£3.50 Sept/Oct 2014
The essential magazine for salon owners
Cutting EDGE How barbering is causing a high street revolution
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New apprenticeship money: coming to a salon near you
18
‘Britain’s Best boosted my business by a third’
32
All you need to know about the NHF’s pension
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Welcome
PRESIDENT’S L
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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 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. © 2014 The National Hairdressers’ Federation.
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long with having talent and passion, hairdressers need to be good listeners if they’re going to be successful. And that’s what we’ve done with this new-look edition of salonfocus : listened.
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You told us over the summer you love salonfocus but, as busy salon owners, time is precious. So we’ve come up with a design that still gives you the best business advice in the industry, but with key points in ABOUT PAUL Paul Curry is the president a quick and easy format. I hope you like it. of the NHF and has owned Studio 12 in York for the Salonfocus may look different but its values past 25 years. He is also have not changed, particularly its commitment a member of the NHF’s artistic committee, which is to keeping salon owners up to date on the most responsible for organising Britain’s Best and the NHF’s important issues facing our businesses. Photographic Stylist of the Year competition And there’s a lot going on right now we need to be aware of: the minimum wage going up next month, major reforms to apprenticeship funding, the launch of the NHF’s new pension, to name but a few. You’ll find it all here. Finally, please do take a look at our Britain’s Best coverage on pages 17–20. This year’s competition has a real buzz about it. But there’s just two months to get your entries in, so don’t delay! I look forward to seeing you all at the Heritage Motor Centre in Gaydon on 16 November. 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 ANNE VECK is a multiple awardwinning colourist and runs salons in Oxford and Bicester.
TERRY IRWIN is managing director of TCii, a consultancy that helps businesses of all sizes grow.
PANICOS LAZAROU is owner of Bentley & Co barber shop in Cardiff.
LIZZY TUCKER runs Lady PJ’s Hairdressing and PJ’s Barber Shop in Bristol.
Sept/Oct 2014 | salonfocus
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Contents
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T S P6 NEWS Minimum wage reforms, U-turn over training and launch of NHF pension P10 APPRENTICESHIPS The funding “new deal” explained P12 CROWDFUNDING Salons tapping into a new source of funding P14 IN THE CHAIR Up close and personal with Anne Veck P17 BRITAIN’S BEST All you need to know, but the clock is ticking
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P22 SPRUCE UP TO SELL UP Getting the best price for your salon P24 FIZZY POP-UP How pop-ups are changing the high street P26 BARBERING SPECIAL A five-page special report on one of the industry’s brightest growth areas P31 YOUR QUESTIONS The new salonfocus employment Q&A P32 PRIME PENSION A detailed look at the new NHF pension
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P34 EVENTS Watch out for the NHF’s business events and Welsh Championships
CONNECT WITH US AND HAVE YOUR COMMENTS AND TWEETS IN THE NEXT ISSUE OF SALONFOCUS salonfocus | Sept/Oct 2014
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News
CHANGE OF
HEART delegation of NHF members met skills and enterprise minister Matthew Hancock in July to press him to make changes to the coalition’s proposed apprenticeship funding reforms – and as a result the government has now softened its position.
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The delegation urged him to make the government’s plans to give salon owners direct control of training money more flexible.
The NHF is concerned the plans will be a bureaucratic headache for small salon owners. Big salon chains are also worried about the potential extra burden. Following the meeting the government indicated it may be prepared to look again at this issue, stressing a “key consideration” of any new funding arrangement will be that it is “simple and attractive for small businesses to engage with”. The NHF delegation comprised Kevin Huggins, of Fusion Hair and Beauty in Great Yarmouth; Louise Hunter, of Rubies Hairdressing in Huddersfield;
Lizzy Tucker, of Lady PJ’s Hairdressing in Bristol; Barbara McNaughton, of Elements in Oxted; and Helen Buck, HR business partner at Regis UK. Both Matthew Hancock and high streets minister Brandon Lewis, who was leading the Future High Streets Forum of which the NHF is a member, were reshuffled by prime minister David Cameron in July. They have been replaced by former planning minister Nick Boles and communities minister Penny Mordaunt respectively. • Apprenticeships: the new deal, see pages 10-11
MIDNIGHT OIL? Research by a business information website has found small business owners are increasingly burning the midnight oil and working at weekends to keep their businesses afloat. Check Business said peaks in traffic to its site tended to take place outside normal working hours, suggesting small business owners were using evenings and weekends to catch up with things such as accounts, market research and business planning. ARE YOU WORKING LONGER AND LONGER HOURS? Tell us about it, on sfenquiries@salonfocus.co.uk
salonfocus | Sept/Oct 2014
News
‘ ‘MEMBER’ SCHEME
NETS SALON £7K A Leicester NHF member has made £7,000 in just three months by offering clients unlimited visits to his salon for a year if they buy a special £250 “membership” pass upfront. Barrie Stephen is selling the offer to clients of his new Barbers Lounge in the city and, when salonfocus spoke to him, had sold 28 memberships in 12 weeks. He is confident he will have sold 100 by the end of the year which, if it happens, would net him £25,000.
Clients who spend the £250 can visit the salon as many times as they like. With the average cost of a man's haircut in the lounge set at £39, they will only need to visit seven times to get their money back. But for the salon it is cash up front. Barrie said: “Clients can literally use the service as many times as they like. So it is a way of ensuring customer loyalty. There have now been 400 new male clients to the salon since February.”
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PLASTIC BAG
WARNING The NHF is warning salons in England to start preparing for the introduction in October 2015 of a 5p charge for plastic bags. The change was announced in the Queen’s Speech in June but will only be compulsory for supermarkets and big businesses, with small businesses exempt. The Federation has warned this may lead to confusion among shoppers.
STANDARDS
DELAYED
CHEMICAL CRITICISM Dermatologists have criticised the European Union for failing to fully ban a controversial chemical preservative commonly used in cosmetics that, they say, can cause acute allergic reactions. The European Commission has pledged to ban methylisothiazolinone (also known as MI) from cosmetic products that are left on the skin, but not those used on hair or the scalp. It will also not be banned in products rinsed off skin.
The publication of new employer-led training and assessment standards for hair and beauty apprentices, expected over the summer, has been delayed. Hellen Ward, managing director of Richard Ward Hair and Metrospa, who is leading the strategic “trailblazer” group on hairdressing, said the timescales set by the government had been “challenging”, adding: “We’d rather spend more time in the development phase than rushing something which is so important to our industry.”
Sept/Oct 2014 | salonfocus
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News
he body that recommends national minimum wage levels has been told by ministers to look at how the wage for apprentices can be simplified.
