Thriving Stylist Podcast Episode #400

5 Things You Need Before You Hire Your First Employee

Host: Britt Seva
Date: August 25, 2025

Episode Overview

In this milestone 400th episode, Britt Seva dives deep into the critical preparations salon owners and aspiring leaders must make before hiring their first employee. Drawing from her experience guiding hundreds of salon owners through the evolving landscape of the beauty industry, Britt breaks down the legal, financial, structural, and cultural groundwork necessary to create a thriving team environment. The episode is inspired by recent conversations in her Summer 2025 Leadership Bootcamp, attended by 800 salon owners exploring the transition from independent booth rental to employee-based or hybrid models.

Key Discussion Points & Insights

1. Changes in the Salon Industry & Leadership Structures

[03:10]

• Britt observes the shifting trends in salon business models over the past decade:

  • Movement from employee-based to independent contractor/booth rental, and now a fresh curiosity about shifting back to employment.
  • Many salon leaders are realizing their business frustrations may stem from operating under the wrong structure for their goals.
  • "Maybe part of their frustration in leading is that they're working completely within the wrong structure." — Britt Seva [06:55]

• Bootcamp Insights:

  • Leaders with varied backgrounds are questioning their chosen structures following a structure quiz that maps their goals to optimal business models.

2. Overcoming Fear of Hiring Employees

[08:25]

• The main obstacles to hiring employees:

  • Financial overhead and fear of not meeting payroll
  • Uncertainty about legal responsibilities
  • Lack of knowledge about what employee leadership truly entails

• Industry Data:

  • Salons with longstanding success typically have employees, not just contractors or renters.

3. The 5 Crucial Steps Before Hiring Your First Employee

Step 1: Research Legal Compliance

[11:42]

• Laws and paperwork vary by state, but federal requirements always include:

  • i9 Form: Verifies legal right to work; requires cross-checking identification for accuracy.
  • W4 Form: Determines tax withholdings (employers should not coach employees how to complete this).
  • "Every employee in the US needs to have completed an i9 and a W4 prior to starting their employment." — Britt Seva [12:55]

• Other legal considerations:

  • Know minimum wage requirements for your city/county/state.
  • Check your state’s sick pay laws — an increasing number have mandatory paid sick leave.
  • Anecdote: Businesses paying incorrect minimum wage can be forced to make back payments.

Step 2: Understand What You Can Afford

[19:30]

• Don’t just focus on what you want—analyze what you can truly afford:

  • Britt recommends offering at least 32 hours a week for service-based roles, especially for assistants/younger stylists.
  • "If you cannot afford to pay that person minimum wage plus 20%, you're probably not ready to hire." — Britt Seva [25:40]

• Compensation Formula:

  1. Wage (minimum or intended) × 32 hours/week × 52 weeks = Annual wage
  2. Add at least 20% to cover additional costs (supplies, taxes, etc.)

• Hire to Expand Value, Not Just to "Make Life Easier":

  • Expect to invest heavily (especially the first 12 weeks).
  • Only hire if it will increase your ability to serve more clients or generate revenue.

Step 3: Create a 3-Year Growth Plan

[29:00]

• Define:

  • What the employee’s role looks like in year one and beyond.
  • How you’ll train and mentor them.
  • What’s in it for them: growth, earnings, path forward.
  • How onboarding (typically 12 weeks) will be handled with your existing schedule.

• Quote:

  • "If you take clients 40 hours a week, I'm going to need you to find at least five a week [for leadership/training]." — Britt Seva [34:20]

• Common Hiring Mistakes:

  • Hiring “whoever applies” due to lack of strategy or poor applicant quality.
  • "The number one reason for termination or resignation in any business... is lack of quality applicants." — Britt Seva [30:05]

• Tips for Attracting Talent:

  • Sell your opportunity: mentorship, training, culture, clarity on what’s next for the hire.
  • “Stylists are looking for a purpose and a real plan.” — Britt Seva [38:40]

Step 4: Update Your Website & Hiring Materials

[42:25]

• Your online presence must sell the opportunity to work for you—don't just post a vague "careers" page.
• Define and market the unique benefits, culture, growth, and day-to-day reality of employment on your team.
  • "If your website and your social media are not selling the opportunity to work with you and for you, nobody's coming." — Britt Seva [43:11]

Step 5: Organize Your Paperwork & Systems

[44:50]

• Must-Haves:

  • Completed i9s and W4s for every employee
  • A formal offer letter for every compensation change
  • Organized systems for tracking paperwork, staff training, and progress
  • Employee Handbook & Operations Manual—"Mostly to cover your booty cheeks," as Britt quips [48:25]
  • Clearly outlined training program (at least 12 weeks for onboarding; often 6–12 months for full development.)
  • Communication system (not just texting!) for clear, documented staff communication.
  • Payroll processing system (Britt recommends Gusto [52:00] for its HR and payroll features)

• Quote:

  • "You need a handbook and operations manual. Having both in place answers a lot of questions, removes the gray area, and keeps you out of trouble." — Britt Seva [48:45]
  • "I average one text from my team a month, because we use a different communication system, and it’s more respectful of everyone’s time.” — Britt Seva [51:09]

Notable Quotes & Memorable Moments

• On Facing Employee Fear:

  • "For me, it is exponentially easier to lead and manage employees than it is contractors, in my opinion... But I understand the aversion is that financial overhead can be scary." [09:20]

• On Setting Expectations For New Hires:

  • "The initial thing an employee does is not take a load off. When you bring an employee in and do this the right way, I believe there's a 12-week training and onboarding period. It's a grind." [27:00]

• On Attracting Rock Star Hires:

  • "You bring that energy first, you bring that plan first, and then you attract the person who is looking for that. Trust me." [41:00]

• On Website Communication:

  • "On any salon careers page, it'll say careers or work for us. But I don't even know what that would look like... You haven’t sold me on the opportunity." [43:00]

• On The Importance of Communication Systems:

  • "Sometimes salon leaders will tell me, 'Oh, I’m so irritated. My team texts me around the clock.'... I average one text from my team a month, because we use a different communication system." [51:09]

Important Segment Timestamps

• [03:10] Industry changes & leadership structures
• [08:25] Fear of employees & financial considerations
• [11:42] Step 1: Legal Compliance
• [19:30] Step 2: Can you afford it? Compensation calculation
• [29:00] Step 3: 3-Year Growth Plan & hiring strategy
• [42:25] Step 4: Updating your website for hiring
• [44:50] Step 5: Organizing paperwork & systems
• [52:00] Payroll systems and Gusto endorsement

Tone & Style

Britt delivers with her trademark blend of candid honesty, practical advice, and enthusiasm for the industry. She balances strategic overviews with granular, actionable tips, always circling back to the need for clarity, structure, compliance, and intentional leadership.

Summary Takeaways

• Transitioning to an employee model (or hiring your first assistant) requires more than good intentions. Get legal, operational, financial, and cultural systems in place BEFORE hiring.
• A successful hire starts with clear expectations, solid training plans, and a compelling professional opportunity promoted on your website and social channels.
• Use the hiring process as a chance to thoughtfully evolve your business structure—matching both your growth goals and what modern stylists are seeking.
• Investing in systems and clarity now will prevent confusion, turnover, and legal headaches as your team grows.

For more leadership resources and support for stylists and salon owners, Britt encourages listeners to check out her new Thriving Leadership Method and upcoming masterclass at thrivingstylist.com.

"Happy business building. And I'll see you on the next one." — Britt Seva [57:43]