Salonfocus May - June 2016

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ÂŁ3.50 May/June 2016

Razor

SHARP

The bottom line benefits of shaving and beard maintenance

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Prepare for more National Minimum Wage rises

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Strike a pose and be our Photographic Stylist of the Year

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Discounting and pricing – members have their say


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Contents

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P6 NEWS Agnes Leonard to be first female president P12 RATES RELIEF Budget rates changes welcomed P14 TRIPLE WHAMMY Salons facing three pay rises in a year, as minimum wage goes up again P16 SHAVING GRACE How offering shaving and beard services can boost your bottom line P18 GETTING THE KNOWLEDGE What members thought of our expert barbering workshops P20 LOSS LEADER New Association of Registered Trichologists P22 TOTAL IMPACT All you need to know about this year’s Photographic Stylist of the Year competition

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P26 VALUE ADDED? NHF salons reject deals websites P28 DEAL OR NO DEAL Members have their say on discounting P32 DIRECTORY ENQUIRIES The pros and cons of online salon directories

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P34 PRICE POINT How structured pricing could help salons P36 SYSTEM SAVVY Your salon software system could hold the key to unlocking your profitability P38 MIND MATTERS Effectively managing mental ill-health within your salon team P42 SET YOUR SALON APART

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P44 EVENTS P46 YOUR QUESTIONS

CONNECT WITH US AND HAVE YOUR COMMENTS AND TWEETS IN THE NEXT ISSUE OF SALONFOCUS May/June 2016 | salonfocus


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Welcome

PRESIDENT’S

L E T T E R I

SALONFOCUS IS PUBLISHED BY: National Hairdressers’ Federation, One Abbey Court, Fraser Road, Priory Business Park, Bedford MK44 3WH t: +44 (0) 1234 831965 f: +44 (0) 1234 838875 e: sfenquiries@salonfocus.co.uk w: www.nhf.info PUBLISHER Hilary Hall e: hilary.hall@nhf.info EDITOR Nic Paton e: nic@cormorantmedia.co.uk EVENTS AND SOCIAL MEDIA Victoria Priestley t: +44 (0) 1234 834386 e: Victoria.Priestley@nhf.info ADVERTISING SALES MANAGER Andy Etherton T: + 44 (0) 1536 527297 e: andy.etherton@nhf.info DESIGN AND PRODUCTION Rick Fraterrigo Matrix Print Consultants Ltd t: +44 (0) 1536 527297 e: rick@matrixprint.com 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. © 2016 The National Hairdressers’ Federation. Material for consideration in this section of the magazine should be submitted via email or digital file transfer 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 and stylist.

t’s been an absolute privilege being the NHF’s president over the last two-and-a-half years.

As this is my final salonfocus president’s letter, I’d like to thank all of you as NHF members, and also my colleagues on the NHF’s National Executive Council, our regional teams and the NHF staff for being there to support me. I’m delighted to be handing the position of president to Agnes Leonard later this month at our annual general meeting. I wish her all the very best – I’m sure she will find the role as rewarding as I have. Agnes is our first female president and will ABOUT PAUL Paul Curry is president of be leading us into our 75th anniversary the NHF and a registered hairdresser. For more celebrations in 2017, so it will be a great than 25 years he has run opportunity to look back and remind ourselves Studio 12 in York, a busy high street salon that faces how far we’ve come since 1942! exactly the same challenges and pressures as the Even in my relatively short time as president, majority of NHF members. we’ve seen enormous changes for salons and barbershops as the recession finally came to an end and, at long last, trading conditions improved. Yet at the same time, we’re facing new challenges, with unprecedented wage increases and costs such as pensions autoenrolment, while rates and rents continue to rise. I’m pleased that, in meeting these challenges, so many members are rejecting the “easy” option of just chasing down to the lowest possible price. If we want this wonderful industry of ours to have a future, it’s got to be about the expertise, client experience and professional service we deliver, not just where you can get the cheapest deal. PAUL CURRY NHF president

COMING UP IN JULY/AUG

THE GENDER EDITION Gender neutral pricing – how it works, and why it could be the future for many salons

salonfocus | May/June 2016

Launching this year’s Britain’s Best – the landmark NHF competition is back Digital tax returns – how HMRC plans could affect salons

Do you have a salon story to tell? Would you like to be featured in salonfocus? Get in touch with the team, on 01234 834385, or send an email to nic@cormorantmedia.co.uk


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News

NEW PRESIDENT S E T TO M A K E HER MARK he NHF will later this month appoint Dundee salon owner Agnes Leonard as its new national president, taking over from current president Paul Curry.

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Agnes, currently vice president, is set to become president at the Federation’s annual general meeting on 15 May, when Paul’s term of office comes to an end and he becomes immediate past president. Agnes, who is owner of Croppers Hair Studio in Dundee, will be the NHF’s first female president and told salonfocus: “Being president of the NHF is a huge responsibility but also a huge honour. Paul has been an excellent president for the past twoand-a-half years and will be a hard act to follow. “Paul has been immensely supportive to me as vice president and we’ve always had an excellent working relationship and I look forward to that continuing. “The industry has come through some difficult times over the past few years and, with prices and wages rising, there are going to be many challenges salons will need to face. “But with the help of Hilary Hall and the team in Bedford, I am

confident the Federation will continue to be a strong and active voice for our industry, and I am very much looking forward to playing my part within that.” Ian Egerton, owner The Stress Exchange in London, was elected vice president by the NEC in March, and will take over that role from Agnes at the AGM. One of Agnes’ first engagements as president will be to attend the Queen’s annual garden party at Buckingham Palace later this month, on 24 May. Agnes will attend the party along with immediate past president Paul. There will also be a number of changes to NEC made at the AGM, with Roy Sparkes being elected from the East Midlands region and Steven Scarr from the North East region. Viren Voralia will continue as honorary treasurer for another term and Julie Wells has been elected as NEC member for the Southern region.

CONTACTLESS SURGE One in eight purchases made on UK cards during December was via contactless technology, the trade body for the cards payment industry the UK Cards Association has said. Overall, more than one billion contactless transactions were completed in 2015, with more spent using this technology last year than during the previous seven years combined. Around half of all debit and

salonfocus | May/June 2016

credit cards are now fitted with contactless capability. The limit for transactions last October rose to £30, making this an increasingly viable form of payment for many barbering and beauty services as well as standalone retail transactions. One in 13 purchases was made via contactless during 2015 as a whole, but this rose to one in eight by December, the association added.

FIND OUT MORE Watch out for a review of the Buckingham Palace garden party and a full profile of Agnes in the July/Aug edition of salonfocus.


News

TRAINING WINNER

ONE AREA CONTINUING TO GROW FAST IS MALE GROOMING, WITH MEN NOW MAKING UP A FIFTH OF ALL CUSTOMERS

OPTIMISM UP,

Congratulations to Michaeljohn Training School in Manchester, which in February won a first place Gold Award at the Apprenticeship4England finals. The awards celebrate the success of employers and training providers delivering apprenticeships. “It is fantastic that the hair sector has been awarded gold,” said managing director Lesley McCormack.

TURN TO PAGES 26-35 FOR AN IN-DEPTH FOCUS ON PRICING AND DISCOUNTING.

BUT PRICES FALLING Hair and beauty salons are set to hire more than 23,000 apprentices this year, and the industry will create nearly 14,000 new jobs, according to research from wholesaler Salon Services. The Beautiful Britain report has argued there appears to be increasing optimism across the industry, with 98% of salons planning either to increase or maintain their headcount over the next 12 months. MORE FREQUENT VISITS More than three quarters (76%) of UK salons said 2015 had been a good year for business, and 90% said they were optimistic about this year, with confidence highest in Scotland, Wales and the West Midlands. This optimism was boosted by the fact clients now appear to be indulging in treatments more frequently than in previous years, with two-thirds of respondents saying they were seeing an increase in the number of people willing to spend, resulting in more frequent visits.

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Nevertheless, despite the optimism, salon prices appear still to be under pressure. The average cost of a man’s haircut was just £11, its lowest in five years. Women’s haircuts were also averaging out at £23, £5 cheaper than in 2012. The rise in, and popularity of, discount and deals websites was also eroding the concept of client loyalty. More than half (54%) of respondents felt client loyalty was harder to come by than at the start of their career, with more than three quarters (78%) blaming this on customers increasingly shopping around for the cheapest deals. Nearly two thirds (60%) felt they had to work harder to bring in clients over the past year. One area continuing to grow fast, however, was male grooming, with men now making up a fifth of all customers and 97% of businesses reporting male customer levels had either increased or stayed the same over the past 12 months, and everyday treatments like shaving up 59%.

POWER LOOK British women worry they won’t be taken seriously without make-up, research has suggested. A survey of 2,000 women found nearly a third feared others wouldn’t treat them with respect if they went to a meeting, out on a date or for an interview without wearing make-up. Wearing make-up made the average woman feel at least 31% more confident, while 41% said they felt more assertive, attractive and self-assured, the survey by beauty supplement firm Solgar concluded.

May/June 2016 | salonfocus


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News

THE TOURISM INDUSTRY IS PUSHING FOR A LOWER RATE OF VAT ON VISITOR ACCOMMODATION AND ATTRACTIONS

SALONS URGED TO LINK WITH TOURISM OVER VAT n NHF member has urged salons to join forces with tourism businesses to press the case for VAT reform.

