Mind The Gap!

I’ve been thinking.

Why is there such a gap between what employees and employers want and need in the beauty and aesthetic industry?

Or is it actually that we really deep down want the same things?🤔

It’s becoming increasingly clear that in the post covid world, things have changed. It seems like the gap between what employees and employers want from each other is like an unsurmountable iceberg at the moment. With employers screaming that there’s no employees to find - and those who do come along aren’t willing to do "what it takes".

And employees shouting equally loud that employers have unrealistic expectations, apply too much pressure on them to perform, and not providing a space for them to thrive and feel supported.

So to get an understanding of what the real issues were I posted an anonymous question box on my instagram - and boy did it get flooded!

There’s no doubt both employers and employees in our industry feel some pain points (personally I think almost every industry is feeling similar pain points to be honest. It’s not isolated to us). 

Times HAVE changed. And I personally think a lot of it is for the better.

I remember back in the days when I started as a therapist.
I worked 4 late nights, every Saturday and got paid minimum wage for 3 years, never had a lunch break, never got a thank you.
Super? Nah….that seemed to be an "optional extra".
When I left I gave 3 months notice and all I got was “you’ll never make it on your own, you’ll be back in a month”.

Is this really what we want for the next generations?

There is SO much evidence out there that shows that when people are happy and engaged they produce better outcomes.
But I think a lot of employers dont know HOW to make that happen and still balance the books. And we NEED to balance the books.

After all, being a people over profit business doesn’t mean “give your team everything they want at the expense of the business running at a profit”.

That’s not beneficial for your people in the long run - neither your team or the people you serve. Because sooner or later that means shutting the doors.

Or you the employer get overwhelmed, overworked and underpaid. And it’s really hard to show up for yourself, your family and your team when you’re feeling that way.

 

This used to be me!

When I opened my business I had a big dream of creating this magical space where people loved coming to work and where I could make a decent living from owning my own business.

What I found instead was that running a business is NOTHING like treating skin and just having people magically be invested in coming onboard. It was learning how to balance my books, manage conflict, motivate people, dealing with difficult personalities - and just a HUGE mountain of things I didn’t know how to do. Like fixing the bloody wifi....🙄

So I got advice from coaches in the industry.
I learnt a lot! But looking back now, the “old fashioned” way of running a business just wasn’t beneficial in my case. In fact it was pretty detrimental.

Instead of helping me create my magical, happy profitable business, it was largely focused on how to increase revenue and very little attention was paid to the process of how that happened. 

On the way to becoming a 7 figure business I literally made 99% of the mistakes out there because I didn't know any better.

And it nearly made me want to sell my business - because I didn’t see a way out.

My coaches gave me completely conflicting (and confusing) advice. It was either “give them everything so they don’t leave - and just take less profit for yourself” OR “people are just resources, there to make as much profit as possible so they can step up and make their targets - or ship out”...

After seeking help from a mentor who wasn’t in the industry, and who worked with leaders and founders in both government and Fortune 500 companies - I found my secret sauce to start changing things around and find the balance needed.

Today, my business is a dream. Incredible, passionate team members who motivate and cheer on each other - and who genuinely love coming to work. We’ve found the way to balance Care and Accountability.

People and Profit.
And I love nothing more than seeing other owners build amazing purpose driven businesses and make more profit and joy in the process.

 

This blog is about helping our industry grow and thrive - both employers and employees.

And not to be dramatic, but I think in fact our industry’s future depends on us course correcting. 
MOST of these pain points we seem to have, could be fixed with greater empathy, communication and learning each others’ perspectives.

I’m definitely not saying I have all the answers - but I’ll give it a crack and try my best to highlight some of the points with some thought provoking perspectives from both sides. Some of you will feel a bit reactive. If you do, ask yourself why. And some of it might not resonate at all. But I hope it provokes some insight and reflections on a whole.

Now, I’ll preface this piece with a comment that if you’re an employee or an employer who is being bullied, legally under paid, or mis treated in any way, there will be some points here that won’t apply to you. There’s never an excuse for that.

So if I say for instance “have an open conversation with your employer” and that employer has made it impossible to approach them in a safe environment, it’s not your responsibility to put yourself in a harmful situation.

