Training

Setting Targets For Salon & Spa Staff

3 min

Setting Targets For Salon & Spa Staff

Targets are a fantastic way for you to motivate and focus your salon or spa staff on a goal that will ultimately grow your business and impact your bottom line. Well-planned targets should also allow you to measure results and performance within your team. This can be great for working out where employees need additional training or support! The question is: where do you start?

spa staff

Figuring Out Target Figures

There are many ways to set targets within your business. Choosing the right ones, however, will depend on numerous factors.

Method #1

One way to do it is to start by looking at your expenses. Think about your rent, insurance, wages, stock and other bills. How much does it all actually costs you to run your salon every week, month or year? Once you have that figure, you’ll know exactly what it takes to cover your overheads.

Based on this new overheads figure, you should be able to calculate a profit goal. Divide your goal figure by the number of salon or spa staff working at the salon to then assign a target to each team member. This figure is what they’ll need to bring in each week/month to ensure you are falling into profit.

Method #2

Another formula would be to take each staff member’s daily pay and multiply that figure by 3. That number is what the employee needs to bring in for you to allow you to cover costs – aka their target!

Splitting Retail And Services Into Different Targets

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Most salons I speak to don’t have a separate retail target and service target. Instead, they work with one overall target!

As I’m sure you know, retail is a struggling point for most salons. One way to overcome this obstacle with your team is to have a separate retail target in place.

On average, the salon split for retail and service is 90% service and 10% retail. A good start is to decide that 15% of your overall target figure should come from retail while 85% should come from services.

*You can build on this over time.

What If Spa Staff Targets Are Missed?

spa staff

The beauty industry is a fast-changing one and like many other businesses, it has its highs and lows. There will be times when the target is not met. Don’t panic.

If the overall weekly team target is not hit, it should then be carried over and added to the following week’s figure.

As for employees who miss their personal targets, they will miss out on the rewards or incentives in place. However, if this target is consistently missed, then perhaps you’re facing a performance issue. This may require a meeting, training or coaching of some kind to see a change in the future.

Other Factors To Keep In Mind

The goal for your business should be continual growth year on year. The greatest growth tends to be observed within the first 5 years, reducing thereafter.

There is no set percentage growth you should be expecting every year as each business is different in style, resources and location (for instance, surrounding businesses would affect the expected growth).

Depending on your growth predictions, look at adding an additional percentage to the overall target. Remember, you don’t want to bore staff with the same targets especially if they are achieving them quite easily.

Getting Started

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Let your salon or spa staff know why you are implementing targets. Get them excited and let them see the opportunity and potential for them! If your team achieves target there should be an incentive, bonus or commission available to them!

With a team behind you and working with you to achieve the salon’s targets, you’re not just covering your costs but also running into a healthy profit. Please keep in mind that you will need to keep targets sounding achievable and realistic so as not to lose staff interest.

Example – Jane your target this week is €/£1500 in total which will be €/£300 in retail & €/£1200 in services. You did this last month, so I know you can hit this easily! This is a €/£60 a day retail target- which is only 1 product in a lot of cases.

This type of target-focused environment should always benefit both parties and if done correctly can lead to massive success for the business.

Did you know that as a Phorest user you have access to free training on staffing, reports and retail? For further information or to organize a training session please drop an email at training@phorest.com!

Thanks for reading!

#LetsGrow

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