled must be so, but there is no requirement to pay contributions for them.

While there will be workers in the hairdressing industry who will not fall into this category, employers will still have a duty to assess all their workers for eligibility.

The largest salon groups began auto-enrolling this year and the process will taper down to the very smallest by April 2017, but preparation can take anything from six to 18 months, TPR calculates.

BUSINESS FOCUS

Business as usual?

Whether it’s floods, fire, theft, a power cut or just the booking system going down, salons need to have a business continuity plan in place, argues Heidi Morton.

It is also important any plan is clearly Most business owners would agree it’s presented and easily understood, for simply good business sense to plan for example avoiding internal abbreviations how they are going to respond to slow that may be obvious to you but no trading periods. Yet many fail to take one else. this thinking one step further and plan It needs to be stored somewhere for how they might cope with a total people can easily find it, and it makes collapse of or disruption to their business. sense to keep a copy off site. With all Whether it’s something catastrophic businesses nowadays relying more and such as fire, floods (as we’ve seen with more on the internet or computers, it is the horrendous flooding around the a good idea to create back-ups of any country this year) or a break-in, saved material on external devices. This or more mundane, such as your booking will ensure all data is up-to-date and can system breaking down, a power cut or a be accessed following an key member of staff leaving, unexpected incident, though business disruption can be it is also important to ensure extremely costly. such external devices are Last year, the Chartered safe and secure.

Management Institute estimated weather disruption alone cost the Interruption average UK business £52,000, insurance with staff illness, failing IT The final part of the systems and disruption to jigsaw is insurance. Most telecommunications the business owners wouldn’t next most common business think twice about insuring Heidi Morton is continuity issues. Back in their buildings, stock and administration 2008, the think-tank The equipment, yet fail to manager at Tenon Forum estimated protect themselves against Coversure more than half of UK small the potentially crippling Insurance Services, businesses had experienced impact of the business the NHF’s preferred a major business disruption, being temporarily out insurance broker at an average cost of nearly of action. £23,000.

So it’s advisable to take That’s why a business continuity out business interruption insurance on plan needs to be an essential part of any top of your basic property insurance – salon’s business planning. and the good news for NHF members is that business interruption is included as standard within the SalonSure The five Ps insurance policy.

Business continuity can often be broken The difference between business down into five “Ps”: your people; your interruption insurance and property processes; your premises; your providers; insurance is that property insurance and your profile. will only cover the physical damage to A business continuity plan should a business following a disaster, while examine how your business will respond business interruption insurance will and continue to operate following an provide additional cover, for example incident in any of these areas; how you covering the profit that would have will return to “business as usual” in the been made if there quickest possible time. It should set had been no interruption or additional out a managed process and provide costs such as having to relocate a framework to allow you to provide temporarily, hiring replacement continuity of service to your clients. equipment or even advertising that it is When devising a business continuity still “business as usual”. plan the first step is simply to identify the Another advantage of this sort of assets and processes that are critical to insurance is the protection it offers for your business.

PAGE 24 SALONFOCUS MARCH/APRIL 2014

indirect disruption. For example if a salon is in a shopping centre and customers can’t access it because of a fire at another part of the centre, business interruption insurance can be triggered to protect your profits.

However, as with all insurance, it is worth discussing the details of what sort of policy will be most appropriate for you and your business before taking the plunge, especially as business interruption insurance is normally only triggered for events for which you are insured.

Flood risk concern

Flooding can be one of the most devastating business continuity risks, with the Federation of Small Businesses estimating one in five small businesses was affected by flooding in 2012 alone.

That’s why there has been concern within the insurance industry at the government’s decision to exclude small businesses from new laws around flood insurance set to come in from 2015.

The new scheme, called Flood Re, was announced last June and is set to replace the so-called Statement of Principles agreement. This is an agreement between the government and the Association of British Insurers that commits insurers to offer insurance to those who have been previously flooded or are at risk, including small businesses.

The Flood Re scheme will create a “flood fund” to ensure premiums remain affordable to those at high flood risk, with insurers paying into the fund to allow premiums for high-risk properties to be capped.

But the new scheme will not cover SMEs, something the British Insurance Brokers’ Association has criticised, although the Association of British Insurers has argued existing deals available through brokers are normally sufficient.