But ask yourself “am I REALLY not able to talk to my boss, or does it just feel uncomfortable because I dont like “confrontation”?

Read both the perspectives and try and remember that some things won’t apply to you - but try and reflect without judgment nonetheless - and be honest with yourself…

Here we go....

 

1. Rosters, flexibility for time off, work life balance…

Employers:
Times have changed. Don’t you feel it too? Don’t you have a greater need or desire to spend more time with your loved ones after covid? Of course you do.
And employees feel the same way.
We must be empathetic to our people and try and understand what their world looks like from their perspective.
If you’re so tight for staff that you can’t give people time off then you’re hopefully recruiting!

Annual leave is a part of running a business with employees and we ALL need a break. It’s how we all reset and regain energy and creativity. 

Of course you’ll need to make sure you have a well understood protocol for applying for leave. If you have any blackout periods, how long before do you need to apply, and what happens if someone else is on leave at the same time.

Personally we try and accommodate MOST applications by trying to be flexible. It doesn’t mean it’s always possible - but more often than not it is. The reason for this is that we proactively hire. Most of the time we have slightly more staff than we have rooms available. If you know your numbers and give your team the tools to be highly productive you’ll know that this is a smart strategy.

When you really get over the mindset of “how can you take time off when we have clients to service” you realise that the benefits of giving people this work/life balance will be beneficial in the long run.
I suggest you also take into account the bigger picture - the culture profit and loss.

Now, one of the biggest pain points for employers AND employees is late nights and weekends.
At HÜD we have cut our late nights to 2 out of 5 nights to make it more balanced for our team. Is it a highly sought after time? YES. Could we make more money if we were open late every night? Absolutely YES. Is it worth it to have a consistent, fair roster based on work/life balance so people stay longer and are happier at work? HELLS YES! 

I think it’s unrealistic to ask people to work late every night and work weekends.
We have to remember that our employees have personal lives and friends to spend time with. And being able to do that makes them better, more fulfilled people! And being more fulfilled means they’ll also be better team mates.
I’ve often been surprised at how little (if any) impact it has on someone’s performance when they get a better roster. In fact, most of the time there performance gets better!

Now, we can’t give everyone Monday to Friday - early finish only. It’s not realistic in the service industry.
So it’s about becoming clear on the balance.

And to illustrate - and address the uneducated comment about employees coming back from mat leave and only wanting to work part time (if you caught my anonymous question box):
I received a dm from a therapist who just couldn’t find a job after coming back from mat leave because they wouldn’t work with her hours - and her old work wouldn’t take her back with less hours - and guys, someone missed out on a freakin star!
She’s now happy in new job working part time, performing better than a full timer and works only mornings and every second Saturday.
Generally, if people are happy and thriving and supported, they’ll perform much better.

Of course the exception to this is when the business is in strife and simply can’t attract clients during the day.
If this is the case then opening late and keeping the team working more late nights might not even be a question.
You do what needs to be done to survive.
But maybe there’s a day time market you haven’t tapped into as well?


Employees:
Imagine if all the shops closed at 5.30…Like, Woolies, Coles, Myer, the big shopping centres….. Hospitals, doctors, dentists…
If ALL service businesses closed at 5.30 and didn’t open on the weekends - I think you’d be pretty damn unhappy. When would you go to the shops? The hairdresser? The .........(insert your fave restaurant here).

It’s the same way for your clients. If you never give your clients the opportunity to see you, you also won’t be able to help the people you want to help. Hopefully that’s why you’re in this industry right? To help people in some way?

At HÜD our evening and Saturday wait list is beyond ridiculous. And when we talk about it with the team we have come to an agreement that there needs to be a balance otherwise we’d never be able to see some of our favourite clients. Our clients aren’t the rich “all day lunching” clients - they’re people who work daily like you and I.

And I’ve heard lately that it’s “so bad in the beauty industry”….
Ummm, do you think it’s different in the corporate world?
Most people will tell you, even though they have a 9-5 job it’s frowned upon if they leave at 5. It’s EXPECTED that they put in extra hours (unpaid) overtime.
Often camouflaged with free beer and pool tables and yoga classes to make it seem like it’s all good in the hood...

