Salon owners are constantly looking for ways to motivate their staff. From commission and team-based pay structures to team-building events, finding ways to stay creative and keep your team motivated can be a struggle. When we polled the DaySmart customers, we learned that 68% offered education as the top incentive to keep the momentum across their team, while prizes, bonuses, and commissions followed in popularity. The top KPIs (Key Performance Indicators) that DaySmart Salon business owners are incentivizing their staff are based on the following metrics and the percentage in ranking from the poll.
65% Total Retail Sale
45% Average Ticket Sale
40% Client Retention
25% Total Service Sale
Once the business owner determines what KPIs matter most, they will set benchmarks for their employees and offer an incentive upon reaching the goal.
Interestingly, we found that employees viewed the same KPIs as a metric that defines their success. The only difference was that the importance of the KPI was almost reversed compared to the business owner. It tells us that owners and employees consistently monitor the same information to set goals and measure success. All metrics can easily be calculated in DaySmart Salon and observed at-a-glance within the business dashboard.
Not only did the owners and employees have the same metrics in mind, but together, they value efficiency, client retention, customer experience, high-quality image, and an increase in profit. The two items valued differently between the business owner and the employee were employee retention (by the business owner) and professional development (by the employee).
What does this mean to salon owners? Suppose employees value professional development and the owner values employee retention by setting employee goals with education as the reward, you will not only increase your bottom line but also have happy, well-rounded, and educated staff members. This intelligent tactic retains employees and can grow the business by keeping customers returning to receive the latest trends.
According to Pittsburgh State University, providing training allows employees to acquire a more extensive skill set, resulting in increased productivity. On top of that, it encourages positivity by giving employees a sense of value and worth. Sixty-eight percent of all employees say professional growth and education potential are vital in a company. While job seekers consider continuing education a deciding factor when evaluating job offers, business owners should consider this benefit one of the top incentives for recruiting and retaining staff.
Offering education incentives to your employees does not have to be costly, either. Seek top stylists on your team and designate them as team coaches. They can attend workshops, return to the salon, and teach the rest of the staff. You can also work with your salon supply distributors and see if they offer free or discounted educational opportunities based on purchase volume, then align your retail sales goals to help meet the purchased quota.
You may also have concerns regarding travel costs. To avoid travel expenses, participate in digital workshops and bring your staff together for a hands-on seminar while following the digital trainer. Get creative and find what works for your business and team.
While keeping your employees motivated with incentives, teaching them ways to strategize their goals is also a good idea. In our most recent webinar, How to Motivate Staff and Strategize Goals, we shared a simple worksheet that covered the simple concept of looking ahead at your schedule to identify specific times within the day to add on services and sell retail. This concept suggests that employees map out what clients to target and where time allows for retail sales and add-on services. Therefore, it is a stress-free way to incorporate goal initiatives within their day and prevent the client from sensing any indifference that may prevent them from returning.
As we move forward into the rest of 2022, we suggest a tip from our customers to make education an employee incentive. You will not only find that it increases retail sales, but it will also increase productivity and is viewed as a benefit to potential new hires while aiding in the retention of top talent.
To hear more on this topic register for our live webinar!
October 3, 2022, at 12:00 pm EDT
How to Motivate Staff and Strategize Goals
with Andrea Miller from the DaySmart Salon
Join a Live Webinar