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The Department for Business, Innovation and Skills (BIS) in June set out two areas it wants the Low Pay Commission (LPC) to look at as part of its recommendations for 2015 rates. The first is how the apprentices’ wage can be simplified. The government said: “At the moment the rate an apprentice is paid is dependent on their age and how long they have been on their apprenticeship. The current system can be difficult for employers to understand, leading to poor compliance.” The structure of the wage is something NHF members have long complained about, arguing the fact it can only be paid to under-19s or those in the first year of their training contract deters salons from taking on older apprentices. However, the chances of the wage being extended to cover the full two years appear slim. The government has indicated it expects minimum wage rates generally to rise sharply in future, and any streamlining of the apprentices’ wage should be done in the context of ensuring “apprentices get the minimum wage they are entitled to”. The second area the commission is to examine is the wider economic impact of faster increases in the wage, with it being asked “to assess whether we can see above-inflation increases in minimum wage rates without harming employment, when it makes its recommendations for the 2015 rates”. Against a backdrop of much tougher fines and enforcement, salons are being reminded minimum wage rates go up from next month. The Federation is also asking members for their views on the minimum wage, to feed into this year’s evidence to the LPC. The survey closes on Friday 19 September, and can be found at surveymonkey.com/s/ natminwage
salonfocus | Sept/Oct 2014
MINIMUM WAGE REFORM
NATIONAL MINIMUM WAGE RATES FROM 1 OCTOBER, 2014: Adults £6.50 up 19p from £6.31 18 – 20
£5.13 up 10p from £5.03
Under 18
£3.79 up 7p from £3.72
Apprentices*
£2.73 up 5p from £2.68
(*under-19s and for first year)
News
TWITTER FOLLOWERS 4,380 TOP TWEETER: Rubies Hairdressing, Huddersfield
NHF PENSION
FORMALLY LAUNCHED This month sees the formal launch of the NHF’s new pension, with members being urged to watch out for events being held around the country explaining how it all works. A first event was held in Leeds in July, and further events are being planned throughout the autumn. Dates and times will be publicised on nhf.info and on the NHF’s new dedicated pensions website, nhfpensions.co.uk. The events will outline how the NHF pension scheme works and how employers need to be preparing for the arrival of “auto-enrolment” in the industry. Auto-enrolment is the new legal requirement for employers to set up, and pay into, pension schemes for their employees. The vast majority of small salons (those employing fewer than 30 staff) will need to be auto-enrolling their staff between the summer of next year and 2017, though the very smallest may be able to delay until 2018. A survey of members in the spring found widespread ignorance about auto-enrolment, especially around upcoming timings (salonfocus, July/ August 2014). Anyone interested in attending events should call the membership team on 01234 831965 or enquiries@nhf.info. • Your NHF pension, pages 32-33
FACEBOOK LIKES 8,931 TOP LIKER: Taylor’s Training, Brighouse, West Yorkshire
COMMONS LOBBYING FOR REGISTRATION
NHF president Paul Curry (right), Immediate past president Mark Coray (left)
NHF president Paul Curry, immediate past president Mark Coray and chief executive Hilary Hall were among 200 guests who attended the Hairdressing Council’s annual lunch and afternoon tea at the House of Commons to push the case for mandatory registration. This year the event was also an opportunity to celebrate the 50th anniversary of the council as well as to highlight the creation of a landmark cross-industry “position paper” outlining the industry’s support for mandatory registration and how it might work in practice (salonfocus, July/August 2014). There was a speech from hairdresser-turnedMP David Morris and the event was attended by council “ambassadors” Jamie Stevens, Andrew Barton and Lino Carbosiero. Jamie said: “The enthusiasm for mandatory registration is at an all-time high.”
CHECK OUT #HAIRHOUR NHF president Paul Curry has endorsed a new Twitter hashtag, #hairhour, where hairdressers can share information and advice, post questions, tweet hairstyles and much more. Paul told salonfocus : “I’ve started using it a lot, it’s a great forum for hairdressers.”
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The hashtag was launched in the spring by hairdresser Lee Brown, who said: “I started #hairhour because I noticed the amount of hairdressers on Twitter who never had a tag or a platform to showcase what they do. “It’s a great base to share educational bits and industry knowledge.”
HABB
CYCLE RIDE Congratulations to the 17 hairdressers, including Hairdressing Council registrar Sally Styles and Alan Edwards and Steven and Joshua Goldsworthy, who completed a gruelling cycle ride around Marrakech and the Atlas mountains in June to raise money for Hair & Beauty Benevolent. Team HABB is aiming to raise more than £7,000, donations can be made at justgiving.com/hbb or through habb.org.
NHF BROKER
UP FOR AWARD Good luck to Coversure Insurance Services, the NHF’s preferred insurance broker, which will discover this month if it has won a major insurance industry award. The broker has been shortlisted for “Schemes Broker of the Year” for its Salonsure hairdressers’ insurance policy at the UK Broker Awards, which are due to be announced on September 5.
NEW APP Hair brand Schwarzkopf Professional has launched a phone app, Hair Expert, to help salons with client consultations. The app provides hairdressers with a series of questions to determine hair and scalp condition.
Sept/Oct 2014 | salonfocus
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Apprenticeships
APPRENTICESHIPS: XXX xxx
THE NEW DEAL HOW THE GOVERNMENT’S EMPLOYER-LED ‘TRAILBLAZER’ APPRENTICESHIPS WILL BE FUNDED HAS BEEN ONE OF THE MOST CONTROVERSIAL ELEMENTS OF THE REFORM PROCESS. SALONFOCUS EXPLAINS WHAT WE KNOW SO FAR.
alons have been, understandably, worried about how the government’s newlook apprenticeships will be funded when they are launched next year.
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There has been a lot of talk about compulsory employer contributions, employers being put in charge of haggling with training providers over budgets and training funding being based on a new system of bands. There’s still a lot of fine detail that we don’t know, and which won’t come clear until the autumn. But the government has now added some flesh to the bones. In July it published its initial, outline funding model for new apprenticeships starting on or before 31 July next year. The message for salons is, while they will be expected to make a cash contribution, there will also be more government money (see Key Changes, opposite). One area still being debated is salons being given control of training
funding and so having to manage and administer money, including having to negotiate with training providers. The government has emphasised this as a principle is non-negotiable. But the NHF has been arguing this will potentially put an unwelcome burden on salons, especially small salons. In July a delegation from the NHF met then business minister Matthew Hancock (see page six) to argue the case for the government to make this change more flexible. The Federation would like to see a system whereby salons can manage this money if they so wish, but where there is flexibility to allow it still to be held and managed by the training provider if that is preferred. The government has now said it will look again at this issue, arguing “there is recognition of the need to provide additional support for smaller businesses in the new system”. That does not necessarily mean the plans will change but it does seem to indicate the government is at least prepared to consider the concerns raised by small businesses, including NHF members.