If you truly love this industry, then talk to your employer about how you can find balance. And try and understand the position they’re in also - for them to be able to pay you - and have an impact on clients - some late nights and weekends is to be expected for most work places.

 

2. Targets/ Performance pressures

Employers:

One of the main complaints I hear from therapists is around unrealistic expectations when it comes to performance. And feeling talked down to, shamed or called out for under performing. So let me ask you this: Do you think someone will perform better or worse if you tell them they’re doing poorly? C’mon… It’s not going to motivate anyone.

What I’m seeing a lot of of in our industry which is fundamentally flawed - is that most owners don’t actually take the time to understand the story behind the KPI’s.
If you have a low performing team member, have you calculated the profitability of your treatment menu?

Do you know if you’re setting a team member up for failure by having them do a certain type of treatment that just doesn’t have the same profitability or opportunities as others?

If you measure and incentive rebooking, do you tell your team off for low rebooking even though they’re maybe dealing with client who come for hair removal and they’re at the end of their laser package?

It’s your job as an employer to know your numbers and the stories they tell intimately so you can set your team up for success.

And if your pricing is spot on and you’ve taken this into account, then my next question would be “do they have the tools they need to be successful?”
Did you set clear expectations during the hiring process? Did you have a long enough and thorough enough induction? Do you have regular 1-1’s where you go through challenges and brainstorm how to get past them? Do you allow your team to safely fail - to make mistakes without fear?
Do they have a development plan in place? Do you know how to balance care and accountability so you can have hard conversations and give feedback in a caring way?
Do you have a good way to manage your own triggers so you can show up the best version of you?
It won’t help the team if you’re stressed because there’s cancellations and you’re taking it out on them.
It’s actually a self fulfilling prophecy…
And I’ve been there many times!

When we face challenges, receive criticism, or we perform poorly compared to others, we can easily fall into insecurity or defensiveness, a response that inhibits growth.
Our work environments too can be full of fixed-mindset triggers.
When we prop people up against each other - and (often inadvertently but often on purpose) highlight when people fall short, it makes it harder for people on our team to practice a growth mindset.

What about people who have been given all the tools and support but still don’t perform?
Well, my mindset is, they’re probably not the right fit, and you’re holding them back from reaching their full potential by not setting them free…
And you’re also saying to the rest of the team “This is ok”.

Your job as a leader is to enable your team to achieve more than they think possible.


Employees

Simple truth: your employer can’t pay you if you don’t contribute to the financial goals of the business.

If you’re an employee who does your best with the tools you have, and you’re in a work place that doesn’t have a great mindset about acknowledging that contribution, it’s time to approach the leadership about it.
And if you have approached the leadership and you’re being left to the side without any further tools to improve - or you’re being shamed, bullied, threatened (including the veiled threats from employers like “why haven’t you made more money today? It’s already 3pm”…) - then it’s time to leave. 

At HÜD, like many businesses, we have the attitude that if you continually strive to be the best you can be, and keep making wins along the way, then you’ll eventually reach your targets and everyone wins.
And if you don’t, ask for the tools you need in order to succeed and we will give them to you. Because your success is our success.

So you and the Leadership own 50/50 of the responsibility here.
Your job is to ask for the tools you need to be successful - and make sure you take them on and use them.
Their job is to give you the tools you ask for and help you increase your skills, impact and performance by sometimes pushing you in areas that might sometimes be uncomfortable - but that will eventually take you where you need to go.

3. “But I do all the hard work”

Funny how we all seem to think that what WE do is the hardest part! In my opinion, this is purely a lack of understanding and overview on both parts about what makes the business machinery go round.

I saw a comment on a Facebook post the other day, which is actually the post that inspired me to ask the question in the first place. The comment was from an employee, who said “I wish employers realised we’re the ones who do all the work”. 

As an employer I found it really hard to hold back. My first reaction was to set her straight and explain just HOW much work we do as employers. But then I took a breath and realised that there’s likely some nuances - some employers maybe aren't very effective in what they do. And most employees dont know what the job of an employer actually involves.

