£3.50 Mar/Apr 2015
The essential magazine for salon owners
THE FUTURE’S
BRIGHT
The revolution that’s changing hairdressing apprenticeships
10 PAGE APPRENTICESHIP
SPECIAL 10
Hairdressing’s national minimum wage shame
26
Countdown has started to pensions auto-enrolment
30
The colours keeping your salon busy this autumn
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Photo: ©Alan Edwards Salon
Contents
C O
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T S P6 NEWS Industry in HMRC’s sights over apprentice pay P10 MINIMUM EFFORT? Hairdressing’s minimum wage “hall of shame” P12 IN THE CHAIR With extensionist Michelle Griffin
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P14-23 APPRENTICESHIPS SPECIAL REPORT Including all the detail on the new “trailblazer” standards, how funding will be changing and the plan in Wales to scrap Level 2 apprenticeships P24 FIGHTING FIT A new, free government service could help get your sick employees back to work more quickly P26 STAGE MANAGED How to find out about your pensions auto-enrolment “staging date” P28 PEOPLE POWER The “hidden” costs behind taking on new employees P30 AUTUMN GLORY We predict the hot colour trends this autumn
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P32 YOUR QUESTIONS Your employment and legal headaches answered P34 EVENTS All you need to know about the NHF’s 2015 events
CONNECT WITH US AND HAVE YOUR COMMENTS AND TWEETS IN THE NEXT ISSUE OF SALONFOCUS Mar/Apr 2015 | salonfocus
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Welcome
PRESIDENT’S
L E T T E R 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: sfeditor@salonfocus.co.uk EDITORIAL CONSULTANT Andrew Don e: sfeditor@salonfocus.co.uk EVENTS Tori Priestley t: +44 (0) 1234 834386 e: victoria.priestley@nhf.info AD SALES Media Shed Ltd, 22a Market Hill, Chatteris, Cambs PE16 6BA www.media-shed.co.uk ADVERTISING SALES MANAGER Gareth Macfarlane T: + 44 (0) 1354 818009 e: garethm@media-shed.co.uk DESIGN AND PRODUCTION Rick Fraterrigo Matrix Print Consultants Ltd t: +44 (0) 1536 527297 e: rick@matrixprint.com COVER IMAGE: APPRENTICE RAEGAN MCINEARNEY, BY STEVE BURDEN, POST PHOTOGRAPHIC 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. © 2015 The National Hairdressers’ Federation.
airdressing is a people business. It’s about how everyone working in a salon can make our clients feel special, confident, relaxed and happy.
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It’s also one reason why hairdressing is so committed to bringing on young people, to giving youngsters the skills they need to be successful in our wonderful industry. Many salons are passionate about training ABOUT PAUL and education. They often see it as a way Paul Curry is president of the NHF and has owned of giving something back, as well as an Studio 12 in York for the investment in their future success. past 25 years. He is also a member of the NHF’s That’s why the “trailblazer” creative working group, which is responsible for apprenticeship reforms – asking organising Britain’s Best and the NHF’s Photographic apprentices to be trained to become more Stylist of the Year “salon ready” – are so important. I urge you competition. to read our ten-page special report. There are things that worry us about what’s on the table – for example, asking salons to pay a cash contribution upfront (even if they might eventually get back more than they put in) and expecting small business owners to have the skill, and time, to manage complex training budgets. There’s still a lot of talking and negotiation to be got through. But these reforms give us an opportunity to shape how we inspire future generations of talented young people, the young people we need if our industry is going to keep on getting better and better. PAUL CURRY NHF president
Material for consideration in this section of the magazine should be submitted on CD-ROM 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 and stylist.
CONTRIBUTORS MICHELLE GRIFFIN is head of education at the Michelle Griffin Academy in Birmingham
salonfocus | Mar/Apr 2015
MARTIN GOLD is owner of MG Hairdressing in Stanmore, north London
SOPHIE MORRIS is owner of Andrew John Hairdressing and Images Hair and Beauty in Essex
EDWARD HEMMINGS is director of education at Alan d Hairdressing Education in London
TREVOR LUKER is co-founder of the London Hairdressing Apprenticeship Academy
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News
HAIRDRESSING IN HMRC SPOTLIGHT airdressing is bracing itself to be on the receiving end of a major government campaign over the minimum wage, following a damning report arguing the industry is the worst by far in the UK at paying apprentices correctly.
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The Department for Business, Innovation and Skills said in December it was instructing HM Revenue & Customs to begin a minimum wage guidance and enforcement campaign “solely focusing on hairdressing”. Its follows a report arguing 42% of salons were failing to pay apprentices their legal minimum wage, significantly ahead of the next two poorest performing industries, children’s care and construction, where non-compliance was 26%. The campaign is expected to begin imminently, possibly as soon as this month. It is expected initially to concentrate on awareness-raising and helping salons to become compliant. But salons that fail to pay the correct wage still risk being publicly “named and shamed” and from this summer the fine for non-compliance is expected to rise from £20,000 to £20,000 per underpaid employee.
LEVEL 2 ‘UPS PAY 8%’ A stylist who successfully completes a Level 2 apprenticeship in hair and beauty will within five years be earning 8% more on average than someone who started an apprenticeship but failed to see it through, according to government statistics.
salonfocus | Mar/Apr 2015
The Department for Education released the figures as part of a concerted effort to put more data around training, employment and earnings out into the public domain, and so enable learners and employers to make more informed career choices.
The report suggested one reason for apprentices to be paid wrongly was because of how the apprentice wage is structured. The £2.73-an-hour rate applies to apprentices aged 16-18 or those aged 19 or older in their first year of training. This means if a birthday moves an apprentice into a new wage band, they can end up being underpaid if their pay isn’t adjusted accordingly. The government therefore wants to replace the £2.73 rate with a single £3.79-an-hour rate for all 16- to 17-year-olds and apprentices in their first year of training. The NHF, however, has argued it would rather see the £2.73-an-hour rate simply apply to all apprentices, whatever their age, for the duration of their training. NHF president Paul Curry said: “Salons need to be reviewing their payroll systems as a matter of urgency – even if their payroll is managed by someone else – to ensure they are compliant and paying the right wage.” FIND OUT MORE Go to MINIMUM EFFORT?, pages 10-11, for full details of the Apprenticeship Pay Survey 2014
News
CLOCK TICKING ON PENSIONS The industry’s countdown to pensions autoenrolment has begun in earnest, with The Pensions Regulator starting to write to salons warning them their “staging date”, or the point from which they need to be auto-enrolling staff into a pension, is approaching. NHF head office received its letter in January, pointing out its staging date will be this summer, and NHF president Paul Curry has also had his, with his salon hitting its staging date in 2016. Pensions auto-enrolment is the change in the law that means by 2017 all UK businesses, however small, will have to enrol employees into a pension, and make contributions to it. For the vast majority of employers with fewer than 30 staff their staging date will be between 1 November this year and 1 April 2017. However some small businesses will hit their staging date this summer, with the exact date depending on your employer PAYE number. As the regulator estimates it normally takes at least six months to put everything in place, it is urging salons to use its online tool to check their staging date as a matter of urgency. Firms that fail to auto-enrol staff when they should risk being fined, with 166 businesses receiving £400 fixed penalty notices last year. The NHF launched a pension specifically for hairdressing last autumn, and which guarantees entry to members. The scheme
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SIGN UP TO
NHF PENSION
Letter: Deadline looming
is now also being extended to non-NHF salons. Details can be found at nhfpensions.co.uk/ or by calling 01234 831965. It is also running a series of pension events and webinars, with details again on the website, or go to Events on page 33.
The first member signed up to the Federation’s pension has urged salons to follow suit. Johnsons Hairdressing, a two-salon business in Warrington, Cheshire, employs 20 full-time and 16 part-time staff. Office manager Lorraine Walker (below) said: “My advice is sign up; that’s the way forward. Take full advantage of your membership.” The NHF Pension offers members guaranteed access, free software and dedicated helpline. Until August it is available at a discounted rate of £195 plus VAT, plus an annual “governance” fee of £65 plus VAT.
