How do you pay your employees?
Each time, I’ve listened to business owners who explain their situation to me, it sounds like they are more like the employee and their employees act more like the bosses!. The shop owners pay high commissions, get little help and have nothing left at the end of the day to grow their businesses and make them more profitable. I believe this needs to change if grooming shops are to be thriving, successful, growing businesses that can provide for their employees AND their owners.
Here are the top 10 Benefits to Paying Hourly:
- Consistency - When you pay hourly, you can afford to provide all supplies, equipment, etc, and keep them maintained so that everybody uses the same products and has access to what they need to get the job done. You aren’t dependant on your employees to keep their blades sharpened and their clippers in good repair, or to use the same quality products. You have control of the standards in your shop, which leads to consistency in the grooming.
- Building your Business - The shop owner has the ability to assign jobs to an hourly employee that they can’t to someone on commission. Customer service, cleaning, marketing, inventory, training, ordering, etc,can all be delegated to someone else so you, the business owner, can concentrate on building your business.
- Education - Encouraging further education keeps your staff motivated and challenged as well as brings in new skills and higher quality, which can lead to higher profits. It is in the business owner’s best interest to further their staff’s education by providing the means for them to attend workshops, classes, seminars and certifications. By paying hourly, you can afford to invest in your staff to train them to be the best skilled staff possible.
- Better Care of Pets - A team mentality means the entire shop works together to meet the needs of each and every pet in your care. Whether it’s a puppy's first visit, an old or frail pet that needs support to stand,or a particularly difficult animal, you staff will do what they need to do to get that pet groomed safely and with care. This also allows your more experienced staff to teach while helping a less experienced employee, increasing their education level and skills.
- Improved Customer Service - Pet owners want to you to know them and their pets and know their wants and needs. When you have control of the products, procedures, systems and training in your shop there is a consistency to their visits that shows you care about how they are treated. You can also encourage regular visits through customer appreciation programs that reward their loyalty.
- Staff Retention and Happiness - Teamwork is really important in our businesses. When people are part of a team and share goals and work towards the success of the business, they’re happier and tend to stay at their jobs longer.
- Reduced Stress - When your employees work together, they are able to work at a calm and steady pace. If someone is working with a difficult animal, or gets in a time-crunch, they can help each other out.This lowers the stress in the shop, and of the employees and animals.
- Profitability - Paying hourly allows you to provide entry-level positions for less-skilled people at a lower pay rate, leaving your highest paid employees to do the jobs that need the most skill and experience. This allows you to book more pets and put customer service programs in place that ensure your employees have consistent work year round. This allows you to have higher profit margins so that you can cover your overhead easily, take a salary, provide for your employees and grow your business.
- Opportunity - Hourly employees will have opportunities for raises, benefits, and advancement as they improve their skill and the shop becomes more successful. This also allows for Personal Growth within the business. Because much of the workload is shared, there is more time that can be used towards expanding their careers in creative ways. Staff now has the opportunity to contribute on a higher level to what’s happening in the success of the business in areas such as: event planning, marketing, bookkeeping, or customer service programs.
- Peace of Mind - When you have the systems in place that paying hourly allows, you can easily deal with the situations that regularly arise in small businesses. The loss of a valued employee. need to hire new help, or train existing staff in new skills are all built into your business plan giving you the peace of mind that comes with being prepared, in control of your business and able cope with any situation.
The idea of moving from commission-based to hourly employees may be scary, but if it’s done with a plan and over time, the transition can go smoothly. This is something I work on in detail in The Grooming Guru Consulting. If you’d like more information, please feel free to contact me at firstname.lastname@example.org and start experiencing these benefits in your shop Now!