 

Employees

Here’s a fraction of all the things a business owner does;

• leading people (and that in itself is a whole masters degree!)
• Balancing their profit and loss so they can pay bills, the team and also themselves (and part of the problem I see so often is that owners don’t actually have enough left over to pay themselves!) 
• Marketing 
• Social media! This in itself is a big job that never stops. 
• Thinking of and implementing Systems and processes
• Learning how to read, analyse and understand reporting
• Dealing with conflict 
• Finding ways to attract and retain clients 
• Preparing for and holding 1-1’s and team meetings
• Motivating team members
• Researching the latest in equipment and products
• Balancing rosters and leave applications
• Stock ordering and management 
• Taking the time to lead 1-1’s and team meetings (not to mention the fear that comes with it) 
• Handling complaints from both staff and clients
• Following up with protocols and things not being done
• Cleaning (yes most owners actually spend a lot of time either cleaning because their teams don’t want to or don’t do a proper job of it) 
• Getting to know tech and being able to fix techy things
• Fixing maintenance issues they never trained for
• Cultivating relationships with suppliers and other businesses 
• Staying abreast with legal responsibilities 
• HR management 

Not only is it well and truly a full time and a half job - it’s also constant learning and having to figure things out.

To be honest, the stress and financial burden and 24/7 job of being an owner who is responsible for other people’s incomes, is something I was never prepared for. If we choose it or not (because at the end of the day we did choose to start a business right?), it’s never ending. And whereas an employee might get some negative client feedback and feel bad in the moment, an employer frets about it all night, all day and perhaps longer. 

Every time an employee makes a mistake with a piece of equipment or a peel, there’s a threat or a thought of lawsuit!

When equipment breaks down, oops there goes $20k to fix it….

Clients cancel due to the flu, or the weather - or because the dog ate their keys - owners lose their cool because they know that it comes out of their pocket at the end of the day. 

 

Employers. 

I know being an employer is stressful. I get it. I really honestly do. I am one. I’ve had many days not wanting to get out of bed and do it again. 

What we need to remember though, is that we did choose to take on the challenge. So it’s on us to figure it out. And the best way to do that is outsourcing and mentoring. 

Outsource what you’re not good at - and/or learn to be great at the things you’re not good at but WANT to be good at. There are SO many mentors, podcasts and books out there that can help you.

Mentoring or further education, whether it’s leadership, finances, marketing or whatever else - is all part of being an owner. After all we expect our therapists educate themselves right? So why should it be any different for those of us who own the business? 

When I started with my mentor, I gave him 6 months. He was so expensive that I couldn’t fathom how I could possibly keep him on any longer.  And guess what! We actually still work together 4 years later... I have always invested in coaching and consulting. And I truly believe that has been the key to where I am today. 

So now let’s talk about what your team does...

Let’s face it, most business owners are perfectionists! Which means you have to adjust your expectation slightly and understand that no one will treat your business as if it were theirs. And that’s ok. Because it’s not their business...

I often look at what I’m asking my therapists to do and I often ask myself “is what I’m asking fair?” 

Being a therapist means dealing with difficult clients, difficult conditions, it's physical, it’s using their critical thinking constantly. And for skin therapists, it’s a big responsibility holding a client’s skin in their hands. Things go wrong. Expectations aren't always met. It can be a lot to take on.

All the little things do add up; writing notes, laundry, writing treatment plans, follow ups, learning new protocols, problem solving, cleaning, disinfecting, giving their energy to each and every client, making small talk, connecting with every client…

And let’s face it, customer service isn’t always easy. 

So when someone’s sick, don’t squeeze everyone in by overbooking the rest of the team. 

Don’t make Christmas and December a fully packed nightmare so they have nothing left in the tank for friends and family in their break.

When someone’s on holidays, don’t put the onus on the rest of the working team to make up the money.

Don’t put your stress onto the team and make them accountable when clients cancel - and their opportunity to contribute and reach their target is effectively taken away from them.

Do your best to understand their days and try to make it run smoother and enable them to achieve success - and success will be yours.

 

  

4. Silent quitting.

It used to be said “you should never be surprised at your employees leaving”. As in, if you have regular check in’s and have built an open, trusted relationship you really should see the signs and action them before it gets to that point.

Well, not anymore!

How many of us have been totally side swiped by someone you thought was thriving and engaged and loving their work - only to wake up one morning to an email headed “resignation”! You’d had check in’s and goal setting sessions - and everything was hunky dory.