FIND OUT MORE Go to STAGE MANAGED, pages 24-25
‘INCREDIBLES’ WANTED NHF London Region is once again running its NHF “Incredibles” competition this spring, and is urging talented young stylists to enter before the closing date of 30 April. The competition, which was launched last year, offers NHF members and their younger team members the opportunity to work with other talented young hairdressers as well as take part in a photoshoot alongside industry experts Jerome Hillion, of Jerome Hillion Hair & Make-Up, and Darren Bain, senior educator at HOB Salons and a 2014 British Hairdressing Awards London Hairdresser of the Year finalist. There are three categories this year: • Newcomer – for stylists in their first year • Future generations – for stylists in their second or third year • Young hairdresser – for qualified young stylists It costs £15 to enter and the application form can be downloaded from nhf.info/incredibles London region chairperson Mikaela Martin said: “All three of the Incredibles events are about inspiring your salon’s future generations. It’s a fabulous experience and great PR for the salon too.”
INDUSTRY HONOUR
Congratulations to leading Welsh hairdressing trainer Shirley Davis-Fox, who was made an MBE in January’s New Year’s Honours list. Shirley, chair of ISA Training in Bridgend, received her award for services to hairdressing.
Mar/Apr 2015 | salonfocus
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News
FORMAL NOTICE OF
Mark Harper: Red tape
REGISTRATION DEBATE he professionalism of the vast majority of hairdressers and barbers means there is no compelling argument for the introduction of mandatory state registration of the industry anytime soon, the government has said.
and therefore no reason to overburden the industry with “unnecessary” red tape. Mr Harper argued the fact just 10% of hairdressers are signed up to the Hair Council’s voluntary state registration scheme suggested there was not a huge appetite within the industry for this form of regulation generally.
MPs debated compulsory state registration for hairdressers in January, the first time the issue has been discussed in the House of Commons since 2012, when a “Ten-Minute Rule Bill” proposed by hairdresser-turned-MP David Morris was narrowly defeated. The latest debate was proposed by Llanelli MP and shadow Wales minister Nia Griffith, who said: “The majority of responsible practitioners already come up to or surpass the necessary standards, but we need legislation to provide protection from the unscrupulous or incompetent.” However, in response, Mark Harper, a minister in the Department for Work and Pensions, argued there was no evidence “large numbers of people are damaged by incompetent hairdressers”
‘FINANCIAL INTEREST’ Richard Fuller, Conservative MP for Bedford, where NHF head office is located, suggested the additional income the council would get from mandatory registration meant it had “a clear and direct financial interest” in promoting the idea. However, council chief executive Sally Styles simply welcomed the fact the debate had been held at all: “We have succeeded in raising awareness of the need for the hair industry to be registered within government,” she said. Sally Styles also led a delegation to meet prime minister David Cameron at 10 Downing Street in January to press the case for mandatory registration. “The prime minister was extremely interested to hear about our work,” she said.
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salonfocus | Mar/Apr 2015
ANNUAL GENERAL MEETING Formal notice is hereby given that the 73rd Annual General Meeting of the members of the National Hairdressers’ Federation will be held at the Pullman Hotel, 100-110 Euston Road, London, NW1 2AJ on Sunday 17 May, 2015 commencing at 14.00 hours. It will be for the purpose of: receiving the minutes of the previous meeting; to consider the National Executive Council Report for 2014, Financial Report and Statement of Accounts for the year ended 31 December, 2014; to appoint auditors; the installation of the national president and officers; and to consider any other item of business of which due notice has been given. By order of the National Executive Council H Hall, Secretary General National Hairdressers’ Federation One Abbey Court, Fraser Road, Priory Business Park, Bedford, MK44 3WH Members are requested to submit items of business to tina. beaumont@nhf.info by Tuesday 7 April, 2015. Questions about the minutes of last year’s meeting or the accounts should be sent to simon.thomson@nhf.info at least seven days before the meeting.
News
TWITTER FOLLOWERS 6,187 TOP TWEETER: Jason O’Sullivan @jasonosullivan4
FACEBOOK LIKES 10,797 TOP LIKER: Mia Stokes, You Hair Design, Bournemouth
WHAT’S TRENDING
APPRENTICE CHARGE ‘TO GO AHEAD’
The government intends to push ahead with plans to make employers contribute to the cost of apprenticeship training as well as put them directly in charge of managing funding. In its response to a consultation held in the autumn, skills minister Nick Boles said giving employers control of apprenticeship funding was now “a non-negotiable part of the reforms”. But the government is to carry out a further consultation over the best way to get this new money to employers, as businesses rejected its ideas of new “apprenticeship credit” accounts or using existing PAYE systems. The government reiterated its commitment to requiring employers to make a cash contribution towards the cost of training when employer-developed “trailblazer” apprenticeships launch next year.
WILL YOU BE RECRUITING IN 2015? Alex Walker @alwalker We’re currently looking for an experienced stylist to join the @KaboodlesHair team as well as plan to develop our in-house education for our staff and grow the profile of our salon.
The idea is government will invest £2 for every £1 put in by employers. Businesses will in return be able to claim money back, meaning in some cases they may end up getting more back than they put in. However, the NHF has reservations about both changes, with Federation president Paul Curry saying: “For small and micro salons the time and administrative burden of all this could be intense. The risk is it will put salons off taking on apprentices altogether.” Apprenticeships will be in the spotlight this month during National Apprenticeship Week from 9-13 March.
INSURANCE
WARNING More than a quarter of beauty therapists are performing treatments without being insured, with a third admitting they have never had insurance, an industry survey has suggested. The survey of 821 full-time therapists by the British Association of Beauty Therapy and Cosmetology (Babtac) found 26% said they did not have adequate
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insurance to cover all of their treatments and practices. Of the rest, 59% were confident they were fully insured and 15% had no idea either way. Of those who definitely did not have insurance, two thirds (66%) said it was just a case of having let existing insurance lapse, but 34% admitted they had never bothered to get covered.
TURN TO PAGES 14-23 To find our training and apprenticeships ‘special’
Identity @identity09 Planning on recruiting senior creative director and another trainee by the end of 2015. Radiant Hair @RadiantHairC For those that are planning to recruit, the 75% Reality Check Chart is a handy recruitment tool.
WHAT COLOUR TRENDS ARE YOU EXPECTING TO SEE THIS YEAR? Boyd’s Hair Design @boydshairdesign We’re still loving the pastels especially pink and grey… long may they reign. Ang @ Sublime Wardle @Angharden Copper and blondes! Bring on the summer! SEE AUTUMN GLORY, PAGES 28-29, FOR MORE 2015 COLOUR TREND PREDICTIONS
JOIN IN THE CONVERSATION
@NHfederation
facebook.com/national hairdressersfederation
Mar/Apr 2015 | salonfocus
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Analysis: the national minimum wage
HAIRDRESSING’S
MINIMUM WAGE
MINIMUM EFFORT?
HAIRDRESSING IS THE WORST UK INDUSTRY AT PAYING APPRENTICES THEIR CORRECT MINIMUM WAGE, THE GOVERNMENT HAS SAID. SALONFOCUS CRUNCHES THE NUMBERS.
irst, the good news. Hairdressing has since 2012 got better at paying its apprentices their correct national minimum wage, with 58% now doing so compared with a shocking 31% three years ago.
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But that’s about the only positive message for the industry to come out of the government’s latest analysis of apprenticeship pay. In fact, the Department for Business, Innovation and Skills’ (BIS) Apprenticeship Pay Survey 2014, published in December last year, paints a desperately grim picture. The worst industry (by far) at paying the correct minimum wage, despite the improvement since 2012; the lowest basic pay for apprentices; the worst at offering written contracts or permanent employment; the least likely to offer overtime and the most likely not to pay anything for it; the strong suspicion that the illegal use of tips to top up minimum wage pay is widespread. SETTING AN EXAMPLE Of course, it is not necessarily NHF members who are at fault here. Hairdressing, as any salon owner knows only too well, is awash with small, labour intensive businesses where “under the radar” business practices can easily flourish. NHF
salonfocus | Mar/Apr 2015
members are, if anything, setting an example the rest of the industry is failing to follow. For example, the NHF has worked hard to encourage salon owners to use its standard apprentice contract. Against the backdrop of tougher fines and “naming and shaming” of businesses that fail to pay the wage, it has also emphasised through resources such as its National Minimum Wage Advice Guide how vitally important it is salons make sure apprentices are being paid correctly, whatever their age. As the BIS research has highlighted, one common reason for employers to get it wrong is because an apprentice’s pay has failed to catch up with the fact they’ve moved into an older age wage bracket. FINES AND ‘SHAMING’ There are two other wider points for salon owners to consider here. First, while the industry continues to have such a poor record, it has no leg to stand on when it comes to arguing the case for restraint in future minimum wage increases. Second, findings like this leave the industry wide open for enforcement campaigns by the government. Indeed, as salonfocus has highlighted in News, on the back of this research HM Revenue & Customs has said the industry can now expect a programme of targeted action against it.