RECOMMEND A FRIEND GET £25 EACH *

• Recommend a Friend and you will get a £25 voucher and your friend will get £25 off their membership • The friend will have to quote your membership number and RAF Advert to receive the offer.

For further information on Recommend a Friend Campaign visit:

www.nhf.info/recommend

or call one of our membership team on:

0845 345 6500

One Abbey Court | Fraser Road | Priory Business Park Bedford | MK44 3WH

t: 0845 345 6500 or 01234 831965 e: enquiries@nhf.info

www.nhf.info

TOOLBOX: RELATIONSHIPS

Tax needn’t be taxing Investing in an accountant can bring peace of mind and leave you free to do the ‘day job’ of running your salon. But it doesn’t mean you can switch off from learning about your finances, quite the opposite in fact, argues Brian Palmer.

HM Revenue & Customs (HMRC) is taking an increasingly vigorous approach to pursuing small companies that fail to pay their taxes, whether deliberately or inadvertently, as witnessed by its Brian Palmer announcement last year is tax policy that it will be stepping up adviser at the the “naming and shaming” Association of persistent offenders. of Accounting In fact, HMRC Technicians estimated back in 2012 www.aat.org.uk that as many as 36 per cent of small and mediumsized businesses have issues with their record keeping, and may not as a result be paying the correct amount of tax. If you’re not keeping accurate records, you can incur penalties of up to 30 per cent for careless mistakes, and much higher if HMRC thinks they may be deliberate.

This all highlights why being on top of your accounting and book-keeping is such an essential part of keeping the taxman happy.

Seek professional help

The first step is to seek help from the professionals, especially an accountant.

Given that it is possible to do your books yourself, this may feel like an unnecessary cost, particularly if you are just starting out and cash is tight.

But using a reputable book-keeper, accounting technician or accountant from day one could save you thousands of pounds in the long run as well as help to provide peace of mind.

So what’s the difference between a chartered or certified accountant, an accounting technician and a bookkeeper?

The first thing to point out is all these roles come under the broad category of “accountant”.

The main difference is in their level of qualification, with bookkeepers generally focusing on managing the day-to-day paperwork, doing the books (as the name

PAGE 26 SALONFOCUS MARCH/APRIL 2014

suggests), creating and sending out client invoices, managing supplier bills and receipts, helping with VAT returns and payroll and so on.

The next level of qualified accountant, such as a member of the Association of Accounting Technicians, for example, is a fully qualified and regulated professional, who can offer accountancy, taxation, bookkeeping or related consultancy services. They will also be able to act more widely, for example preparing year-end statutory accounts if you are a limited company, advising on tax and VAT and offering general business advice. Chartered or certified accountants, by comparison, are often regulated to undertake audits on companies’ accounts.

Whatever level of support you choose, the most important thing is to ensure they are full member of a reputable professional membership body, such as the AAT or the Institute of Chartered Accountants in England and Wales (or its equivalent in Scotland) and the Association of Chartered Certified Accountants.

This is important because it means you can be sure they are keeping their professional knowledge and expertise up to date.

Invest in your own learning

But there’s another vital point to make here. Don’t fall into the trap of thinking that, once you have a person looking after your finances you can “switch off” from understanding this part of your business.

Gaining basic financial knowledge not only allows you to have a better relationship with the person looking after your finances but, importantly, will give you a deeper understanding of your accounting system and the data going into it. This is increasingly helpful as more businesses use bespoke accounting software, whether independently or in conjunction with accounting support.

More widely, financial knowledge can

ACCOUNTS: DON’T PUT YOUR HEAD IN THE SAND

help you to gain a better understanding of your competitors and how you are faring in comparison, for example by allowing you to digest and read any published accounts or annual reports.

Finally, you never know where such knowledge will lead you. A hairdresser since 1971, Gisele Falltrick runs hairXchange in Rayleigh and Hornchurch, Essex, comprising two salons and an online shop.

Learning about finance, in her case by doing an AAT qualification, has been a key part of helping to grow her business, she argues.

