Wales State of the Industry Report for Hair and Beauty

Wales State of the Industry Report Hair and Beauty September 2014

Version 7

Copyright Habia 2014LMI Report Final Version 7


Contacts Enquiries about this document should be directed to:

Caroline LarisseySenior Development ManagerEmail: [email protected]: [email protected]

SkillsActive UK Castlewood House 77-91 New Oxford Street London WC1A 1DG Tel: 020 7632 2000 Fax: 020 7632 2001

Habia Oxford House Sixth Avenue Sky Business Park Doncaster DN9 3GG

Web: www.skillsactive.orgWeb: www.habia.org

For more information on this project please visit the Habia websites:

www.habia.org/LMI



www.habia.org www.skillsactive.org

Contents


1. Introduction 5

1.1 Acknowledgements 7

2. Background 8

2.1 Overview 92.2 Aims and Objectives 102.3 Sector Priorities Fund Pilot Programmes Objectives 122.4 Evidence of need from sector employers 132.5 The Quantitative survey ` 16

3. Methodology 18

4. Executive Summary 24

4.1 Wales Hair and Beauty GVA 254.2 Focus Group qualitative feedback 264.3 Industry Chairs group qualitative feedback 28 5. Results and Finding 32

5.1 Beaufort Research 335.2 Research programme 335.3 Percentages and data tables 355.4 GVA analysis 355.5 Market size and services 40 5.6 Workforce profile 475.7 Apprenticeships 565.8 Recruitment 605.9 Training 675.10 Business Growth 71

6. Regional Focus Group 73

7. The Industry Chairs meeting 83

8. Appendix 106

8.1 Qualitative survey completed by Beaufort Research 1078.2 Regional Focus Group 1318.3 Labour Market Information, Briefing and Discussion Document 143

Contents



1. Introduction




1. IntroductionThis document has been developed to outline the processes, stakeholders and feedback that have been gathered as part of the Labour Market Research Project for Wales. The project was completed between July 2013 and September 2014.

This report has been developed by Habia (part of the SkillsActive Group of companies) and has been funded by Welsh Government.



1.1 AcknowledgementsSkillsActive and Habia would like to acknowledge the invaluable support given by the following people:

Wales LMI Steering Group Members Caroline Larissey Habia/SkillsActive - Senior Development Manager / Project Lead Richard Tobutt SkillsActive National Manager WalesNicola Turner - Habia Senior Partnership Development ManagerLesley Tipping - Colleges Wales / Grwp Llandrillo MenaiCeri Evans - Colleges Wales / Cardiff & Vale CollegeShirley Davis-Fox NTfW / ISA Training

Internal Project Team Gail Lockey Habia Secretary Heather Woolley - Habia SecretaryKaz Scott Head of Administration Laura Cope SkillsActive Secretary Annie Shepherd Habia Accounts Manager Trevor Spencer Habia Logistics Manager Kate Evans Habia Marketing Manager Tracey James External ConsultantSam Lockey Administration Support

Quantitative Survey Sarah McDonough -Senior Research Executive Beaufort research

Industry forum Chairs Joan Scott Joint Beauty Therapy, Spa Therapy, Nail Services and Advanced Practices in Beauty and Spa Chair David Wada- Joint Hairdressing, Barbering, African type Hair Hairdressing and Barbering Chair Suki Kalirai Habia Chair and Spa Industry Forum Chair

Focus Group attendees 29 April 2014 Rachel Meehan Coleg GwentElaine Rees Coleg Y CymoeddTracey Evans Coleg Y CymoeddElizabeth Evans Bridgend CollegeGareth Harris Spirit Hair TeamClaire Prior Collins - Fich and Ramous, CowbridgeLance Prior Collins Fich and Ramous, CowbridgeSarah Wilbraham Shades Hair, WhitchurchCeri Evans Cardiff & Vale CollegeGail Lockey HabiaNicola Turner Habia