‘HALL OF SHAME’ Hairdressing has the highest level of noncompliance Level 2 and Level 3 apprentices not being paid the correct minimum wage
42% HAIRDRESSING*
15% ALL INDUSTRIES *This compares to 69% noncompliance reported in 2012
£
Hairdressing apprentices get the lowest average basic hourly pay
£3.95
It has the lowest percentage of written contracts
72%
28
And the fewest employed on a permanent basis
59%
Its apprentices are the least likely to be offered overtime
40%
But the most likely not to be paid for it
51%
APPRENTICES LEAST LIKELY TO BE PAID THE CORRECT WAGE ARE...
29% 28% 28%
Those who receive tips Those with no written contract Those employed just for the training period rather than on a permanent contract
27%
Those in their second or later year of training
27%
Those asked to work unpaid overtime
24%
Those aged 16 – 18
23%
Those who have not worked for their employer before starting their apprenticeship
18%
Those with no set contracted weekly hours
...AND HAIRDRESSING HAS HIGH PERCENTAGE OF TIPPING
£ £ £ £ £ £ £ £75% £
UNPAID OVERTIME
£ £ £ £ £ £51% £ £ £
APPRENTICES AGED UNDER 19
46%
APPRENTICES WITH NO PERMANENT CONTRACT APPRENTICES WITH NO WRITTEN CONTRACT
41% 28%
APPRENTICES
AND TIPS Hairdressing apprentices are most likely to receive tips as part of their work, but salons may also be illegally ‘topping up’ pay with tips*
£
75% Hairdressing apprentices who receive tips as part of their work
£
45.1%
Hairdressing apprentices overall with non-compliant pay
£ £
£
35.4% Hairdressing apprentices with non-compliant pay when all earnings, including tips, are taken into account *Since October 2009 it has been illegal for employers to include tips received from customers within national minimum wage calculations.
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In the chair
Q&A
MICHELLE GRIFFIN
CV in a minute › NAME: Michelle Griffin › CURRENT ROLE: Owner and head of education at the Michelle Griffin Academy and salon in Barnt Green, Birmingham › BACKGROUND: A multi award-winning extensionist, Michelle is a passionate educator and trainer and an active member of the Fellowship for British Hairdressing. She is UK creative director for conditioning line Kevin Murphy Color Me and was a judge at the NHF’s Britain’s Best competition in November.
ATTITUDE & PASSION he opportunity to bring on young talent is one of best parts of being a hairdresser, argues extensionist Michelle Griffin. Salonfocus finds out more.
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Q A
What’s the business climate like in Birmingham?
It is still challenging but things have improved over the last year and the salon is becoming increasingly busy. In fact we’ve even been able to increase our prices!
Q A
What are your key challenges or opportunities this year?
Key challenges include the need for quick and easy salon systems, as well as ensuring manufacturers are meeting demand for the season’s hottest colour trends. One opportunity I will be looking at closely is the hair loss market. I would
salonfocus | Mar/Apr 2015
love nothing more than to help women and men who are suffering from hair loss, as I have seen the devastating effects it can have on individuals. So I will be focusing a lot of education on the importance of understanding hair loss and how to prevent this when using hair extensions. Salon-wise, I will be growing our education programmes by taking on a large number of trainees. This is an incredible part of my job; I love watching young talent thrive and grow.
Q A
What’s more important for a trainee: skill or attitude?
Attitude is very important when it comes to making your mark. You can teach somebody a skill but the hardest thing to change is their attitude – they either have passion for what they do or they don’t. If a trainee or apprentice has the right attitude, their hairdressing skills will develop with ease.
Photography: Derek Crooknell
Q
How do you think the new “trailblazer” apprentice standards will improve training within the industry?
A
They will really help salon owners when choosing the right apprentices, as structured, practical assessment will allow owners to fully understand their apprentices’ development and identify areas that need improving. Practical assessment will also make it easier for salon owners to identify whether or not an apprentice is ready for the salon floor. Apprentices can lose a lot of confidence if they are sent on to the salon floor too early.
Q A
What keeps you awake at night?!
Hair extensions, colour, how I can push the boundaries with my next collections, anything hairrelated! I am constantly thinking of new and exciting ideas.
BE CREATIVE...
THE COUNTDOWN HAS STARTED!
www.britainsbest.me
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APPRENTICESHIPS SPECIAL: THE ‘TRAILBLAZER’ PROCESS
BLAZING A TRAIL
NEW STANDARDS, NEW FUNDING, NEW TESTING – APPRENTICESHIPS ARE GOING TO LOOK VERY DIFFERENT IN TWO YEARS TIME. OVER TEN PAGES SALONFOCUS LOOKS AT HOW CHANGE IS COMING, STARTING WITH A RECAP OF WHERE WE ARE SO FAR.
ack in December the government gave the go-ahead to the industry’s new employer-developed “trailblazer” standards for apprentices within hairdressing, barbering and beauty.
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It’s been a long process to get to this point – back into early last year – and there is still a lot of detail still to be hammered out. Over the next ten pages, salonfocus is looking at some of the key talking points around the standards, and what salons can expect from here. We also had the privilege in January of visiting two London training providers, Alan d Hairdressing Education in Smithfield and the London Hairdressing Apprenticeship Academy in Borehamwood, where we discussed the future of training with providers, salon owners, awarding bodies and apprentices themselves. So, where has this process got to, and where do we go from here? The standards have been agreed, and are outlined in more detail overleaf. The NHF, sector skills body Habia, training providers and awarding bodies are now working closely to develop a new, practical assessment and testing framework. ‘TRADE’ TESTS The precise details of this have still be agreed. But what is known is that the
salonfocus | Mar/Apr 2015
assessment process will include a practical “trade” test, marked by independent examiners. This is designed to give salons the confidence an apprentice will have the required standards they need to thrive on the salon floor and begin to build their own column. Another change is that hairdressing and barbering apprenticeships will last for two years as a minimum, and one year for beauty. FUNDING CHANGES The standards are being accompanied by the introduction of a new funding model (see pages 18-19). Much as with testing and assessment, a lot of the detail on this is not yet clear. But salons will be given control of training cash and also required to make a contribution themselves to the cost of training up an apprentice. All this change, clearly, will take some time to bed in. Therefore it is expected none of this will go “live” until, at the earliest, the 2016 intake of apprentices.
APPRENTICESHIPS SPECIAL: THE ‘TRAILBLAZER’ PROCESS
10 PAGE
15
THE NEED FOR CHANGE
APPRENTICESHIP
Steve Burden/Post Photographic
Steve Burden/Post Photographic
THE VIEW FROM AN AWARDING BODY
SPECIAL
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HE CURRENT LEVEL 2 DOES NOT MAKE SOMEBODY JOB READY; A LEVEL 3 MAKES SOMEBODY JOB READY. THE DETAIL IS STILL BEING AGREED BUT THE MODEL WE’RE MOVING TO IS A ‘LEVEL 2 AND HALF’ OR A ‘SUPER’ LEVEL 2 WHERE YOU’VE GOT LEVEL 2 AND LEVEL 3 SKILLS COMBINED, WHICH WILL MAKE SOMEBODY A COMPETENT HAIRDRESSER AND BE ABLE TO COPE WITH ANY CLIENT WHO WALKS THROUGH THE DOOR. THERE WILL ALSO BE A FORMAL END TRADE TEST. AT THE MOMENT AN NVQ IS JUST ‘COMPETENT’; THERE’S NO REASON TO STRIVE FOR EXCELLENCE. THE TRADE TEST IS GOING TO BE GRADED A PASS OR A DISTINCTION, SO WE ARE PUSHING THOSE LEARNERS TO GO THE EXTRA MILE TO GET ‘EXCELLENT’. I THINK THAT IS A REALLY GREAT THING ABOUT THIS NEW STANDARD IN HAIRDRESSING AND BARBERING.