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Neil Brewer, owner of Enhance Hair & Beauty in Burnhamon-Sea, Somerset, lobbied his local Conservative MP, James Heappy, in March about the benefit of a variable rate of VAT for hairdressing, arguing a more flexible system would better support small, labour-intensive businesses such as hairdressing salons. “He showed some appreciation for the idea and was very sympathetic, but I’m not sure if anything specifically will come from it,” Neil told salonfocus after the event. Neil also highlighted the potential benefits for salons of making a joint case for VAT reform with local tourism businesses. The British Hospitality Association has for some time been lobbying the government to introduce a 5% rate of VAT on

visitor accommodation and attractions, arguing that having to pay the full 20% VAT consistently puts the industry at a competitive disadvantage to rival attractions in Europe. The NHF has, equally, campaigned over many years for the government to review the threshold for VAT registration and move from a flat rate 20% to a more flexible tax system that would better accommodating hairdressing, barbering and beauty. “I think it is a really useful idea for salons to be speaking to their local MP about this issue,” Neil told salonfocus. “There is quite of lot of campaigning going on within the tourism industry about this, as the sorts of pressures firms in this area face are similar to those faced by salons. “If it is not fair for tourism, it’s not fair for us. I think it’s time salons and the industry as a whole made a bit of noise about this to their MPs. I wonder too if, as an industry, we should look to join up with tourism companies to give us a more powerful, joint voice,” he added.

L I V I N G WA G E WA R N I N G The Office for Budget Responsibility has predicted some 60,000 people could lose their jobs as a result of the new £7.20-an-hour National Living Wage, which came into force last month, mostly because it could lead to firms preferring to recruit cheaper under-25s. However, employment law firm Hart Brown has emphasised the dangers for

salonfocus | May/June 2016

employers in simply dismissing older workers as a way to cut their wage bills, arguing this could be seen by a tribunal as age discrimination. Solicitor Jane Crosby said: “Any dismissals of older employees, even with less than two years’ service, could see employers facing an employment tribunal for unfair dismissal and age

discrimination. The same applies to recruiting: employers must avoid demonstrating any preferences for younger workers.” FIND OUT MORE Turn to pages 14-15 to find out what National Minimum Wage rates will be from October.


News

TWITTER FOLLOWERS 9,305

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FACEBOOK LIKES 11,490

WHAT’S TRENDING TWEETS FROM NATIONAL APPRENTICESHIP WEEK IN MARCH @barbara1octopus Thank you to @Apprenticemaker @NHFederation @scottbailye – fabulous webinar supporting our industry :) @CWhiskersHair Such a lovely thing to see the journey from shy school leavers to confident, competent hairdressers! @Rutherfordshair Ours are worth their weight in gold – and one is preparing for Wella Xposure finals KATE PRESTON AND TEAM: WINNERS AT THE ENGLISH HAIR & BEAUTY AWARDS

WOMEN’S WINNER Congratulations to Kate Preston, NHF member and owner of Kate Preston Hair & Beauty in Fareham, Hampshire, who in March won Women’s Hairdresser of the Year 2016 at the English Hair & Beauty Awards. The salon was shortlisted in three categories, Women’s Hairdresser of the Year, Junior Stylist of the Year and Salon of the Year, and the team were over the moon to have won, said Kate.

“We’re all really pleased. We’ve had a number of local newspapers getting in touch, which is great. We’re a very family-friendly salon, which I think the judges liked,” Kate told salonfocus after the awards. “This year will also be our tenth anniversary in business, so it was going to be a year to celebrate anyway, but this just makes it even better,” she added.

STUDENT BLOGGER An Ipswich apprentice with salon training provider Alan d is making a name for himself by acting as its “student ambassador”. Matt Richards was chosen from a shortlist of 20 trainees to write weekly posts about his experiences at Judith Hair Fashions in Ipswich and as he completes his NVQ Level 3 at

Alan d’s Ipswich academy. “Matt is proof that, with hard work and a good employer behind you, you can achieve anything,” said director of education and creative director Edward Hemmings. Matt can be followed on Twitter at @doormat98 and on Facebook at Matt Richards -Hair Stylist

@FrancescoGrp We couldn’t live without them #nextgeneration WHO HAS ANY GREAT STORIES OF WHEN THEY WERE AN APPRENTICE? @97edaniellesmith I once was shampooing and absolutely drenched a lady – she stripped in the middle of the salon! #oops PRAISE FOR SALONFOCUS Emily Warne SRH @EmilySpurling Have you read the latest @NHFederation #salonfocus? #Salon #AlcoholLicense @Head_Romance @Hair_Hour #HairHour

JOIN IN THE CONVERSATION @NHFederation facebook.com/national hairdressersfederation

May/June 2016 | salonfocus


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Member competition

CHANCE TO WIN £5,000 ‘MUSIC MAKEOVER’ HF members are this month being offered a chance to win a salon “music makeover” worth £5,000 in a competition run by music licensing company PRS for Music.

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The competition was launched last year, and saw NHF member Paula Foskett, who runs One.a Salon in Caernarfon, receiving a top-of-the-range sound system that allowed music to be played over the salon’s three floors and advice from renowned music producer Steve Levine (salonfocus, May/June 2015). “Steve offered excellent expert sound consultation advice to enable our salon to stand out from the crowd, and it has made such an immense difference,” says Paula (pictured, right, with Steve). To enter this year’s competition, you will need to have a valid PRS for Music licence and simply fill in the online entry form outlining why you feel your salon would benefit from this prize. Additional photos and videos are welcome.

Salon Focus Magazine Half Page.indd 1

salonfocus | May/June 2016

The entry form and full competition terms and conditions can be found at prsformusic.com/musicmakeover. There will also be two runners-up prizes of a £2,500 makeover. The deadline for entries is Friday 20 May at 5pm.

Left to right: Paul Clements (Commercial Director, PRS for Music), Gina Akers (Professional Beauty Blogger), Paula Foskett (Owner, One.a Salon) and Steve Levine (Music Producer)

29/03/2016 10:34:18



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The Budget and rates reform

RATES

RELIEF

BUSINESS RATES REFORM WAS AT THE HEART OF CHANCELLOR OF THE EXCHEQUER GEORGE OSBORNE’S BUDGET IN MARCH. SALONFOCUS CRUNCHES THE NUMBERS.

he NHF has long argued the UK’s system of business rates, essentially an extra tax on businesses (such as hair salons) that have no choice but to operate from physical properties, is outdated and unfair and needs to be replaced with something completely different, perhaps a tax on turnover.

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Unfortunately, wholesale, radical reform of that nature was never on the cards in chancellor of the exchequer George Osborne’s latest Budget in March. However, there was welcome news in the form of an extension of 100% Small Business Rate Relief and, more importantly, the announcement this extension will from now on be a permanent benefit for the UK’s smallest businesses. In detail, Mr Osborne pledged that, from April next year, the threshold at which 100% relief comes into play will double, from £6,000 to £12,000. In other words, any business operating in a property with a rateable value of £12,000 or lower will not have to pay any business rates. The threshold below which bigger properties can benefit from tapered relief will also increase, to £15,000 (see panel). As Mr Osborne put it: “From April next year, 600,000 small businesses will pay no business rates at all. That’s an annual saving for them of up to nearly £6,000 – forever.” NHF president Paul Curry warmly

salonfocus | May/June 2016

welcomed the announcement. “The NHF has long been calling for Small Business Rate Relief to be made permanent in this way, and so this is excellent news for salons and the high street in general.” LEEDS SALON MAKES THE NEWS An NHF member and Leeds salon owner also found herself in the media spotlight after Mr Osborne argued his changes would benefit a “typical hairdresser’s in Leeds”. The national media immediately turned to the NHF to find an example of such a “typical” hairdresser, with the result being that Claire Sharma, who has run Quiff Salon in Headingley in the city for the past five years, was featured in The Daily Telegraph’s Budget coverage the next day. With a rateable value of £7,200, the chancellor’s decision is set directly to benefit Claire’s business. Claire told salonfocus: “It’s great news. Business is going well, but it is still a struggle at times. A lot of prices are going up at the moment, everything just seems to be going up, so anything like this is going to help. “Small Business Rate Relief is currently saving me around £70 a month, so hopefully I will be able to invest this extra money back into the salon, as there are quite a lot of things that need work on. But it will just help generally.” Claire also invited Mr Osborne to come to Leeds to visit her salon. “We’ve not seen him up here and so he should come and visit – we’d definitely give him a good haircut!”

HOW SMALL BUSINESS RATE RELIEF WORKS Currently a business can get 100% Small Business Rate Relief – or not have to pay any business rates at all – if it only uses one property, and that property’s rateable value is less than £6,000. This is due to double from April 2017 to £12,000 and be made a permanent relief. Currently, businesses with a rateable value of between £6,001 and £12,000 also receive tapered relief, in other words the relief gradually decreases from 100% to the business paying full rates. From April 2017 this tapered relief will now cover properties with a rateable value of £12,001 to £15,000. A further change in the Budget was to the so-called “business multipliers” that help calculate rates bills. Currently, if your property has a rateable value of below £18,000 (or £25,500 in Greater London), it is classed by the government as a small business. Therefore, even if you don’t qualify for Small Business Rate Relief, your rates are calculated using a “small business multiplier”. This decides how many pence of business rates you should pay for each pound of rateable value. Being on the small business multiplier means you pay lower rates than on the standard multiplier. From next April, the threshold for being on the small business multiplier will increase to £51,000. This will take some 250,000 smaller properties out of the higher standard rate.