30 April 2014Lesley Tipping Grwp Llandrillo MenaiPauline Heap-Williams Phoenix in AbergeleBethan Wyn Grwp Llandrillo MenaiJulie Evans Coleg LlandrilloRhiannon Thew Coleg LlandrilloStephen Johnston Hanley Johnston LtdMark Eccelston MK One HairdressingGareth Brown MK One HairdressingRebecca Rowlands Gentz Barbers LtdDonna Dobson Grwp Llandrillo MenaiGail Lockey HabiaNicola Turner Habia




2. Background




2. Background

2. Background 2.1. Overview

Habia is the Standard Setting Body for the Hair and Beauty Sector and is part of the SkillsActive group. SkillsActive is licensed by the UK Government as the Sector Skills Council (SSC) for Active Leisure, Learning and Wellbeing, including the sport, fitness, outdoor activities, playwork, caravan and hair and beauty sectors.

Habias role is to create the Standards that form the basis of all qualifications in hair and beauty including NVQs, SVQs, Apprenticeships, and Foundation degrees, as well asindustry codes of practice.

A central point of contact for information for the Hair and Beauty Sector; Habia provides guidance on careers, business development, legislation, salon safety and equal opportunities and is responsible to Government on industry issues such as training and skills. Habia raises the profile of its industries through the press and media and is the first port of call for news organisations and broadcasters on news items and background information.

The Welsh Government Sector Priorities Fund Pilot Programme (SPFP Programme) is a Welsh Government Fund led by the Department for Education and Skills (DfES). The fund is open to Sector Skills Councils to bid on a competitive basis to pilot projects that will support the needs of its Sector. In August 2013, SkillsActive was successful in securing funding through the re-launched SPFP Programme to progress a research project to establish the true size of the Hair and Beauty Sector in Wales both at a local and national level for which support has been articulated by a range of employers and stakeholders.

Through Habias sector Qualification strategy for Wales and Pan Wales strategic steering group, a need was identified for a State of the Industry report for the Hair and Beauty sector in Wales. With no up to date Labour Market Information available for Hair and Beauty in Wales, the project will allow Habia and key stakeholders to more fully understand the skills and training needs of businesses in the sector. At the present time, information collected on statistics in Wales aggregates the Sector under wholesaling, distribution and retailing not allowing the sector to ascertain a true reflection of its current position within Wales.

The project aimed to create a State of the Industry report for the Hair and Beauty Sector in Wales. With no up to date Labour Market Information available for this sector in Wales, the project aim is to help to more fully understand the skills and training needs of businesses in the sector.



2.2. Aims and Objectives - How did the project address the chosen objectives from the SPFP Prospectus

The research project will enable both SkillsActive/Habia, learning providers, Awarding Organisations and other key stakeholders vital information to enable them to review and develop their current offer to better meet the current and future skills needs of the sector in Wales. The recommendations and actions of the research project will be disseminated to all stakeholders via a wide range of formats to ensure the findings reach as large an audience as possible.

More specifically, the scope of the research was:

to establish the true size of the sector in Wales both at a local and national level with regard to total business numbers and total employment. We know that in 2005 there were c56,000 businesses in the UK across this sector and 4.1% (2,420) were in Wales. We also know that in 2007 0.87% of working adults in the UK were working in the Hair and Beauty sector with c10,000 of these in Wales. The data on StatsWales (https://statswales.wales.gov.uk/Catalogue) or the research completed by UKCES does not drill down to the level of the Hair and Beauty sector and would need to be further interrogated to find out what level of data is available, such as age profiles and gender

to build on information related to the age and gender profiles of those working within the Hair and Beauty sector in Wales, both nationally and at local level

break down economic data (the contribution the sector makes to GVA) by local au-thority to support planning of provision at local levels.