DIANE MITCHELL, PORTFOLIO MANAGER, HAIRDRESSING AND BARBERING, CITY & GUILDS Mar/Apr 2015 | salonfocus
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APPRENTICESHIPS SPECIAL: THE ‘TRAILBLAZER’ STANDARDS
STANDARDS DELIVERED THE GOVERNMENT HAS SIGNED OFF THE NEW TRAILBLAZER STANDARDS. SO WHAT DO THEY INCLUDE? SALONFOCUS GIVES YOU A TASTER.
he Level 2 trailblazer standard for hairdressing and barbering is intended to be the springboard from which a young stylist will eventually progress to become a senior hairdresser or barber.
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The standard outlines that, on completion of the qualification, a hairdressing apprentice should be able to “shampoo and condition hair, cut hair using a range of techniques, style and finish hair to create variety of looks, and colour and lighten hair for ladies and men”. Barbers, by comparison, will need to be able to “shampoo and condition hair, cut hair using barbering techniques, style and finish hair, cut facial hair into shape and provide shaving services for men”. Both hairdressers and barbers will need to be able to work with all hair types, ranging from straight to very curly and wiry. “They also need to be able to carry out consultations with clients, demonstrate the professionalism, values, behaviours, communication skills and safe working practices associated with their role and be able to work without supervision to a high level of precision, with exceptional client care skills,” the standard explains. CORE SKILLS All apprentices will be required to complete the core skills and knowledge module of the programme (Part 1) and will then choose an occupational option route for hairdressing or barbering (Part 2). The full standards are detailed documents, and contain more than can be reproduced here. But they are available to view in full on the NHF’s website, at nhf.info/nhf-guides. To give a flavour of what they include, when it comes to cutting hair, the standard states that an apprentice must be able to competently: “Use a range of cutting techniques including one length, fringe cutting, precision cutting techniques, scissor over comb, texturising, layering techniques, graduation and clipper work.” For styling and finishing, the minimum skills will be: “Use a range of styling tools and equipment to create a look including blow drying, hair-up styles, setting and dressing, finger drying, plaiting/braiding and twisting and using additional hair.”
salonfocus | Mar/Apr 2015
COLOUR AND LIGHTENING A hairdressing apprentice must be able to demonstrate competence in colour and lightening of hair, including: “Complete a range of woven highlights including T-section, half head, full head using temporary, semipermanent, quasi-permanent, permanent colour application, and basic colour change (depth and tone) techniques.” Barbering apprentices must be able to show they can: “Use a range of cutting techniques including club cutting, scissor over comb, clipper over comb, outlining, freehand, layering, graduating, texturising, and razor cutting. Create a range of looks and neckline shapes to include flat top, and uniform layer neckline shapes: square, tapered, skin fade, and full neck line.” Facial hair and shaving skills are also important. An apprentice must to able to: “Design and create full beard, partial beard and moustache, identify factors likely to influence the service, establish and follow the cutting guideline(s) to achieve the required effect, ensure the finished look is even, symmetrical and balanced in relation to the client’s facial contours.” The beauty professional standard is equally comprehensive, covering competence in areas such as waxing, hand and nail treatments, facials, eye and brow treatments, manicures, pedicures and make-up.
ONLINE EXTRA Go to nhf.info/nhf-guides to view the standards in full
APPRENTICESHIPS SPECIAL: THE ‘TRAILBLAZER’ STANDARDS
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Steve Burden/Post Photographic
THE VIEW FROM A SALON OWNER
THE NEED FOR CHANGE
T
HERE IS A VAST DIFFERENCE BETWEEN ONE COLLEGE AND ANOTHER; THERE IS A TERRIBLE LACK OF CONSISTENCY. YOU’VE GOT PEOPLE LIKE FRANCINE AND TREVOR LUKER AT THE LONDON HAIRDRESSING APPRENTICESHIP ACADEMY WHO’VE BEEN IN TRAINING FOR A LONG TIME AND HAVE A VERY PROFESSIONAL ATTITUDE TO WHAT IS GOING ON. BUT THERE IS ALSO A TERRIBLE SHORTAGE OF QUALITY TRAINING THAT IS NOT REACHING FURTHER EDUCATION. IN MY OPINION APPRENTICESHIPS SHOULD LAST FOR AT LEAST TWO YEARS. IN OUR SALON WE CALL PEOPLE WHO HAVE DONE TWO YEARS WITH US ‘YOUNG STYLISTS’; WE HAVE AS MANY AS THREE OR FOUR IN ONE YEAR. AND WE DO HAVE TO ‘CARRY’ THEM ON A WORKING WAGE NOT AN APPRENTICE WAGE. IT IS, AS AN EMPLOYER, ONEROUS. BUT WE RECOGNISE THEY DESERVE AN OPPORTUNITY TO BUILD UP A CLIENTELE. THEY NEED TO GAIN EXPERIENCE OF COMMUNICATION WITH THE GENERAL PUBLIC AND MATURE AS PEOPLE.
MARTIN GOLD, OWNER OF MG HAIRDRESSING, STANMORE, NORTH LONDON Mar/Apr 2015 | salonfocus
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APPRENTICESHIPS SPECIAL: THE FUNDING ‘NEW DEAL’
KNOWLEDGE
ECONOMY
HOW TRAINING WILL BE FUNDED IS ONE OF THE MOST CONTROVERSIAL AREAS OF THE REFORMS. A LOT OF DETAIL HAS YET TO BE AGREED, BUT THIS IS WHAT WE KNOW SO FAR.
salonfocus | Mar/Apr 2015
Band 2
Completion Payment
Small Business Incentive
16 – 18 Incentive
Incentives for employers
£3,000
MONEY BACK As yet we don’t know which band hairdressing, barbering and beauty will be in. But the
16-18 APPRENTICE IN SMALL BUSINESS AT FUNDING CAP
£1,500
CASH CONTRIBUTION As businesses rejected both these ideas in the consultation, the government now says it intends to carry out a further consultation on the best way forward. But the government is very much sticking to the broad principle that the money should be managed by employers. The NHF has expressed concern at the extra paperwork and administrative burden this could potentially put on salons. The government is also pushing ahead with its plan to require salons to make a cash contribution towards the training of an apprentice. The idea is government will invest £2 for every £1 put in by employers, with funding based around five “bands”.
ONLINE EXTRA The full consultation response can be found at gov.uk. Search first for “Consultations” and then “Apprenticeships”.
£900
But some things are clear. The government in January published its response to a consultation it had carried out on its planned changes. This confirmed ministers intend to press ahead with their plans to take control of apprenticeship funding away from training providers and colleges and give it instead direct to hairdressers and barbers. There is still a question-mark over how this money will be got to salons. The government had proposed two options: through existing PAYE and payroll software or via some form of special “apprenticeship credit” account.
£500
to know the detail of funding changes to apprenticeships before we all go to the polls in May.
government has emphasised any financial blow will be softened by a range of incentives, such as salons being able to claim money back for taking on younger apprentices, a bonus for getting them successfully through, and extra cash just for being a small business. As a result, as our graphic shows, a small salon in funding Band 2 taking on a young apprentice could even end up getting back £400 more than they put in. Skills minister Nick Boles has told MPs the government is committed to having the new funding mechanism in place during 2016. The big unknown, of course, is what happens if we have a change of government following May’s General Election, and whether in that scenario even this deadline becomes optimistic.
