Understanding the Salon Industry Turnover Rates
Hi there! Former salon owner here, Susan Wos at your service. Sometimes being a salon owner can feel a bit isolating. We wonder if our salon industry turnover rates are normal, or how many salons experience the kind of employee turnover we do.
We took a poll of over 10,000 beauty professionals, hairstylists in particular to find out how many salons they have worked in. All participants have been licensed for over 5 years, so this is a great snapshot into what is really going on with salon industry turnover.
There are many factors as to why salon professionals leave an owner. Leaving out reasons to quit, such as relocation, motherhood or major life changes, generally speaking, when employees feel valued, they stay.
Same goes for booth rental and salon suite rental. As humans, we almost all want opportunity for advancement and to feel aligned with our work environment.
When a salon company invests in their top talent, when managers and owners truly care about hairstylists, turnover is less.
Get more salon industry statistics on this page.
Why do salon owners struggle to retain beauty pros?
The beauty salon industry is about feelings. Sure, we all want disposable income, but what good is a bucket of cash when you don’t feel valued or like your opinions matter at work?
Some hair stylists, nail technicians and other beauty professionals view their first jobs as stepping stones. MOST of the time salon professionals don’t start in your salon with this mindset, it develops over time.
Once salon professionals feel new ideas given to salon owners are ignored and their growth rate is limited, problems crop up. They begin to think about what is next in their careers and stop envisioning a career within your business.
Beauty Salon Industry Insights | Strategies to reduce turnover in salons
Hair salons that have lower salon industry turnover rates invest in their people. It’s easy to be discouraged when you have been burned.
Supporting your hair salons’ staff, demonstrates caring ownership. Yes, it’s really that simple.
When stylists feel valued, they align with your brand. Hairstylist are also more honest when issues crop up and are less likely to leave you high and dry for another salon.
Shed light on how your employees feel by communicating on a regular basis. Give salon staff the opportunity to be heard and feel safe, I promise the return is wonderful!
Top reasons salon industry pros leave salons
Not enough training. Salon clients demand great services. When hair stylists can’t perform up to the salon business standards, it breaks their confidence.
Consider this in your hiring cost- a focus on proper training are great retention strategies. Great hair services come from confident and well trained hair stylists.
There are several training services provided online at a low cost! Consider a virtual training program to increase overall productivity. Search our salon consultants, coaches and mentors for online programs.
Misalignment with businesses and employer values. Hiring a earthy stylist in a non eco friendly salon means they don’t feel aligned with your salon culture or your clients. They may have taken the job for the wrong reasons.
Strong salons have great communication! Evaluate who you are as a salon owner, and lead the future employee to understand who you are and what you expect.
Staying on top of salon industry workplace trends
Gone are the days of a 40 hour work week! The salon industry market demand is great pay, opportunity for growth, freedom and flexibility.
Beauty pros generally don’t go into a new position with specifics on hair coloring services or how much disposable income they will have working for you. The market demand is freedom of services and scheduling flexibility.
Industry growth for seasoned salon professionals. The trends for salon industry pros with a good base of clients is booth rental. The problem with being independent is this can come without much thought as to what it takes to run a successful beauty business.
Offering the type of freedoms that booth renters receive in independent salons can strengthen salon companies.
Consider becoming a hybrid salon or restructuring your company to meet the independent’s trends in an employee based environment.
Salon Industry Statistics from 10,000 Beauty Industry Professionals with 5 + Years Experience
These salon industry statistics showed us that turnover isn’t as high as we had assumed. The facts speak for themselves- happy hair stylists stay in salons they love.
The beauty industry is known for its dynamic and ever-changing nature. Behind the glamorous world of beauty lies a high turnover rate among salons and professionals- especially early on in their careers.
We chose stylists who have been in the industry for at least five years.
By examining these numbers, we aim to shed light on the salon workforce behavior and offer insights into this fascinating industry.
How big is the salon industry market?
There are approximately 500,000 beauty salon industry businesses in the US. This fluxuates based on numbers from the census and from state board licensing statistics.
Some states include salon suites in their statistics on licensed salons, spas and barbershops. The hair care industry is in constant flux. If you are curious about the local salon industry, contact your state board for accurate numbers of hair salons and beauty professionals in your area.
Hair salons with the least turnover
Our poll reveals intriguing statistics about salon industry turnover rates. Here’s what we discovered:
Working in Single Salons: 7% of the salon professionals surveyed have dedicated their entire careers to single salons. These individuals have found a comfortable work environment that suits their needs and provides long-term stability.
Small towns tend to have the least amount of hair salons and job opportunities. Our more rural beauty salon industry pros move salons less than hair care pros in larger cities.