OTHER BUDGET ANNOUNCEMENTS

PHOTOGRAPHY: LORNE CAMPBELL/GUZELIAN

• The government is “to look at” the feasibility of requiring maths to be studied in schools or colleges up to the age of 18. A review has been commissioned into how this might work, and is expected to report later this year. • Corporation tax will reduce to 19% in 2017, 18% in 2020 and after that come down to 17%. • Class 2 National Insurance Contributions will be abolished for people who are selfemployed from 2018. • More frequent business rate revaluations are to be introduced, probably at least every three years. A discussion paper has been published looking at various options.

CLAIRE SHARMA: LEEDS SALON OWNER WAS IN BUDGET SPOTLIGHT


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The National Minimum Wage

TRIPLE WHAMMY

BRACE YOURSELVES, NATIONAL MINIMUM WAGE RATES WILL BE GOING UP YET AGAIN FROM OCTOBER. AND THERE’S THE PROSPECT OF EVEN WORSE TO COME NEXT APRIL. SALONFOCUS EXPLAINS ALL.

he new £7.20 National Living Wage for over-25s is just a month old, but hair and beauty salons and barber shops are now facing the grim prospect of having to fund two further wage rises within the next 12 months.

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This is because the government announced in March that not only will National Minimum Wage rates rise once again in October, but from next year both the minimum wage and living wage will be “uprated” together from April. This move to align the National Minimum Wage with the National Living Wage means that, assuming the current trend for year-on-year increases continues unabated, salons will have experienced three significant wage bill increases between April 2016 and April 2017. From October, the National Minimum Wage rates for those aged 21-24 and 18-20 will both rise by 25p, to £6.95 an hour and £5.55 an hour respectively. The rate for 16-17 year-olds will increase by 13p to £4 an hour and the apprentice rate will rise by 10p to £3.40 an

salonfocus | May/June 2016

hour (see the panel right for the full figures). The government said these increases would mean that “for the first time the National Minimum Wage rate for 21to 24-year-olds is restored to its highest level in real terms, higher than its previous peak before the financial crisis”. WAGE WARNING NHF president Paul Curry and chief executive Hilary Hall condemned the increases, warning that the cumulative effect of wage rises in April this year, October and then (probably) April again next year risked pushing many salons to the edge financially. And this was even without taking into account extra costs such as pensions auto-enrolment. “The number of wage and cost increases now coming through, one after another, are unsustainable for small, labourintensive businesses such as salons and barbers,” said Paul. “Salons will have no choice but to find this money from somewhere. While some of these increases can be passed on to customers, the danger is it’ll also mean salons will have no option but to freeze recruitment and training, reduce hours or even lay off some staff,” he added.


Hilary said the NHF strongly rejected the suggestion by the Low Pay Commission (the body that recommends what future wage rates should be) that such year-on-year increases were “manageable” for employers.

“Quite the contrary, for many small owners these increases on top of everything else could well be the tipping point as to whether they continue in business or not,” she said.

NATIONAL MINIMUM WAGE RATES PER HOUR FROM OCTOBER CURRENT LEVEL

Adult rate (21+)

£6.70

FROM APR 2016

FROM OCT 2016 – APR 2017

INCREASE

National Living Wage (25+)

£7.20

£7.20

n/a

Adult rate (21-24)

£6.70

£6.95

+25p (3.7%)

Youth development rate (18-20)

£5.30

£5.55

+25p (4.7%)

16-17 year-old rate

£3.87

£4.00

+13p (3.4%)

Apprentice rate*

£3.30

£3.40

+10p (3%)

*The apprentice rate will continue to apply to those aged 16-18 on an apprenticeship and to those aged 19 or over who are in the first year of an apprenticeship, after which they revert to their appropriate age-related rate.

May/June 2016 | salonfocus


16

Shaving and barbering

salonfocus | May/June 2016


SHAVING GRACE OFFERING SHAVING SERVICES AND BEARD MAINTENANCE CAN BRING IN VALUABLE EXTRA REVENUE TO YOUR SALON. TWO UPCOMING WORKSHOPS WILL SHOW YOU HOW TO TAP INTO THIS FAST-GROWING MARKET.

ale grooming, especially shaving and beard maintenance, continue to be big business for many salons and barber shops. In fact, this year’s Beautiful Britain survey from wholesaler Salon Services has reported a 52% increase in male grooming and a 59% increase in shaving treatments.

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The NHF has been helping salons tap into this trend and growth market by this year running a series of barbering and shaving workshops for both members and non-members. Over the page, salonfocus talks to NHF members who went to February’s barbering workshop run by Cardiff barber James Beattie, directing barber of Beattie’s Barbers & Co. But, first, we spoke to senior master craftsman Robert Rix, co-owner of The Master Barber’s Shop in Southport with his son Dan. The expert duo will be running two shaving demonstrations this month and in June, about why offering shaving services can be a real money-spinner for your salon. “Shaving is one of the cornerstones of our business. We do more than 100 shaves a week in the salon, bringing in around £1,500. I started shaving clients at the age of 14 and so have been shaving for more than 54 years, and you never stop learning,” explains Robert.

“The service we offer is very, very efficient, very structured and systemised. We operate in a very precise and well-practised way, to a tried-and-test, almost formulaic pattern. There is, in many ways, very little creativity to it; it is pure technique, skill and practice, practice, practice. “The person who is doing the shaving will probably spend perhaps 12 minutes with the client. The rest of the time is the prepping, lathering, moisturising and talc, which can often be done by an apprentice,” Robert adds. BEARD SCULPTING “Beards and shaving go hand in hand from a business perspective. We sell beard sculpting and outlining to our bearded clients, and sometimes it can be more valuable than a wet shave. “At the workshops I’ll demonstrate not only English shaving but Japanese too, using Japanese razors, which are completely different. The workshop will also show how to use, maintain and strop razors, all of which are nowadays something of a forgotten art. “If you are going to offer shaving you need to do it well, and if you can do it well it can make a real difference to your salon,” Robert recommends. FIND OUT MORE Robert Rix’s shaving demonstrations take place on 16 May in Guildford and 27 June in Wakefield. For more details on these, and all NHF events, turn to Events on page 44 or go to nhf.info/events

Facts and figures

59% Increase in shaving treatments reported by salons 2015

2.9 weeks Average gap between visits by men to their salon for shaving treatments, compared with 7.2 weeks in 2014

5.2 weeks Average gap between visits by men to their salon for tanning treatments, compared with 8.8 weeks in 2014

53% Number of salons in the South West now offering male grooming treatments for men. This compared to 38% in the North West Source: Beautiful Britain, 2016

May/June 2016 | salonfocus


Shaving and barbering

GETTING THE

KNOWLEDGE

DEREK COOKNALL PHOTOGRAPHY

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NHF MEMBERS RECEIVED A VALUABLE INSIGHT INTO BARBERING TECHNIQUES AT THE NHF’S POPULAR BARBERING WORKSHOPS EARLIER THIS YEAR, AS SALONFOCUS DISCOVERED.

ne of the challenges with male cuts is, very simply, how to make money from them.

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As we highlight (right) from this year’s Beautiful Britain survey by wholesaler Salon Services, prices for male haircuts are now at their lowest level since 2013. Prices for colouring, facials, massage, hair removal and manicures or pedicures are also all now lower than they were four years ago, while salon and barber shop costs (not least wages) have continued to rise. How, then, can salons square this circle? One way is simply to be constantly looking at how to improve your salon or barber shop skills and expertise, and the range of cuts and services that you offer. It was with this in mind that the NHF ran a series of barbering workshops through the first three months of 2016, with member and non-member salons able to pick up new skills and techniques from Cardiff barber James Beattie, directing barber of Beattie’s Barbers & Co, and celebrity and competition barber Tom Baxter. SOLD OUT The events proved highly popular, with all three events ending up being sold out. Salonfocus spoke to members who attended James’ workshop in Cardiff in February about what they took away from their evening. “Barbering has over time become a very strong part of what we do and offer,” explains Annette Glen-Jones, who has run Sophisticut in Tonypandy for the past 35 years. “There have been a lot of barbers open up around us, every other new shop appears to be a barber, but we’ve very deliberately kept our gents business going. And we are lucky with our clients, in that we have a lot of very loyal gents who come to us. “I thought James' use of a dryer to finish one of his styles was interesting, as that was what we used to do when we did flat tops many years ago. So it was intriguing to see that method used on new styles. It was also interesting to see how James texturised one

salonfocus | May/June 2016

of his styles with clippers instead of a scissor, which is something we are keen to try in the salon. “It is all about bringing back the old, traditional methods. A lot of good barbering, to my mind, is about the finishing touches, even if it does mean it takes more time, so it was really good to see,” Annette adds. FRESH PERSPECTIVE “Even though we already do a lot of barbering work, it is always important I think to take a fresh look at things, especially by looking at someone else’s work,” agrees Heidi Langstone, owner of Eclipse in Swansea. “There is a lot of competition around us when it comes to barbering. We have two solely male barbers nearby, who attract a lot of students, husbands and other male clientele, and their prices are very low. “Most of the equipment we’ve used for years have been Wahl clippers so I was interested in James’ use of scissors and his emphasis on telling us about different products and techniques, not just clippers,” Heidi adds. “We just wanted to get some inspiration, really. His scissor work was interesting to see, as we normally do mostly clipper work, so it was good to see that side of it,” says Carly Smyth, a stylist at Ten Hairdressing in Bedminster, Bristol. “James had three different models and demonstrated scissor over comb work, which is something we’ll definitely look to do in the salon,” she adds. Finally, Perry Lewis of Whitson Barber Shop in Gloucester highlighted the value of these events in terms of contact building and networking. “It was really good; the way it was taught was very, very good,” he says. “For me one of the most valuable elements was the fact I was able to speak to James afterwards about competitions and THE NHF WILL BE REPEATING competition work. I asked him for his ITS BARBER WORKSHOPS DURING THE SECOND HALF advice and he very generously took OF 2016. DATES AND VENUES time out of his evening to talk me WILL BE OUTLINED IN THE JULY/AUGUST EDITION OF through how to get the most from SALONFOCUS OR KEEP AN competitions.” EYE ON NHF.INFO/EVENTS