MAXIMUM ADDITIONAL PAYMENTS BASED ON PERCENTAGE OF TOTAL EMPLOYER/GOVERNMENT FUNDING Band
Government (67%)
Employer (33%)
16- to 18-yearolds (20%)
Small business incentive (10%)
Completion payment (10%)
Potential total funding
1
£2,000
£1,000
£600
£500
£500
£4,600
2
£3,000
£1,500
£900
£500
£500
£6,400
3
£6,000
£3,000
£1,800
£900
£900
£12,600
4
£8,000
£4,000
£2,400
£1,200
£1,200
£16,800
5
£18,000
£9,000
£5,400
£2,700
£2,700
£37,800
salonfocus | Sept/Oct 2014
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THE KEY CHANGES: • The government has pledged to invest £2 from the public purse for every £1 contributed by the employer. • On top of this there will be considerable amounts of extra cash for training, including incentives for taking on younger apprentices and extra payments for small businesses. Although the fine detail is not clear, this means small employers especially may not in fact end up out of pocket. • Funding will be based on five bands (see Fig 1). What we don’t know yet is which band hairdressing, barbering and beauty will be in. • But using funding band two as a guide (Fig 2), a salon would be expected to pay £1,500. However, it would get £3,000 of government funding, potentially a £900 incentive if the apprentice was aged 16 – 18, a further £500 if it is a small business and a £500 bonus for when the apprentice completes the training. That would mean, in reality, the salon would get back £400 more than it paid out.
16-18 APPRENTICE IN SMALL BUSINESS AT FUNDING CAP
£900 16 – 18 Incentive
Extra Government Money
2
£3,000
Small Business Incentive
£1,500
Completion Payment
£500
£500
band 2
Employer Contribution
Government Funding
Employer Money
Government Money
Sept/Oct 2014 | salonfocus
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Business
THE IN CROWD alons are increasingly using “crowdfunding” as a way to raise money for projects without going capin-hand to the bank. Andrew Don looks at how it works, and how it might benefit your salon.
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Crowdfunding is where businesses or individuals raise money by turning to a "crowd" of multiple backers, who each chip in a small amount, rather than using a bank. There are now many sites, such as Crowdfunder (crowdfunder.co.uk) or Crowdcube (crowdcube.com), which specialise in using the internet to tap individuals for money. Typically, lots of small individual loans or donations are given until the required amount for a specific project is reached in the specified timeframe. With bank-based finance still hard to come by, crowdfunding is growing in popularity, especially among start-ups or small businesses only looking for minimal amounts of cash.
salonfocus | Sept/Oct 2014
Hairdressers Greygory Vass and Felix Lane turned to Crowdfunder in April and May to turn a part-time venture into a full-time project. Since 2011 they have run a salon called Open Barbers, targeting the lesbian, gay, bisexual and transgender market, from the back room of north London salon Chaps and Dames. Greygory and Felix wanted to raise £9,000 to allow them to open fulltime, with the money being used for, among other things, rental costs, barber's chairs, backwash and water boiler, fixtures and fittings, equipment, painting and decorating. They exceeded their target by £2,500 in just six weeks, in all securing 300 backers, with the biggest single contribution being £350. Greygory said: “It tapped into people who felt it was a good cause.” Anyone donating was offered hairdressing deals and gifts as an extra incentive. Crowdfunder received 5% of the amount raised and PayPal took a small commission from every transaction.
HOW TO SUCCEED AS A CROWDFUNDER Nesta’s top tips for successful crowdfunding are: • Work out the total cost of what you need to raise, including making your pitch video and any tax implications • Research different sites carefully and think about which one will be best suited to you • Be clear about what you’re raising money for • Set an achievable target • Communicate your passion for the project
Facts and figures
£1.6bn
Predicted value of crowdfunding market in 2014
50%
Growth in number of platforms offering crowdfunding in UK in 2013 Source: Innovation charity Nesta
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The New Barbicide Certification Training Course is now available at www.hairproducts.co.uk/training
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In the chair
Q&A
ANNE VECK CV in a minute › NAME: Anne Veck › CURRENT ROLE: Multiple award-winning salon owner and colourist, running salons in Oxford and Bicester › BACKGROUND: Anne has won awards over many years, and this year has been a finalist in the English Hairdressing and Beauty Awards, the L’Oréal Professional Colour Trophy Award and Professional Hairdresser UK Extensionist of the Year. She will be a celebrity guest at Britain’s Best on 16 November.
HAIR
PASSIONS or the launch of a new regular feature, salonfocus gets up close and personal with celebrity colourist and award-winning salon owner Anne Veck.
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Q A
What are you up to, businesswise, right now?
One of the really exciting things I’m working on is a “hair-up bar” and hair extensions menu. The idea is to have a quick half-hour appointment that’s a bit different. I’m also passionate about green issues. We’ve invested a lot to make the salon more eco-friendly and energy efficient over the past 18 months, and one thing I’m now looking into is the possibility of recycling more organic waste, even waste hair.
salonfocus | Sept/Oct 2014
I’m involved in creating the hairstyles for a week-long photo-shoot in a castle in France, which I think will be amazing. I’m also, of course, very much looking forward to being a celebrity guest at Britain’s Best. I think the venue, the Heritage Motor Centre, looks amazing!
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You’ve been very successful. What advice would you give to salon owners just starting out?
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There was a sentence I was told: “The success of my business is not negotiable.” Sometimes you have to make difficult decisions but you have to remember you have no choice. You also have to hire people with the passion and enthusiasm you have; the team represents you. The final element is you need someone to deal with the business side of it, whether that’s you
or a business partner – and have good advisers, such as an accountant.
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What keeps you awake at night?!
When I'm working on an avant garde collection it will often be going around my head so I’ll lie there thinking “how can I create more gravity-defying hair?”. Sometimes I’ll get up and try something out, sometimes I end up dreaming hair!
Q A
How has being a member of the NHF helped you?
The NHF has been a huge help, especially with the legal side, staff and apprentice contracts and so on. Red tape is always changing so the NHF helps me to stay up to date, and it is really cost-effective. The Legal Lifeline has also proved really helpful on occasions.
“OUR WORD IS OUR BOND”
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Sept/Oct 2014 | salonfocus www.hairbond.co.uk
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BECOME BRITAIN'S BEST COMPETITION CATEGORIES Blow dry
Consumer Fashion Style 10.00am
Blow dry
Consumer Fashion Style (students and trainees) 10.00am
Afro-Caribbean male Consumer Fashion Style 10.00am
Hair-up
Glamorous night on the town (students and trainees) 11.00am
Male fashion look On trend (students and trainees) 11.00am
Fantasy total look 11.40am
Body art 11.40am
he clock is ticking. You’ve now got just two months to get your entries in for this year’s Britain’s Best, so don’t delay! salonfocus brings you all you need to know.
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The entries are coming in thick and fast so, if you haven’t already, now’s the time to be focusing on this year’s Britain’s Best. This year’s event is being held on 16 November at the Heritage Motor Centre, Gaydon, Warwickshire, but the deadline for competition entries is looming fast – 7 November. Britain’s Best is the industry showcase for hairdressers, barbers and beauty therapists, students, trainees and colourists, stylists, make-up artists and technicians. Don’t miss it!
