Why is the Hair & Beauty Industry Considered a Low-Pay Sector?
Why is the Hair & Beauty Industry Considered a Low-Pay Sector?
In this article we look at:
Shifting perceptions can improve the employed model in the salon industry!
The Hair & Beauty industry is vibrant and creative, generating billions across major economies. Yet, its service sector remains notoriously low-paid. Why is that? Here’s a thought-provoking look at the history, perception, and challenges surrounding pay in this industry, and some ideas for change.
The Perception of Value!
Historically, creative professionals, artists, hairdressers, barbers, were often viewed as less educated and, therefore, less valuable in terms of both societal respect and pay. This perception lingers today, perpetuated by society norms and even through education systems. For instance, students with academic challenges can be steered toward hair or beauty careers, reinforcing the idea that these roles are "lesser" options.
Yet, there are high-paid exceptions. Some professionals break through this “low-pay” barrier, commanding hundreds or even thousands for their services. The difference? Self-belief and value perception. For most, though, the industry remains undervalued.
The Client Perspective
The COVID-19 pandemic revealed a hidden truth: customers genuinely missed their hair and beauty services, not just for appearance but for the personal connection. Many offered to pay double or even triple the usual rate to receive services during restrictions. This period highlighted that, when demand surged, some professionals capitalised on it, and clients appreciated it.
Yet, in everyday circumstances, hair and beauty professionals often hesitate to raise prices, even with full bookings, fearing they’ll lose clients. But the question is, are these fears self-imposed? If clients value the service, they may well pay more. Consider this: high-end clients are often willing to invest in quality, whereas others might overspend on appearance-enhancing services or items as a status symbol. Price, ultimately, is about perceived value.
The Employee Perspective
Let’s look at why is the hair & beauty industry is a Low-Pay Sector from the employee’s perspective. For anyone working in hair and beauty, having a clear sense of personal value is key to career satisfaction and fair pay. Often, employees enter the industry with a passion for the craft but may struggle to articulate their worth or even know what fair compensation should look like. Here’s where self-awareness and preparation come into play.
Questions to Reflect On
Before accepting any role, an employee should have a clear sense of their own worth. Reflecting on questions like these can help clarify what you want and need from your career:
- What am I worth? Recognise the skills and qualities you bring to the table, technical skill, client relationship-building, creativity, and reliability. Think about how much your skills could be worth in different contexts or roles.
- What do I expect from an employer? A great employer will support your growth and respect your contribution, providing a work environment that aligns with your values. If you’re unsure of what’s reasonable to expect, look at industry standards or talk to peers who’ve worked in various salons.
- What do I want from my job or career? Clarify your long-term goals, whether that’s mastering a specialist service, building a loyal client base, or eventually managing a business. This clarity can help you target positions that align with your ambitions.
- How much must I earn to meet my needs, including savings? Don’t underestimate the importance of financial stability. Calculate what you need not just to cover bills but to save and invest in future growth, be that professional development or personal goals.
Setting a Fair Exchange
Once you’ve defined your own value, enter job negotiations with a clear sense of what you offer and what you expect in return. This shifts the dynamics from simply taking what’s offered to actively choosing what’s fair. If you’re uncertain about specific benefits or growth opportunities, ask questions:
- What are the perks and benefits of this job? Beyond basic pay, consider benefits like paid training, holiday entitlement, or flexible scheduling that can improve your quality of life.
- What’s required for me to meet my career goals here? Ask about opportunities to take on new responsibilities, develop specialty skills, or access training resources.
- Does this salon have the client base I want to work with? Working with clients who value your expertise can enhance job satisfaction and help you build a loyal following, which can translate to higher tips, referrals, and even negotiating power for raises.
Taking Control of Your Value
Without this clarity, you could be at the mercy of employers’ offers, which may not meet your true worth. Instead, going into the job search or salary negotiation with a strong sense of what you bring, allows you to engage confidently and make choices aligned with your goals.
Note: Don't exaggerate your skills or abilities, neither the value you think you can bring to the business! Why, because it wastes your time and that of the salon owner, just be honest!
For Employers: Understanding and Supporting Employee Value
When hiring, it’s worth considering that applicants’ expectations may vary widely. Some may undervalue their contribution, while others may expect higher pay without fully articulating their unique strengths. A helpful approach is to encourage applicants to share their goals, skills, and aspirations. Giving them an opportunity to showcase their “brilliance” rather than just ticking the minimum qualifications.
The Employer & Manager Perspective
If you’re an employer with industry experience, you likely hold traditional beliefs about pay. But let’s consider a different approach. The current model, offering minimum wage or a commission percentage, is rarely attractive or innovative, especially as a career-long solution. Instead, employers should think about creating a comprehensive package that includes short, medium, and long-term incentives.
When designing a pay structure, consider not only income but also elements like:
- Personality and team fit: How does this person add to the business culture?
- Technical skill: What skills are you willing to pay a premium for?
- Community influence: Does the person’s reputation enhance your brand locally or within the industry?
Beyond these, evaluate practical business needs such as:
- Investment required: What training or onboarding is necessary to get this person up to your standards?
- Pricing strategy: Are your prices high enough to support competitive pay for this talent?
- Customer demand: Is there sufficient client demand to sustain the applicant’s expected wage?
With these criteria in mind, you can weigh each applicant’s unique contributions and better tailor your offer. For instance:
- A long-term employee who’s fully booked and generates income but has poor new client retention and causes tension within the team might need different consideration than…
- A mid-level performer who may cost slightly more than desired but has great client retention, is popular with clients and staff, and is building a loyal client base.
Thinking this way helps in recruitment and in managing your current team. List the qualities you value most, assign weights to them, and use these as benchmarks to clarify employees' contributions. This approach can help the Hair & Beauty sector move past the low-pay stigma by encouraging salary packages that reflect both the business’s values and respect for the employee’s role.
For more information on innovative pay structures, visit Loop HR’s salon pay structures guide, or book Book a discovery call with me, Ian Egerton, using this link.
Ian Egerton
Founder, Loop HR