CONTRACTOR VS EMPLOYEE

Here are my personal tips and advice on how to grow your team in a way that mutually benefits all parties long term and boosts employee morale.

Long Term Goals

I see this question often in the various entrepreneur groups I'm in. Both from business owners and service providers! How do I pay my staff? Hourly? Commission? Space rental? Am I making enough if my boss pays me 25% commission?? These are my own opinions based on my experience, current trends and topics I have been a part of in my various networks. First question you should ask is what are your long term goals? My goal is to work with talented artists in a positive and team oriented environment where we support and help each other grow. In my personal opinion and experience, paying a service based employee an hourly rate is an outdated method and it is not beneficial to the artist. Most service providers dream of working on their own because they can make a lot more money. As they should!

Reality Check

Instead of ignoring this reality, I have accepted it and in fact, I encourage all service providers to find something that meets their needs and pays fairly! As a business owner, this model of course does not benefit me as much as paying someone hourly would but to me, it's more important to have a good team of talented artists long term vs a revolving door of newbies who are desperate to start somewhere and take whatever they're initially offered. There's that common saying, "we all have to start somewhere!" and I do fully believe in that but what if you didn't have to start at the bottom earning minimum wage?! There's a better way! So here's a couple payment structures that I feel are best for service providers specifically related to the beauty industry.

Commission

This is a sales based payout method most suited for someone entering the industry or with some experience and clientele. With this method, you can make as much as you want depending on how much you want work. This is a great setup for those who are wanting to learn more and take advantage of the mentorship provided by working under someone. On average, the business owner will take 30-40% and the service provider keeps 60-70%. The higher cut should ALWAYS go to the artist because they do most of the work!

Space Rental

This setup is better suited for someone with more experience and a good amount of clientele. You don't get the benefits of working under someone and their expertise but it gives you the freedom and independence to build your own clientele and create your own schedule. You can rent a private space on your own or within an establishment like a hair salon, spa or office space. This is great for those who are very motivated self- starters! I would not recommend this approach when you are first starting out unless you have the financial means to pay for rent and product until the business picks up and starts paying for itself.

Shift in the Market

There's a big shift happening in the employment market. People are realizing that they don't have to settle, get mistreated or underpaid at their place of work. Especially as a service provider! We have the choice to make changes and get paid what we think we deserve.

Put it in Writing

Whether you decide to go with commission style pay or a space rental... make sure you have all of the details of your agreement in writing. Contracts protect both parties and help to avoid any potential misunderstandings.

Contact

Beauty by Lirie is my very own passion project backed by my business education and love of self care. Explore my site and all that I have to offer—perhaps my blog will spark some inspiration in your life too!

We are always looking to work with and to grow our network of passionate entrepreneurs and talented beauty industry professionals. Let's connect! beautybylirie@hotmail.com