Britain’s Best is honoured this year to play host to photographer and awardwinning hairdresser Desmond Murray, top extensionist Michelle Griffin, cutting-edge male stylist and barber MK and brand ambassador and award-winning celebrity colourist Anne Veck. Competitors and visitors will be able to meet all four throughout the day, discuss the secrets of their success and glean top tips to take back to their salons. This year Britain’s Best is also proudly sponsored by Sleek, Revlon Professional, SalonGenius, Nanokeratin System and Coversure Insurance Services. Full terms and conditions, entry details, ticket information and competition rules can be found at britainsbest.me See page 20 for an entry form – fill it in today!
Glamorous night on the town 11.50am
Male fashion look On trend 11.50am
Female fashion look On trend 12.45am
Afro-Caribbean female Consumer Fashion look 12.45am
Nail art 1.40pm
The bride
Conventional or non-conventional 1.40pm
Bridal make-up 2.10pm
Colour of the day 3.00pm
BRITAIN'S BEST
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Meet our star guests!
Hair-up
"TURN OVER FOR MORE
Britain's Best
Where and when
"
Heritage Motor Centre, Gaydon, Warwickshire 16 November Doors open 9.30am Tickets: £10, available on the door or in advance from britainsbest.me
Sept/Oct 2014 | salonfocus
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Britain's Best
OUR CLIENTELE WENT UP BY A THIRD AFTER WINNING GIOVANNI IS PARTNER AT ELIZABETH & GIOVANNI’S IN KIDDERMINSTER, WORCESTERSHIRE. Giovanni Perri
enter as many W ecompetitions as we can
because of the business advantage we feel they bring, as well as the team benefits. To my mind there is no greater prestige.
After winning in Britain’s Best last year I reckon our clientele went up by about
salonfocus | Sept/Oct 2014
a third; and our local papers were just mad about it. It is a great experience. The day itself was really pressured, not helped by the fact there were big delays on the motorway and we got there with barely five minutes to spare! After about 20 minutes I started to calm down and get into it. It was lovely to see so many people in one place so keen and passionate about our industry. When our names were called out it
was, of course, fantastic. People say it’s the taking part that counts but, to be honest, it’s really nice to win! It was really special Clare Hatherill, our apprentice, (pictured below, centre) won Junior Ladies Chicest Chic Part 1 and Junior Stylist of the Year. But Liz and the whole team were over the moon about all our winners: our senior stylist Clare Fuszard, who won Barber of the Year, and Kim Newbold, who won Receptionist of the Year. We were also all really proud Liz won Ladies Photographic Stylist in the Photographic Stylist of the Year Competition. When we came back there was a huge buzz in the salon, which lasted for months. Customers told other customers and columns suddenly built up. You’ll be out of your comfort zone – but it can be a lot of fun.
Britain's Best
’ve been a hairdresser for more than 10 years and, for me, the benefit of competitions, whether Britain’s Best or any other, is you are working on the biggest stage possible.
I
With commercial styling you are limited to how far the client will be prepared to go; with competitions you can push things to that extra level. Being recognised by your peers, being able to showcase your skills on a national stage – that is also great. While I do enter competitions in the hope of winning, it’s important you do the work you want to do, not just something to please the judges. Having Jamie Stevens as a judge last year was a real attraction; he is one of my inspirations.
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THERE WAS A REAL BUZZ AROUND THE STAGE DARRYN IS ASSISTANT MANAGER AT I.C.E HAIR GROUP IN CARDIFF. HE WON THE SENIOR MEN'S PART 2 CATEGORY. Darryn Pitman
The competition was well organised and the atmosphere was great; there was a real buzz around the stage and a crowd around while you were cutting, which I liked. While I was quietly confident I had done well, you never expect to win. When I heard my name being called out it was fantastic. Winning has also spurred me on – in October for example I was named Hairdressers’
Journal Barber of the Year at Salon International – it’s boosted my confidence as a stylist. If you’re proud of your work and want to be recognised for your skills, then you should definitely go in for competition work. You may not win all the time – and I came last in the first competition I entered – but it is about standing out and being seen to be taking your styling to another level.
Sept/Oct 2014 | salonfocus
HOW TO
ENTER Name Address
Postcode
Tel No.
Mobile No.
Email I am
An employee / A Student / A Salon Owner / Self Employed
I work at/train at (name of salon/college) Is your salon a member of the NHF? Yes
No
Member number (if known) Salon/college phone number (if different from above) Competition Number and Category (please tick all you wish to enter) 1.
*NEW* Blow Dry – Consumer Fashion Style (students and trainees)
£15
2.
*NEW* Blow Dry – Consumer Fashion Style (open to all)
£20
3.
*NEW* Afro-Caribbean Male – Consumer Fashion Look (open to all)
£20
4. Hair-up – glamorous night on the town (open to students and trainees)
£15
5.
Male fashion look – on trend (open to students and trainees)
£15
6.
*NEW* Fantasy total look* (open to all)
£20
7.
*NEW* Body art* (open to all)
£20
8.
Hair-up – glamorous night on the town (open to all)
£20
9.
Male fashion look – on trend (open to all)
£20
10. Female fashion look – on trend (open to all)
£20
11. *NEW* Afro-Caribbean female – consumer fashion look (open to all)
£20
12. *NEW* Nail art* (open to all)
£10
13.
£20
The bride – conventional or non-conventional (open to all)
14. *NEW* Bridal make-up (open to all)
£10
15.
£10
Colour of the day (open to all)
*Preparation areas will be provided, each area will be supervised at all times to ensure the rules are adhered to. Declaration In submitting my entry I confirm that I have read, understood and agree to be bound by the competition rules and acknowledge that finished work may be displayed on the internet or in print, and I give my consent to this. I also agree that copyright will be in the name of the National Hairdressers’ Federation. I further authorise that my name, the name of my salon/college may be attributed to this work. The deadline for competition entries is 7 November, 2014. A full outline of the rules can be found at britainsbest.me
- Salon Supplies of Crewe Turn this USED..
..Into this NEW!..
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Alan d have been our training partner for 4 years. They’re great at providing our staff with the grounding they need to succeed as part of our team; Adam Reed, Percy & Reed
FREE NVQ TRAINING for Levels 2 & 3 Ladies Hairdressing & Barbering New enrolment every month London & Ipswich Trainees under 19 fully-funded. One week’s full time training each month for NVQ2 3 days each month for NVQ3 NEW FLEXIBLE TRAINING PROGRAMME IN IPSWICH 1 week each month, 2 days each fortnight or 1 day each week
alan d 0800 500 3147 HAIRDRESSING EDUCATION
www.aland.co.uk
12 Tacket Street Ipswich IP4 1AY 4 West Smithfield London EC1A 9JX
22
Business advice
2
SPRUCE UP
SELL UP TERRY IS MANAGING DIRECTOR OF TCII (TCII.CO.UK), A CONSULTANCY THAT HELPS BUSINESSES OF ALL SIZES GROW. Terry Irwin
elling your salon, and getting the best price for it, takes careful planning and preparation. Business consultant Terry Irwin outlines what adds value, and what potential buyers tend to look for.
