Paying above minimum wage in the salon industry isn’t just kind — it’s smart business. You’ll learn how one salon boosted staff loyalty and profits by choosing pay over perks.

KEY TAKEAWAYS
Pay above minimum wage
This salon paid more than any other in the area, even if it meant cutting back elsewhere. They believed higher pay was a business strategy, not a cost. It helped them keep staff longer and attract better talent.

Use self-funded improvements
Instead of hiring a decorator, the team painted the staff room themselves on Sundays. They bought two cans of paint from B&Q and wore old jeans. This saved hundreds without lowering pay.

Invest in training, not events
Their Christmas party was a simple curry from a local restaurant. Other salons spent thousands on limos and big nights. This salon chose training over flashy events because it knew development matters most.

Be clear about your trade-off
Staff knew the salon couldn’t afford luxury because it was focused on high pay and training. The team understood the choice. When you’re honest about your plan, people can support it.

Reduce turnover with fair pay
Underpaying leads to more staff leaving. That means constant hiring and retraining, which costs money. Paying well keeps people longer, saving time and cash in the long run.

Raise prices to stay profitable
If you pay more, you must charge more. Otherwise, you lose money. This salon raised prices slightly to cover higher wages without hurting profits.

Try new pay models
They moved away from simple wage-plus-commission. Now some staff get team bonuses or no commission at all. This lets them pay higher hourly rates and still keep everyone motivated.

CONCLUSION
Paying above minimum wage in your salon can cut costs and build loyalty when done right. If you want to grow your business with real results, check out Phil Jackson’s advice at buildyoursalon.com.