The September 19th USA Today editorial pages are filled with opinions on how to best begin to fix what polls show that most Americans agree is “broken” – America’s health care system.
With the wealthiest country in the world now ranking 37th of our 191 countries rated on “health care performance,” Americans seem more open to change then ever - with some of those sentiments now spilling onto our SalonLife blog.
Generally speaking, health care benefits are not a part of our national salon culture. And even in the minority of salons that actually offer group health insurance as an option, few appear to pay the majority of premium costs for employees - in spite of industry wages remaining generally low (especially for new entries into the workforce). Add to this the growing number of booth renters as well as a commissioned work force that changes employers frequently (and likely do not qualify for group plans on their own) and it becomes clear that our industry likely ranks high on the list of America’s “under insured populations.”
One possible solution - the decision by Minneapolis based Juut Salons to include a service charge to clients to directly help pay for employee insurance costs. It’s a unique approach that, although we believe ignores the bigger question of employer responsibility to employees, it’s a start.
Importantly, we hope that the industry will begin to engage in a dialogue on this issue. As professionals we spend virtually all of our time caring for clients - but less and less it seems caring for our own. Juut Salon CEO David Wagner raises an important question - just who is responsible for the well being of employees? Is it the employer, employee, customers, our government or a mix of all?
We would argue that Starbucks, David Wagner’s inspiration, gets it close to right - not by creating a client service charge to offset some costs, but simply by building health care costs into the price of every cup of coffee and offering quality benefits to both full and part time workers.
Inspired by a childhood made difficult by a fathers lack on insurance and its devastating impact on an entire working class family when tragedy strikes, Starbucks today spends more on employee healthcare benefits then it does on coffee beans - and yet has no lack of customers for what is surely one of the most expensive cups of coffees brewed anywhere.
If Starbucks can convince consumers to pony up top dollar for a cup of coffee, perhaps the industry can do itself a big favor by building the costs of healthcare into service prices - and simply (a) letting clients know that that the increase in prices is related to the increasing costs of healthcare and (2) exempting a portion of service prices paid by clients from commissions so that benefits can be realized by staff.
As is made clear in the USA Today editorials, there is no shortage of opinions on the question of insurance. What is lacking is an imaginative, entrepreneurial approach that inspires small businesses to action. For this, we congratulate Juut Salons - and hope that others are inspired to do even more.
Have an opinion on health insurance in the salon industry. Add your comments, click here and then click on the comments link below this post. Also, visit NCA’s website to take our insurance poll - just click here and scroll down the page.