Premier Software
Skip to primary naivgation Skip to content
  • Products
    • Salonlite
    • Salon
    • Core
    • College
  • Get our newsletter
  • Login
  • Free Consultation

Should You Be Cutting Costs?

 As we saw the introduction of the National Living Wage, many employers are looking to cut costs elsewhere to help stabilise their business under these difficult conditions. So what can you do to help manage this new circumstance? We take a look at some of the options available to you:

Wage Costs

Choosing to reduce your wage costs is a massive decision and one that should not be taken lightly. If this is something that you do decide to move forward with, it is important that you meet with all of your employees to discuss your reasoning and to discuss an agreed solution. Topics to get their opinion on include: reduction in hourly rates or commission, reduction in hours, additional unpaid holidays or extended lunches, or even potential redundancies. Once you and your staff come to an agreement, it is key to amend their contracts. Communication is important and you should make sure that you meet with each employee separately to discuss.

Propose Ideas

Whilst you can’t breach contracts and cut your staff’s hours without permission, you can give notice of change. For example, you can make your employees aware that in six months’ time you will be stopping time and a half for any overtime undertaken. Or stopping the option of overtime altogether. It is better to discuss all ideas with your staff because you will be needing them to agree with you before you can move forward with a plan.

Consider Redundancy

If you have tried and exhausted every other option available to you, then it might be worth considering redundancy. In this instance, redundancy is a dismissal therefore procedures should be followed correctly and your selection criteria should be as clear as possible and non-discriminatory. You need to be aware of your employees rights when moving forward with this decision. Employees must have a minimum of two years’ service to claim a redundancy package and the costs are outlined as suck:

Between the age of 16 – 22: Half a week’s pay for each full year of service

Between the age of 22 and 41: One week’s pay for each full year of service

Over the age of 41: One and a half week’s pay for each full year of service

Other Options

  1. Be strict with staff holidays and only approve their holiday during quieter periods in your business.
  2. Consider hiring staff for a 37.5 hour role, rather than a 40 hour a week role. This could help save you almost £900 a year.
  3.  Similarly to the first point, you know when the quiet times are in your salon so it may be worth shutting down during this time.

 

Has your business had to go through some recent cut backs since the introduction of the National Living Wage? Leave a comment below, we’d love to hear about your experience and how you managed to handle the situation.

Share Blog:

Facebook Twitter Twitter

More blog stories

Why priority bookings are vital and how to offer them

There will likely be a surge of bookings when you reopen, but how do you go about prioritising them? Now, more than ever, it’s important …

Find out more

Is your business future-proof?

In 2017, we are more tech-savvy than ever before. Our phones are glued to our hands and have become a personal accessory which we colour …

Find out more

Four ways to keep your business ticking over during COVID-19

Maintaining your business amidst the impact of coronavirus can be a daunting prospect. However, there are plenty of vital things you could be doing to …

Find out more
View all blogs
  • Products
    • Salonlite
    • Salon
    • Core
    • College
  • Support
    • Software Support Centre
    • Online by Premier Software
    • Webinars
  • Case Studies
    • English Lakes Group
    • The Landmark London
    • Nant Ddu Lodge Hotel & Spa
    • Alexander House Hotels & Utopia Spas
  • About Us
    • About Us
    • Partners
    • Social Wall
  • Careers
  • Contact Us
  • Login
  • FAQs
  • [email protected]
  • [email protected]
  • Privacy Policy
  • Cookie Policy
  • Terms
  • SalonLite Terms
  • Acceptable Use
  • Contact us

    Call:
    +44 (0)1543 466580
    Email:
    [email protected]
    Address:
    9 - 11 Heritage Park
    Hayes Way
    Cannock
    Staffordshire
    WS11 7LT
    Book a free consultation
  • 9 - 11 Heritage Park Hayes Way Cannock Staffordshire WS11 7LT
    Telephone: +44 (0)1543 466580
    © 2021 Premier Software. All Rights Reserved.

    • Webinars
    • Terms
    • SalonLite Terms
    • Acceptable Use
    • Cookie Policy
    • Privacy Policy
    We use cookies to give you the best experience possible. Click 'Accept' to continue exploring or find out more in our cookie policy. Read More… Accept Reject