In our third blog of the month we continue with, Why do so many spa and salon owners get into trouble with having employees in today’s business world.
There are 3 simple rules most owners seem to ignore. They are simply the lack of a Legal Structure, the Lack of a Profitable Structure and the Lack of a Management Structure with employees today. Every owner must realize that there are 2 times an employee cost them the most. Without that awareness you have set up your business to fail before you ever hire an employee. Employee Compensation seems to be among the biggest issue with any business owner especially when it comes to those two times an employee cost you the most. Every smart business owner knows having an employee manual is the single most important item for everyone working as an employee. This Employee manual will guide, direct and hold all employees accountable by these 3 crucial items. #1. An Employee Agreement #2. A Policy and Procedure Manual and lastly a Job Description for each service offered within your company, including your front desk and or managers. It is these documents if structured correctly will save any owner a tremendous amount of time, dollars and frustration in dealing with any employee. It is quite simply what an owner doesn’t know that cost them dearly. Laws change as well as business practices. If one does not have a legal agreement that protects your business when it comes to profitability by everything that we have mentioned above.
So here are only a couple of items that need to be incorporated into a well written agreement, there are many.
- Placing a dollar amount on education, so if an employee ups and leaves they owe you for that training.
- Confidentiality clauses, this alone are the new approach to replacing noncompeting clauses.
- Compensation needs to be spelled out so an employee knows exactly what one needs to do to qualify for a salary increase whether commission, hourly or a combination.
- A Retail compensation program that rewards an employee or Renters differently for different results, creating a partnership.
For more information contact our office.
IN our 3rd Blog, we covered the key elements of an Employee Agreements. And why it cost employers dearly when they don’t have an adequate employee structure that will support and protect the business.
IN our 4th blog we will deal with Booth Rental Agreement. And why it is so important to have a well structured one to protect your future. What it can look like for your business if you don’t have one from the IRS, your State or a judges point of view.
Kassidy’s Management Consultant
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