it’s all about

GROWING YOUR BUSINESS

At HITO we’re committed to the success of our industry. That’s why we asked the NZ Institute of Economic Research (NZIER) to examine the impact of apprenticeship training on salon success.

Their results were conclusive.

They measured the return on investment (ROI) for six different salons, and found that all six had a positive ROI after 1 – 2 years.

In fact the longer the apprentice stays the greater the financial return. This is because apprentices boost the productivity of your other staff by freeing them to do more profitable work.

‘IF  YOU’RE  NOT  GROWING . . . YOU’RE  DYING’ 

especially in tough economic times 

GROW  YOUR BUSINESSGROW  YOUR  PROFITSGROW  AN  APPRENTICE

IT’S  A  FACT!

research shows that . . . SALONS  BENEFIT  FINANCIALLY   FROM  HITO  APPRENTICESHIPS  

Research by the New Zealand Institute of Economic Research (NZIER) measured the return on investment (benefits versus costs) of a HITO apprenticeship in six different salons.

At four of the six salons, employing an apprentice was profitable in year one. In the other two salons, it was profitable by year two.

Overall, the research showed that as long as the apprentice stays with the salon for two or more years, employing apprentices is profitable.

The longer the apprentice stays, the greater the financial return to the salon.

HITO apprenticeships increase salon productivity.

Learning new skills means that over time apprentices can:

• do more tasks • work to a higher standard • work more quickly

By freeing up stylists, HITO apprentices also boost the productivity of other staff in the salon.

liftingproductivity

IT’S  A  FACT!

research shows that . . . SALONS  BENEFIT  FINANCIALLY   FROM  HITO  APPRENTICESHIPS  

increasing your revenue

At the beginning of an apprenticeship, the apprentice performs basic activities (like shampooing and cleaning) that support the smooth running of the salon and frees up stylists.

Over time, apprentices take on more tasks (like foiling) which further frees up stylists to carry out more client services. This can be highly profitable for salons.

Later on in the apprenticeship, the apprentice directly generates revenue by having their own column and becoming a fully skilled stylist.

2

3

1

apprentices bring in more profit than they cost to train

$REVENUE

COST

YEARS 1 5

non-financial benefits

• Succession planning – Having apprentices at different stages enables salons to accommodate a range of tasks, and to replace staff who leave.

• Moulding home-grown staff – The apprenticeship allows the salon to create stylists immersed in the salon’s culture and values.

• Youthfulness – Salon owners valued the apprentice energy and vibrancy; new ideas; ability to keep stylists on their toes; and ability to attract younger clientele to the salon.

All salon owners interviewed in the research thought there were many benefits which make having an apprentice worthwhile. These include:

Capitalise on the benefits

Putting the right structures in place helps ensure your salon gets the most out of the HITO apprenticeship.

• The more in-salon training invested up-front by the salon, the more quickly apprentices become productive.

• Consider the best mix of apprentices to stylists: getting the right mix of staff is essential.

• The optimal ratio varied from one apprentice for every stylist to one apprentice to every three stylists.

• Incentivise high performance by the apprentice: use bonuses and other incentives for encouragement.

• Incentivise stylists to use the apprentice: give stylists commission/higher wages for the work apprentices undertake for them.

Reduce the costs

Doing things smarter helps minimise the costs of an apprenticeship.

• Optimal time for training: train in the evening or during the day at a time when the salon is less busy than normal.

• Train efficiently: train several apprentices at once, or conduct joint training with other salons.

• Make the apprentice pay the HITO apprentice fees, so the apprentice has some “skin in the game”. (As an incentive consider reimbursing the apprentice when they pass.)

get the most from a HITO apprentice

Encourage them to stay

The longer the apprentice stays, the greater the financial return to the salon.

• In-salon training is highly valued by apprentices, who frequently stated in the research it is why they stay.

• Recruit the right apprentice in the first place. Use careful recruitment processes and consider involving your staff in the process.

• Encourage the apprentice throughout the apprenticeship with financial incentives, rewards and recognition.

• Provide a wage structure that encourages high performance by stylists. The apprentice will see that staying at the salon is worthwhile.

Understanding the deal

To get the most from a HITO apprenticeship, everyone needs to understand “the deal”.

• This means the apprentice knowing what they get out of it, and the expectations for themselves and others.

• The relationship between the salon and apprentice has to be long lasting, so everyone needs to be clear at the beginning of relationship about the rules.

• Busy salons – as apprentices have the potential to free up more time for stylists.

• Salons with a progressive wage/incentive structure – stylists are encouraged to use apprentices, and apprentices can see the opportunity for high financial rewards in future.

• Salons with high prices – these salons tend to pay stylists more than other salons do, and the value of the time apprentices free up for stylists is high.

• Large salons – as they are better able to achieve the optimal mix, and can achieve economies of scale (e.g. spread the cost of training over more apprentices).

• Salons doing a lot of colour work – as apprentices undertake this cost-effectively from an early stage.

grow with a HITO apprentice

*Other salons will also have financial benefits, but might value more of the non-financial benefits (like having a great home-grown team).

Research shows that these salons may gain the most, financially, from HITO apprenticeships.*

“You generally get out of life what you put in to it. An apprenticeship is no different and gives young and mature people the opportunity to develop their professional and personal competencies in parallel....what more could anyone ask for?”

“Our ‘grow your own’ approach has seen numerous young people flourish with us and develop into valuable members of our teams. We are committed to the “Apprenticeship” approach to employment.”

“...with apprentices we see the value they can offer. Our apprentices are given hands-on experience in a variety of job roles, and we’ve found that this is a great way to develop raw talent, ensuring they have the knowledge and skills we need to progress in the future.”

“A lot of training happens in the salon, rather than the classroom…because experience is vital. Apprenticeships let you practice your skills and build your confidence - which is what you need to move on in your career.”

www.hito.org.nz

For more information about this report contact your HITO Sales & Liaison Manager or call us on

(04) 499 1180.

You can also download the full report from our website www.hito.org.nz