Salon management ensures the development of a profitable business and can be achieved by any means that are available. Don’t forget that every beauty or hair salon has its own needs, but also its own advantages.

Proper management can therefore optimize customer loyalty, service development and sales of the best possible products to suit the salon audience. Also, the ideal management in today’s era is also about the design and execution of a good marketing strategy.

But for salon management to be efficient, the team must be given equal importance. Not just in terms of its members education, but most of all, in terms of their motivations.


Salon management: Does money really affect motivation?


Initially someone would think that a higher salary would produce better results, but this is not necessarily correct. It has been proven, that the link between compensation, motivation and performance is much more complex. Certainly, pay alone is not sufficient. If we want employees to be happy with their job and be more productive too, money is not necessarily the answer.


Money does not buy engagement

If you are not already familiar with internal salon management, you should know that every employee is motivated by extrinsic and intrinsic motives. Extrinsic are the ones they receive by their leaders and managers and intrinsic are the ones they get from their inner self. Money and pay are extrinsic motivators. There is a natural tension between extrinsic and intrinsic motives. Financial reward, high or low, can sometimes suppress intrinsic goals, such as enjoyment, curiosity, learning, personal challenge etc.

When money decreases a person’s intrinsic motivation, then “over justification effect” is occurred. Research has found that when employees are given money or bonuses for actions they already find intrinsically rewarding, then they become less internally motivated to pursue those activities in the future. It has been proven though that the combination of high payment with challenging goals, is a better motivation for most employees.

According to another research, employees’ engagement levels were three times more strongly related to intrinsic, than extrinsic motives. That is why it is important for a proper salon management to first find our employees intrinsic motivators and offer opportunities and challenges based on those and not to expect pay and bonuses to keep someone motivated. Intrinsic motivation is a strongly predictor of job performance.


Money is not a long-term motivator

But salon management must bring long-term results. Of course, nobody should work for free! We all need money to survive and provide for our families. Once basic needs are covered though, our relationship with money is highly subjective and idiosyncratic. Money is valued by everyone for different reasons, such as power, freedom, love, security etc.

So, each leader must understand, what each employee individually really values, in order to motivate them effectively.

Once high salaries and bonuses are given, they become part of employee expectations for the future. Providing competitive salaries and bonuses to your employees is a must, but high pay by itself will not keep them at your salon longer. Research has shown that personal development is something most employees ask for. Most of them, especially the younger, are eager for growth in the form of training and for opportunities to develop new skill sets.


How can we ensure that our employees are satisfied and motivated for the ideal salon management?

We know that money can be a motivator, but it is unlikely to meet all the necessary conditions. We also know that there is a connection between employee satisfaction and performance.


People need to feel, that their work is appreciated.


In conclusion, money is a condition and part of motivation, but for employees to be more engaged and productive, leaders should also listen to them, acknowledge their intrinsic motivators, evaluate and praise them. Moreover, they should help them grow, give them motives and build a sincere relationship based on feedback, coaching and rapport. All of the above are making for a successful hair and beauty salon management.


With many years of experience in the field of beauty and care, at Salon Proactive we help you organize your business and highlight your hair or beauty salon, based on your own needs. Contact us to find out about the monthly benefits we offer in hair & beauty salons, as well as training and strategic planning services. You can also book a free consultation for your business!