The National Hair & Beauty Federation (NHBF) has welcomed proposals to help more people stay healthy and in work, while calling for practical support that recognises the realities facing small and microbusiness employers.
Responding to the UK Government’s Keep Britain Working: A National Growth Opportunity report, the NHBF said the proposed Workplace Health System could be a positive initiative for the hair, beauty and barbering sector, particularly if it gives smaller employers access to occupational health services, specialist advice and resources that would normally be beyond their reach.
However, the organisation says it is essential that the development of the proposals does not result in additional costs, administration or responsibilities being transferred to small employers.
Hair and beauty businesses can play an important role in providing inclusive employment and supporting people throughout their working lives. But their ability to do so depends on businesses having the financial capacity and practical resources to employ, retain and train staff.
The NHBF’s latest Employer Survey underlines the pressure already facing businesses in the sector, with 39.7% of respondents reporting that they had reduced their workforce during the previous three months and only 13% saying they were definitely or likely to recruit over the following three months.
The NHBF welcomed the report’s focus on making workplace health provision accessible to SMEs and microbusinesses, but believes salon, barbershop and beauty business owners must be directly involved in shaping how those proposals work in practice.
This is particularly important as employers prepare for changes to Statutory Sick Pay and the associated costs and administration of managing sickness absence. The NHBF said that any new workplace health measures need to make it easier for businesses to support employees rather than adding another layer of complexity.
The NHBF also believes the proposals need to be considered alongside the wider employment landscape within hair and beauty. The organisation has highlighted how the current tax structure can incentivise self-employment over employment, warning workplace health system centred primarily around the employer-employee relationship risks having limited impact on a significant self-employed section of the sector.
“Keeping Britain working means the government backing the small businesses that provide the jobs,” said Fiona Johnston, President of the National Hair & Beauty Federation.
“This could be a really positive initiative if it genuinely gives small employers access to the occupational health support, advice and resources that many simply cannot access at the moment. Helping a member of staff manage a long-term health condition and remain in work is good for that individual, good for the business and good for the wider economy.
“But we have to make sure that solving a national challenge does not mean transferring additional cost and responsibility onto small employers. They’re already adapting to changes around Statutory Sick Pay and managing the cost and administration associated with sickness absence. If we want businesses to employ more people, any new system must make that easier, not inadvertently add further barriers.
“Our sector is increasingly being pushed towards self-employment by the current tax system. If it becomes progressively more expensive or administratively difficult to employ somebody, more businesses will naturally consider self-employed models – exactly the opposite direction to the ambition of keeping people securely in employment.”
Johnston added that this is why it’s important organisations such as the NHBF are involved as proposals develop, ensuring the voice and practical experience of microbusiness employers are heard.
The NHBF’s Budget submission calls for a 10% VAT rate on qualifying hair and beauty services, targeted employment support and greater help with apprenticeships. The organisation said that creating the conditions in which businesses can afford to employ people has to sit alongside measures designed to help those employees remain healthy and in work.
“We want to work with Government to make inclusive employment achievable for even the smallest businesses. Our sector can make a real contribution to keeping Britain working, but employers need the capacity and support to do it,” said Johnston.