Training as an Investment
It’s a fact!
Research shows that salons benefit financially from HITO apprenticeships within a relatively short timeframe.
Research by the New Zealand Institute of Economic Research (NZIER) measured the return on investment (benefits versus costs) of a HITO apprenticeship in six different salons.
At four of the six salons, employing an apprentice was profitable in year one. In the other two salons, it was profitable by year two.
Overall, the research showed that as long as the apprentice stays with the salon for two or more years, employing apprentices is profitable.
The longer the apprentice stays, the greater the financial return to the salon.
Salons most likely to gain financially from a HITO apprenticeship
Research showed that the following types of salons may gain the most, financially, from HITO apprenticeships. Other salons will also have financial benefits, but might value more of the non-financial benefits (like having a great home-grown team).
- Busy salons – as apprentices have the potential to free up more time for stylists.
- Salons with a progressive wage/incentive structure – as there is a difference between the wage of an apprentice and a stylist, stylists are encouraged to use apprentices, and apprentices are encouraged to stay (as they can see the opportunity for high financial rewards in future).
- Salons with high prices – as these salons tend to pay stylists more than other salons do (so that low-wage apprentices are cost-effective for them), and the value of the time apprentices free up for stylists is high.
- Large salons – as they are better able to achieve the optimal mix (including apprentices at different stages), and can achieve economies of scale (e.g. spread the cost of in-house training over more apprentices).
- Salons doing a lot of colour work – as apprentices undertake this cost-effectively from an early stage.
