The minimum wage went up on 6th April, and your team is watching. But with thin margins, how do you handle pay rise conversations without it costing you your entire business? Many salon owners kick it into the long grass and lose good people.This episode gives you a simple plan to manage salon pay rises confidently, fairly, and profitably.━━━━━━━━━━━━━━━━━━━━📊 KNOW WHAT YOU CAN AFFORD FIRST* Calculate your total wages (including employer's NI, pensions) as a percentage of your total turnover.* Phil's rule of thumb: for salons with a team and premises, this should sit *below 40%*.* If it's above 40%, a pay rise isn't possible until you fix underlying pricing and profit issues.* Solo operators: Work backwards from what you need to take home to live, not just survive.* *Mistake:* Waiting for someone to ask before doing this calculation. Numbers first, always.━━━━━━━━━━━━━━━━━━━━📊 HANDLE THE CONVERSATION LIKE A PRO* Never answer on the spot. When asked, listen, thank them, and schedule a proper meeting for next week.* Use that time to check your wage percentage and assess their contribution (client retention, average bill, retail).* If 'yes': State you've reviewed everything and their contribution justifies an increase. Offer a specific number.* If 'not yet': Explain the business can't support a permanent increase *now*, but offer a clear pathway (e.g., "If we can hit X over the next quarter, I can make a concrete offer.").* Separate pay conversations from performance reviews.━━━━━━━━━━━━━━━━━━━━📊 GET AHEAD WITH A CAREER STRUCTURE* Don't just react to requests; be proactive. Set a fixed annual point for pay reviews across the board.* Build a simple career structure: Junior to Senior, with clear criteria for moving up each rung of the ladder.* Each level should have a specific pay rate attached. Pay increases are linked to performance and promotion, not just time served.* Help your team understand there's a finite pot of money. If wages and training are high, other things (like Christmas parties or staff room decor) will naturally be more modest.━━━━━━━━━━━━━━━━━━━━📊 LINK PAY RISES TO PRICING* You cannot separate a pay rise from your pricing strategy.* If your wage bill is at capacity and a team member deserves more money, it will hit your profits unless you also increase your prices.* Costs are rising; revenue cannot stay flat.* Give clients notice (30 days maximum), keep communication simple and confident. Clients who value your services won't leave over a reasonable increase.━━━━━━━━━━━━━━━━━━━━📊 RESOURCES:Get Paid Properly: getpaidproperly.com━━━━━━━━━━━━━━━━━━━━💬 WORK WITH ME:1:1 Coaching: https://buildyoursalon.com━━━━━━━━━━━━━━━━━━━━🎧 LISTEN:YouTube: https://www.youtube.com/@BuildYourSalonSpotify: https://go.philjackson.me/SpotifyApple Podcasts: https://apple.co/3MZp6jP━━━━━━━━━━━━━━━━━━━━CHAPTERS:0:00 - Navigating Salon Pay Rises and the Minimum Wage1:10 - Calculate Your Salon's Wage Percentage (The 40% Rule)3:30 - How to Handle a Pay Rise Request (Don't Answer on the Spot)4:50 - Delivering a Yes or Not Yet with Clear Conditions5:50 - Separate Pay Talks from Performance Reviews6:10 - Get Ahead: Proactive Pay Reviews and Career Paths6:40 - Build a Transparent, Performance-Based Promotion Structure7:40 - The 'Finite Pot' of Team Spend and Its Implications8:40 - Link Pay Rises Directly to Your Salon Pricing9:20 - Confident Communication for Salon Price Increases━━━━━━━━━━━━━━━━━━━━#SalonPayRise #MinimumWage #SalonProfitability #SalonTeam #SalonPricing━━━━━━━━━━━━━━━━━━━━Questions? phil@buildyoursalon.com