Shaving and barbering

19

ANNETTE GLEN-JONES: FINISHING TOUCHES

A v er ag e co st o f Ma l e T r eat men t s S I N CE 20 1 2

20 1 2

20 1 4

19

£

16

£

38

£

31

£

n/a

£

HA I R C U T

£

Hair COLOUR

£

FAC I A L

20 1 3

12

2 0 15 £

13

2 0 16 £

11

2 4 £2 4 £2 4

2 9 £ 2 9 £ 2 6 £ 27

3 3 £ 2 9 £ 2 9 £ 27 £ 2 9

M a s s ag e

£

Hair Removal

£

Manicure/ Pedicure

£

21

20

£

17

£

18

£

18

2 4 £2 0

£

18

£

18

£

19

£

Source: Beautiful Britain, 2016


20

Hair loss and trichology

LOSS LEADER THE NHF IS BACKING THE LAUNCH OF A NEW BODY FOR TRICHOLOGISTS.

t is estimated more than half the population of the UK, men and women, will experience hair loss at some point in their lives. Female and male pattern hair loss, alopecia areata and chronic telegenic effluvium are nowadays common complaints.

I

It’s long been recognised salons can play an important role in helping clients manage these challenging conditions, often through a basic understanding of trichology. Last month (April) saw the launch of a new Association of Registered Trichologists (ART), which is being supported by the NHF. The association is being led by TrichoCare Consulting and will be a membership organisation for those with an ITEC Level 4 certificate in trichology. PROFESSIONAL BODY The aim is it will be an independent professional body for trichologists, and act to promote and develop trichology services, quality and standards within the UK and beyond. There will be a range of membership levels, from student to fellow, dependent on qualification and level of experience, as well as a corporate membership category. The cost of membership has yet to be fully confirmed, but the association intends to run conferences, lectures, forums and meetings as well as publish advice and guidance for salons. The intention is also to set up a central ART register. “This is about inclusivity. We very much hope the new association will include hairdressers as well as the whole spectrum of trichology specialists and providers. It is about opening doors, encouraging best practice and getting businesses and individuals involved in this important area,” Brian Plunkett of TrichoCare told salonfocus.

salonfocus | May/June 2016


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22

Photographic Stylist of the Year 2016

TOTAL IMPACT

THE NHF IS LAUNCHING ITS 2016 PHOTOGRAPHIC STYLIST OF THE YEAR COMPETITION. BUT WHAT MAKES A WINNING ENTRY? SALONFOCUS SPOKE TO TWO OF LAST YEAR’S WINNERS. OVERLEAF, FIND OUT HOW TO ENTER.

salonfocus | May/June 2016


“ I

t was the first time we’d entered and so to win on debut was absolutely fantastic; it created a real buzz for everyone involved behind the scenes. It is a real accolade. It has helped to get us noticed, and it has brought more business into the salon.”

So says Caroline Sanderson, director of Ego Hair Design in Inverness, about last year’s Photographic Stylist of the Year competition. For Caroline, winning in the Ladies’ Category 3 – Fashion Collection was the icing on the cake in a year that also saw her and senior creative designer Claire McIntyre win Scottish Hairdresser of the Year in the British Hairdressing Awards. One of Caroline’s images is reproduced overleaf, and the buzz from winning in both competitions has been immense, she says. “In previous years we've had a dip during January and February but this year it has just got busier and busier and I think winning in both awards has helped – 100%,” she explains. So, what would be her advice to salons or stylists thinking “I’d like some of that” this year? “For me, my focus for the shoot for Photographic Stylist of the Year was about making it really colourful. Knowing your work is going to be judged against other strong images, you want it stand out, so I focused on making it a colourful collection with a strong attitude,” Caroline advises. “It is important to recognise it is going to take a lot of planning. You’ve got to find your model, and recognise that, while of course you have to work within your budget, you do need to find the best model you can. You need a strong model to show off your strong hair; they are your canvas. “You need to do a lot of planning and prepping to make sure everything goes smoothly on the day. It helps to create a mood board to show what your image is going to look like. If you’re entering the Fashion Collection category you want to make your four images really

individual; they need to be able to stand out individually but at the same time work together well as a collection. “It is a fantastic process. Even if you don’t win, you’ll have some great images that you can use for your own reputation or brand, to show who are and what you can do,” Caroline adds. TEAM EFFORT “With a lot of hair competitions, it is all just head and shoulders shots, so I wanted to do something that was more of a full body image, and which brought in different angles. It was really just about being as creative as I could be,” agrees Allan McKechnie, of Hair by Rutherford’s in Oban, who won in the Men’s Category 2 – Fashion Look. You can see Allan’s image reproduced left and, he advises, it’s important to recognise this is a competition that is as much about the image as the model’s look or style. “It is about bringing hair, beauty and fashion together. Obviously, the hair needs to be good, but you also need to try and make the image feel fashionable and stylish. It primarily has to be about the hair, but you also have to remember what’s important is the whole image,” Allan advises. “We spent a long time on the planning, something like three or four months; I think we started in something like January! You should spend time looking for the right models, but it is also important to bring good make-up artists on board; a great photograph brings together different people from a range of different industries. “Winning created a massive buzz. Just being a finalist and going to Britain’s Best was great for team morale. We’re in a small town in the north west of Scotland so this has really set us apart from our competitors; winning in this competition has been huge for us. We display the winning image in our window, and the reaction and interest has been huge,” Allan adds. FIND OUT HOW TO ENTER Turn over, to pages 24-25 overleaf, for full details on how to enter the 2016 Photographic Stylist of the Year.

IF NOTHING ELSE READ THIS... • Remember, taking the perfect photograph need not be tricky. The key things to consider are lighting and layout. But do make sure your photographs are not too dark. • Factor in a lot of time for planning, preparation, mood boards and brainstorming ideas. • Finding the right model is vital, but it also needs to be a team effort. • Winning is great, but even just entering can be a real morale boost for the team and salon.

THIS HAS REALLY SET US APART FROM OUR COMPETITORS; WINNING HAS BEEN HUGE FOR US. WE DISPLAY THE WINNING IMAGE IN OUR WINDOW, AND THE REACTION AND INTEREST HAS BEEN HUGE

May/June 2016 | salonfocus


24

Photographic Stylist of the Year 2016

STRIKE

A POSE

ENTRIES ARE NOW OPEN FOR THIS YEAR’S PRESTIGIOUS PHOTOGRAPHIC STYLIST OF THE YEAR COMPETITION. SO GET PLANNING YOUR PHOTOSHOOT.

he NHF’s Photographic Stylist of the Year competition is one of the few industry competitions that allows stylists working at any level to experiment, innovate and push the boundaries to create high-impact, visually stunning photographic images.

T

The deadline for this year’s competition is noon on Friday 18 September. That may sound a long way away, but planning, creating and submitting a visually stunning photoshoot doesn’t happen overnight. It’s going to take considerable preparation, lots of discussion and team working and a whole load of creativity and inspiration. So now’s the time to get those creative juices flowing. Here’s what you need to know about this year’s competition. THIS YEAR THERE ARE FOUR CATEGORIES: • Male and Female Fashion Look (students and trainees). This is for stylists working towards Level 3. The entry fee is £10. • Male and Female Fashion Look (open to all). The entry fee is £15. • Male and Female Fashion Collection (open to all). The entry fee is £30. • Male and Female Afro-Caribbean Look (open to all). The entry fee is £15.

STEP ONE

TAKING YOUR PICTURE(S)

MALE AND FEMALE FASHION LOOK AND MALE AND FEMALE AFRO-CARIBBEAN LOOK These categories are judged on a single image. To enter you simply need to create your fashion look and then take your picture. MALE AND FEMALE FASHION COLLECTION For this category you are required to create, and present, a collection of images suitable for the front cover of a magazine. To enter you therefore need to submit four images (high resolution JPEGs or TIFFs 300dpi minimum).

STEP TWO

SUBMITTING YOUR WORK MALE AND FEMALE FASHION LOOK AND MALE AND FEMALE AFRO-CARIBBEAN LOOK Complete the online entry form on the NHF website, at nhf.info. You can find it by clicking through to “Events” and then “Competitions”. Then simply upload your portrait image and make your payment. MALE AND FEMALE FASHION COLLECTION Once you have created your collection of four images and saved them to a disc or memory stick, download and print out the entry form. As before, this can be found at nhf.info, under “Events”. Then physically send your entry form and images to the NHF, along with your entry fee. Address your entry to: Photographic Stylist of the Year Competition, National Hairdressers’ Federation, 1 Abbey Court, Fraser Road, Priory Business Park, Bedford, MK44 3WH.