S
For many small business owners, their business is not just their day-to-day passion but their future “nest egg”. The ambition is that, at some point, they will sell up and use the proceeds either to move on to a new venture or to keep themselves in a comfortable retirement. But selling at the right time and getting the maximum amount for it is not easy. It is a process that should involve careful planning and preparation. This is even more so where – as is often the case with a hairdressing salon – the reputation and “brand” of the business are very much wrapped up in the identity and skill of the business owner. Here, then, are my six steps to getting the best price when it comes to selling up. Widen your client base A buyer will want to know how they will be able to grow client revenues. So are you over-dependent on a specific type of client and could you be reaching out more to others?
salonfocus | Sept/Oct 2014
Step back Any buyer will want to know who, once you’ve gone, will be able to run the salon on a day-to-day basis. This may be a salon manager, deputy or senior stylist or some other employee. So it is vital to step back and put a proper succession process in place – but do recognise this may take some time to make a reality. Look at your pricing Are you aligned with what other salons in the area are charging? Being the cheapest may not always be the best bet, as buyers will be unable to offer a better package to your clients and may find it more difficult to generate their own momentum. Is your business growing? One of the most common mistakes business owners make is “coasting” to the exit. If you’re starting to focus on your next project or the prospect of finally putting your feet up, this is understandable. But it is vital you keep your eye on the ball and, if anything, push even harder for growth. Buyers will pay a premium for a business that shows clear potential for growth. Put your finances and contracts in order A buyer will almost always base their price on the performance of your
Business advice
IF YOU READ NOTHING ELSE READ THIS… • Show that the business is not overly reliant on you • Tighten up your finances, contracts and prices • An expanding business is a better prospect for a buyer • Try to see things from the buyer’s perspective
23
BUYERS WILL PAY A PREMIUM FOR A BUSINESS THAT SHOWS CLEAR POTENTIAL FOR GROWTH.
business to date rather than on its future prospects, however positive you feel these are. Your task as the seller, then, is to sell your business on its strength as an ongoing concern. So provide your annual forecast, backed by a transparent bookings history and justifications for the future assumptions. This will draw the buyer’s attention to the future revenue and potential for growth. Put in place an accounting system that shows month-by-month revenue, costs and profits. This will add credibility to your forecasts. Ensure any supplier and employee contracts, as well as your standard terms and conditions, are clear and not open to dispute or potential claims. It can be a good idea to get them reviewed professionally. See the deal from the buyer’s viewpoint A bit like selling a house, you need to stop seeing the business as something personal and precious to you (even if it still is) and get into a much more commercial mindset. Your buyer is looking to make an investment, not to buy more work. They are unlikely to have the same emotional investment in it as you do, so step back and try to see the process, and the salon, from their perspective. The best deals, after all, are when both sides win. Don’t forget, too, first impressions are key. So, make sure you present a professional image. A tidy salon and a smart brochure will indicate your business is efficiently run.
Sept/Oct 2014 | salonfocus
24
The high street
FIZZY
POP-UP
IF YOU READ NOTHING ELSE READ THIS… • Temporary ‘pop-up’ shops are growing in popularity • Salons often use them to test new formats, challenge their creativity or just as a way to raise money for charity • Landlords like them because they fill otherwise vacant units • But there are concerns about their effect on the image of the industry
SO-CALLED ‘POP-UP’ SALONS ARE CHANGING THE FACE OF THE HIGH STREET, WITH HAIRDRESSERS USING THESE TEMPORARY SHOPS AS A WAY TO TEST NEW MARKETS AND CHALLENGE THE CREATIVITY OF THEIR STAFF. ANDREW DON INVESTIGATES.
airdressers are embracing “pop-up” salons as a way to dip their toes into new markets or locations, encourage their teams to be more creative, capitalise on cheap shortterm lets or simply raise money for good causes.
H
Pop-up shops can operate from a single day to up to several years, although one and three months is the most common format, with an option to renew if it is found to be working well on that retail site. The popularity of such temporary shops has been fuelled by the fact many high street premises remain vacant, despite the economy improving, meaning landlords are keen to get tenants in to cover their business rates and provide them with at least some income. One salon chain exploring the opportunities of pop-ups is TIGI Bed Head, the Toni&Guy offshoot. It launched a pop-up “Bed Head Hair Space” at Boxpark, a pop-up mall in Shoreditch, east London, in May, offering cutting and colouring services. Manager and creative director Gen
salonfocus | Sept/Oct 2014
Itoh describes the pop-up as an area “in which the team can meet people who are experimental in their ideas and viewpoint, willing to take risks and change their hair … very much ‘the Instagram generation’. This is inspiring and pushes the creativity of our team.” The site can also be used for education, demonstration, events and showcasing, he adds. Bed Head Hair Space plans to remain at Boxpark for three years, after which the area will be redeveloped. Another salon going down this route is Hatt Box Hairdressing. The Northampton salon opened a pop-up in the centre of the town for a single day on 10 May, as simply “something new to keep our creativity flowing”, the hairdresser behind the idea, Jason Hatt, tells salonfocus. “Creativity and hairdressing go hand in glove, and a pop-up is a great way to show off, a little like a great art exhibition,” he says. Hatt Box did not charge for its services on the pop-up but instead asked for donations to a local hospice, in the process raising almost £1,000. Cally Littlewood, director and co-owner of Pip Littlewood Hair, in Steep Hill, Lincoln, used a pop-up to create a mobile client base while
Facts and figures
80%
of online businesses see pop-ups as crucial to growth
95%
plan to use them in future
63%
plan to use them two to three times in the next 12 months Source: PopUp Britain
The high street
25
Gen Itoh
THE TEAM CAN MEET PEOPLE WHO ARE EXPERIMENTAL IN THEIR IDEAS AND VIEWPOINT, WILLING TO TAKE RISKS AND CHANGE THEIR HAIR. Gen Itoh, manager and creative director, Bed Head Hair Space pop-up, Shoreditch
CREATIVITY AND HAIRDRESSING GO HAND IN GLOVE, AND A POP-UP IS A GREAT WAY TO SHOW OFF.