Alongside the telephone census and analysis the below points will be explored further dur-ing the focus groups in North Wales and South Wales. These groups will provide validation of any anomalies and contextualise the findings:

to determine out of the 38,000 businesses within the UK, how many of these are in Wales and how many are Hair and Beauty businesses

to continue to explore the types of services being provided by these businesses (this again supports planning of training provision)

to better understand the extent to which businesses are engaged with apprenticeships and for how long (this will help to target apprenticeship engagement in this sector)



to explore why there is a low progression rate in this sector from level 2 to level 3 (currently understood to be less than 28%). This will help to understand barriers to progression and inform interventions to overcome these

to identify the skills shortages of those entering this workforce (this can help to inform lower level or provision at younger ages)

to identify the current skills gaps apparent in the sector (this will help to inform CPD related training and connection with other projects and programmes).

We intend to disseminate the research findings widely across the provider networks in Wales via the Pan Wales Hair, Beauty and Spa Steering Committee, the NTfW/Colleges Wales Providers Group, Habia Cymru, employers and to local authority stakeholders through a series of events and workshops. These will include specific briefing events in North Wales and South Wales with specific invitations for key growth industries such as Spas.

The research project was monitored by the Project Manager, Caroline Larissey, through a detailed project plan including project risk management. A traffic light system was used with monthly update reports available to staff. Four review meetings have been completed within the project; to drive the project, provide a continual review process, and engage and update key stakeholders.



2.3. Sector Priorities Fund Pilot Programme Objectives

This project was chosen because it strengthens the evidence base of a sector where currently little specific information exists. It will provide detailed information on the skills and training needs of employers in the Hair and Beauty sector in Wales. This is in direct response to this SPFP objective:

as a result of SSC pilot projects, produce Research Studies, Learning and Development Strategies and evaluation reports, in order to provide a stronger evidence base and more detailed Labour Market Intelligence (LMI) to better understand the issues of supply and demand when targeting training to employers, and to inform planning and funding decisions of both Government and training providers.

The research data gathered through this project will be rich and varied. We will have sufficient evidence of the sectors training needs to develop and target support programmes where there is most need. This helps to fulfil another specific SPFP objective:

to deliver innovative training support programmes capable of raising and widening the overall skills levels of participants engaged as part of the SPFP Programme and, by reviewing initial benchmarks and learning plans, at the completion of SSC projects, measure the impact on career progression and overall pay and skills levels.

Training support programmes will include:

adding value to existing training delivery mechanisms and approaches of training providers, but where further improvements could be made to release additional benefits to employers, so that the quality and volume of training services can be raised and training providers are able to make improvements to their existing delivery activities.

Detailed Labour Market Information is essential for skills interventions to be truly demand-led. We would wish to use the intelligence gathered to inform the development of support mechanisms:

as part of the delivery of SSC pilot projects, and supported by the SPFP Advocate Team,provide mechanisms to facilitate the development of sustainable partnerships between SSCs and training providers particularly the FE sector with a view to ensuring skills interventions targeted at employers become more demand-responsive in the long-term.



2.4. Evidence of need from sector employers

The Welsh Government, through the board of the NTfW, intimated their concerns of the lack of LMI; information sources available were limited in their usefulness as many were not up-to-date and contained labour market statistics from only a small proportion of the hair and beauty sector businesses currently operating Wales

The Hair and Beauty sector is within the top 10 growth rate sectors at a rate of 22%. Key stakeholders need to know how much of this growth is within Wales, in order to meet the needs and requirement of the sector.

The Priority areas for Wales Apprenticeship delivery information identifies that Hairdressing and Beauty Therapy is a non-priority sector; however, we feel there is a significant variance between the baseline numbers and the number of businesses there are in Wales against what has been delivered in the main to 16-24 year olds. We feel if the statistics from the 16-24 age groups were taken into account, it may prove a significant case for Hair and Beauty to become a priority sector.



