Creative HEAD July/August 2019
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#BusinessEdit<br />
KEN’S CLINIC<br />
GOT A BUSINESS <strong>HEAD</strong>ACHE? LET KEN WEST, DIRECTOR OF BUSINESS<br />
EXPERTS 3•6•5, OFFER A PERSONAL PRESCRIPTION<br />
KEN’S DIAGNOSIS<br />
A massive question, Terry! I’m a firm believer in the<br />
employment model – what follows is my personal<br />
opinion and I appreciate that many may disagree with me.<br />
First, there is a moral issue that cannot be overlooked.<br />
If salons and stylists are taking the self-employed option to<br />
reduce the amount of taxes being paid, in any of the various<br />
forms, then sooner or later the HMRC spotlight is bound<br />
to fall on the revenue received from our industry. I would<br />
welcome this as maybe then an equal playing field could be<br />
created for all. At the moment that is far<br />
from the case.<br />
The issue here is the lack of<br />
policing of the HMRC guidelines<br />
that exist for the self-employed<br />
model. Currently, for a stylist to be<br />
seen as self-employed, the salon<br />
they operate in cannot control the<br />
hours they work, the prices they<br />
charge, the products they<br />
use, the clients they<br />
serve, the holidays<br />
they take, their<br />
education and skill<br />
levels, nor<br />
their culture.<br />
Clients also need<br />
to be made aware<br />
of the fact that they<br />
are being served by a<br />
self-employed stylist<br />
and that any complaints<br />
“Our biggest challenge is<br />
recruiting or keeping team<br />
members due to self-employment.<br />
As a company, we offer a<br />
competitive commission scheme,<br />
lots of training, shoots, a pension<br />
scheme and fun events. We’ve only ever been<br />
or wanted to be an employed salon, but do we<br />
now have to give in to the pressure?”<br />
TERRY BOLDERO AND CAROLINE FILBY,<br />
BOLDERO & FILBY<br />
TO READ<br />
MORE FROM<br />
TERRY AND<br />
CAROLINE TURN<br />
TO PAGE 62<br />
or other issues relating to the service they receive are the<br />
responsibility of the stylist and not the salon. I believe<br />
that in most of the salons operating a self-employed<br />
model this is far from the reality! You only need to read<br />
the conversations on social media sites to realise this. I<br />
regularly see salon owners with self-employed stylists using<br />
the words, “team” and “staff” and yet to be self-employed<br />
means you are on nobody’s team nor are you anyone’s staff.<br />
I see owners asking advice on what to do about issues<br />
they have with self-employed stylists and yet the fact<br />
is they have little or no control over those stylists at all.<br />
Doing so contravenes the very concept of self-employment.<br />
Technically you can’t even provide any education to a selfemployed<br />
stylist unless they pay you to do so.<br />
There could also be, as yet unchallenged, issues relating<br />
to GDPR and who actually owns the client data, who<br />
controls that data and what happens to it if a self-employed<br />
stylist moves on.<br />
So, why do I believe in the employed model? Because<br />
I believe in creating brands that can grow, cultures to be<br />
proud of, careers and continuous education for professional<br />
teams of people that benefit from the security of being<br />
employed by a solid and profitable business.<br />
Salon owners need to rethink the employment packages<br />
they offer. The underlying challenge we have in our<br />
industry is pricing. To employ the right people you need<br />
to offer the right rewards. To offer the right rewards you<br />
need to charge the right prices. To charge the right prices<br />
you need to offer an amazing guest experience. To offer an<br />
amazing guest experience you need to employ the right<br />
people. And so it goes, round and round…<br />
DO YOU HAVE A BUSINESS <strong>HEAD</strong>ACHE YOU’D LIKE KEN TO HELP WITH?<br />
Email him directly on KenW@365Hair.com or tweet us at @creativeheadmag<br />
24<br />
CREATIVE <strong>HEAD</strong>