As we start a new year two things happen. Business slows down and the things we do during these quieter times determine how busy we will become later in the year.

One of the most effective and rewarding uses of time over the first three months of the year is conducting staff performance reviews.

The three main benefits of doing this exercise are –  productive use of quieter times, valuable feedback to the people responsible for generating the turnover and the opportunity to plan with your staff how to grow your business and their salaries.

The key performance indicators include:

  • Number of clients attended to
  • The number of regular, referrals and walk-in clients
  • Retention rate – number of first time clients re-booking
  • Average spend per client i.e. average docket value
  • Number of chemical services done versus clients serviced
  • Number of treatments done versus chemical services
  • Retail sales compared to services

These are the key areas in which an increase in numbers dynamically affects both turnover and stylist earnings.

For this process to be successful staff need to fully understand their strengths and weaknesses and then commit to an agreed set of targets which will show their growth (or lack thereof) at the next performance review.

The result is a win, win, win for the clients, for the individual and for the business as a whole.

All the information can be found in the various My Salon Software reports including the KPI report, staff turnover analysis and the client source report.

All you need to do is to make it happen.

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