£500
in an election year. That W e’re means salons are unlikely
Employer Contribution
Government Funding
Employer money
Government money
APPRENTICESHIPS SPECIAL: THE FUNDING ‘NEW DEAL’
19
Steve Burden/Post Photographic
THE VIEW FROM A SALON OWNER
THE NEED FOR CHANGE
T
HE QUESTION IS BEING ASKED TO MAKE A CONTRIBUTION TO THE FUNDING. IF AS AN EMPLOYER YOU’VE GOT TO CONTRIBUTE, AND THAT PERSON COMES ON TO THE FLOOR AND MAKES YOU MONEY, THAT’S FINE; SOME SALONS HAVE GOT THE MONEY UP FRONT TO DO THAT. BUT A LOT OF SALONS ARE BEING UNDERCUT BY CHEAP SALONS WHERE THE PEOPLE AREN’T TRAINED AS WELL, AND SO THEY DON’T PERHAPS HAVE THE MONEY. GENERALLY, IN MY EXPERIENCE OF THE COLLEGES IN MY AREA I WOULD NEVER SEND ANYONE ANYWHERE OTHER THAN TO ALAN D, WHICH IS WHERE I TRAINED. WHEN YOU DO GET THEM FROM OTHER COLLEGES, THEY OFTEN DON’T UNDERSTAND THAT WHEN YOU GET INTO SALONS YOU DO HAVE TO WORK LONG HOURS, YOU HAVE TO REMEMBER TO CLEAN UP THE SECTION AND SO ON. I GOT TAUGHT ALL OF THAT.
SOPHIE MORRIS, OWNER, ANDREW JOHN HAIRDRESSING, BILLERICAY, AND IMAGES HAIR AND BEAUTY, HAROLD WOOD, ESSEX Mar/Apr 2015 | salonfocus
20
APPRENTICESHIPS SPECIAL: THE VIEW FROM TRAINING PROVIDERS
MODEL
ALONG WITH SALON OWNERS, TRAINING PROVIDERS WILL BE AT THE SHARP END OF MAKING THE TRAILBLAZER REFORMS WORK. SALONFOCUS SPOKE TO TWO TO GET THEIR VIEW.
etween them Edward Hemmings and Trevor Luker have seen generations of keen young apprentices pass through their doors and go on to great things; they know just how powerful inspiring training can be.
B
Indeed, successful Essex salon owner Sophie Morris, who joined salonfocus at Alan d Hairdressing Education in Smithfield, central London, was living proof of the opportunities an apprenticeship in hairdressing can offer – she was one of Edward’s former apprentices. The trailblazer apprenticeship reforms are, in many respects, a once-in-ageneration opportunity for salons to put in place a training and assessment model that actually works for the industry, that turns out creative young people who can hit the salon floor running. But once all the talking has finished it is salon owners and training providers
salonfocus | Mar/Apr 2015
who will have to work together to make it happen. So what did Edward, director of education at Alan D, and Trevor, co-founder of the London Hairdressing Apprenticeship Academy in Borehamwood, north London, think about the process so far? STANDARDS ‘SPRINGBOARD’ Both training providers are NHF affiliate members and both are members of the NHF’s trailblazer hair working group, and so have been closely involved in the discussions to get us to this point. “I don’t think the system itself needed fixing; I think the NVQ system is brilliant. I think perhaps the way it was policed and taught needed changing. We’ve used the NVQ as a wonderful guide to the minimum standard we would expect someone to be, not the top standard. Too many colleges think the opposite,” explains Edward. “The new trailblazer will be a success if it helps people realise an NVQ is not a minimum standard, it’s a springboard to a proper high standard, to getting you ‘work ready’,” he adds.
Steve Burden/Post Photographic
BRAND NEW
SALON SUPPORT An apprentice offered extensive support and additional in-salon training will inevitably have a different “journey” to someone who is just seen as cheap extra pair of hands, points out Trevor. To that end, reform is as much about salons raising their game as it is about colleges. Money, inevitably, is also going to be an important issue, whether it’s salons suddenly being required to make an employer contribution or, as the government has indicated it wants to see, the apprentice national minimum being scrapped and merged with the current (and higher) under age 18 rate. “The government is saying quite clearly ‘we recognise there should be a subsidy for an employer that takes on a 16-18 year-old apprentice’. On the one hand they are going to give that incentive to an employer. On the other they want the employer to contribute £1 for every £2 of government funding,” points out Trevor. “Employers are already contributing significantly towards the cost of educating young 16-18 apprentices. The
21
Steve Burden/Post Photographic
APPRENTICESHIPS SPECIAL: THE VIEW FROM TRAINING PROVIDERS
W
E’VE USED THE NVQ AS A WONDERFUL GUIDE TO THE MINIMUM STANDARD WE WOULD EXPECT SOMEONE TO BE, NOT THE TOP STANDARD. TOO MANY COLLEGES THINK THE OPPOSITE. THE NEW TRAILBLAZER WILL BE A SUCCESS IF IT HELPS PEOPLE REALISE AN NVQ IS NOT A MINIMUM STANDARD, IT’S A SPRINGBOARD TO A PROPER HIGH STANDARD, TO GETTING YOU ‘WORK READY’.
EDWARD HEMMINGS, DIRECTOR OF EDUCATION, ALAN D HAIRDRESSING EDUCATION
MINIMUM WAGE “If you’re exchanging great training for a great young person who’s ready to get on that floor in 18 months to two years, that little investment of an extra 30p an hour, whatever it is, is no investment at all,” argues Edward, on the prospect of a higher minimum wage for apprentices. “The problem is you’ve got a bit of a chicken and egg scenario. You’ve got salons opening up, undercutting everyone else, £10 haircuts, £5 in barbering, £3, £2 even; how on earth can you afford to employ people properly if that’s what you’re doing?” he adds. ONLINE EXTRA Find out more about NHF affiliates at nhf.info/become-anaffiliate/
Steve Burden/Post Photographic
incentives in themselves might cover the cost of their training more than the initial outlay costs, but it comes down to a matter of the economics of the day. Employers are saying, ‘if I’ve got to pay it on the one hand and get it back on the other, but over a two-year period in dribs and drabs, what’s the purpose?’,” he says.
E
MPLOYERS ARE ALREADY CONTRIBUTING SIGNIFICANTLY TOWARDS THE COST OF EDUCATING YOUNG 16-18 APPRENTICES. THE [NEW FUNDING] INCENTIVES IN THEMSELVES MIGHT COVER THE COST OF THEIR TRAINING MORE THAN THE INITIAL OUTLAY COSTS, BUT IT COMES DOWN TO A MATTER OF THE ECONOMICS OF THE DAY. EMPLOYERS ARE SAYING, ‘IF I’VE GOT TO PAY IT ON THE ONE HAND AND GET IT BACK ON THE OTHER, BUT OVER A TWO-YEAR PERIOD IN DRIBS AND DRABS, WHAT’S THE PURPOSE?’.
TREVOR LUKER, CO-FOUNDER, LONDON HAIRDRESSING APPRENTICESHIP ACADEMY Mar/Apr 2015 | salonfocus
22
APPRENTICESHIPS SPECIAL: SCOTLAND AND WALES
DEVOLUTION DEBATES THE TRAILBLAZER REFORMS ARE CHANGING APPRENTICESHIPS – IN ENGLAND. BUT RADICAL CHANGE IS ON THE HORIZON IN WALES AND SCOTLAND TOO. SALONFOCUS REPORTS.
ust like their counterparts in England, training providers and salons in Wales and Scotland are wrestling with change when it comes to apprenticeships.