Again we feel this further exemplifies why there is a need to gain current LMI, to ascertain the ratio of businesses against learners enrolling and potential job opportunities available. Letters of support have been provided from ISA Training, Andrew Price Group and NTfW.

The research project has also been specifically supported by the Pan Wales Hair, Beauty and Spa Steering Committee, and the Pan Wales Hair and Beauty Providers Group which consists of representation from Employers, Colleges Wales, and NTfW.

The Steering Committee is a strategic focus group with specific objectives which are aligned to the objective of this research project to:

communicate with all Hairdressing, Beauty and Spa providers across Wales

represent the sector in funding negotiations with the Welsh Government

influence Welsh Government policy as it relates to the sector

support the Apprenticeship programmes in Wales influence Habia Cymru, Habia UK and the Sector

Skills Council to share best practice by benchmarking the sector

support initiatives within Wales that support the Welsh dimension and needs of the industry across Wales.



Monmouthshire Neath Port Talbot Newport Pembrokeshire Powys Rhondda Swansea Torfaen Wrexham

2.5 The Quantitative survey Beaufort Research

Through a tender specification, Habia (SkillsActive) commissioned Beaufort Research to conduct a telephone census/survey of employers and also to seek to estimate the number of businesses and employees this sector has in Wales, as well as assess the contribution it makes to total Welsh Gross Value Added (GVA).

This work included the completion of the following objectives: obtaining current data on Hair and Beauty businesses in Wales the data categorised by business type and region allowing the

quantitative census/survey to be proportionate to the distribution and type of Hair and Beauty business across Wales.

The types of businesses would include:

Barbers Beauty Consultants Beauty Salons Gents Hairdressers Ladies Hairdressers Unisex Hairdressers Hotel Spas Nail Services

The proportionate breakdown of regions would include:

Anglesey Blaenau Gwent Bridgend Caerphilly Cardiff Carmarthenshire Ceredigion Conwy County Denbighshire Flintshire Glamorgan Gwynedd Isle of Anglesey Merthyr Tydfil



The response target rate would include:

the achievement of a target 40-% hit rate as estimated 2,500 to 3,000 calls would need to be completed to

achieved the 1,000 responses target the flexibility to provide call backs this would also include the option of the quantitative

census/survey being conducted in Welsh language as a call back.

The main aim of the project was to gather comprehensive data from a robust sample of Hair and Beauty sector businesses in Wales.

The objectives of the research were to:

gather reliable information on how many businesses there are in Wales that fall into specific business groups relevant to Habia/SkillsActive

determine the types of services currently being provided by these businesses

provide a reliable estimate of the workforce profile i.e. how many employees work within the hair and beauty sector in Wales by age and gender

establish businesses recent recruitment activities, identifying any gaps in skills and qualifications amongst applicants

ascertain businesses involvement in apprenticeship schemes

determine perceptions on whether businesses will grow or contract in future.




3. Methodology




3. Methodology

3. Methodology The project started in June 2013 and was detailed as a series of objectives using mixed methodological approaches including desk research, a telephone census and specific focus groups. A Project Manager was allocated, Caroline Larissey, to oversee development with the support of internal resources and a research organisation. Services were procured by tender to conduct a telephone census/survey of employers, providing the necessary quantitative data to draw some conclusions about the needs and wants of businesses in the sector. A set of focus groups were conducted to add value to this quantitative data, provide validation of any anomalies and contextualise the findings. During the fieldwork for these elements, a desk research exercise was completed to explore areas where the Hair and Beauty sector impacts positively on other sectors of the economy. All findings were also presented to the National Industry forums chairs for further validation, discussion and wider dissemination.

The project also estimated the number of businesses and employees this sector has in Wales, as well as assessing the contribution it makes to total Welsh Gross Value Added (GVA).

The findings of the research projected will be disseminatedby a range of formats: stakeholder groups, briefing papers and social media.



The following table outlines the methodology applied to this project.