“When I was a hairdresser with one salon it quickly became apparent I was going to need to up-skill and learn about the financial side of my business if I wanted to grow. Of course I had an accountant but, if I’m honest, I struggled to understand him and that naturally worried me.

“I began studying with AAT to understand the basics of accounting so I could have a better relationship with my accountant and, since I enjoyed it so much, I now focus entirely on the financial management side of my business and no longer work as a hairdresser.

“I have two salons and employ 14 hairdressers. If I hadn’t learnt about finance and basic accountancy I wouldn’t have been able to grow my business structure. Financial management sits at the heart of every business and can mean the difference between success and failure,” says Gisele.

If you read nothing else read this…

• HMRC enforcement and inspections means it is vital to keep on top of your accounting • Using an accountant may feel like an upfront cost, but it can lead to long-term savings • But don’t assume you can as a result ‘switch off’ from your accounts

NEW EVENT for 2014

Photographic Stylist of theYear 2014 New to the industry or years of experience?

There’s a category for everyone

TOOLBOX: EQUIPMENT

Put your back into it Ergonomics is increasingly being incorporated into backwash chair and wash-point design to protect stylists as well as to improve the client experience, say manufacturers. SalonFocus reports.

Albert Ewan, of Albert Ewan Design, highlights innovations such as the Ergowash from Nelson Mobilier.

“This is the first backwash chair where the whole backwash moves up and down, for the comfort of the operator/ staff. It means no more slouching or stooping over and the client is also better cared for because of having a tilting basin and electric leg lift/rest,” he explains.

Anti-drip taps

ACQUA-STOP TAP: PREVENTS FLOOR HAZARDS

It’s well-known some of the most common health and safety complaints reported by stylists are arm, neck and shoulder aches and pains. That’s hardly surprising, given the nature of the job: standing for long periods, working intensively with your arms and hands, often being bent over a client.

It’s also one reason why ergonomics is becoming more and more important within the design of backwash chairs and wash-stations.

As Stephen Ewings of wholesaler Aston & Fincher’s salon design and furniture department explains, the constraints of poor design and planning and simply the small amount of physical space in many salons meant wash-points historically were often plumbed in against walls.

This may have been convenient in terms of design and fit-out, but it inevitably means as a stylist you are only able to work from a single side.

“The result is lots of twisting and turning of the spine, causing undue pressure. Working from the side also means the head massage/ shampoo is often uneven and a less enjoyable experience for the client,” he points out.

“The key elements all basins must have are a basic tilt mechanism that enables the basin to be angled at a comfortable position. However, developments in both design and manufacturing, teamed with a better

PAGE 28 SALONFOCUS MARCH/APRIL 2014

understanding of the potential damage that may be caused, has resulted in furniture manufacturers pushing designers to look at ergonomics and movement in greater detail,” he adds.

Another innovation of the Ergowash is that it comes with anti-drip taps/aquastop as standard, which means the stylist no longer gets water running down the handset hose, which in turn of course can be a potential floor health and safety hazard.

Albert also cites the Alum from Spanish firm PAHI Barcelona as a good example of ergonomics being incorporated into design.

“This is fully adjustable to get the client’s comfort absolutely right. It can elevate the client when they are fully reclined and the basin can move forwards and backwards, up and down and tilt as well,” he adds.

Sculpted design

It’s now much more common with modern wash-points for basins to be sculpted not just for clients’ necks but to better accommodate the therapist or stylist. “This enables you to work closer to the head while still maintaining a straight back or spine,” Stephen says.

“The Gamma & Bross Celebrity chair has gone a step further and now incorporates a sliding mechanism that enables the basin to glide forwards and backwards, which again has benefits for staff and clients alike.

“The benefits for staff are a straighter back, whereas the gliding mechanism means the basin can be positioned to further support the client’s neck.

Gamma & Bross are also about to launch a redeveloped Ultrawash wash-point called the Ultrawash Up, where the entire chair can now be lifted, meaning the overall height of the basin can be adjusted,” Stephen adds.

He also cites the example of AGV Group, which has developed a washpoint called the Milos that can be used in conjunction with a therapist’s stool, and therefore enables the stylist to work in a seated position.