searching for a suitable premises in Lincoln, which she eventually opened in June. “We learnt our clients’ wants and their demands, and set our branding from the offset … in return we have been rewarded with their loyalty and bookings,” she says. REPUTATION But Cally also highlights one of the concerns some salon owners have about
pop-ups: their potential for attracting the less reputable end of the market and, in turn, their potential to damage the reputation of the industry or, even worse, put the public at risk. Because of their low financial risk to landlords, pop-ups offer the potential for “watered-down” hairdressing, or for people with few, if any, qualifications to set up shop, she argues. Darren Ambrose, director of D&J Ambrose in Pinner, Middlesex, is equally cautious about their wider implications in an industry that does not (yet) have mandatory registration. “As anyone can open a salon with current legislation regardless of whether it’s a pop-up or not, there is the danger that someone unqualified could open one,” he says. Nevertheless, salons thinking of going down this route should be looking
to haggle with landlords to ensure they get the best deals for the months they use the temporary site, he advises. And Clara Maguire, director of business development at We Are Pop Up, a firm that helps businesses find short-term commercial space, emphasises the pop-up format offers the hairdressing industry opportunities to try out new concepts. “They can be a way to create buzz and excitement about a brand and idea,” she says. Salons, for example, that wanted to include coffee or fashion as part of their offer could try out a number of pop-ups within their salon before making a permanent commitment. ONLINE EXTRA Find out more at popupbritain.com
Sept/Oct 2014 | salonfocus
26
Barbering special
T H I S M A N ' arbering is changing the high street but also being changed by evolving male shopping priorities. In a special five-page report, salonfocus looks at future trends and how barbers are extending into new areas. Overleaf we analyse how education is changing and on page 30 highlight the NHF’s new barbering health and safety guide.
B
According to the retail research firm the Local Data Company independent businesses such as barber shops, beauty and nail salons, tattooing and piercing bars were one of brightest growth areas on the high street last year, with each of those shop sectors in its top 10 for business openings during 2013. Indeed, Mike Taylor, director
I
S A S W O R and trainer for the British Barbers’ Association and owner of Legends barber shops in Berkshire, says barbering, much like hairdressing, is now becoming “the essence of a community”. Barbers are increasingly becoming “a man’s trusted friend”. Within this, male grooming is a key growth area, agrees Kevin Luchmun, Toni&Guy British Men’s Hairdresser of the Year 2013/14. “These days men’s grooming is becoming more and more prominent, with men taking a real pride in their appearance. This is due to events such as London Collections: men drawing attention to men’s clothing and style season after season. “With this focus on men and their look we are seeing a rise in male clients and the number of services they are now requesting in salon. “From cuts to colours men are becoming more aware of the grooming
L
D
Facts and figures
6%
Growth in barber shops
12%
Growth in tattooing and piercing
8%
Growth in nail salons
5%
Growth in hair and beauty salons Source: Local Data Company, 2013
WE ARE SEEING A RISE IN MALE CLIENTS AND THE NUMBER OF SERVICES THEY ARE NOW REQUESTING IN SALON. Kevin Luchmun, Toni&Guy British Men’s Hairdresser of the Year
salonfocus | Sept / Oct 2014
RB
27
ERI N G
BA
Barbering special
CASE
SPECIAL
STUDY
options available to them,” he adds. Individual chains are also innovating and experimenting with new formats or line or service extensions. Headcase Barbers, for example, has recently extended into tattoo parlours, opening Headcase Ink tattoo bars in Hove, East Sussex and Farnham, Hampshire, alongside an initial pilot site in Brighton. The fact barbering is such a growth opportunity means it’s hardly surprising more and more hairdressing chains are beginning to think about its potential as an additional string to their bow. GROWTH AREA Mark Brown, who runs Barber Brown’s, which operates in Bedminster and Broadmead in Bristol and in Bath, predicts more chains will be looking to extend into barbering and we will in time see more, and bigger, salons and barber shops on our high streets. “The high street is still under pressure but I think we will continue to see barber shops opening simply because it is one of the areas still doing relatively well,” he says. “At the moment you still tend to have a lot of small, independent barber shops but not many big chains. But, with the industry continuing to grow, especially in areas such as male grooming, I think we will see more chains showing an interest in either extending into barbering or developing their own barber shop formats. “I also think we will start to see bigger salons operating; with one big salon offering a wider range of services, to men and women, rather than the rather fragmented feel that we have at the moment,” he adds.
ONLINE EXTRA Find out more at nhf.info/salonstart-up-documents/
ZAK OWNS JAGGED EDGE, RUNNING FOUR SHOPS IN BEDFORD, WITH A FIFTH DUE TO OPEN IN MILTON KEYNES. ZAK RESINATO
One innovation we’ve been investigating is “kiosk” barbers, essentially small, almost pop-up, units that we open up in big retail parks. We opened our first one, in Kempston Interchange Park in Bedford, back in the spring. People often complain about the cost of parking on high streets so, if your retail park has 1,000 free spaces, why not take your business there? It took us a while to get the agreement sorted, but it’s been going fantastically well now we’re in there. Beards were massive last season but this season it’s more about short back and sides with more textured tops. We’re also doing a lot of top knots and short quiffs, to get a look a bit like Ryan Gosling. There is a big emphasis at the
moment on vintage or heritage looks, with slicked back or wet-look finishes. Last season it was all matt, just-out-of-bed looks, but that has definitely changed. I do a lot of research all the time to keep the salon fresh. Retail is a big growth area. Guys are increasingly open to being educated about product, and they tend to trust their barber. So it is about encouraging people to take product and use it at home. Male grooming is also massive; it is all about the luxury experience. Finally, it’s really important to think about the look and feel of your shop. We go for contemporary and modern, even minimalistic. The team has got to look the part too; everyone is in a shirt and tie and looks smart. It’s just about keeping it professional.
Sept/Oct 2014 | salonfocus
28
Barbering special
NEW APPRENTICESHIPS
WILL TRANSFORM BARBERING LIZZY RUNS LADY PJ’S HAIRDRESSING AND PJ’S BARBER SHOP IN BRISTOL AND IS A MEMBER OF THE ‘TRAILBLAZER’ HAIR WORKING GROUP MAPPING OUT NEW-LOOK, EMPLOYER-LED APPRENTICESHIPS. Lizzy Tucker
he “trailblazer” process reforming apprenticeships has the potential to take barbering to another level. But mandatory registration of barbering would be a real game-changer.
T
The development of the new trailblazer standards means it is a really exciting time to be in barbering. I think when the new standards launch next year it is going to open things up in terms of encouraging barber shops to take on more trainees – as long as we can get
salonfocus | Sept/Oct 2014
the funding side of it right (see page 10-11 for details). At the moment one of the difficulties when it comes to barbering, both in terms of attracting young people to barbering and barber shops being able to find the right people, is that there are no Level 3 courses out there specifically for barbering. That’s why so many barbers have just taken on people and trained them themselves. If we can develop standards relevant to, and valued by, the employers, I think it will benefit the industry massively; it will help to enthuse people about barbering and the industry as a whole.
DIFFERENT SKILLS Yes, barbering and hairdressing are part of the same industry, but they are different skill-sets and a different trade. It used to be that a lot of young people who were creative and interested in hair were simply pushed into hairdressing rather than barbering. But now barbering is able to offer lots of innovation and opportunities itself. Barbering is a really fun industry; men as consumers are becoming much more image conscious. Barbering was not hit as hard as hairdressing by the downturn, although it did go down. But that is definitely shifting massively now.