J
In Wales the Welsh Government is proposing a radical solution for raising the standard and quality of vocational training: scrapping Level 2 apprenticeships completely. In a consultation document published in January, it mooted the idea that Level 2 apprenticeships be merged with Level 3 apprenticeships, so all apprenticeships would run up to Level 3. This, the Welsh Government has argued, would bring Wales more into line with most other northern European countries, where apprenticeships generally are Level 3 qualifications and last between two and five years. One key question the consultation is looking to get view on is how Level 2 training outside an apprenticeship model might work. In a scenario where training up to Level 3 is not required, an as-yet unspecified “alternative programme” would be developed, with the Welsh Government again keen to hear views on this. It has also proposed funding should be targeted towards more “occupationally specific” apprenticeships rather than used for generalised vocational or workplace-based training and that the availability of government-funded apprenticeships should be limited to employees in new jobs or roles.
salonfocus | Mar/Apr 2015
The consultation runs until 24 April and can be found at wales.gov.uk. Click on the “consultation” tab and then scroll down to the section “Education and skills”. FUNDING CUT In Scotland, Skills Development Scotland has put forward a plan that would significantly reduce funding for its Modern Apprenticeships programme over the next five years, cutting funding for SVQ Level 2 qualifications by 14% (or around £350 per trainee) and SVQ Level 3s by a massive 54%, or the equivalent of £3,300 per trainee. Similar to what is happening in England, the idea is employers will fill at least some of this funding gap, with the expectation being that businesses will be required to make a contribution towards the cost of training above and beyond any contribution they already make. The Scottish Hairdressing Forum has warned the consensus among employers and training providers is that there is little, if any, appetite for a change of this nature, arguing it would simply damage the recruitment of apprentices “and jeopardise the future of Modern Apprenticeships in Scotland”. The forum has urged employers to voice concerns direct to Skills Development Scotland but is also working to develop a cross-industry response to the proposed changes, encompassing the NHF, the Scottish Training Federation, SkillsActive and Habia.
HOW THE NHF IS LEADING CHANGE Working with sector skills body Habia, the NHF has led the trailblazer negotiation process with the government and has been proactive in speaking up for the industry on apprentice reform within Whitehall. At a more practical level, NHF membership gives salons access to a range of standard employee contracts, including apprenticeship contracts and deeds. These can be purchased by members through the NHF’s online shop, which can be found at: nhf.info/contracts
Steve Burden/Post Photographic
23
D
EFINITELY AS AN APPRENTICE IT’D BE GOOD TO KNOW MORE ABOUT THINGS LIKE FINANCE AND JUST LEARNING MORE ABOUT SALON LIFE REALLY. I HAVE GOT THE BASICS BUT I KNOW THERE’S MUCH MORE TO IT.
RAEGAN MCINEARNEY, 21, LEVEL 3 APPRENTICE AT ALAN D HAIRDRESSING EDUCATION
Steve Burden/Post Photographic
THE VIEW FROM APPRENTICES
APPRENTICESHIPS SPECIAL: SCOTLAND AND WALES
F
OR HAIRDRESSING YOU DON’T NEED THE SORT OF GRADES REQUIRED TO CARRY ON WITH SIXTH FORM BUT YOU DO NEED TO RECOGNISE THAT THIS PROFESSION IS NOT EASY. THE THEORY BEHIND IT ISN’T EASY AT ALL. I DIDN’T KNOW I WANTED TO DO HAIRDRESSING UNTIL I STARTED A SATURDAY JOB, JUST FOR EXTRA MONEY. BUT SOON I STARTED TO REALLY LIKE IT AND WAS TALKING TO MY BOSS AND SHE SAID IT WAS A GOOD CAREER, AS WELL AS BEING GREAT SOCIALLY. EVEN IF PEOPLE AT MY SCHOOL DID SAY HAIRDRESSING WAS AN EASY OPTION, IT DEFINITELY IS NOT, IT’S HIGHLY SKILLED AND I’M GLAD I WENT INTO IT AS I KNOW IT’S WHAT I WANT TO DO.
ELEANOR WADE, 17, LEVEL 2 APPRENTICE AT THE LONDON HAIRDRESSING APPRENTICESHIP ACADEMY Mar/Apr 2015 | salonfocus
24
Advice
HOW FIT FOR WORK WILL WORK
FIGHTING FIT SALONS CAN NOW USE A NEW PHONE AND ONLINE SERVICE TO HELP GET SICK STAFF BACK TO WORK. SALONFOCUS INVESTIGATES.
alons are peopleintensive businesses so when a stylist calls in sick it’s inevitably going to be annoying. Most of the time, for the occasional day off here or there, it’s a case of muddling through and covering someone’s absence as best you can.
S
EMPLOYEE GOES OFF SICK
EMPLOYEE CAN SELF-CERTIFY (IN OTHER WORDS BE OFF WITHOUT HAVING TO GO AND SEE THEIR GP) FOR SEVEN DAYS. AFTER THIS, IF STILL UNABLE TO WORK, THEY WILL NEED TO BE SIGNED OFF BY THEIR GP.
AFTER FOUR WEEKS, IF STILL OFF, THEIR GP OR YOU WILL BE ABLE TO REFER THEM TO FIT FOR WORK. BUT AS FIT FOR WORK IS VOLUNTARY THE EMPLOYEE MUST AGREE TO THIS IN ADVANCE.
ONCE REFERRED, THE EMPLOYEE WILL BE CONTACTED AND ASSESSED BY FIT FOR WORK, NORMALLY OVER THE PHONE.
IF NEED BE, THIS MAY BE FOLLOWED UP BY A PHYSICAL ASSESSMENT BY A SPECIALIST “OCCUPATIONAL HEALTH” NURSE OR DOCTOR.
salonfocus | Mar/Apr 2015
But when someone is off for a longer period it can get costly and difficult to manage. Up to now, for most small salons managing absence has been a question of working directly with their ill employee, the employee seeing his or her GP and, if need be, waiting to be sent for more specialist support through the NHS, for example physiotherapy, referral to a dermatologist for a skin complaint or counselling. But since January a new, free service has been available to businesses, called Fit for Work. ADVICE AND FACTSHEETS At the moment it is fairly basic in that it is simply offering employers and
A “RETURN TO WORK” PLAN WILL BE CREATED, AGREED BETWEEN THE SERVICE, GP, YOU AND THE EMPLOYEE. THIS WILL OUTLINE THINGS SUCH AS A TIMEFRAME FOR COMING BACK, ADJUSTMENTS YOU MAY NEED TO MAKE TO THE SALON OR HOW THEY WORK AND ANY SUPPORT, TREATMENT OR FOLLOW UP THEY’LL NEED.
employees access to a telephone advice helpline, online chat and a range of factsheets on topics such as common health conditions and best practice around health and work. But during the course of this year the plan is it will start to work with GPs and employers to offer employees who have been off for four weeks or more access to voluntary specialist health assessments. From these “return to work” plans will be created designed to get an employee on their feet and back to work more quickly. HOW TO GET IN TOUCH WITH FIT FOR WORK The service currently comprises a phone advice line (0800 032 6235 for English or 0800 032 6233 for Welsh) as well as offering an online chat facility and the ability to accept email enquiries. The site can be found at fitforwork. org/ in England and Wales or fitforworkscotland.scot in Scotland. However, the government has also published detailed guidance for employers, which can be found at gov. uk/government/publications/fit-forwork-guidance-for-employers
IF THIS REQUIRES YOU TO SPEND MONEY, SUCH AS FOR EQUIPMENT, CARE OR TREATMENT, THE GOVERNMENT HAS PUT IN PLACE A TAX BREAK SO THE FIRST £500 WILL BE TAX EXEMPT AND NOT TAXED AS A “BENEFIT IN KIND”.
26
Advice: pensions
S T A G E
M A N A G E D
NOW’S THE TIME FOR HAIRDRESSERS AND BARBERS TO BE CHECKING WHEN THEIR ‘STAGING DATE’ FOR PENSIONS AUTO-ENROLMENT WILL BE.
ensions auto-enrolment is the change to UK pensions whereby all businesses, however small, will eventually have to enrol their employees into a company pension, and make contributions into it.
P
This process will kick off in earnest for the UK’s smallest businesses (those employing fewer than 30 staff) from this coming November, although for some it could be as soon as this summer. Others will have until 2017. To that end, The Pensions Regulator is urging small and micro employers
salonfocus | Mar/Apr 2015
as a matter of priority to check when their staging date – or the date they need to go “live” – will be, as it can take six months or more of quite intensive planning and preparation to get a pension scheme up and running. Charles Counsell, the regulator’s executive director of automatic enrolment, tells salonfocus: “In the coming months tens of thousands of small and medium sized enterprises will need to act… a last-minute rush could lead to mistakes and risks non-compliance.” Indeed, as we’ve highlighted in News, the regulator in January began sending letters out to salons warning them their staging date is approaching,
when it will be and that, if they haven’t already, that they need now to be thinking seriously about how they are going to meet that deadline. NHF SCHEME The NHF last autumn launched a pension scheme specifically for salon owners, with NHF members guaranteed entry. The scheme offers free software, a dedicated auto-enrolment helpline and access to financial advice from pension provider Towergate Financial. THINGS YOU NEED TO HAVE DONE BEFORE YOUR STAGING DATE • Found out when your staging date is • Assessed your employees for eligibility to be auto-enrolled (as not all may need to be) • Assessed the age and earnings of each member of staff • Researched what your, and their, minimum contribution will need to be
Advice: pensions
27
STAGING DATES – WHAT YOU NEED TO KNOW Staging dates are based on the number of employees on your payroll. If your business has fewer than 30 employees, your staging date will also be based on the final two characters in your employer PAYE reference number. Salons need to be aware it can take six months at least to put in place all you need to be ready for your staging date.
