Retaining Talent In the Beauty Industry

Published on July 17, 2023 by MustardHub Admin

Retaining talent is a persistent challenge in the beauty industry, presenting a significant issue for many salons and cosmetic companies. The loss of trained employees triggers a perpetual cycle of recruitment and onboarding, which is both exhausting and costly. The root causes of poor retention often revolve around fixable elements like insufficient training, stagnant wages, and a toxic workplace culture. Addressing these factors is essential for businesses to retain their top talent in the long run.

The high cost of high turnover

High turnover in the industry is a costly reality, as indicated by relevant statistics. On average, there’s a 37% turnover rate among employees in hair and beauty businesses (CPA Practice Advisor). Additionally, 65% of salon owners grapple with high staff turnover (Modern Salon), and a striking 61% of employees leave their salon jobs within the first year (PHD Beauty). 

The constant need for recruiting and training drains valuable resources. Losing experienced staff means starting afresh with new employees who lack established client relationships and technical skills. Moreover, poor retention can tarnish a salon’s reputation, lower morale, and disrupt client services. Reducing turnover is a critical and urgent priority.

Why do we see such high turnover in Cosmetology? 

Several common causes underlie these dismal retention statistics. Inadequate training is a prominent factor; investing in ongoing education showcases the value placed on staff members, boosting their confidence and earning potential. Insufficient career progression opportunities, uncompetitive pay, a toxic work environment, limited benefits, work/life imbalance, and a lack of feedback and recognition also contribute to staff leaving their positions.

How do we solve these staff turnover issues? 

To proactively combat turnover, businesses can implement various strategies to address these factors. Initiatives like establishing an ongoing education budget to sponsor advanced classes, conferences, and skill certifications demonstrate a commitment to growth. Creating career development plans, offering competitive compensation, providing family-friendly policies, wellness perks, conflict resolution training, peer recognition, regular feedback, and comprehensive onboarding programs are key approaches. By strategically catering to the needs of their staff, businesses can reduce turnover and foster an engaged and thriving team, ultimately leading to significant dividends from investing in their people.


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