4.1.3 Apprenticeships Just over four in ten Hair and Beauty sector business in Wales (43%) offered apprentice-

ships.

Ladies/unisex hairdressers were most likely to offer apprenticeships (53%) compared with:

24% of beauty consultants/salons/spas 17% of barbers/gents hairdressers 15% of aesthetic salons/nail services.

Nearly eight in ten (78%) businesses said they would like to see a Higher Apprenticeship for the Hair and Beauty sector in Wales, and nearly seven in ten (69%) would consider offering one if it were available.

4.1.4 Recruitment Just over half of hair and beauty businesses in Wales (56%) had recruited new staff in

the last two years, with the average number of new recruits in this period being 1.3.

The majority of new recruits (72%) held relevant vocational qualifications when they joined the business.

4.1.5 Training Half of businesses (51%) arranged training for employees that led to vocational qualifi-

cations, most commonly NVQ Level 2, followed by NVQ Level 1 and NVQ Level 3.

Six in ten businesses (62%) said that employees with relevant vocational qualifications undertook continuous professional development (CPD).

4.1.6 Business growth Almost two thirds of hair and beauty businesses trading for longer than a year (64%)

said their employee numbers had not changed in the last 12 months: while 16% said they had increased, another 21% said employee numbers had decreased.

Beauty consultants/salons/spas were most likely to have seen an increase in employee numbers (23%), while ladies/unisex hairdressers were most likely to have seen a

decrease (24%).

There was optimism for the future: 45% of businesses overall expected their business to grow in the next 12 months, while only 7% expected it to decline (45% felt it would emain at the same level). Confidence was highest amongst beauty consultants/salons/spas (59% saying business would increase).




4. Executive Summary




4. Executive Summary

4. Executive summary 4.1 Wales Hair and Beauty GVA

The employment in the Hair and Beauty sector in Wales is estimated to contribute 187m GVA to the Welsh economy.

Approximately half of this GVA is generated in South East Wales.

4.1.1 Market size and services The desk research conducted (using Market Location Business Listings) suggested that

at the time of interview there were just over 2,600 Hair and Beauty sector businesses in Wales (2,635) this figure excludes mobile hairdressers (not included within the scope of the survey).

The majority (74%) of Hair and Beauty sector businesses were based in South Wales: nearly half (49%) were situated in South East Wales, with another quarter in South West Wales (25%).

Unisex hairdressers accounted for just over six in ten hair and beauty businesses in Wales (61% of the sector, 1,609 businesses).

Beauty salons were the next biggest category (14% of the sector, 365 businesses).

4.1.2 Workforce profileAfter modelling, the projected number of workers in the Hair and Beauty sector in Wales at the time of interview was almost 11,000 (10,831).

Nearly half of these (47%) were employed full-time, but almost as many (41%) worked part-time; 5% were self-employed and 7% were trainees.

The age profile of workers in the Hair and Beauty sector in Wales was heavily biased towards women (90%) and younger people: nearly two-thirds (64%) were aged under 35 years.



4.2 Focus group qualitative feedback

4.2.1 Progression Rates The groups felt the following contributed to the low progression rate in the sector from level 2 to level 3: salary confidence skills gaps

4.2.2 Barriers to progression The groups felt the following contributed to reinforce barriers to progression:

poor career advice poor perception of the industry funding for 25+ salary time to complete qualifications

The groups felt the following could be done to address these barriers:

raising the profile of level 3 awareness campaigns educate career advisers and politicians