NELSON MOBILIER ERGOWASH: NO MORE STOOPING

If you read nothing else read this…

•• Ergonomics is becoming a more important factor in design •• Basins are increasingly incorporating tilt mechanisms •• In some chairs the whole backwash can move up or down

Tried & Tested The product:

TRIED & TESTED The NHF’s Tried and Tested panel of top salon owners gives its regular verdict on a range of established and new product and equipment.

How Tried and Tested works: The SalonFocus Tried and Tested panel is made up of NHF members who are not paid for their opinions. The rating is the opinion of the panel alone. Manufacturers who wish to submit items for testing should contact Tina Beaumont at NHF head office on tina.beaumont@nhf.info. Three samples will normally be required. Being accepted is not a guarantee a review will be published.

Denman ProEdge Precise Cutting Comb

Description: The ProEdge Precise Cutting Comb from Denman is “the ideal tool” for precise cutting, the company says. Designed by Roger Wigmore, it incorporates a unique “cutting ledge” to enable “fast and accurate scissor-over-comb and clipper-over-comb cutting” while the ledge “helps to accurately position the scissor/clipper for a smoother, steadier cut and helps prevent the scissor/clipper from slipping”, it adds.

Did it work?

Our testers said: “Yes.” “An excellent new product that will enhance precision cutting.”

Was there anything that stood out, either good or bad?

Our testers said: “I found the ledge difficult to get on with.” “On using the comb I found it very comfortable in the hand; it is very good quality and suitable for scissor and clipper.”

Any other general comments?

Our testers said: “A good quality product.” “A very good tool for training as it gives confidence and comfort to any trainee; another success for Denman in its production!”

Would you use it in your salon?

Our testers said: “Yes.” “Definitely, as its potential as a musthave tool is excellent.”

The product:

HHHH

Tried and Tested overall rating: 4

The product:

Top Hair Airborne for Men

Z.One Concept 12 Wonders No Inhibition Leave-In Spray

Description: Airborne for Men from Top Hair has a “specially developed hydro-air formula” that makes it “perfectly tailored to the needs of men”, says the company.

The range includes an “active boost” shampoo, “daily routine” shampoo and anti-dandruff “parachute” shampoo, as well as a “flight control” gel, “active boost” lotion, “stealth” modelling paste and “graviator” strong hold spray.

Description: The ‘12 Wonders’ No Inhibition hair repair, protection and shine leavein spray from Italian haircare brand Z.one Concept is “an easy-to-use, intensive multitasking wonder that offers all hair types the incredible effects of 12 different products in just one bottle”, says the company. Sprayed on to damp hair, massaged in and styled, it creates “full-bodied, hydrated hair that’s perfectly protected, preserved and polished”, it adds.

its use. Clients enjoy the easy application and results.” “No.”

Did it work?

Our testers said: “An excellent product that does what it says on the bottle.” “No.”

Any other comments?

Our testers said: “Good to use with hot irons etc. Hair is well protected and is comfortable for clients.”

Did it work?

Our testers said: “Yes, as it gives a refreshing feel after use.”

“Yes.” Would you use it in your salon?

Our testers said: “I would not use it in the salon as I feel it is more a product for retail.” “No.” Was there anything that stood out, either good or bad?

Our testers said: “I found it a very revitalising shampoo.” “It smelt too perfumed; left the hair feeling dry.”

Any other general comments?

Our testers said: “It is a product that should be used daily and sparingly to enable clients to experience the feel-good factor.”

HH

www.nhf.info

Tried and Tested overall rating: 2.5

Would you use it in your salon?

Our testers said: “Definitely, as it is a product to suit many hair types and gives confidence to staff in

Was there anything that stood out, good or bad?

Our testers said: “Its repairing action was good. Easy to comb through and style; a wonderful array of fragrance when in use.”

“The smell was lovely but it was ineffective.”

HHH

Tried and Tested overall rating: 3.5

MARCH/APRIL 2014 SALONFOCUS PAGE 29

FEDERATION FOCUS

Working groups set up tap into member expertise The NHF is setting up a network of specialist working groups to give grassroots members a way of passing on and sharing their knowledge, passion and experience.

The working groups will initially cover barbering, beauty and Afro-Caribbean hairdressing. However, other areas could be added if a clear demand is demonstrated.