So what’s happening???

 

Employers

I think we need to issue a reminder that you’re asking your team to be a part of YOUR dream. You’re asking them to give you their energy, to go the extra mile, to give up time with their boyfriend or girlfriend, friends and family - to work for you to make your dream come to life.
In return your job is to support theirs.

The way to do that isn’t by giving them utopia. But it is to balance care and accountability. To get to know them. Their goals, dreams, fears and what’s holding them back from being their best and achieving their best.

I really encourage owners to also think outside the box when it comes to new iterations of job roles. If you have an incredible skin therapist who is wanting to pursue nutrition instead, see if there’s a possibility to keep them on, support their quest for this new direction and maybe it could become a great asset to your business. Or a receptionist who loves social media. Maybe a course and then redefining the role to something great for both them and the business? 

More so now than ever before are people searching for new meaning. This is where it’s important to connect the team to why what they do matters (I talk a lot about leading with Purpose, and this is exactly what it is).

There’s a restlessness that I haven’t seen before. A need to be making up for lost time from the past two years maybe? People have become flighty. Unpredictable. Lost.
A lot constantly think about different careers and different lives. That feeling like the grass is greener on the other side of the fence seems to be the latest pandemic. 

So more so than ever before is it necessary to stay up to date with 1-1’s and team meetings as well as casual check in’s to make sure you know and can act on sings of fatigue, overwhelm, feeling lost or unmotivated.

Your job means knowing your people. This is what leadership is.

Now, if you’ve done all you can to check in, listen to their concerns, action what you can and really given that person the tools and opportunities to thrive - then this is nothing you can worry about. Because it’s not in your control. If someone quiet-quits and you’ve given them all the opportunities to talk to you - let them go and wish them well. 

If you think that perhaps you’re not great at checking in consistently (every week is my preference), setting goals, celebrating milestones along the way or motivating your people, then it’s time to take action. Time to level up 💪

Because silent quitting is a very costly phenomenon for your business.


Employees

I’m gonna say it!

Silent quitting is not ok. It’s not adulting. And neither is this “I’ll just give you the bare minimum notice”. 

There it is. I’m calling it out.

I’m a big supporter of finding purpose and fulfilment in life. And I understand the restlessness post covid. I feel it too...

I’m also here to tell you that often, the grass on the other side of the fence is just as brown. Because it’s up to you to water it and nurture it... 

Water your grass where you stand in this moment. 

It’s time to toughen up a bit and learn not to quit when times get a bit difficult or challenges come your way.

Having 10 jobs in 2 years might not seem like a big deal right now. But on the other side of the recession we’re almost certainly facing, it will mean a) you won’t have stayed anywhere long enough to develop expertise; and b) future potential employers may not hire you as they don’t see any proof you will help out when times get tough. 

I heard this term the other day - “shooting star syndrome” - moving on the moment there’s a bit of pressure, instead of developing resilience and skills to allow you to work through it. That’s not going to get you anywhere. Because learning to work through challenges is a valuable life skill. 

Now, of course - again, the caveat to all of this is if you’re working in an environment where you feel unsafe to speak up.
Apart from those situations, speak up! Talk to your boss.

And if you dont know how - time to put your big girl/boy pants on and start practicing having difficult conversations. In person. Not via text…

Your employer can’t guess what’s on your mind.
And often the things that makes you consider a different career, a different job or a break from work in general - they are things that can be addressed, talked about and maybe changed - if you just have the conversation.

I once had someone leave because they just ASSUMED nothing could be done to change her hours! I wish she’d just spoken to me because what she wanted was possible. Another wanted to do a nutrition course. I would have LOVED to invest in a nutrition course for her. She just didn't think it was something that was possible.

Lots of things (not all) are possible...IF you ask. 

And understand that your end of the bargain when you take a job is that you DO the work!
That’s actually why you get paid. It’s the principle of a job.
You do the work and you get paid in return.

There seems to be this belief going around that work should be ALL fun. ALL easy. ALL minimal effort. Not that I’m against having fun and taking the easy way. But success - buying the things you want to buy, getting a house, going travelling, raising kids one day - it all requires you to work hard. You should absolutely do something you find rewarding and fulfilling. And if that’s not where you are, then give your employer a chance to help you get there.