READ THE RULES! Don’t forget to read the rules about how to enter each category before submitting your entry. These can, again, be found at nhf.info, under “Events” and then “Competitions”. Don’t forget, too, the deadline for entries is Friday 18 September.


TOP TIPS A great photoshoot will be a combination of stunning hair and stunning image. Follow these top tips: 1. Read the competition rules and categories carefully. It’s obvious, but make sure you know which category you’re entering and what’s required. 2. Set a budget, and stick to it. Don’t forget to factor in the expenses of your team. 3. Research, research, research. Look at what images and styles are out there and other stylists you admire. Create a mood board to inspire you. 4. Use your local college and social media. There are always photographers, models, make-up artists and clothes’ stylists looking to get noticed who may be happy to work for free. Put something out on Twitter or Facebook or ask at your local college. 5. Think creatively about a venue. Have you got space in your salon? Could anyone in the community, local college or other businesses help? 6. Spend time finding the right model. There is nothing wrong with using new faces for models, so if a client has the right look, be brave and ask. If you are shooting a collection, choose models who are versatile, so you can create different looks. 7. Take as many pictures as possible. This, again, should be obvious, but the more images have, the more you are likely to find that perfect image. 8. Think sharp and well lit. If your image is out of focus, poorly lit or blurry, it’s not going to be a contender. 9. Get feedback, from someone you trust. Find someone you trust who can tell you their honest opinion. 10. Create amazing hair. Last but not least, and in fact perhaps the most important of all, your stunning image has to have amazing, stunning hair. Good luck!

SEE YOU AT BRITAIN’S BEST!

The winners will be announced at Britain’s Best on 13 November, which is again being held at the Heritage Motor Centre in Warwickshire. The July/Aug edition will have full details of this year’s competition and how to enter.


26

Special report into pricing and discounting

VALUE ADDED?


Special report into pricing and discounting

27

SHOPPERS MAY LOVE THEM, BUT NHF MEMBERS FEAR A GROWING ‘DEALS CULTURE’ IS DAMAGING THE INDUSTRY. OVER THE NEXT TEN PAGES, SALONFOCUS LOOKS AT HOW SALONS CAN RESPOND TO DEMAND FOR DISCOUNTS.

couple of years back a survey by the social media research body Brandwatch concluded that more than eight out of 10 Britons, 82%, had used a discount deal or voucher.

A

Shoppers are now very familiar with sites such as Groupon, Vouchercodes, Wowcher and Treatwell, and many will scour them for the latest deals before heading off down the high street or going out for a meal. But, as the latest NHF survey has made very clear, hairdressing and beauty salons and barber shops by and large feel deeply sceptical about the benefit of such sites. The survey of nearly 200 members carried out in March found a massive 90% actively resisted using such sites, with just 7% using Treatwell (formerly known as Wahanda) and 3% using Groupon. The consensus among members appears to be that, while such sites can generate footfall in the short run, the fact they take a cut on top of what is already a discounted price means the figures rarely stack up for the salon.

THE SURVEY OF NEARLY 200 MEMBERS CARRIED OUT IN MARCH FOUND A MASSIVE 90% ACTIVELY RESISTED USING DEALS SITES

‘DEAL HUNGRY’ Just as importantly, the sort of “deal hungry” clients who use such sites rarely become loyal, regular clientele and simply force salons to keep prices low to compete. As Leigh Rands, director of The Cutting Room (The Salon) in South Yorkshire, has summed it up overleaf: “We want clients who are consistently loyal, not those who are just pursuing cheap deals.” A quarter (26%) of the salon owners surveyed said they never used discounting or price-based deals to increase footfall in the salon. However, nearly half (45%) did feel discounting could sometimes be an effective way to attract new clients or useful when combined with a wider promotional campaign. Other common reasons for using discounting included filling empty slots in the appointment book on a quiet day (24%), boosting trade at quiet times, such as during January, (17%), and to encourage clients to have or buy additional products and services (30%). The most common way salons tracked whether discounting approaches were working was by monitoring the number of new clients it brought in (41%), followed by assessing how many new clients were retained as a result (36%) and monitoring how many new clients were having additional services (28%). FIND OUT MORE Turn over to find out what members say about discounting and deals websites.

May/June 2016 | salonfocus


28

Special report into pricing and discounting

DEAL OR NO DEAL

THE STRENGTH OF FEELING AROUND DISCOUNTING AND DEALS WAS VERY CLEAR IN THE NHF’S PRICING SURVEY. BUT WHAT DO MEMBERS THEMSELVES SAY? SALONFOCUS SPOKE TO FOUR TO FIND OUT.

about performance not price and it’s something I need to be asking them about myself. It’s important not to be scared of price. It is about ensuring clients understand the “value” of what we’re delivering every time they visit, that they understand the value of the skill of the stylist, the overall experience, the product, the backwash, even the free tea and coffee.

LEIGH RANDS IS DIRECTOR OF CUTTING ROOM (THE SALON) IN ROTHERHAM, SOUTH YORKSHIRE. SHE HAS RUN THE SALON FOR THE PAST 17 YEARS AND CURRENTLY EMPLOYS SIX STYLISTS. Leigh Rands

We don’t use discount websites. I have thought about it from time to time, things like Groupon or the like, but then I worry about just what sort of clientele they attract.I think these sorts of online voucher websites can be a quick fix to boost turnover but potentially damaging in the long run; we want clients who are consistently loyal, not those who are just pursuing cheap deals. We do do some discounting. For example, we have a loyalty scheme and offer recommend-afriend discounts. Both clients receive £10 off. The client who brings a friend into the salon will get £10 off their next visit, once their friend has been for a cut and blow dry first. WORD OF MOUTH For us, word of mouth is also hugely important. We do advertise in the free local magazine, which goes well, and it runs an editorial on us twice a year. But it is about clients getting to know you, and you getting to know them. All the girls are either on the National Minimum Wage or above, and our over-25s are already earning above the National Living Wage; they already have their columns built up. If they’re not hitting their commission targets, that’s

salonfocus | May/June 2016

PHOTOGRAPHY: DAVID CHARLES CREATIVE IMAGING

‘WE WANT CLIENTS WHO ARE CONSISTENTLY LOYAL, NOT THOSE WHO ARE JUST PURSUING CHEAP DEALS'


Special report into pricing and discounting

ANNE PILEGGI HAS BEEN THE OWNER OF HAIRWORKS IN SWINDON, WILTSHIRE FOR THE PAST EIGHT YEARS. THE SALON EMPLOYS SIX STYLISTS.

29

TOM MILLER IS A DIRECTOR OF RENELLA IN FALKIRK. THE SALON HAS BEEN RUNNING SINCE 1969 AND EMPLOYS MORE THAN 30 STAFF. Tom Miller

Anne Pileggi

‘IT IS JUST ABOUT EDUCATING CLIENTS ABOUT PRICE’ I’m against discounting, 100%. We always give clients 100% and we work out our prices quite scientifically to cover our costs. We simply cannot afford to discount – why should we alter the price for doing the same work? It would also simply attract clients who are not going to come back. There is a new breed of client out there who enjoys going to different salons all the time and getting the deals. But from the business point of view that is not helpful if you’re trying to run a well-structured, well-managed operation. I will be putting my prices up from the end of April because of the National Living Wage, probably around about 10%. But stock prices have also gone up and then there is the cost of pensions and the cost of training. What’s important is we’re working to educate the client. Clients need to understand that, at the end of the day, if as a salon you can’t afford to charge a certain price, you just can’t charge that price. My girls need to be paying into a pension, they need a pay rise – and that’s only right and fair, they deserve it. It is about value – if as a client you’re getting a skilled service, there’s going to be a cost to that. We will discuss it as a team and I will put up a sheet of A4 on reception explaining the change. Clients do have a choice; they can go down the road to the £10 salon if they want. But we’re worth more than that, and they need to recognise so are they. It is just about educating the clients about price.

‘WE USE GROUPON, BUT RECOGNISE IT’S A SHORT-TERM FIX’ Where we are in Falkirk we’re still finding things quite hard; there are a lot of people out of work and there are a lot of minimum or living wage jobs. To be honest, it has been hard ever since 2007. However, as a salon, we are committed to training up new hairdressers and this has been the saving of the salon. With the exception of two stylists everyone is “home grown”. We always have a number of trainees on the books – we have around six at present going through their training. That’s where we sometimes make use of Groupon, for attracting new clientele for the new stylists.

WE SOMETIMES MAKE USE OF GROUPON, FOR ATTRACTING NEW CLIENTELE FOR THE NEW STYLISTS We recognise Groupon is not a long-term solution, but it helps the new stylists. You tend to pick up a few people but most are just looking for a cheaper quality haircut or colour; there is no loyalty to it. It’s OK; you do occasionally get some who turn into longer term clients, but generally no, it’s not a long-term solution. It’s a way of getting people through the door short term, but little more than that.

May/June 2016 | salonfocus


30

Special report into pricing and discounting

I do, however, do other forms of discounting. When we first opened we did a leaflet marketing campaign for the first six months offering 30% off. I offer 20% off to public sector workers, which is very popular, and brings in a lot of nurses and teachers. I also offer 20% off to our local hospice workers because they’re not under the NHS and we do a lot of work with cancer patients and I just think it is a good thing to do.

