What does it cost to employ an Australian Hairdresser?

What does it cost to employ an Australian Hairdresser?

Well it's not the number that appears on their wage slips is it?

I guess that for most hairdressers you're used to recieving a pay slip (or at least you should) that will detail exactly what you've been paid.

The list will include time worked, hourly rate, penalty rates, super contributions, holiday pay accrual, sick pay accrual, commissions or bonuses & tax deducted. It's a long, long list.
There's another 'hidden' list of employer expenses too that needed to be added to the cost of staff.
That list would contain such things as; professional development, pro stock usage, Work Cover, Insurances, rent, utilities, staff amenities, support staff (apprentices, receptionists etc), salon upkeep, advertising, marketing, competition costs - and on, and on, and on. It's avery long list too.

Somewhere in those two lists is the actual cost of an Australian Hairdresser. For a senior hairdresser that cost will be well in excess of $1500 per week.

Obviously for the employer the next equation is an easy one - staff cost minus their revenue earned from that staff member.

If you want to be thorough you could do a monthly or quarterly Profit & Loss statement for each Hairdresser from 1st Year to Art Director. Wouldn't that be fun to do? No? But do this we must, otherwise we're blindfolded hoping for the best.

You may be surprised at the way your staff members react to knowing their numbers too. I've noticed two distinct & opposite reactions;
Reaction 1; utter disbelief & then utter determination to disbelieve.
Result 1; you say goodbye to that staff member (sad but true, that's what happens)

Reaction 2; a professional nod, they roll their sleeves up and work smarter & better to achieve their targets.
Result 2; everyone earns more & everyone's happy.

The good news is Reaction 2 happens way more often than Reaction 1.
Why? Because most people have a brain to figure out that "it is what it is" and they want to do a good job of their job. Simple.

Now that we know the cost of our salon plus the cost of our staff we almost have a clear picture of the REAL COST OF OPERATING A SALON.

There's more, but it's time to pack our bags to Hair Expo!