Barbering special
People are spending more money and are more prepared to delve into retail and buy product. We, certainly, are noticing a massive uptrend. So, if we can get the training right, I think over time we are going to see a lot more young people coming into barbering and, from there, feeling able to take more ownership of their careers and trade Barbering is already moving out of the shadow of hairdressing and will, I think, increasingly be seen less and less as the poor relation of hairdressing. However, the next big step after this has to be moving the industry towards mandatory accreditation or registration
IT USED TO BE A LOT OF YOUNG PEOPLE WHO WERE CREATIVE AND INTERESTED IN HAIR WERE SIMPLY PUSHED INTO HAIRDRESSING. BUT NOW BARBERING IS ABLE TO OFFER LOTS OF OPPORTUNITIES ITSELF.’
29
of barbering as well as hairdressing; that would be an immense leap forward. The cross-industry “position paper” developed by the Hairdressing Council to outline how mandatory registration might work in practice is an important step in this process (salonfocus, July/August 2014). But we all know it is not a change that is going to happen overnight. As skills improve through better training standards and the economic picture continues to improve, so I think we will in time see more people opening their own barber shops. But national mandatory registration will also need to be an important part of that process.
Sept/Oct 2014 | salonfocus
30
Barbering special
HEALTH, WEALTH &
HAPPINESS PANICOS IS OWNER OF BENTLEY & CO IN CARDIFF. HE IS A MEMBER OF THE NHF’S BARBERING WORKING GROUP.
ONLINE ADVICE The NHF has produced a new barbering health and safety guide, Barber: straightforward information and practical tips to help you sort health and safety, in conjunction with the Institution of Occupational Safety and Health. It accompanies the NHF’s similar guide for hairdressers, and can be downloaded at nhf.info/hsguide/
Panicos Lazarou
he NHF’s new health and safety guide for barbers is an important step in educating barbers about safe working.
T
Barbering is very different to hairdressing, not least the sort of health and safety issues we have to deal with. We often use hot towels and shave necks with razors, for instance. So, immediately, you’ve got to think about different things – changing the blade, sterilising your shaving brush, making sure towels and capes are properly laundered and so forth. Talcum powder is another issue. Normal powder is light and easily becomes airborne, which can create
salonfocus | Sept/Oct 2014
breathing issues. In my shop we use cornflower, which is heavier. It’s important, too, to lubricate and use a spray disinfectant on clippers CHEMICALS I am seeing more demand for what I call “camouflage”, or colouring of grey hair. That means barbers increasingly have to be aware of allergy alert testing and use of gloves when mixing up. This is before we get to issues common to both hairdressers and barbers, such as slips and trips, dealing with cuts, dirty equipment, working with electricity and musculo-skeletal problems, such as bad backs, wrists, joints or bad posture. Health and safety is all part and parcel of being a professional barber.
Facts and figures
16,000
Number of people on average who suffer from skin problems because of their work
One million
Number of people affected by musculoskeletal disorders, such as back pain or sore wrists, every year
£7,000
Amount one small business owner was fined, and costs, after it was found to have no employers’ liability insurance Source: Barber: straightforward information and practical tips to help you sort health and safety, NHF/IoSH 2014
Q&A
YOUR QUESTIONS NHF MEMBERS VALUE, AND OFTEN RELY ON, THE SUPPORT AND ADVICE THEY GET FROM THE NHF TEAM AND THE LEGAL LIFELINE. HERE ARE SOME RECENT QUESTIONS, AND THE ADVICE GIVEN.
Q
We have received a reference request relating to an ex-stylist. It asks whether the individual has ever had a disciplinary warning. She did have two, but both have now expired, although they are still on her file. We know we can choose not to provide a reference or just a factual one. However, we normally reply in full and want to be consistent?
A
You are right to be consistent with how you have responded to reference requests in the past yet wary as to how you respond to this particular question. Under the Data Protection Act 1998 you are only allowed to retain personal information for as long as is necessary. The warnings would constitute personal data and, as such, there is an argument they should have been removed from the personnel file when they expired. Unless there is a specific need for the warnings to have been retained, referring to them in a reference could therefore cause an issue under data protection rules. However, any information you provide within a reference must also be truthful. Your best course of action is to reply explaining that there are no “current live” warnings on file. This way you have, correctly, indicated warnings have at one time been issued but also that they are now expired.
31
LEGAL LIFELINE Access to the Legal Lifeline is available by calling our highly trained staff on 01234 831965 who will answer your queries. If specialist advice is needed you will be referred to the lifeline. Members can email enquiries@nhf.info The lifeline offers: • 24/7 employment-related queries • Advice on commercial matters, 9am–5pm Monday to Friday
Q
Q
A
A
We have a member of staff on maternity leave and she is working her first keeping-in-touch (KIT) day tomorrow. Am I correct in assuming she should receive a payment for the hours she is to work in addition to her maternity pay?
An employee should not lose statutory maternity pay (SMP) for working so-called KIT days. However, the situation is complicated by the fact payment for such days is not dealt with under current legislation and therefore is a matter for agreement between employer and employee. It’s a good idea to clarify this point (ideally prior to the KIT day) if and when an employee requests or is invited to work a KIT day. The starting point for determining KIT day pay is to consider the employee’s contract of employment. Does this give any indication as to pay due? If not, employers must consider their statutory obligations, such as ensuring they are paying at least the relevant national minimum wage for each hour and she is receiving pay equal to that of male colleagues. Practical options include “topping up” SMP to the amount determined for the KIT day or simply making an additional payment. Be mindful, however, whatever you decide is likely to set a precedent for what future pregnant employees will expect to be paid for KIT days.
A customer asked for her hair to be coloured. An allergy alert test was performed but, after carrying out the service, she complained of a reaction. It is clear she has sustained some burning to the neck. What is our legal position?
When a client comes into a salon to have hair styled or coloured there’s immediately an implied contract between her and the salon that the stylist will carry out their job with reasonable care and skill. This means if the client wants to pursue this legally she’ll have to prove that, on the balance of probabilities, the service she received fell below the standard required and, because of this, she sustained the injury. In this case, because you carried out an allergy test it is unlikely any claim would succeed. The salon has done what was required. Furthermore, assuming the test revealed no reaction at the time, it’s possible to argue the injury was not “foreseeable”. If you receive any compensation claim letter from the customer (or their solicitor), the best course of action is simply to send it, along with a letter outlining your side of the story, to your public liability insurer to handle. Members with a question for the NHF should call 01234 831965 or email enquiries@nhf.info
Sept/Oct 2014 | salonfocus
32
Pensions
YOUR NHF
PENSION
FROM THIS MONTH THE NHF IS OFFERING MEMBERS, AND THEIR STAFF, ACCESS TO A SPECIAL PENSION SCHEME. SALONFOCUS OUTLINES HOW IT WILL WORK.
