Your employees and staff are the mainstays of your salon. No matter how good the ambiance in your salon is, you cannot possibly create the reputation you want if your employee lacks spark. Their performance, services, and work influences client retention, profits and the overall image of your salon. Therefore, when you are hiring hairdressers and stylists, you need to be picky about who you hire, and must also make sure they have the right certification in a particular service. One wrong hire can doom your salon forever.
A simple method to retain and motivate employees in your salon is by measuring and evaluating their performance regularly. Remember, the way they conduct themselves in your salon shapes your success and increases profitability.
Salon software is a fool-proof way to measure employee performance. Since it allows you to run monthly reports, it is an effective way to keep track of your stylist’s progress. It can also give you information which you can implement to penetrate growth.
Only by observing, recording and analyzing employee performance you can pave the path of success. In this blog, you will find effective ways to evaluate an individual stylist’s performance using salon software.
- Set standards: To measure and evaluate employee achievements, it is very important to set standards. You can also set goals which are specific to your salon. For that, you must identify what makes a good employee. A good employee can be someone who handles clients professionally or someone who goes an extra mile when rendering the service. The definition of a good employee is different from every salon owner. When setting standards, analyze what matters to you the most. Other measurable goals you can set include upselling services and products and attracting a certain number of clients every month. By setting a standard and goals, your stylists and salon managers will have something tangible to work towards. Using salon software, owners can set goals and monitor productivity at the same time. Having a look at the reporting modules can give you valuable insights on daily salon operations which can further help you adjust your strategies.
- Evaluate performance: Don’t just set goals for your employees and forget about it. When you set goals for them, they need to be evaluated regularly. In addition to annual reviews, salon owners must conduct daily, weekly or monthly reviews. The more frequent your follow-ups, the better. For example: When a hairdresser is styling a client’s hair, notice how he/she goes about the process, the amount of product used, and the overall experience they are able to provide. Make notes so that you can use it during the review and evaluating process. However, don’t interrupt a stylist’s work. Regular performance reports will help you identify an employee’s strengths, weaknesses, and trends. A few areas to watch for include:
- Client retention rates
- Retail sales
- Average sales price per client visit
- Number of hours they work in a day
- How many clients they attend to in a day, week or month
A salon can use the information the reports provide to give their employees feedback on their individual performance. It also gives them a chance to improve the quality of their service. Employee attendance and punctuality also shape the success of a salon. Other key metrics that can be tracked on the salon software include:
- Productivity: The percentage of time a staff member spends with a client.
- Potential hours: The number of hours available for appointments.
- Booked hours: The number of hours reserved with appointments.
- Client retention: The percentage of guests who return for an additional service within 90 days of their last service.
- Retail per client ticket: The total retail sales to the total number of clients
- Employee utilization: Percentage of time in a day an employee is spent working with a client.
- Revenue: How much revenue does a particular stylist contribute to your profits and an increase in the bottom line.
- Clients rebooked: Percentage of clients who rebook their appointments with the same stylist.
When setting client retention goals for your stylists, make sure they are attainable. If they cater to 10 new clients in a month, don’t expect them to retain all 10. It’s next to impossible. Instead, tell them to retain at least 5 out of 10. The above key indicators will help you evaluate employee performance.
While you can use the indicators to evaluate a stylist’s performance, to track their progress, MioSalon, salon software, is the best. The software provides easy to understand reports that help you monitor day-to-day employee performance. You can also save a significant amount of time from running manual calculations.
Once you track employee progress, the next step would be to motivate them and reward them. If a certain employee is not able to retain clients, understand where they are going wrong and devise a solution.
- Employee motivation: The employee performance data on the salon software is 100% accurate. Two highly effective methods to motivate your employees are by acknowledging their efforts and offering incentives. You can incorporate incentives as part of the employee compensation plan. You can also appreciate their efforts with a reward. You can start programs such as stylist of the month or giving out gift coupons to the stylist who has been able to retain the most number of clients. Only when you reward your employees, will they be motivated to work harder.
- Client feedback: While we have already discussed the key performance indicators which every salon owner must measure, one must not overlook client feedback. Whether a client verbally gives feedback or posts a review on the salon software, it must be taken seriously. Their suggestions and feedback provide valuable insights on how they perceive your salon, the stylists and the services you offer. If a certain employee has earned negative reviews from three or more clients, tell them about it during the annual employee review, and come up with ways to tackle these issues. Don’t ever shout at an employee if they are not performing. Give them a chance to improve their weak points and they will emerge successfully.
Good employees are the backbone of your salon. They are the ones that build a strong and loyal customer base, which your business survives on. MioSalon, salon software, will help you implement strong retention and motivation strategy. With weekly reports, you can achieve outstanding results and effectively measure each and every stylist’s performance in your salon.