4.2.3 Skills Shortages The groups felt the skills shortages needed to be addressed for potential people entering the workforce, particularly young learners or leaners working at a lower level were:

communication skills numeracy skills understanding what the job entails



4.2.4 Skills Gaps The groups felt the key skills gaps within the sector that could be addressed with training and development are:

retail customer care literacy numeracy

4.2.5 Further comments

The following comments were also provided by the focus group:

the view of working the hair and beauty industry is poor

people are not academic but artistic working in a salon is deemed as menial job is underpaid too many FEI learners, both full

time and part time, do not progress to work in the sector



4.3 Industry Chairs group qualitative feedback

4.3.1 GVA Research findings The industry chairs felt that, taking into account the extremely limited amount of information in Wales on the Hair and Beauty sector and the fact that the sector is grouped into different industries; the methodology completed by Beaufort Research for the calculation for the GVA was acceptable. The group also agreed that this calculation could be applied UK wide

4.3.2 Telephone survey response rate The industry chairs were very impressed as to the coverage of the sector in Wales and the response rate from the survey, as this excelled the typical response rates to telephone surveys.

4.3.3 Market Size and Services The industry chairs felt that the statistics accurately reflected the profile of hair and beauty businesses and Market size in Wales; however they did not expect such a high percentage in the south east and south west. It was noted that perming was a service 95% of businesses offered in Wales but the group questioned if the salons actually had the skills to deliver perming; particularly as perming is an optional unit as part of the NVQ, has limited take up and is not in fashion at the moment.

The group also felt that under aesthetic salons the top five frequently offered services were a little misleading as these services are not typically being delivered in aesthetic salons; they are more holistic and alternative services.

4.3.4 Workforce profile From the findings on workforce profile, the industry chairs:

expected that the survey would state that more employees were self-employed this tends to be the case across the UK

felt that the total of part time staff was a little high particularly in unisex hairdressers and barbers however it was felt this was appropriate for Wales

felt that aesthetic salons employed mature staff who had more advanced skills and experience

felt that the necessity for speaking Welsh would be regional expected there would be more self-employed staff across the UK



4.3.5 ApprenticeshipsFrom the findings on apprenticeships, the industry chairs:

suggested that there may have been some confusion as to the type of apprenticeship - this could make the statistics a little blurry

felt this was mainly dependent on funding being available for the learner felt there were barriers to the apprenticeship felt that take-up of apprenticeships, particularly higher apprenticeships, would be

dependent on funding being available felt that that there would be a small amount of take-up across the UK of

higher apprenticeships

4.3.6 Recruitment From the findings on recruitment, the industry chairs:

felt that the statistics indicated that businesses in Wales were not significantly growing; their personnel was just ticking over and replacing staff

felt recruitment was a little low, particularly as there are incentives in Wales for new employees, although it was noted not a lot of hair and beauty employers take these up

felt that the recruitment from job centres looked a little high it was felt this would not be reflected across the UK

confirmed that the NVQ qualification was the preferred competency qualification accepted across the hair and beauty sector

felt this was similar picture across the UK except in central London felt 53% in Figure 14 sounded a little high there was discussion on the amount of

college delivery in Wales and this was not reciprocated across the UK

4.3.6 Training From the findings on training, the industry chairs:

were surprised as to the number of NVQ level 1 delivery in Wales felt this reflected what was happening in Wales and the UK for level 2 and 3 felt that employers were recruiting from full time college learners who has existing

qualifications and up skilling in-house felt that employers may have omitted to include on-going manufacturer training,

visiting trade shows and exhibitions and competitions



4.3.7 Business Growth From the findings on business growth, the industry chairs:

felt that in the beauty sector there was an increase in small treatments completed by express therapists

felt that the statics provided were a little higher than expected they hope they would be true, but may be, they were a little aspirational

4.3.8 Low ProgressionThe industry chairs:

noted that funding is available for a learner to complete 2 level 2 qualifications this is not widely reciprocated across the UK

4.3.8 Skills Shortages The industry chairs referred to the employability skills detailed by employers in a previous section

4.3.9 Skills gaps The industry chairs felt the following are the current skills gaps apparent within the sector:

Retail New treatments Eyebrow enhancements/artistry Specialist skills Gel nails Chemical peels L4 advanced practices



5.2.1 Desk research

This stage of the project involved the gathering of comprehensive data on the number and location of hair and beauty sector businesses in Wales.