There are currently spaces available on all three groups for members who are keen to join. Anyone interested should contact NHF chief executive Hilary Hall on hilary.hall@nhf.info or 01234 834380.

The groups will meet on a regular basis but, alongside their physical debate, will be looking to involve and engage a wider audience of members through social media and online dialogue.

Special groups in all three areas are, for example, being set up on the

Linked-In social media platform.

Interested members will simply need to sign in to their existing LinkedIn accounts and then look out the NHF’s members’ group.

The barbering working party will be for barbers and barber shop owners to discuss the challenges and opportunities they face, especially health and safety restrictions.

The beauty working party will be for anyone interested in beauty therapy, nails, make-up, spas or who owns a beauty salon, while the Afro-Caribbean working party will be for anyone who specialises in African-type hair or runs a multi-cultural salon.

“It comes back to putting members, and the interests of our members, at the heart of the NHF,” Hilary told SalonFocus.

“This has come about because from our surveys of members it has been clear for some time there is so much passion

LINKED-IN AND INSTAGRAM: MEMBER ENGAGEMENT

and engagement for the Federation around the country, but not enough ways for members to feel they can make a contribution or tell us what they want or how we can improve how we help them.

“What I would like to see in time is new members being able to use the information and advice now being built up in a very targeted way to help their businesses right from the moment they become a member,” she added.

• The NHF is now on the picture and video sharing social media site Instagram! Go to @nhfederation and look out for the Instagram logo.

NHF calculator now up and running The NHF’s new employment “calculator” has now been formally launched, and is available in the members’ section of the Federation’s website, www.nhf.info The calculator was first revealed in the last edition of SalonFocus (January/February 2014) and is a web-based tool members can use to help them make calculations around areas such as employee statutory rights and payments.

Each topic can be used to work out real-life situations as well as “what if?” scenarios, for example, what would be a salon’s statutory maternity pay obligations towards a new employee who became pregnant, or what would be the likely award for an unfair dismissal claim?

Key topics covered by the calculator include: • Maternity pay and leave • Adoption pay and leave • Ordinary paternity pay and leave • Additional paternity pay and leave • Redundancy pay • Statutory sick pay and leave • Statutory annual leave • The national minimum wage • Tribunal claims However, members are being advised to recognise the calculator is unlikely to be suitable for more complex calculations, and the membership team will still always be available and happy to help work out calculations for them.

The membership team can be contacted on 01234 831965.

NHF chief executive Hilary Hall said: “The NHF calculator is a simple, easy-to-use resource that will help salons make better decisions.

PAGE 30 SALONFOCUS MARCH/APRIL 2014

“This won’t be a substitute for getting expert legal or HR advice if you require it. Nor, of course, do we want members to feel they shouldn’t be ringing up the membership team – that is what we are there for after all!

“But it stands to reason understanding the financial ramifications of any issue is going to help you make a better, more effective decision, and we so we are confident the calculator will become another valuable tool for the busy salon owner,” she added.

EMPLOYMENT CALCULATOR: WEB RESOURCE

FEDERATION FOCUS

Decision imminent on ‘trailblazer’ status The NHF is hoping to hear this month whether it has been successful in its application to become one of the government’s sector “trailblazers” leading the reform of apprenticeship training.

A formal decision is expected during the first of week March, probably during National Apprenticeship Week, which runs from March 3-7.

If the NHF is successful, the work to pilot the government’s reforms will be led by a group of employers supported by the Federation through the education working group.

The trailblazers are being seen as one of the most important elements within the government’s drive to create new employer-based and employer-led frameworks for apprenticeships following the 2012 Richard Review.

Trailblazers will be expected to provide and test “clear examples of effective practice and approaches which others can build on”, with the government working towards finalising new structures

during 2015/16 and 2016/17 before they go “live” from 2017/18 onwards.

In a separate, but linked, development, major reforms to apprenticeship funding were outlined in December’s Autumn Statement that will enable employers directly to receive funding for the training costs of apprenticeships.

This will replace the existing training provider-led system and allow employers to claim back the cost of training new apprentices from HM Revenue & Customs.

However, there will also be a requirement for employers to make a compulsory cash contribution towards training costs.