And if they’re not interested, then you can resign the right way and feel good about it.

 

 

5. Wages

Employers:
Let’s start off with this and get it out there - It’s not ok to not pay per your team’s legal entitlements - ever. Now, I understand you might be doing your own books, and if you do you have to know the legal requirements. I praise my book keeper - he’s worth his weight in gold! Because it’s important to get it right. 

And if you want your team to come in 30mins early to start work then you need to pay them for this time. At HÜD we use this as huddle/planning time. If you want your team to do product training and training specific to the job they do for you, it’s paid time.

If there’s a lot to do at the end of the night and people are doing an extra 30mins nightly, you also have to pay for that.

BUT, I would first look at whether there’s perhaps a process that’s stopping people from finishing on time. If it’s just a matter of working smarter or changing a process or expectation, then work together on finding a solution that will have people out on time.

I have heard of a well known clinic that is notorious for keeping their team cleaning at least an hour every night without paying for it.
Never. On.

Let’s remember we all have hopes and dreams we want to achieve, including the people on our teams.
When it comes to balancing out your wage percentage with net profit - first of all ask yourself if you know that number.

If you don’t, time to get familiar with your P+L!
Investing in staff is a better investment than investing in a lot of other bullshit shiny balls we tend to invest in (hello, latest machine, adding a 4th skincare range, getting in a whole bunch of candles we never sell...). So get to know your numbers instead of guessing you’re over spending on staff when perhaps you might be over spending elsewhere…
Because staff are your greatest asset.

In my opinion, and in my experience both with my own business and the businesses I work with, balancing wage cost and profit is about understanding  how your people get motivated and enabling your team to increase their performance so that there IS a higher profit margin. So you CAN afford to pay your staff well (above award). 

So if you’re finding yourself complaining about poor performance without doing anything about it, it’s time to think about how you need to spend your time differently so that you can provide the tools your people need in order to succeed.

It’s like the chicken and egg - you can't pay people a good wage without money in the bank. But you won’t get money in the bank without investing in your people and providing the tools they need in order to be successful.

Remember, people don’t know what they don’t know.

If you know your pricing structure is one that is setting your team up for success, and someone’s not performing well, it’s either a lack of will or a lack of skill.

If it’s a lack of will, find out why - maybe they shouldn’t be there. If it’s a lack of skill, then it’s your job to ask what they need and equip them to do better.

Employees:
Employers have to balance their profit and loss in order to stay in business - which means for you to get paid what you want, you need to understand the expectations that come with it.

It’s fairly simple: For the business to pay good wages and allocate resources to help you grow - and pay for other things that comes with a great culture - you have to be part of contributing to that profit.
Most employees (and in all fairness the same goes for many employers unfortunately) have zero idea of what the real costs are to run a business successfully. They think that making $100k a month means we sit back and count our $80k for ourselves at the end of the month. If ONLY…

The golden ratio of net profit in business in general is 30% net profit. Well versed employers in our industry are lucky to sit back with 20% profit.
Most sit around 5-15%, which is not enough to live on! Many I speak to don't even take home a profit at all.

And this is just not ok. 

Some of the things you can control that commonly drains the profit of a business and negatively impact the amount an employer can pay in wages:

• overusing products in the treatment rooms
• little extra “freebies” for clients
• not charging correctly
• not rebooking clients at the right intervals
• not selling your clients on the “why” (why should they come back? Why should they choose you? Why should they trust you?)
• having “off days” and losing a client because your mind wasn’t on the client or on the job
• not following protocols
• taking extra time in the treatment room (time is money)
• not taking opportunities to upgrade 
• not retailing with integrity (ie the client comes to you with a problem and you either dont know your products or don’t recommend them even though it will help solve their problem)
• calling in sick if you’re not

All these things have a significant cost to the business. And they all contribute to your opportunities being taken away from you - because there’s not enough money left over in the kitty.

So the best way that you can take control of your own financial situation is to have an open conversation with your employer about what you need/want, and be invested in becoming a great asset who helps the business succeed so that in turn the business can help you succeed.

The thing is, things have kind of gotten out of hand wage wise in our industry.