Carol Brown

‘IT WAS NOT CREATING ANY LOYALTY – THE WHOLE THING IS BASED ON THE CLIENT GETTING DEALS FROM DIFFERENT SALONS’ I tried Treatwell once, and it definitely did not work for me. I had an account with Redken that came with a free year of Treatwell. But I just found it a complete pain. I initially thought it might be useful in terms of filling up some free periods a week through promotions. I had a fairly newly qualified stylist and so by offering 50% off I thought it might help fill his column. The offer came with a free iPad, but only if you switched to Treatwell’s appointments system, which I didn’t want to do, as I had a perfectly good system that already worked well for me. So I didn’t do that. TIME-CONSUMING When someone booked online, we got a text message confirming the booking. But because our systems were not linked what would happen is the appointment slot would often already be taken, so we would have to ring the person up and rearrange. And we physically did not have the time to do that. We were getting all these text alerts as people were booking with us, and then we would be having to ring them up to reschedule for a different time or day, and it just got really confusing and time-consuming. I was mostly using it because of the new stylist but then Treatwell would also be taking 25% so it was not really covering the cost at all. On top of that it was not creating any loyalty – the whole thing is based on the client getting deals from different salons. I ended up being given an extra six months free, which ran to the end of last year, but I just didn’t use it. Eventually at Christmas I told them to block it off because I simply did not have enough time to be mucking about with it. I certainly would not recommend it.

salonfocus | May/June 2016

PHOTOGRAPHY: PETER LANGDOWN

CAROL BROWN HAS RUN SERENITY HAIR IN RUSTINGTON, WEST SUSSEX, FOR FOUR-AND-A-HALF YEARS. THE SALON EMPLOYS SIX STYLISTS.

CREATING LOYALTY That sort of discounting does create loyalty – they are likely to come back – and, as it is purely off services, there is the potential for retail. I also do a 20% off your first visit discount which works, again, because it still means the client is choosing you rather than simply what the rate is. I completely understand salons who say they don’t discount at all. If you discount too much you risk cheapening your brand. You, obviously, need to consider what you can afford when it comes to price, but it is also important to train your staff effectively around things such as upselling or creating packages. It is simply about putting a value on the salon. Discounting websites can create a climate where everyone is just looking for a bargain. As an industry we want to remain professional and we want to give the best possible service and experience. But to do that you have to charge a certain amount.


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32

Special report into pricing and discounting

DIRECTORY ENQUIRIES

BE AWARE, ONLINE SALON DIRECTORIES MAKE THEIR MONEY BY ENCOURAGING CLIENTS CONSTANTLY TO SHOP AROUND FOR DEALS, WRITES CONNOR KEPPEL SENIOR MARKETEER AND LEAD GENERATION SPECIALIST AT PHOREST SALON SOFTWARE.

Connor Keppel

here are new salon “marketplaces” or listing directories launching every week. And, superficially, it is easy to see why these sites might be attractive to salons looking to get new clients through the front door. But be aware – they come with downsides, too.

T

Let’s explain, first, how these sites tend to work. A marketplace or listing site sells itself as a salon “discovery” tool. Basically what this means is, if your salon is in, say, Kent and a client searches for “local salon Kent” or the name of a beauty treatment, the salon directory will rank in the first few results on Google The client is then brought to a page with a list of salons in the area. They browse, select a salon and make a booking. The company behind the website or app gets a significant margin. For example, a site such as Treatwell takes 20% when the client books with that salon. But the salon also of course gets a new client From the outside, it seems like there is nothing wrong with this. It seems like a win-win But… the difficulty with salon directory and listing sites is that, while for salons the goal is, naturally, retaining as well as attracting new clients, for salon directory and listing sites the salonfocus | May/June 2016

whole model is designed to work against salons retaining clients. Perhaps the best way to show this is through a fictional scenario. “Janet” is looking to book a facial. She types “facial Nottingham” into Google search. “Salon Directory” appears as the first result. She clicks in, picks a salon from the list and books a facial. The directory gets its 20% and the salon gets a new client. Win-win, right? Not really. This is because it is in the interests of the directory site to get Janet booking with another salon for her next service. Why? So it gets another 20%. The site will do this in a number of ways. These can include sending Janet discount codes for salons in her area that she has not previously booked with or putting special offers for other salons on the front page that will divert Janet when she next goes on to the site. Salons may, unwittingly, also be encouraging Janet to go elsewhere next time. If a salon, for example, has a window sticker that says “Find us on…” the directory site or hands out discount cards to clients, all that will do is encourage Janet to go back to the website – where, guess what, she will be presented with a better offer from a competing salon. In effect, the salon has just given Janet 20% off not to come back. The wider problem, to my mind, with these sites is they encourage clients to become deal hunters. When price is the most important factor for a client, going the extra mile and guaranteeing quality in hair or beauty is irrelevant.

THREE PROBLEMS WITH LISTING SITES Problem one: They encourage quality salons to believe discounting is a powerful form of marketing. The reality: Discounting is only a powerful form of marketing if you want to fill slots but make no profit. All that will happen is you will end up bending over backwards for clients who will never come back – because all they are interested in is what you charge, not what you can do. Discounting to get new clients can also alienate loyal clients who have been paying full-price for years.

Problem two: They place the focus on getting new clients as being the “best way to grow your salon”. The reality: The best way to grow your salon is to get existing clients back more often. Some deals sites have a 3% retention rate; in other words only 3% of clients ever come back and pay full price. It is in their interest to move clients around, whereas your interest is to get them back as a full-price client. Problem three: They are cheapening the industry at a local level. The reality: The good news is there are lots of clients out there who don’t want a discount; they just want to look good and feel great. But as more clients search for salons locally on price, it cheapens what we do. You have trained for years – why discount when you are the expert?!


Special report into pricing and discounting

33

May/June 2016 | salonfocus


34

Special report into pricing and discounting

PRICE POINT STRUCTURED PRICING COULD HELP YOUR SALON COPE WITH RISING WAGES AND COSTS, SAYS CHRIS AMOS, NHF TRAINER AND OWNER OF CHAPTERS HAIR IN BROMSGROVE. Chris Amos

hat’s the hot topic on the high

W street right now? Europe perhaps? Immigration? The question most worrying salon owners I speak to is prices – how we can raise prices to cope with the “perfect storm” of increased costs coming through without seeing our clients run screaming for the door? We’ve had the National Living Wage arrive last month, the National Minimum Wage will be going up again in October and salons are having to cope with a range of other increased costs, notably paying for pensions for the first time. Against this backdrop, salons have no option but to look long and hard at pricing – how you position, structure and “sell” your pricing to clients. The most obvious way to deal with increased costs like the National Minimum Wage and National Living Wage is to achieve a higher average client bill. But how can you do this? The first point Richard Wallace and I stress to salon owners in our NHF workshops is that, in fact, the issue isn’t really prices at all, it’s value. VALUE VERSUS PRICE Salon owners, naturally, fear that if they put prices up the automatic result is they’ll lose clients. But clients do not come to a salon because of the price, they come because of the value for money it offers, which is very different. There’s lots of things you should therefore be looking at: ridding yourself of lower price services, improving the client journey to give you more confidence to put your prices up, encouraging more upselling of services and more retail sales. But one quite simple way to make a difference, I’d argue, is by introducing structured pricing, if you haven’t done so already. Structured pricing works like this. What seems to happen in a lot of salons is that clients are charged the same price, irrespective of the stylist. Yet, for some of the stylists, that price is not warranted, either because they are very popular or less experienced and less popular. However, if you have, say, five stylists of different levels, experience and skill, you can easily introduce a graded, structured pricing structure, with a middle and upper level. And we tend to find that, once you introduce structured pricing, the average client bill goes through the roof.

salonfocus | May/June 2016

And it gives the client choice. When another stylist is available at the same price, why would you go for the less experienced person? But if you can choose to pay less or more for the less or more experienced stylist, that’s a real choice. PAYING A PREMIUM With structured prices, the prices generally are dearer across the board – you don’t drop the prices for those who are less experienced. You simply add a premium to those stylists who are more in demand. The wages of the most popular stylists may result in them receiving a pay increase, and be an incentive for the others. Another potential benefit is that you might have someone who is really in demand and busy 90% of the time and someone who is only busy 40% of the time. But if you introduce structured pricing that 40% person, who is perhaps a less experienced stylist, could become much busier. So, how can increasing your average client bill stack up financially? The table below gives an idea – and when we show it in our workshops it often makes people’s jaws drop. Number of Clients

Average net bill (not incl retail)

Total

Difference Per Stylist Per week

30 x

£25

£750

£25

30 x

£30

£900

£150

30 x

£35

£1050

£300

30 x

£40

£1200

£450

What this is showing, for just a single stylist doing 30 clients a week, is the effect adding an incremental £5, £10 or even £15 can have to the client bill. The difference you can make per stylist per week is, I’m sure you’ll agree, stunning. And this is only for one stylist; imagine if you did this for your whole team. It’s figures like this that make you start to see why so many salons are in such a mess, because their average client bill is so low. Ultimately, as I argued at the beginning, salons don’t really have any option but to go down this route. One way or another, salons are going to have to start building up their businesses based much more on building on price rather than cutting costs all the time. There is really only one thing that is going to help all salons in the current climate – better profitability.