WORK OUT YOUR STAGING DATE
• Communicated with your employees about auto-enrolment and what it will mean for them. Employees can decide to opt out – but you must take care not to encourage or put them under pressure to do so • Set up appropriate business or payroll software to alert you to any autoenrolment triggers (such as employee age or salary level) • Chosen a pension scheme and pension provider FIND OUT MORE The NHF is during 2015 running events and webinars on Understanding Auto-Enrolment with its pension provider, Towergate Financial. Full details of these can be found on Events, page 33, or online at nhfpensions.co.uk/ or nhf.info ONLINE EXTRA Details of the NHF’s pension can be found at nhfpensions.co.uk/
Facts and figures
£50,000 Maximum penalty for an organisation failing to pay pension contributions due
4 million Number of UK employees now auto-enrolled into pensions
£195 plus VAT Cost, until 31 August 2015, of joining the NHF’s pension scheme. There will also be an annual ‘governance’ fee of £65 plus VAT once your scheme has gone live.
Number of employees Staging date 54 – 57 1 March 2015 53 – 50 1 April 2015 40 – 49 1 August 2015 30 – 39 1 October 2015 Fewer than 30 1 November 2015 1 April 2017* *Members should note there are some employers with fewer than 30 employees whose staging dates will be earlier, depending on their employer PAYE number.
The important thing as an employer is to have checked your PAYE reference number. The easiest way to do this is to put your PAYE number into the online tool created by The Pensions Regulator. This can be found at thepensionsregulator.gov.uk/ employers/tools/staging-date.aspx In certain circumstances it is possible for a business to request to bring forward or delay its staging date. But it will make sense to discuss your eligibility to do this beforehand with the regulator, which can be called on 0845 600 1011, your accountant if you have one or your pension provider.
Mar/Apr 2015 | salonfocus
28
Advice
PEOPLE
POWER
AS A SALON OWNER, YOUR BIGGEST STAFF COST WILL PROBABLY BE WAGES, BUT A STUDY HAS BROKEN DOWN THE OTHER ‘HIDDEN’ COSTS BUSINESSES FACE WHEN TAKING ON AN EMPLOYEE. ANDREW DON REPORTS.
ny salon owner will know their staff are their biggest expense as well as, of course, their greatest asset as a business. Now new research has broken down just how much it costs a small business to take on an extra pair of hands – and the results might surprise you.
A
Late last year the economic forecasting organisation the Centre for Economics and Business Research (CEBR) got out its calculator to work out what it reckoned it costs the average small business to take on a new employee.
salonfocus | Mar/Apr 2015
Its conclusions, published in association with the Federation of Small Businesses, were startling. Overall, the average small business in 2013 spent nearly £190,000 (£189,600) on employment costs. Unsurprisingly, the vast bulk of this figure was employee wages, the CEBR concluded. But more surprising was how much of it was not wages. In fact, more than 15% of employment costs were “non-wage” costs, it calculated. HIDDEN COSTS Taxes such as National Insurance Contributions and income tax were the main extra burden, accounting for 12.7% of this hidden, non-wage bill.
But other costs also came into play. The indirect costs associated with maternity pay (£30 or 0.1% of the total cost, according to the CEBR), redundancy (£90 or 0.3%), paying into a pension (£550 or 1.9%) and having to replace someone who had left or was off sick (£1,800 or 6.3%) could all add to the overall annual “cost” of an employee. Then there were the administration costs associated with running a payroll system (or paying someone to do it for you) – on average £1,200 a year (or 4.1%), the CEBR estimated. General paperwork added another £2,300 (or 8.1% of the total). The research also looked at the average cost to a small business of
Advice
29
WHAT IT MEANS FOR SALONS Marc Westerman
MARC IS FOUNDER OF YORKSHIRE HAIRDRESSING CHAIN THE WESTROW GROUP.
his research was about small businesses generally, not just salons. So salonfocus asked salon chain owner Marc Westerman to carry out his own analysis of how these figures might break down in reality for a salon.
T
Wage costs: Annual gross wages £104,000
NON-WAGE COSTS
taking on a new employee and where, it argued, non-wage costs tend to be an even higher proportion of the total. For a business of just one owner and one employee, this cost was £35,500 per new person hired. For a slightly larger business, employing between 20 and 49 people, the cost was lower, but still around £25,100 per worker, it calculated. The conclusion? For any salon thinking about adding to its headcount, it is important to recognise the payslip will be just one part of the extra cost you will be taking on. Or, as CEBR director Charles Davis puts it: “Hiring one’s first employee costs a lot more than just paying their wages.”
Mark applied the CEBR’s calculations to an “average” salon comprising an owner, four full-time stylists, one part-time stylist, two part-time receptionists and two apprentices. Non-wage costs, he concluded, added some 7% to our imaginary salon’s employee bill (see table). This suggests that, for salons at least, the non-wage bill, while not to be sniffed at, may not be quite as bad as for other small businesses. But members should bear in mind these calculations are based on a salon that is not yet autoenrolling staff into a pension. Employer pension contributions would therefore increase this figure still further. It is also important as an NHF member to check you are not paying twice for tribunal defence and employer’s liability insurance, as these may be covered within your salon insurance policy or NHF membership. LEGAL OBLIGATIONS For any salon owner trying to take costs out of this area, the challenge is most of these outgoings are either wrapped up within the day-to-day running of the salon (such as general administration) or are legal obligations.
Employers NIC
£5,500
Tribunal defence and employer’s liability insurance
£494
Employee replacement costs
£244
Redundancy costs Administration, payroll processing, health and safety, red tape Sick leave, parental leave, maternity and antenatal leave
Total nonwage costs
£40
£1,200
£217
£7,695
You could, Marc argues, try to cut costs by making stylists push through the same number of clients in fewer hours or perhaps by having a junior on reception. But, given the importance of both these areas to a salon’s reputation and the client experience, the question is whether this would be a false economy.
Mar/Apr 2015 | salonfocus
30
Hair trends
AUTUMN GLORY
WHILE MANY TRENDS MIGHT SUGGEST A MORE EXTRAVAGANT AUTUMN WILL BE ALL ABOUT VIBRANT COLOURS SHADE, WORK WITH AND FRESH, NATURAL TONES, WRITES ANDREW DON. YOUR CLIENT TO UNDERSTAND IF THIS MORE MULTI-TONES f autumn 2014 was all IS RIGHT FOR THEM
I
“hyper naturals” and super glossy autumnal tones, this year we can expect the cleaner, fresher tones we’re already seeing this spring to continue into the summer – and right through to the autumn.