Because there’s a shortage of therapists at the moment, there’s no end to the chaos around wage offerings and expectations.
Some businesses are trying to do anything to lure people in, like a free car or huge bonuses - only for most therapists to realise once they start that it comes at a steep price.

And on the other side, employees are asking for more money and more perks.
We recently had an interview with someone who asked for $45 an hour (AND was hinting that really she was inconvenienced by travelling more than 20 minutes to work)…

To put it into context, a nurse at the ED makes on average between $70k - $90k. But then they’re salaried, which means overtime! You do the maths...

So are we really saying that the desperation of staff shortage is fairly increasing wages up to 50%? 

Just like the prime real estate on the St Kilda foreshore on Fitzroy street - once bustling with busy cafes, restaurants and bars - now a constant reminder of landlords are asking for so much rent that they stand empty for 10 years…
Because no one can afford it.

There is a certain tipping point where wages are too high for employers to balance their profit and loss.

Now, don’t get me wrong, we ALL need to/deserve to make a good living.
Please don’t think I’m saying anything different.

But let’s explore what’s happening for some at the moment;

Let’s say I’m your employer.
I pay you $45 an hour - which means $65 (rounded off) including all the loadings, super, leave etc etc etc that comes on top that you never pay attention to).
So for me to be able to pay you that I have to expect that my return on that investment is around $400 an hour in order for us to cover all outgoings, product usage etc (which have all also gone up drastically) and have a profit at the end of the day so I can also make a living. After all that’s why I risked it all to open a business right?

So that’s around $65.000 a month.

For me to be able to get a $400 hourly return I’ll either

a) have to make sure our prices are quite high (goodbye to all the clients who are also feeling financial pressures…) - or

b) I have to book you back to back, with an expectation that clients are squeezed into every minute (goodbye joy and community).

Because let’s not forget that training, team meetings, 1-1 times, sick leave, annual leave, cancellations, clients who aren’t rebooked so there’s gaps in your day - it all means that number gets harder and harder to make.

The first option means we’re very limited with the services we offer and the clients we attract. Plus there’s a HUGE part of the population who we won’t be able to help because they can’t afford it.
It’s only possible with high end modalities and high end clients with open check books. Which for a lot of businesses is impossible.

So many shut shop. Which eventually means less jobs for you, the employee. Which means you leave the industry and look for a more “secure job”. Or you start working from home. And guess what, there’s a ceiling there too - how many are feeling the pressures because there’s a home business on every corner all competing on price?

The second option means you feel stressed and tired every day and get burnt out - and leave the industry to look for a less stressful job. Or work from home. Same scenario as above. 

And at this point it all just goes a bit pear shaped, because that means less people in the industry, wage expectations for those left go up and…..I’m sure you get the merry go round picture.

I believe some of these pressures is what gets business owners feeling cornered and making really rash decisions. Which is why so many cope by putting extreme performance pressures on their team.

OR, they simply can’t take home a pay check and support themselves and their families - which I can guarantee isn’t going to get them showing up in a motivating, inspiring way for you. It’s often why you see owners with a slight panic in the eyes.There’s just a lot of risk sometimes, without a lot of reward. 

To be clear, no one should be under paid or under valued.
It’s all about balance.
For you to get paid what you feel you’re worth, you need to know that you’ll be expected to do what you can to be a productive contributor of the business.
That’s the deal.

And that means growing, learning and developing yourself, setting out to be a professional, and taking the client service and the job seriously.

 

To end.

Let’s face it. We’re actually not that dissimilar. 

We all fundamentally want financial freedom, work/life balance, appreciation, a job that is fulfilling and motivating, a sense of autonomy, to be respected, to be valued, to contribute to something greater, and to be secure and safe.

The world is changing. At the moment we’re in an “awakening” phase. Just like when most big changes happen, there’s been a bit of an over correction. 

And I strongly believe there will be a bit of a correction the other way. Not to where we were. Which personally I think is great! No one should be consumed with work - whether you're an employee or an employer.

But to a place of balance. A place where work is a vehicle to create the life we want and also have an impact.

It’s time to get on the same team peeps! We’re a part of an industry that is virtually recession proof and continually growing explosively with no signs to stop.

With care, self leadership, empathy and better communication we can work together to create incredible future opportunities where everyone wins.

 

 

Gry x