FIND OUT MORE Chris and Richard will be running their “How to increase your profits� workshops in Bristol and Portsmouth between June and July. They will also be visiting Manchester, Birmingham, Norwich and Nottingham in the second half of the year. For more details, turn to Events on page 44 or go to nhf.info/events


36

Salon technology

SYSTEM S AV V Y

WHAT YOUR REPORTS CAN SHOW: • Staff performance • Average bill and takings • Rebooking • Client retention • Colour % and value • Retail and treatments • Commissions and hours worked • Refunds and discounts, including vouchers sold or redeemed • Stock value • Your best selling products • Frequency of client visits, including client retention, top-spending clients, cancellations and web bookings made

YOUR SALON COMPUTER SYSTEM CAN HOLD THE KEY TO UNLOCKING THE PROFITABILITY WITHIN YOUR SALON, EXPLAINS MICHELLEMARIE WARBURTON, SALES MANAGER FOR PREMIER SOFTWARE SOLUTIONS.

t’s often said “knowledge is power”. In the context of salons, profitability and salon software, it might be more accurate to say “knowledge is money”. This is because using your salon software more effectively can be a key way to unlock and maximise your salon profitability.

I

It goes without saying that, as a salon owner, you should know exactly how your salon is performing and which direction you are moving in. Part of this is going to be gut instinct and experience – your sense of what your clients want and how your high street or market is changing. But part of this is also going to come down to understanding the information generated every day simply by running a busy salon. And this, in turn, can come down to how, and how effectively, you’re using your salon computer system. So, what sorts of things can your salon software do that can direct affect your profitability? Here’s a snapshot. AVERAGE BILL Your software can track key performance indicators such as average bills, rebooking, retention, colour percentage and retail sales.

salonfocus | May/June 2016

It can show you who within your team is earning the most profit, who has the highest colour percentage, and who sells the most retail. The computerised reporting that comes as part of your system can project and model what would happen if, say, you added just £1 to every bill in your salon. It can show you how to look at treatments, retail and other add-ons to see where your staff can upsell to improve their average bill. It can help with often unsung areas that can make a real difference to the bottom line, such as more effective stock control, cash flow and invoice management. Finally, the key here is to recognise the power of your salon software reports. Your system will be constantly gathering in data and information, but none of this will have value unless you actively use it and analyse it. These reports don’t need to be pages of unintelligible figures – you can make your salon reports as visual and easy to understand as you like. Ultimately, your salon software is an extra, silent “salon manager” that can show you how to run a more efficient and profitable salon. So use it.

FIND OUT MORE The NHF’s guide What the Right Salon Software can do for Your Business is available from nhf.info/nhf-guides/


FILLING THE GAP in your diary has never been easier Premier has teamed up with last-minute appointment specialist, gappt, to offer your business a web and mobile solution to help revolutionise the way you fill your last-minute availability. Seamlessly integrated with Premier Salon, gappt will automatically pick up changes in your appointment book to promote any lastminute white space. You can promote this availability to your clients via your website, your clients’ mobiles and their social media. For more information and to learn more about how Premier Salon can help your business, visit our website.

Put the Power of Premier to Work call: 01543 466580 web: www.premiersalon.co.uk/gappt email: hello@premiersalon.co.uk


38

Employee health and wellbeing

MIND MATTERS

MENTAL ILLNESS – STRESS, ANXIETY, DEPRESSION OR WORSE – IS A GROWING PROBLEM WITHIN THE WORKPLACE, AND ONE EMPLOYERS OFTEN FIND DIFFICULT TO MANAGE. SALONFOCUS LOOKS AT SOME WAYS SALONS CAN HELP.

t is estimated one in four adults will at some point in their lives experience a mental health problem, anything from stress and anxiety through to depression or a fullblown mental breakdown.

I

It is also calculated that dealing with mental ill-health costs the economy some £105bn a year, roughly the same amount that we all spend on the NHS. To that end, it’s perhaps not surprising the government in February outlined a major plan to the improve support and treatment for people with mental ill-health, including offering better access to counselling and more help for people with mental health conditions to stay in or return to work. One of the challenges for any salon owner when it comes to supporting or managing an employee who is suffering from mental illness is that, unlike a bad back or a hospital operation or even just a stomach bug, stress, depression or anxiety are invisible conditions. They’re not something you can easily see, even if you can see something isn’t right. Mental illness is also something people often find difficult to talk about, especially as employees may feel reluctant to admit they’re not coping for fear this is going to reflect badly on how they’re viewed at work. But for a busy salon floor, where you’re expecting your stylists to be “up” all the time – cheerful, friendly and chatty – if someone is struggling with anxiety, stress or depression it can be a real problem. So, how can you tell if someone is struggling with mental health and what, as an employer, can you do to help? BEHAVIOUR CHANGES The mental health charity Mind has published a guide How to support staff who are experiencing a mental health problem that covers just these difficult areas. It recommends to look for changes, including: • changes in behaviour or mood or how they interact with colleagues • changes in work productivity, motivation levels and focus • struggling to make decisions, get organised and find solutions to problems • appearing tired, anxious or withdrawn and losing interest in activities and tasks they previously enjoyed • changes in eating habits, appetite and increased smoking and drinking salonfocus | May/June 2016

UNLIKE A BAD BACK OR A HOSPITAL OPERATION OR EVEN JUST A STOMACH BUG, STRESS, DEPRESSION OR ANXIETY ARE INVISIBLE CONDITIONS

When it comes to holding that first “difficult” conversation, Mind advises: • Choose an appropriate place. This should ideally somewhere quiet where the person feels comfortable, perhaps outside the immediate workplace environment. • Encourage them to talk. Ask simple, non-judgemental questions and let them explain in their own words how they are feeling. If they’re not ready to talk about it, especially if the issue is something in their home or personal life, reassure them that you’ll be there to support them when they’re ready. • But be honest. If there are specific, clear concerns, perhaps about their performance or absence, you need to raise them. But it needs to be in the context of how you, as their employer, can help or support them. • Ensure the discussion is confidential. But you can discuss who, if anyone, they would be happy for you to share this information with. • Encourage them to see their GP. But also work to develop an action plan for how you can and will help them.


Employee health and wellbeing

39

DID YOU KNOW? A MENTAL ILLNESS CAN BE CLASSED AS DISABILITY UNDER THE EQUALITY ACT 2010. FIND OUT MORE IN YOUR QUESTIONS, PAGE 46.

May/June 2016 | salonfocus


40

Employee health and wellbeing

When, then, might an “action plan” include in this context? Mind argues that, a lot of the time, there are things employers can do to help that are simple and inexpensive. However, it is important to stress the employee should, first and foremost, be encouraged to go and see their GP as this will be the first step in getting any appropriate specialist, professional or medical help or support. THINGS YOU CAN DO Changes you could look at might include: • Making their hours more flexible or changing break or rota times. This can help if what’s causing the stress is workload or perhaps family or childcare issues. But bear in mind if the stress or anxiety is around debt or financial concerns, offering to reduce their hours may not be the right answer. • Giving them some time off. However, again bear in mind this may not be the best solution if it means they simply end up sitting at home, worried and isolated. • Agreeing to be flexible around things such as doctor’s appointments or counselling. One issue you may need to tackle here, however, is what you tell other staff members if they ask why the employee is getting “special treatment”. This is something you’ll need to discuss carefully with the employee. • Offering extra training, mentoring or support. This could be especially valuable if the stress or anxiety is based around a performance issue or to do with managing their time or workload. • Encouraging the staff member to speak to specialist support. This could be an organisation such as Mind or another mental health charity or their local Citizens’ Advice Bureau (citizensadvice.org.uk). This can also help with debt or financial problems. FIND OUT MORE Mind has a wide range of online resources that can be accessed at mind.org.uk and then clicking on “Information and support”.

How to support staff who are experiencing a mental health problem can be accessed at: mind.org.uk/media/550657/resource4.pdf

salonfocus | May/June 2016

HOW HABB CAN HELP HABB, Hair & Beauty Benevolent, receives some 300 new applications for help each year for people within hair, barbering and beauty who have fallen on hard times, normally because of illness, disability, difficult circumstances or some form of financial crisis. Mental illness is a key area where HABB offers support, and below are some examples of the sort of assistance the charity has been providing. To get involved, fundraise through your salon or just to find out more about HABB and its work, go to habb.org DAY-TO-DAY MONEY Despite a history of mental health problems, Scott successfully held down a position as a barber for five years until suffering an episode of severe depression in 2014, which led to, among other things, an attempted suicide. His employer had supported him as best he could during this period, including arranging a phased return-to-work plan. But his mental illhealth had left him unable to hold down regular work. Although Scott is now volunteering in a local charity shop for four hours a week, which is helping him to regain his confidence, HABB has been supporting him financially with monthly regular payments to help him get back on his feet. HOUSEHOLD GOODS A combination of the trauma of her husband suddenly (and unexpectedly) committing suicide and then discovering he had been hiding huge debts from her, pushed Amy over the edge mentally back in 2013, after a career spanning some 30 years in the industry. The financial crisis left her, in her early 60s, penniless and homeless, and she was diagnosed with depression by her GP. Since then, HABB has been able to help her by funding new household items and by making her a regular beneficiary every three months. SUPPORT WITH RENT After 15 years working as a hairdresser, Shelley was knocked sideways by three deeply traumatic events: she lost a baby during pregnancy, her fiancé then left her and she then had a nervous breakdown. Unable to cope with being in work, and stuck on an NHS waiting list for support, Shelley then hit a financial brick wall just before Christmas last year. Her rent was due and she literally had no money coming in. Her landlord accepted using her deposit as rent to tide her over for a month but, with the Christmas period looming and little chance of a decision of housing benefit support being made until the middle of January, she feared she would be made homeless and be out on the streets. The stress and anxiety of her situation, compounded by her mental fragility, was, naturally making her very distressed. HABB was then able to step in and has been supporting her with paying her rent until a decision is made on her eligibility for Employment Support Allowance or Disability Living Allowance. All names have been changed.


