An Effective and Quality Approach to Reduce the Turnover Rate for Hair Salon Industry

Abstract

This study aims to provide an effective approach to reduce the turnover rate and forecast the supply of hair stylists for the hair salon industry. An absorbing Markov chain process was applied in this study to forecast the supply of hair stylists for a hair salon chain. A hair salon chain with 13 salons in Taiwan was investigated as the case in this study. According to its business goals and expansion plans, and considering the firm’s present personnel profiles, the authors estimate the future demand for stylists and reduce the turnover rate for this company. In addition, this study finds that, based on a promotion system, the average turnover rate for hairdressing apprentices decreases from 19.500% to 17.770%, and the training period could be shortened from three years to one year and 11 months. Finally, they also found that the estimated supply of hair salon workers at each hierarchy level from 2010 to 2014 will be insufficient. The findings in this study could provide insights for the human resources department of hair salon industry.