What’s happening? As of September, the NHF is launching a pension scheme specifically designed for small hairdressing, barbering and beauty salons. It will enable salons to meet their responsibilities under auto-enrolment. What’s auto-enrolment? Auto-enrolment is the change to pension provision that means employers now have a statutory duty automatically to enrol eligible workers into a work-based pension – and make an employer contribution towards it. That sounds ominous? Historically, pensions have rarely been
salonfocus | Sept/Oct 2014
a fact of life within hairdressing, so having to provide a pension for staff, and pay into it, is likely to come as something of a shock to many. There will also need to be an education and communication process for staff who, especially if they’re on a low income, may not immediately see the benefit of some of their hard-earned cash going towards a pension. Do I have to? Yes. Auto-enrolment is a new legal responsibility. Employers that fail to auto-enrol workers in a pension when they are supposed to be doing so can be fined as much as £50,000.
So will all my staff need a pension? Not necessarily. Employers will only need to enrol certain “eligible workers”. The Pensions Regulator (thepensionsregulator.gov.uk) has full details on this. When does this start? Auto-enrolment came into force in October 2012. But don’t panic, that was only for the county’s biggest employers. Since then it’s been rolled out in stages, with employers hitting a “staging date” based on the number of employees on their payroll, with the smallest employers going last. As hairdressing is mostly small or micro employers, that’s given valuable breathing space. But the industry’s turn is now coming up fast. For hairdressing salons employing fewer than 30 people their staging date will be somewhere between 1 June, 2015 and 1 April, 2017. But as between now and then salons will need to choose a pension scheme, put in appropriate payroll processes, assess which employees are eligible and communicate the change to staff, there’s a lot to do. Salons cannot afford to put this off. What, then, is the NHF scheme? The NHF scheme offers guaranteed acceptance to NHF members. This is
Pensions
Facts and figures
£50,000 Maximum fine for not autoenrolling employees when you should be
Small employers face a pensions “capacity crunch” as large numbers realise they need a pension just as main providers are overwhelmed – but entry to the NHF pension is guaranteed
1 1 June, 2015– 1 April, 2017 The staging date for salons employing fewer than 30 people will be somewhere between these dates. But it can take up to a year to do the groundwork.
important because there have been warnings of a pensions “capacity crunch” as large numbers of small employers suddenly realise they need to sort out a pension and the main pension providers are overwhelmed. The scheme (unlike many) also offers free software, which will help you remain compliant. It fully adheres to the rules set down by The Pensions Regulator and will include a dedicated website. Let’s cut to the chase, what’s it going to cost me? There are a few start-up costs, although these are very competitive compared with any pension you might buy elsewhere. There is a £295 plus VAT one-off registration fee. However anyone signing up to the scheme before 31 August next year will be able to do so at a special discounted rate of £195 plus VAT. There will also be an annual “corporate governance” fee of £65 plus VAT, although no fees or contributions will need to be paid until after the business has hit its staging date. Once the scheme is up and running, the main cost will simply be the employer and employee contributions being paid into it. Up until September 2017 the minimum contribution that will need to be paid into a scheme will be 2% of qualifying earnings, with the
33
THE INDUSTRY’S TURN TO AUTOENROL IS NOW COMING UP FAST. SALONS CANNOT PUT THIS OFF. employer contributing at least 1%. Be aware, however, these percentages will after that go up sharply, with a 3% employer minimum contribution and 8% total contribution in force from October 2018 onwards. Who can help me sort all this out? The Pensions Regulator, thepensionsregulator.gov.uk, has a load of information and resources on its website, including calculators. The NHF is running a national series of workshops explaining how its scheme works and the responsibilities salon owners will have under autoenrolment. Dates and times are set to be announced this autumn, so check online at nhf.info or go to the NHF’s new dedicated pensions website, nhfpensions.co.uk, for more details. ONLINE EXTRA Find out more at thepensionsregulator.gov.uk
Sept/Oct 2014 | salonfocus
34
YOUR EVENTS Please send your events to the NHF at events@nhf.info by 8 September for November/ December, 10 November for January/February 2015 and 3 January for March/April 2015. Updated events listed on nhf.info
Events
EVENTS 24
NHF EVENTS
OTHER
SEPTEMBER
London Region Photoshoot, Goldwell Academy, London. Contact: Mikaela Martin on 07500 704705
05
OCTOBER
NHF annual general meeting, Holiday Inn Regent’s Park, London, W1W 5EE. Details: nhf.info
02
NOVEMBER
Welsh Hairdressing Awards, Angel Hotel, Cardiff. Contact Carl Hinder on 07931 518642
10
NOVEMBER
Cheshire and Red Rose Championships, Romiley Forum, Stockport. Contact: Eileen Clough on 01253 406834 or Stephen Coles on stephen@coles29orangehome.co.uk
16
NOVEMBER
Britain’s Best 2014, Heritage Motor Centre, Gaydon, Warwickshire. Details at: britainsbest.me
BUSINESS EVENTS HOW TO MAKE YOUR SALON MORE PROFITABLE 20 October–Chelmsford 04 November–York 10 November–Edinburgh DELIVERING A GREAT CLIENT EXPERIENCE 01 September–Reading 24 November–Swansea MANAGING YOURSELF AND YOUR TEAM 22 September–Derby 03 November–Chester 11 November–Edinburgh Anyone interested in attending these should contact the NHF team on 01234 831965 or events@nhf.info
salonfocus | Sept/Oct 2014
STILL TIME TO
SHINE THIS YEAR THE NHF HAS BEEN RUNNING A SERIES OF INSPIRATIONAL BUSINESS EVENTS.
The events, which have proved hugely popular with members, are continuing through the autumn and cover three areas: delivering a great client experience; how to make your salon more profitable; and managing yourself and your team. They are delivered by highly successful, working hairdressers Richard Wallace (pictured), of Richard Wallace Hair in Solihull, and Chris Amos, of Chapters Hair in Bromsgrove
who between them run Winning Ways Education. The events cover a range of issues critical to your business success. These include: effective recruitment, induction, training and career progression; the benefits of “leading from the back”; managing one-to-one and team meetings; and holding “difficult” conversations and disciplinary meetings. Don’t miss out!
WATCH OUT FOR WELSH AWARDS! The Welsh Hairdressing Awards will this year take place on 2 November at the Angel Hotel in Cardiff. The text voting and nomination process opens from this month. Voting is free, apart from the standard cost of a text message. The event was a sell-out last year and organisers are confident this year’s vote will be up by 50%. Tickets can be bought from nhfwales.co.uk.
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£ 2.9each2 L’ORÉAL DULCIA TONICA September - October 2014 promotions. Terms and Conditions apply. Prices are excluding VAT and could be subject to change.
Visit your local store | visit: www.astonandfincher.co.uk | Call us on: 0870 240 2176
Salon Insurance
Exclusive cover at discounted rates for members Our insurance cover incorporates the new NHF colouring protocols for allergy testing. Salon Insurance Chair Renter’s Liability Personal Accident & Illness
Call today for a quote
0800 458 81 81 www.coversure.co.uk/nhf