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42

Set your salon apart: disposables

J O L LY G R E E N INVESTING IN DISPOSABLE TOWELS, CAPES AND GOWNS CAN CUT YOUR ENERGY BILLS AS WELL AS POSITION YOUR SALON AS A ‘GREEN’, ECO-FRIENDLY BUSINESS. WHAT ARE THEY? Disposables come in many shapes or forms, but will predominantly be towels, capes and gowns that, rather than having to wash, dry and fold after each client, you simply dispose of or recycle. WHY WOULD I WANT TO DO THAT? For a number of reasons: it’ll save on your laundry, water and electricity bill; it’ll mean no more discoloured, scratchy towels that have to be used time and again; you’ll know each item will be clean and hygienic because it’s new and unused; your team won’t be required to be constantly washing and laundering. WHAT WILL MY CLIENTS THINK? The concept of disposables may be something you need to explain to your clients, as it can give the impression of a salon simply indulging in a “throwaway culture”. In fact though, one of the key selling points of disposables should be

SET YOUR

SALON

APART salonfocus | May/June 2016

precisely the opposite: that your salon is embracing sustainability and ecofriendliness. This is because disposables will normally be biodegradable and recyclable. Combine this with the energy savings you should be making from less washing and laundering and it can be a compelling “green” sell. Products will often even come in recyclable wrapping. HOW DO THEY FEEL? Disposable towel manufacturers often claim their towels are actually softer and more absorbent than traditional cotton towels. But, clearly, it makes sense to try them out first, both with staff and clients, before taking the full plunge. WHAT’S IT ALL GOING TO COST? It’s going to vary but starter packs will normally be pretty cheap, anything around £25 and will simply give you a taste of the products and how they work. Towels and capes will come

in large multi-pack boxes, often of around 450 to 900 items, and so will range in price. But a 450-strong box of medium towels is likely to set you back somewhere between £130-£160, while a box of 600 capes could be between £300-£400 and a box of 100 gowns between £150 to £180. But do shop around as there are a number of providers on the market. You might also want to look at investing in a towel dispenser. ANYTHING ELSE I SHOULD KNOW? Because they’re biodegradable, most disposables can be disposed of alongside any biodegradable waste, such as food, hair or card, but check with your provider and rubbish collector. Alternatively, you should be able to add your disposables to your normal rubbish for landfill if you prefer. It also goes without saying that it’s worth looking out for any loyalty schemes or buy-bulk discounts that may be on offer.


the ld Join ly wor ake ven d m hea BB an e as a A l nc of H iffere Ange a d erub, int. Ch r Sa o

This once in a lifetime photoshoot will give you and your salon the chance to work with Darren Ambrose, the current British Hairdresser of the Year, crowned at HJ’s 2015 British Hairdressing Awards sponsored by Schwarzkopf Professional. Shot by the renowned fashion and beauty photographer, Jack Eames in a London studio and styled by Bernard Connolly, your images will feature in the November issue of HJ.

Enter the prize draw by becoming a member of the HABB Supporters Club before 31st July 2016.

For full information & how to enter visit: www.habb.org

#HelpingHairdressersInNeed

Facebook/habbcharity

@habbcharity


44

Events

BOOKINGS Anyone interested in attending events should contact the NHF team on 01234 831965 or events@nhf. info. Bookings can be made online at nhf.info/events

ONE-DAY EVENTS HOW TO INCREASE YOUR PROFITS 13 June – Bristol 11 July – Portsmouth USING FACEBOOK TO GROW YOUR BUSINESS 16 May – Birmingham 20 June – Edinburgh HOW TO MANAGE CONFLICT 27 June – Milton Keynes EMERGENCY FIRST AID AT WORK 9 May – London 13 June – Sheffield 27 June – Stoke on Trent 11 July – Manchester

EVENING EVENTS ARE YOU PREPARED FOR PENSIONS AUTO-ENROLMENT? 6 June – Basingstoke 20 June – Swansea 4 July – Edinburgh

SHORT WORKSHOPS/ DEMOS FOCUS ON HAIR LOSS (9.30AM-1PM) 9 May – Dundee 16 May – Warrington 20 June – Durham SHAVING DEMONSTRATION (7PM-9PM) 16 May – Guildford 27 June – Wakefield

REGIONAL COMPETITIONS 9 May Central England Championships, Birmingham 5 June South West Hairfest, Taunton 13 June Red Rose Championships, Warrington 19 June Wales Finest, Cardiff 24 October Pride of Scotland, Glasgow 9 November Welsh Awards, Cardiff

NATIONAL COMPETITIONS 18 September Photographic Stylist of the Year (closing date) 13 November Britain’s Best

salonfocus | May/June 2016

EVANGELINE IS STEP UP & SHINE WINNER he winner of this year’s Christofer Mann Step Up & SHINE Scholarship has been announced as Weymouth stylist Evangeline Barret.

T

Evangeline, 22, works at BLONDZ Hair in the Dorset town, and beat six other finalists to win the sought-after prize of a bespoke £2,500 education package. Evangeline’s name was revealed at the Fellowship for British Hairdressing’s President’s Night in April. The scholarship includes the chance to work with top industry stylists and to receive mentoring from industry legend Debbie G, something Evangeline said she was very excited about. She also said she hoped to learn more about

Afro-Caribbean hair and creative cutting through the scholarship programme. CHARITY WORK Evangeline impressed the judges with her involvement in the Unicef and Wella Making Waves programme, which took her to Vietnam to help vulnerable young people, and her local volunteering work with young people. She described herself as “completely overwhelmed” to have won, adding: “When I heard my name called out I froze and didn’t know what to do. Step Up & SHINE will be the start of my dreams coming true. I can’t wait for what this year is going to bring and the opportunities it will create. I want to thank the Fellowship and the National Hairdressers’ Federation for this opportunity.”

THE AGM IS OPEN TO MEMBERS!

15 MAY

NHF Annual General Meeting | Venue: The Holiday Inn Regent’s Park, London. Starting at 1pm. Contact if attending: tina.beaumont@nhf.info


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46

Q&A

Health and safety

YOUR

QUESTIONS uestions about returning to work after maternity leave and a stylist suffering from depression were challenging NHF members during April.

Q

Q

We have an employee who went on maternity leave 16 weeks ago and I thought she would be taking the full 52 weeks. However, I have just received an email from her telling me she is wanting to return next week as she needs the money. Is she allowed to do this? As I was not expecting this, I have taken someone on to cover her maternity leave.

A

An employee must give her employer eight weeks’ notice if she plans to return to work at any time before the end of her additional maternity leave (in other words, before 52 weeks). However, the employee is not required to give this notice if you, as her employer, have not fulfilled your legal obligation of notifying her of the date of her return to work, in other words, the date at which her additional maternity leave ends. This needed to be done within 28 days from the point she informed you she was taking maternity leave. Therefore, if you have fulfilled this legal obligation, you can tell her, no, she can’t come straight back and needs to give you the required eight weeks’ notice.

LEGAL LIFELINE Members with a business, legal or employment question can call the Legal Lifeline on 01234 831965 or email enquiries@nhf.info. Employment-related support is available 24/7 and advice on commercial issues 9am-5pm Monday-Friday.

Q

I employ a stylist who is returning to work after taking both ordinary and additional maternity leave. However, circumstances have changed in the salon in the year she has been off, and all stylists are now expected to cover on reception on a rota basis. I told her of this change during one of her keeping-in-touch days but she has now written to me saying she is legally entitled to return to exactly the same job as she was doing before – and therefore is not prepared to cover reception duties. Is this correct?

A

46

A woman returning to work after additional maternity leave is only entitled to return to her old job if it is “reasonably practicable” for her to do so. Where this is not the case, the employer must provide another job that is “suitable and appropriate”. The employee is also entitled to come back on the same terms and conditions (seniority, pension and so on) or ones either equivalent or no less favourable In this case, the employee is returning to the same job but there is now the additional duty of covering reception. However, this change would have happened irrespective; if she had not been on maternity leave she would have been asked to take on the extra reception duties along with the other stylists when the change occurred. Therefore, this is unlikely to fall foul of the legislation and you would be within your rights to stand firm. However, every circumstance is different

and so it would be sensible to get legal specific advice on this first.

Q

I have an employee who has told me she suffers from depression. Most of the time she is fine, however she does have recurring episodes where she takes quite a lot of sick days. Someone has told me depression is classed as a disability under the Equality Act 2010. Is that correct, even if she does not suffer with depression all of the time?

A

Yes. An employee with an irregular illness such as depression can be covered by the Equality Act 2010. A disability under the Act is “a physical or mental impairment that affects a person’s ability to carry out normal dayto-day activities” but one also deemed “substantial” and “long term”. In this context, “substantial” will mean an impairment that is continuing (even if it doesn’t happen all the time), which when it happens has an adverse effect on that person’s normal day-to-day activities, and is likely to recur. These criteria will normally mean (depending on the diagnosis) employees with mental illnesses where the effects come and go over time are covered by the Act.


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