That’s the verdict of Debbie G, creative director of Debbie G Training, who came together with Tom Smith, colour director at London salon Billie Currie, in January to predict for salonfocus what will be “hot” in ladies colour this spring. They were joined by Wella Colour Club and Marc Antoni artistic team member Dan Spiller and 2014’s British Hairdresser of the Year Mark Leeson, of Hair, Body & Mind in Nottingham, in examining the trends that will be keeping salons busy later on this year. While spring/summer tones will be fresher and cleaner, we can also expect a crisper finish to carry through into the autumn, they argue. A more solid base will give a “pure” feeling. High shines will be another essential element, with a pure, shinier finish to hair and a simplified, toned-down feeling to the colours. “This means colours will get stronger and more intense. Blondes will go more solid while brunettes will go darker and stay with more natural or cooler tones,” predict Debbie and Tom. More solid, graphic shapes are always popular as the seasons turn darker and this year they will be complemented by equally strong colours, they suggest. Sheer glosses are also likely to be popular to create an overall more blended feeling. “This helps to create a smoother, more luxurious feel whilst maintaining the flattering tonal variation throughout the hair,” say Debbie and Tom.
salonfocus | Mar/Apr 2015
Expect to see warm multi-tones coming through the mid lengths, from rich mocha through to soft maple tones, predicts Dan Spiller. With the introduction of the new Magma and Freelights ranges from Wella Blondor, Dan says the opportunity now exists for stylists to see much more clearly where to apply multi-tone product to give precise results, and so achieve a better finish. “Not having to use foils really opens the opportunity for creativity with colourists and their clients,” he says. “But it’s important to understand that every salon client is different. While many trends might suggest a more extravagant shade, work with your client to understand if this is right for them. You can still work to a trend look but tone it down if necessary,” he cautions. ANYTHING GOES Mark Leeson predicts the biggest trend this autumn will be “the lack of trends”. If we see anything it’s likely to be a move back to the “anything goes” styles of the 1980s. “I think we’ll see more vibrant colours, the bob shape will be everywhere and as far as rules go – forget it,” he forecasts. This autumn's look will be all about the personalised placement of the colour, as well as bespoke colour to enhance one area or section, he believes. “It’s still very much a priority to maintain the condition of the hair, so I think the focus for product houses will be very much geared towards conditioning colour that lasts and maintains vibrancy,” he adds.
TWEET TWEET Tell us what you think will be hot this autumn @NHfederation
INTENSE COLOURS: THE LATEST COLLECTION FROM DEBBIE G
Hair trends
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IF NOTHING ELSE READ THIS… • Autumn tones will be clean and fresh with a crisp finish • We’ll see strong, vibrant colours and lots of high shines and sheer glosses • The 1980s will be popular again, as will be the bob
Mar/Apr 2015 | salonfocus
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Q&A
YOUR QUESTIONS SALON OWNERS WERE WORRIED DURING JANUARY ABOUT A NIGHTCLUB BRAWL, THE MINIMUM WAGE AND A VALUED STYLIST BEING OFF SICK. HERE’S WHAT THE NHF ADVISED.
Q
One of my longest-serving stylists was involved in a violent fight with her ex-boyfriend over the weekend. They were seen being escorted from a nightclub by one of our other stylists, who said the fight continued physically on the street. The police were called, but she was not arrested. She has turned up to work today, with a few scratches on her face – which she says were caused by her cat. I do not want her to work in the salon as she obviously has a violent temper. What can I do?
A
You have stated the altercation took place inside and around a nightclub, so this did not happen on work premises, or during work time. In addition, it was with an exboyfriend, who we presume is also unconnected with her work for you. Therefore, as this does not appear to be a work-related event and did not directly affect your business, it would not be connected to work and you would not be able to take any formal disciplinary action against the employee for this. However, should you be concerned, you may want to have an informal chat with her just to make sure everything is OK in her personal life. You also mention she is one of your longest-standing employees.
salonfocus | Mar/Apr 2015
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 MondayFriday.
If there have been no previous issues of violence or aggression during her working time in the salon, it could also be considered unreasonable to take account of anything occurring outside of work.
Q
Is there a reference period for calculating how much a worker should be paid when calculating the national minimum wage?
A
The National Minimum Wage Regulations 1999 state a worker does not have to be paid the minimum wage for each hour worked but will need to be paid the minimum wage on average for the time worked in the “pay reference period” for that worker. The pay reference period is normally the period of time over which a worker’s wages are calculated. For example, a worker paid daily will have a reference period of one day, whereas a worker paid weekly will usually have a pay reference period of a week. For the purposes of the minimum wage, a pay reference period cannot be longer than one calendar month. So employers who wish to pay their workers at intervals of more than one month apart (for example quarterly) will still need to make sure workers receive the minimum wage over a one month reference period.
Q
We have a long-serving stylist who has a serious medical condition and is not likely to return to work for some time. The salon’s policy is to pay statutory sick pay (SSP) only. However, given his seniority in the business and the nature of his condition, on this occasion we would like to top up SSP to full pay for a set period of time. Can we do this?
A
Yes, it is for an organisation to determine what payments (if any) should be made in addition to SSP payments for sick employees. However, caution should be exercised in doing so. If you wish to do so on this occasion, it is advisable you determine the reasons for paying occupational sick pay (such as this employee’s seniority and the nature of his condition) and the duration of time you are proposing to make this payment for – and make it very clear this is the basis on which the payments are made. This is because any payments made beyond SSP will set a precedent for the salon, which would have to be applied consistently in the future, should the same circumstances arise.
Got a question you want answered? Call 01234 831965 or email enquiries@nhf.info
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BOOKINGS Anyone interested in attending NHF events should contact the NHF team on 01234 831965 or events@nhf. info. Bookings can be made online at nhf.info/events
Events
EVENTS THE BUSINESS 15/16
MARCH Blackpool NHF Competition, Winter Gardens, Blackpool. Contact Eileen Clough on 01253 406834
27
APRIL Central England College Competition, Birmingham Contact Colin Gardner on 01213 783321
17
MAY NHF Annual General Meeting, Pullman Hotel, Euston, London
18
MAY Central England Hairdresser of the Year, Birmingham Contact Colin Gardner on 01213 783321
14
JUNE Welsh Open Hairdressing Championships, Cardiff Contact Mark Coray on 02920 481481 or nhfhair@aol.com
3, 10 & 17
JUNE London Region Incredibles Download your application form at nhf.info/incredibles
BUSINESS EVENTS HOW TO MAKE YOUR SALON MORE PROFITABLE 23 March – St Austell 11 May – Durham 01 June – Leicester 15 June – Southampton HOW TO MAKE YOUR SALON MORE PROFITABLE (FOLLOW-ON) 6 July – Wolverhampton HOW TO DELIVER A GREAT CLIENT EXPERIENCE 20 April – Sheffield USING REPORTS TO MANAGE YOUR TEAM 20 April – Cambridge TRICHOLOGY STARTER SESSION 02 March – Newcastle 16 March – Stirling 13 April – Guildford 18 May – Coventry 06 July – Taunton
salonfocus | Mar/Apr 2015
OF HAIRDRESSING THERE’S A LOT MORE TO BEING ‘PROFITABLE’ THAN JUST BEING GOOD AT HAIRDRESSING, AS OUR EVENTS WILL SHOW.
When Richard Wallace and Chris Amos (right) were running their “how to make your salon more profitable” NHF events last year they noticed a worrying trend. “We found many salons were not paying the minimum wage correctly – something now potentially putting them at real risk – and, among those chair renting, some were still not paying or collecting VAT as they now should be,” explains Richard, who is both a successful salon owner and co-runs training consultancy Winning Ways. With HM Revenue & Customs cracking down hard on small businesses, especially around tax, VAT and the minimum wage, salons need to be seeing “profitability” as not just maximising the money coming in, but getting right what needs to be paid out, he argues. “It can be developing systems so you know you are paying people the right wage at the right time. It’s also, as pensions auto-enrolment comes into the frame, making allowances for things such as pension contributions,” he says. Richard and Chris are also repeating their “how to deliver a great client
experience” courses. “It’s everything from the initial phone call to the how clients are greeted at the desk, how the stylist talks to them, what they are offered in terms of service, simply what they experience,” explains Richard. This year’s three “How to…” courses are already proving popular with members. So look out for when they are coming to your area. Tickets cost £99 for members and £200 for nonmembers and can be booked online through nhf.info/events or by emailing events@nhf.info BOOKINGS Anyone interested in attending NHF events should contact the NHF team on 01234 831965 or events@nhf. info. Bookings can be made online at nhf.info/events
PENSION EVENTS UNDERSTANDING AUTO-ENROLMENT 09 March – Peterborough 16 March – London 13 April – Cardiff 11 May – Nottingham
08 June – Glasgow 06 July – Manchester 13 July – York
Anyone interested in attending any of these pensions events can either book online at nhf. info or through the NHF’s pensions website, nhfpensions.co.uk, or by calling 01234 831965.
PENSION WEBINAR
The webinar will be able to be viewed online at nhf.info/events
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