Staff pay is one of the most sensitive topics in a salon. Set the commission too low, and good people leave. Set it too high, and there's nothing left for the rent. And if the pay scheme is unclear, every month ends with arguments about "why it's so little".
Let's look at the main pay schemes, their pros and cons, and how to calculate pay without spreadsheets or mistakes.
Scheme 1. Commission on services
Staff receive a percentage of the price of the services they performed. It's one of the most common schemes in the beauty industry.
- Pros: staff are motivated to fill their schedule and offer higher-value services; the salon pays only for results.
- Cons: in the quiet season income drops, and people start looking for extra work.
The percentage usually depends on who pays for materials: lower if the salon provides them, higher if staff use their own. If the person is employed, check local rules: in many countries employees must earn at least the minimum wage for the hours they work, regardless of commission.
Scheme 2. Fixed wage
Staff receive the same amount per month or per shift, regardless of the number of clients.
- Pros: predictable for both sides, suitable for newcomers and front desk staff.
- Cons: little motivation to take on more clients or sell additional services.
Scheme 3. Base wage plus commission
A fixed base plus a percentage of services. This scheme often turns out to be the most balanced: staff have a guaranteed income, and the salon has a motivated team.
Example: a monthly base plus a commission on completed services. The fixed part can be tied to the number of shifts worked so that it's fair to those who work part-time.
Scheme 4. Chair rental
The stylist rents a chair or room from the salon and works independently with their own clients. For the salon it's a stable income, but with less control over quality and prices. This model is more of a partnership than employment.
What to consider with any scheme
- Commission is calculated on the full service price. If a client pays part of it with points or a gift card, staff shouldn't lose out.
- Selling a package isn't the same as doing the work. It makes sense to pay commission for services actually performed, not when the package is sold.
- The scheme is written down and easy to understand. Everyone should be able to check their own pay.
Calculating pay without Excel
Doing it by hand in a spreadsheet means hours of work at the end of the month and a constant risk of errors. If all visits are already recorded in the system, pay is calculated automatically.
In SmartBook, payroll and commission calculation is based on completed services: a fixed part for the period plus a percentage of the full service price. Package sales don't count towards commission - only the work actually done does. Each staff member sees their own calculation in their account, so questions like "where does this number come from" become much rarer. Taxes and official payroll are still handled by your accountant.
How to tell whether the scheme works
Once a quarter, compare:
- each staff member's workload (workload analysis);
- revenue per staff member and the share of pay in it (profit tracking);
- staff turnover: if people leave after 3-4 months, the pay scheme may be the problem.
Summary
There's no one-size-fits-all scheme, but "base wage plus commission" with transparent calculation works well for most salons. The key is that pay is calculated automatically from real visits and every staff member can check it themselves. Try SmartBook for free and see the calculation with your own data.
FAQ
What commission rate is normal?
It depends on the industry, the city, the base wage and who pays for materials. Work backwards: how much does the salon need for rent, materials, the front desk and profit, and what percentage is left for staff?
How should tips be handled?
Tips usually stay with the staff member and aren't included in the commission calculation. What matters is that the rule is the same for everyone.
Can different staff members have different schemes?
Yes. For example, a senior stylist can have a higher commission, while a newcomer gets a fixed part while building up a client base.