The precise delivery method of these changes is still under consideration, with a consultation expected to take place during this year. The government has also said it will be looking at “an alternative funding route for the smallest businesses”.

But the NHF has expressed concern at

the potential extra administrative burden that could be placed on small salons as a result, and called for ministers to clarify its intentions.

“For most salon owners having to administer apprenticeship funding will be an unnecessary distraction from running their businesses, and will simply be one more thing on the already too long ‘to-do’ list small business owners face every day,” said chief executive Hilary Hall.

The trailblazer application will be critical to the amount of leverage the NHF will be able to bring to the reform debate, education working group chairman John Armstrong has agreed.

The group will soon publish a new guide for salons around apprenticeships and the responsibilities salon owners have as employers.

“If we achieve trailblazer status that will be a huge gain, giving employers in our industry a new route to really shape the future of apprenticeship training and standards,” said John.

Why I joined the NHF…

New NEC members welcomed

Beginning a new series highlighting NHF members, Evelyn Woolf, who has run Alexander Lawrence Hair Studio in Cambridge since 2012, explains how the Federation has been an invaluable “personal buffer” and support in her first year of trading.

I wouldn’t have opened my salon without being an NHF member. I have called it many times and find the team so helpful.

I use practically every aspect of the membership, such as the fact-sheets, contracts, staff handbook and risk assessments.

I also use the NHF calendars and the salon stationery, including the consultant cards, first haircut certificates and gift vouchers. It looks more professional and saves us the hassle of making our own.

Whenever I’ve cross-quoted, I’ve found NHF deals save me money. The insurance I sourced via NHF was cheaper than my previous supplier and more comprehensive (my new policy includes a colour-test clause). And I take advantage of NHF’s member rate for music licences.

It’s not enough to love hairdressing – to run a successful salon you also have to understand every aspect of running a business. I’m not a natural businesswoman and being able to rely on NHF makes things so much easier.

NEC has elected three new members, Lloyd Griffiths for Welsh region, Julie Wells for Southern region and Margaret Burnett for East of Scotland.

Lloyd, who runs Just Lloyd’s in Tonyrefail in the Rhondda, is a Federation stalwart and former president of the Welsh region. He replaces James Beattie whose term of office has concluded.

“I enjoyed being on NEC before and I am looking forward to coming back. However I do see myself as a stop-gap; we need younger people coming up who are willing to do this, and that is very much what we are looking for,” Lloyd told SalonFocus.

Margaret Burnett replaces Agnes Leonard on NEC, following her move up to deputy president.

“Education and training are my priorities; education is definitely something that needs to be pushed, and the work the education working group has been doing in this area is extremely important,” said Margaret, who runs Hair Flair in Fife.

Julie Wells, who runs Chop and Change in Addlestone, Surrey, has been on NEC since last February, deputising for Glynis Elliott, who sadly died in November, but has now been formally elected to the committee.

“Education is a real passion of mine and that is something I’ll be looking to focus on,” she said.

“I’m very hopeful about the NHF’s application to be a ‘trailblazer’; it would be brilliant if it happened,” she added.

www.nhf.info

MARCH/APRIL 2014 SALONFOCUS PAGE 31

CASE CONFIDENTIAL

Out of sight… but not out of mind Pritika Solanki, employment consultant at Croner, operator of the NHF’s Legal Lifeline, analyses a reallife call to the helpline and the advice subsequently offered to the salon owner.

What should an employer do when a member of staff is absent because of long-term sickness? This was the problem one salon owner, who we shall call Max, faced when his stylist Miranda (again not her real name), developed arthritis and was unable to work.

Miranda had first become unfit to work a year previously, in 2012. Max had a maintained a good relationship with her, and she regularly called him to let him know she was unable to come into the salon.

She also sent in fit notes authorised by her doctor, which confirmed she was not fit to work because of the pain from her arthritis.

However, as time passed and Miranda’s entitlement to statutory sick pay ended, she stopped contacting Max. Max was busy running the salon and did not see the point in chasing Miranda for a fit note, because he presumed the situation would not change and she would never be fit to return to work.

Recently Max bumped into Miranda’s daughter in town and remembered she was still on his books.