Legacy Businesses
A legacy hair salon or employees inheriting a family owned beauty business have the lowest turnover rates. When mom or sister owns a small business and has established clients, hair salon pros stay.
Legacy or family owned nail salons and hair salons groom children and family members to get into the industry sector they are most interested in. These beauty salon industry pros see the hard work it takes to be successful. From a young age they strive to fill a position in the family hair salon where they lead or fulfill roles they are best suited for.
Transitioning to Multiple Salons
As we move to professionals who have worked in multiple salons, the numbers steadily increase. We found that:
18% of salon professionals have experienced two different salons during their careers. This suggests a certain level of adaptability and a willingness to explore different work environments.
19% of beauty salon industry professionals have worked in three salons. This indicates a growing trend towards seeking varied employment experiences.
21% of hairstylists have worked in four salons, reinforcing the notion of professionals actively seeking diverse opportunities within the industry.
Salon Workforce Behavior
The global market offers an endless amount of opportunity in hair salons. The grass is greener for many salon pros who struggle to achieve the growth they desire.
Not getting enough hair coloring services on your books or limited growth in customers often makes beauty salon industry pros wonder… is there something better for me in another hair salon?
It’s true, some hair salons hire employees that have not made informed decisions. Miscommunications and unclear offerings from companies have the highest turnover.
Outlining employees growth potential, giving them new customers and listening to your salon professionals is the key to successful hair salons. Support and listen to the employees concerns and industry aspirations- this will allow you to retain the best talent in the market.
Salon professionals have a lot of options these days. If you are on the hunt, discover new salon jobs and booth rental opportunities.
Constant Change: Cues for Hiring Salon Owners
As the numbers progress, we observe a gradual decrease in the percentage of hairstylists moving to new salons. This suggests that after a certain point, stylists tend to find stability and career satisfaction.
8% of professionals have worked in five salons, indicating a preference for change or an ongoing search for the ideal work environment.
6% of professionals have worked in six salons, signaling that a small segment of the industry embraces continuous exploration and change.
3% of professionals have worked in seven and nine salons, respectively. These individuals exemplify the willingness to adapt and the pursuit of personal and professional growth.
8% of professionals have worked in eight salons, and 7% have worked in ten or more salons. This minority tends to continuously seek fresh experiences and challenges.
Reasons for salon industry turnover
Hair salons can provide the best customers, services and education available and still have high turnover. So much of what makes a beauty salon industry pro happy lies within the staff, management and salon leadership.
Drama, lack of professionalism, unreasonable industry expectations and more go into what makes employees feel happy and want to stay. Our industry has a leadership crisis.
Owners get caught up in the business and services when they need to focus on a positive work environment.
Great hair coloring services is just a small piece of what makes hair salons successful. A stronger focus on the employees or booth renters of your business will yield happiness and better retention.
Salon professionals are finding their voice and the representation they need to find long term happiness with companies like Enlightened Hire to reduce turnover.
Understanding the Reasons Salon Professionals Leave Salons
The salon industry turnover rate can be attributed to various factors.
Career Advancement: Many hairstylists seek career growth and development opportunities, which may not always be available within their current salon.
Moving between salons enables stylists to learn from different mentors, gain exposure to diverse clientele, and expand their skill sets.
Cultural Fit: Salons can vary significantly from one establishment to another. Professionals tend to seek salons that align with their personal values, work ethic, and artistic vision.
Moving salons allows them to find clients and an environment that fosters their creativity and supports their professional aspirations.
Market Trends: Changing trends and client demands can influence stylists to explore different salons. By moving to salons that cater to specific niches or offer innovative services, professionals can stay relevant and meet evolving customer expectations.
Is the salon industry growing?
Yes. As the population grows, clients demand for services increases. Our industry suffered during covid. Stylists retired or quit, leaving many consumers without the services they were wanting.
What is the average revenue of a salon?
This depends on your business model. Booth or suite rental income has a cap on how much you can make as an owner. Commission salons have a greater opportunity for revenue.
What is a good profit margin for a salon?
A 10% profit margin is considered a reasonable target for salons to be comfortably profitable.
Workplace Factors that can impact Salon Staff Turnover
The turnover rate within the salon industry is a complex phenomenon. Our survey, based on interviews with over 10,000 salon professionals, provides valuable insights into the patterns of movement within this dynamic industry.
From those who find a lifelong home in a single salon to those who continually seek new experiences, the industry offers a range of career trajectories.
Understanding the reasons behind these movements can help owners and professionals alike create work environments that promote growth, satisfaction, and longevity. By adapting to the needs and aspirations of salon professionals, the industry can nurture talent and create a sustainable future.
