When Australian salons went into lockdown in March, many salons were left with no other option but to stand staff down. That is, enforce leave without pay. And while the introduction of JobKeeper certainly lightened the salary burden for many salon owners, there were also many other employees that didn’t qualify for the payment. And now, with salons re-opened, many are using fewer staff, given the socially distancing rules.
With that in mind, staff that weren’t in a position to receive JobKeeper may be, or have been, forced to look for alternative employment. And yet for many salon owners, building up a strong, loyal team can take years, and letting them go is often the last resort.
“Obviously, no one wants to lose good staff,” says business advisor Jessica Petersen. “However, if you’re expecting staff to remain loyal while not working and not receiving any pay, you’re going to need to be flexible. And one way to be flexible is to allow those staff members to seek alternative work while they’re stood down from your business.”
On any occasion that staff hours or salary is reduced, a new contract will have had to be implemented, Jessica explains. “A temporary contract that shows a beginning and an end date to these new arrangements needs to be signed by both employer and employee. It’s at this point that it should also be outlined whether staff are able to seek out alternative employment.”
Jessica advises that no salon owner prohibit their staff from seeking alternative employment, though it could be wise to stipulate what employment is and isn’t acceptable. “It may not be a good look if your superstar eyebrow technician fills in her extra time at the brow bar up the road,” says Jessica. “So it’s worth including a clause about working with a competitor. But that said, a certain level of understanding and flexibility needs to be exercised. Of course, you have a right to protect your business, but your staff also have a right to earn a salary.”
If you do find out that a staff member has been working with a competitor during this time, Jessica recommends a calm conversation. “Before taking any sort of drastic action, arrange a meeting and talk it out. Everyone is suffering at the moment, and a calm, open conversation will likely go a long way to rebuilding the loyalty and trust you had pre-pandemic.”
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