Holiday entitlement

He called the Legal Lifeline to get advice because he was not sure if she was still employed by him, given how long she had been absent for.

The advice was that Miranda was still employed by his salon because she had not resigned and Max had not dismissed her. Although she was no longer getting paid, she was continuing to accrue holidays and it was recommended he address the situation sooner rather than later.

Following this advice, Max wrote to Miranda asking her if he could visit her at home for a case review meeting to discuss her current health.

Miranda agreed and when they met Miranda said her condition had worsened to the point that she had limited mobility and was taking strong medication. She also gave her consent for Max to write to her doctor to get detailed information

PAGE 32 SALONFOCUS MARCH/APRIL 2014

about her condition and whether she would be able to return to work in any capacity.

The doctor’s opinion was Miranda could not return to her role as a stylist in the foreseeable future and, because of the extent of her pain, there were no reasonable adjustments that could be made that would allow her to return in a different capacity.

Dismissal steps

Although the doctor’s report was clear about her inability to work, Miranda was protected from unfair dismissal and disability discrimination under employment law; therefore Max still had to follow a fair process to bring her employment to an end.

The next step was for Max to hold another meeting with Miranda to go over the doctor’s report and see if she agreed with it, which she did.

She also felt there were no other roles in the salon which she could do. Max went away to think about everything Miranda had told him and what the doctor had said in the report.

He concluded he had no option but to dismiss Miranda.

Max invited Miranda to another case review meeting but this time warned her that, in light of the medical information from the doctor and what Miranda herself thought about her condition, it could lead to her being dismissed.

In the meeting, Miranda again agreed with the doctor’s report and said nothing had changed and she felt unable to return to work in the future because of her arthritis.

Max therefore terminated her employment because of her ill health meaning she was not capable of performing her role. He confirmed this in writing and also gave Miranda the right to appeal against the decision, which she did not.

Upon dismissal, she was entitled to be paid for all the holiday she had accrued but not taken while off sick.

Manage absence

This case serves as a reminder that salon owners should manage absence rather than ignore it.

You should make sure the employee follows your absence reporting procedure and keeps providing you with fit notes.

If the absence goes over four weeks, it is recommended you meet the staff member to talk about their condition and consider obtaining their consent for a medical report so you can get detailed information about what is wrong, how likely it is going to last, and what you can do to support their return to work. The Legal Lifeline, again, will be able to assist you with this.

What the Legal Lifeline offers you: • •

24/7 employment-related queries Advice on commercial matters, 9am-5pm Monday to Friday

Access to the Legal Lifeline is available by calling 01234 831965.

Alternatively NHF members can log on to www.nhf.info. A summary of cover can be found on the reverse of your legal card carrier or by logging onto www.nhf.info.

The NHF operates a “fair use policy” for the lifeline. Members making an excessively high number of calls within a 12-month period may be charged £20 plus VAT per call. All calls to the Legal Lifeline are recorded and monitored

by Croner. If your chosen membership category does not include employer support service or your membership is unpaid at the time of any call a charge of £20 plus VAT will apply for all such calls made.

EVENTS

EVENTS Please send your events to the NHF at events@nhf.info by February 28 for May/ June, May 1 by July/August and July 3 for September/October. Updated events listed on www.nhf.info NHF EVENTS

OTHER

16/17

MARCH Blackpool NHF Competition, Winter Gardens, Blackpool.

Contact: Susan Lowe on 01253 764808 or suloe@tiscali. co.uk or Eileen Clough on 01253 406834

13

APRIL North West Region AGM, Slyne Lodge Hotel, Lancashire.

Contact: Stephen Coles on 01253 720238

27

APRIL Northern England Championships, Marriot Hotel, Gateshead.

Contact: Avril Walker on 01642 597197 or northeastregion@nhf.info

30

Business Events The NHF is during 2014 running a series of three business-focused events: • Delivering a great client experience • How to make your salon more profitable • Managing yourself and your team Anyone interested in attending these should contact NHF head office on 0845 345 6500 or events@nhf.info

How to make your salon more profitable:

MARCH JUNE 10 - Glasgow 24 – Plymouth

2 – Preston 30 – Newcastle

APRIL

OCT

MAY

NOV

7 – Cardiff

20 - Chelmsford

APRIL London Region “Inspiration Day”.

