You’ve completed your studies, got your license or certificate, and are ready to take things to the next level. Once you find a job working in a salon, you’ll quickly find there are two different types of compensation: hourly vs. commission. The goal is to determine which one works best for you. Here are a few pros and cons:
- Hourly offers more flexibility, as employees can be used as needed. This provides more cash flow and resource options. Staff costs are also kept low, as workers will only get paid for the work they do.
- With commission, employees are paid for the work they do (should be more than minimum wage). Employees can earn more money per hour, as they can upsell their services.
- Holiday pay may be more difficult to estimate for workers, as they work different hours every week. Workers may also be inclined to leave with zero hours contracts.
- There is more paperwork involved, as they must receive at least minimum pay. Workers may feel as if they don’t have enough hours or make enough pay so they could go and work for a competitor.
Determining which pay structure works for you and your budget is key. Will renting a chair be more viable, or does the hourly option as an employee sound more palatable. The main factor is deciding which is more important – having a schedule you are tied to, or the ability to establish your own hours, days you work and most of all, the rates you charge.
You’ve worked hard to get to this point – making your own name as a cosmetology may take a little work, but creating a plan from the beginning will help you put things in perspective and serve as a guide as you gain more experience.
A career in cosmetology is very lucrative. A little insight and determination will help get you on the right path. Good luck!