143: Earn Your Worth

I recently read an article in Modern Salon, with exciting news about the potential and stability of the beauty industry.

A study was recently carried out in 330 salon locations across 36 states, representing approximately $184 million in payroll compensation. The study involved the submission of W2 earnings from 3,391 employees and a 50-question survey that gathered both qualitative and quantitative information. The study team wrote the survey and a think tank was assembled to review it for any methodology errors or biases.

The Study findings were revealing. Previously published statistics on beauty professionals showed low hourly wages and little opportunity for growth. This updated research tells a different story.

Here are the results of the study:

·         The average hourly rate for a salon professional in the study was $38.37/hour.

·         24% of those surveyed earned more than $48.08/hr—the amount necessary to earn $100k+/year if adjusted to a 40-hour work week.

·         The average W2 was $54,307, but if adjusted to full-time hours, that went up to $79,807.

·         Beauty pros enjoy flexibility in their hours. The average amount worked was 27.8 hours per week, and 99% of owners offer scheduling flexibility.

·         96% of salons are offering benefits to employees and 90% offer new hire training programs/ongoing education.

There were many notable findings from the study, which those familiar with the salon industry may not be surprised to learn. But for the first time, we have data to educate owners, professionals, prospective students interested in a career in beauty. One exciting finding in the Study was the potential and stability the beauty industry offers. There are 30+ careers available to beauty pros and 94% of businesses are hiring.

“While other industries are doing mass layoffs or contracting their workforce, the data shows plenty of open jobs in the beauty industry. There’s a level of job security in the beauty industry that other industries don’t provide.”

“The data confirms what many industry insiders know—a career in beauty offers the potential for strong earnings, scheduling flexibility, and the ability to practice a craft you love”. “This data can help bridge the gap between perception versus reality on what a career in beauty really looks like, for those inside and outside the industry.”

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Transcript

Unknown: 1:32

I recently read an article in modern salon magazine with exciting news about the potential and the stability of the beauty industry. And I cannot wait to share it with you. Well, hey there. This is Danise. And this is the Salon Ownership Made Easy podcast for salon owners who are searching for simple solutions to their everyday challenges. I've owned several six and seven figure award winning salons in my 30 year career. With so many changes happening in our industry these days, it seems like salon owners need a shoulder a hug and a big dose of reality. Think about it. We didn't learn how to be successful salon owners in beauty school. So why don't you let me share what has worked and what hasn't worked for me over the years, you do have what it takes to be amazingly successful. So let's do this. I'm excited you're here. Like I said, I've recently read an article in modern salon with great news about the stability of the beauty industry. Everybody seems to be on edge about that about where's our industry going? Well, this is wonderful news, it actually shows that our beauty industry is actually really, really secure. Let me explain. Okay, so there was a study that was recently carried out in 330 Salon locations across 36 states, this represented about$184 million in payroll compensation. So the study involved the submission of w two earnings from almost 3500 employees, and it had a 50 Questions survey. So let's see what the study revealed. Okay. So probably, as you're guessing previously, the statistics showed low hourly wages, and very little opportunity for growth. I mean, how many times have we heard that the average median income for a hairstylist is somewhere around $26,000? Right? I mean, it's an old story. We've heard it time and time again. However, this updated research, it tells a different story. Let me break it down. It shows that the average hourly rate for a salon professional was $38.37 an hour. Yeah, I know. So 24% of those surveyed earned more than $48.08 an hour, the amount necessary to earn $100,000 a year, if you worked a 40 hour a week, but most of the beauty professionals out there, they didn't work 40 hours a week. In fact, the average amount worked was 27.8 hours per week. And 99% of owners offers scheduling flexibility. That's pretty good. That's really good. So the average w two was $54,000. A little bit over. But if you adjusted it to full time hours, instead of that 27 hours per week, that average would be almost $80,000. That's not bad. That is not bad. Push a little bit harder, and that easily 100,000 a year, easily. Another great thing is that 96% of the salons that were surveyed, they offer some kind of benefit to their employees, whether that be a 401k, vacation pay, paid time off. Health insurance, and 90% offer new hire training programs and ongoing education, which is phenomenal. I love that so much. Because I look I mean, how can you be a brand new hairstylist going into a salon and not have some kind of education. We don't learn everything in beauty school, to hate to bust your bubble there. So what this study shows is that we can get real excited about our careers. There's over 30 career potential opportunities in our industry. And 94% of those businesses are hiring right now. Do you know what this means? That means that while other industries are doing mass layoffs, this data shows there's plenty of open jobs in the beauty industry. That's a level of job security that other industries don't provide. That's something to get excited about. This data also confirms what many of us already knew. A career in beauty offers the potential for strong earnings, flexible scheduling, and the ability to practice a craft that we love. So next time, somebody gives you a slight eye or if you're a new person who wants to be a hairstylist, and somebody gives you a hard time you can go back to This study looked it up. So modern salon.com Show them the statistics, the odds are that you're going to earn more than they will, doing something that you love to do. I just love this. I love it that it kind of bridges the gap between what the stigma is out there. And what reality is stats and numbers don't lie. I've said that many, many times. So I'm super excited about this. And you should be excited about it, too. We're in an industry that you can do just about anything you want to do. Hope you enjoyed this as much as I did. Until next time, have a great day. Hey, there thanks so much for listening to the salon ownership Made Easy podcast today. Would you do us a favor? If you got value out of this week's episode? Will you share it with your friends? And while you're at it, go ahead and leave us a review. That way more business owners like yourself will find us and we can help them with the challenges they may be facing too. Thanks again. And we'll see you next week. Take care