Stylists come and go! We aren’t the only kind of business to have employees leave, but it is a business where your service providers are also your daily income. The sad thing about our industry is that most, and I mean MOST salon/spa owners haven’t a clue what to do when that happens! And we all know that when a service provider leaves, they take as many clients with them as they possibly can.
Is it fair? The quick answer is “no” since the client list rightfully belongs to the salon. But if a service provider is leaving, they were probably making plans weeks in advance, collecting as much data as they can. What can you do about it? There is so much you can do about it! Take a copy of this newsletter and post it on your bulletin board so that you will be prepared the next time it happens to you; because it WILL happen.
When an employee resigns, terminate them immediately.
Even if it means paying them out…Do not allow them to stay and collect more information! Before doing so, check all state, province or federal laws to be in compliance.
Send out a letter to their client list.
Call all of their upcoming appointments and offer that their next visit is at no charge (you do have all the addresses, don’t you? Thank you, Vagaro!). Explain the situation and let the clients know how much you value their business. Attach an offer or gift card for upcoming appointments ($10 off WILL NOT suffice) If a client is worth $500,1,000 or 1,500 in a year…how much are you prepared to spend to keep them?
Keep an on-going relationship with all your clients and customers.
Send out newsletters with your own stories and hand-signed birthday cards. If you have a personal relationship with the clients, it is much easier to reach out to them and ask them to stay.
Always have one or two junior service providers in training.
Look over your list of resumes and make some calls! Even though some revenue walked out the door, what was actually left after they were paid (e.g. salary, commissions, payroll-tax, deductions), it’s not as bad as it seems at first glance. Do the math. Your calculator is your best friend in these situations!
In our business, providers never arrive and stay there. If you aren’t continually looking for new hires, you are going to be left behind. In the service industry, it is imperative that you make your business up with advanced, intermediate and junior service providers. AND be on the lookout for new and exciting team members.
Look at reducing expenses.
For every $100 you reduce expenses by, it means you need $300 less in sales. How can you generate extra revenue with the clients you currently have? By simply raising your average ticket by $5-10 per client you could cover the shortfall in sales! Do more with less!
If employees have been considering leaving, they often have been a negative force in the business for some time. The winds of change can breathe new life into your business!
TAKING ACTION is the only thing that will move you forward FAST! Being a business owner is hard work, but the rewards are great.