Contact: Mikaela Martin on 07500 704705

19 – Nottingham

11

MARCH JULY

June London Region ‘Look and Learn’, Goldwell Academy, London.

Contact: Mikaela Martin on 07500 704705

29

June ‘HAIR-FACTOR’ The Welsh Hairdressing Championships, Cardiff City Stadium.

Contact: Carl Hinder on 07931 518642 or welshregion@nhf.info

24

September London Region Photoshoot, Goldwell Academy, London.

Contact: Mikaela Martin on 07500 704705

www.nhf.info

4 – York 10 - Edinburgh

Delivering a great client experience:

11 – Glasgow

1 – Darlington

APRIL

SEPT

JUNE

NOV

14 – Leeds

3 – Maidstone

1 – Reading

24 - Swansea

Managing yourself and your team:

MARCH SEPT 25 – Bristol

22 – Derby

JULY

NOV

7 – Peterborough 14 – Worcester

3 – Chester 11 – Edinburgh

March/April 2013 SALONFOCUS PAGE 33

SOCIAL MEDIA

All the latest hairdressing-related tweets posts, pics and comments.

@nhfederation National Hairdressers’ Federation Help us finish this sentence. “The key to a happy team is _______” Angela Young Caring and understanding bosses Kate Bestwick A happy leader Andrew Love Inspiration and direction x Valerie Kelly Organisation!

Susan Bloomer Communication x Tell us: what would you spend a £100 Love2Shop voucher on?

New outfit? Home accessories?

Natasha Short New hairdo !!!!!

Remi Delecluse Helping each other Hannah Mlatem Communication and respect Caterina Maiolini Sharing!

Kerry Mather Respect

Steph Randell I would buy a new pair of clippers as a client’s child broke mine :(

Julie Wells Is working together Berenice Sweet consistency x

Donna Kent New equipment Lauren Turner I would buy a disco ball. NYEve my friend brought hers over and my room transformed into a cosmic area of wonderful energy. X

Stay tuned for more competitions with us soon!

Natasha Short Good December, quiet January Sue Rodd Good December, much better than last year Jane Small Yes but if we are VATregistered, we have to pay 20% of all the takings, so you can’t compete with non-VAT, it is not a level playing field.

So not a bad Christmas could be better

Facebook likes: 8,581 Top Liker: Valerie Kelly

Karen Chaloner some new clothes

Congratulations to Mandy Edkins!

Zazu We came out level with year before, so I suppose that’s ok considering people’s habits about appointments have changed.

Billy Allan-Hardie Rubbish, you couldn’t move in these stores the whole month of Dec!!!

Emma Tarbuck hair dye and a new coat

Thanks to everyone who entered the ‘Treat Yourself with NHF’ competition.

We have now randomly selected one lucky fan!

National Hairdressers’ Federation In their trading updates in January, it was clear Marks and Spencer, Morrisons and Tesco have all been hit by a tough Christmas. How was it for your business?

Want to give your customers more reasons to stay loyal? Try the NHF mobile app, created in partnership with Sappsuma, which helps record more data from customers and means you can easily update them with offers. http://bit.ly/1aiugfM

Twitter followers: 2,767 Top Tweeter: Emmal Hellier Salon @ EHsalon Connect with us. and have your comments and tweets in the next issue of SalonFocus

greAt vAlue. greAt brAnds. greAt choice. heAd-geAr vAlue Foil 1000m

buy 3 get 1 Free!

A+F Pro Peroxide 1 Litre

deAl

two or more

£1.65

£23.95

Price

For only

each

each

Terms and Conditions apply. Prices are excluding VAT and could be subject to change.

Visit your local store | visit: www.astonandfincher.co.uk | Call us on: 0870 240 2176

Salon Insurance

Exclusive cover at discounted rates for members Our insurance cover incorporates the new NHF colouring protocols for allergy testing.

Salon Insurance Chair Renter’s Liability Personal Accident & Illness

Call today for a quote

0800 458 81 81 www.coversure.co.uk/nhf PAGE 36 SALONFOCUS MAY/JUNE 2013