Annual Pay Philosophy

Teamhaircut
Compensation Model

A transparent, invoice-aligned pay structure reviewed once per year — with maximum rates set to the average invoice of each individual salon or area.

32%
Target Labor Cost
of service revenue
5
Role Tiers
clear pay ceilings
1×/yr
Annual Review
rates set each year

Core Philosophy

"We do not use productivity pay. Instead, we tie wage ceilings directly to the average invoice of each salon or area — reviewed and set once per year. If the team wants to earn more, the path is simple: increase the average invoice."
Teamhaircut — 2026 Compensation Model · Annual Review

Live Wage Calculator

LIVE

Enter the average invoice for a specific salon or area. Rates are set once per year at annual review — use this to model next year's ceilings.

$24.00
$15$50
Salon ManagerManagement
80%
$19.20/hr
Assistant ManagerManagement
70%
$16.80/hr
Full-Time Open StylistFull-Time
65%
$15.60/hr
Part-Time Open StylistPart-Time
60%
$14.40/hr
Part-Time Limited StylistPart-Time
55%
$13.20/hr

These are maximum hourly rates, set once per year at annual review. Each salon or area uses its own average invoice — keeping pay aligned to what that location's customers actually spend.

Multi-Scenario Pay Matrix

Max hourly rates at four common average invoice benchmarks. Because each salon or area sets its own ceiling based on its own average invoice, use this table to compare locations or plan for the annual review.

RoleFormula$20 avg$24 avg$28 avg$32 avg
ManagementSalon Manager

Leads daily operations, drives team performance

80% × avg$16.00$19.20$22.40$25.60
ManagementAssistant Manager

Supports operations, covers manager responsibilities

70% × avg$14.00$16.80$19.60$22.40
Full-TimeFull-Time Open Stylist

Full availability, open scheduling

65% × avg$13.00$15.60$18.20$20.80
Part-TimePart-Time Open Stylist

Flexible hours, open to any shift

60% × avg$12.00$14.40$16.80$19.20
Part-TimePart-Time Limited Stylist

Limited availability, set schedule

55% × avg$11.00$13.20$15.40$17.60
Target labor cost: 32% of service revenue$20.00$24.00$28.00$32.00

Why It Works

Four principles that make this model durable, fair, and easy to manage.

Aligned Incentives

Pay ceilings are tied to each salon's or area's own average invoice, reviewed annually. When the team drives up the average invoice, everyone earns more — automatically.

Sustainable Labor Cost

Targeting 32% keeps every salon healthy — well below the 40% drift common in the industry — without complex formulas or exceptions.

Teamwork Over Silos

Because the ceiling is tied to that salon's or area's average invoice, upselling and maintaining service standards benefit everyone on the floor — there are no individual productivity silos.

Radical Simplicity

No productivity tiers, no exception tracking. One number — the salon or area average invoice, reviewed each year — drives the entire pay structure. Easy to explain, easy to audit.