Detailed information was obtained from a business information specialist, Market Location this source provided the most inclusive and representative database of relevant SME hair and beauty businesses in Wales.

In addition to this, a pre-survey was undertaken to establish the universe of hotel spas and aesthetic salons.

Hotels were contacted to determine whether the establishment included a health spa: if so, they were included within the business universe. Any hotels without a spa were exclud-ed from the universe.

Similarly, aesthetic salons were contacted to establish the types of services they provided: any that did not provide the services meeting the criteria of the research were excluded from the business universe, namely:

Electrolysis Electrical treatments e.g. non-surgical face-lifts Advanced treatments e.g. chemical peels,

dermal rollers, semi-permanent make-up Cosmetic injectables e.g. botox, dermal fillers Dermatological body treatments e.g.

mud wraps Complementary therapies e.g. aromatherapy,

ear candles, reflexology Alternative therapies e.g. acupuncture,

hypnotherapy, naturopathy, reiki Sale of beauty products.




5. Results and Finding




5. Results and Finding

5. Results and Findings 5.1 Beaufort Research

Beaufort Research was tasked to gather comprehensive data from a robust sample of hair and beauty sector businesses in Wales.

The objectives of the research were to:

Gather reliable information on how many businesses there are in Wales that fall into specific business groups relevant to Habia/SkillsActive

Determine the types of services currently being provided by these businesses

Provide a reliable estimate of the workforce profile i.e. how many employees work within the hair and beauty sector in Wales by age and gender

Establish businesses recent recruitment activities, identifying any gaps in skills and qualifications amongst applicants

Ascertain businesses involvement in apprenticeship schemes

Determine perceptions on whether businesses will grow or contract in future.

5.2 Research programme

Three stages of research were undertaken:

An initial stage of desk research A telephone survey of hair and beauty businesses in Wales A GVA analysis of the sector as a whole the analysis is provided in section 9 of

this report.



5.2.2 Telephone interviews

Once the basic sector information had been acquired, we set about conducting a bespoke CATI (Computer Assisted Telephone Interviewing) survey amongst hair and beauty businesses. Fieldwork took place between 5th and 26th February 2014.

All eligible businesses within the hair and beauty sector in Wales were contacted in an effort to conduct the maximum number of interviews possible within the available fieldwork period - therefore no quotas were set against each business sector. Please note that mobile hairdressers were not included within the remit of the project.

On average, 5 calls were made to each business, however in actual terms the number of calls made ranged from 1 to 24. Business Owners/Partners, Managers and Head Stylists were interviewed.

A total of 1,122 interviews were conducted within the fieldwork period from a universe of 2,635 eligible businesses this represents an overall response rate of 43%. The profile of the sample of businesses by sector was broadly representative of the universe as a whole. All workforce profile data within this report has been up-weighted to reflect the whole sector (rather than the sample of businesses interviewed).

Table 1 below details the outcomes of calls made during the fieldwork period:

* Please note Unable to make contact includes numbers that were constantly engaged, calls that were not answered, answer machines and situations where the eligible member of staff was never available for interview.

Respondents were asked whether they would like to take part in further research (focus groups) to be conducted later in the year by Habia. Contact details of those agreeing to be re-contacted were then provided to Habia.



5.3 Percentages and data tables

Results are presented as rounded percentages (no decimals), which may mean that some percentages do not add up exactly to 100%. Comprehensive data tables are available separately, and contain the followingcross-breaks:

Business Category 1 (separate sectors) Business Category 2 (combined sectors) Location Business type (single salon, franchise,

group/chain, freelance/renting, spa) Number of employees Length of time established.

5.4 GVA analysis: the value of the hair and beauty sector in Wales1

The survey of hair and beauty businesses in Wales provides a basis for estimating the value of the hair and beauty sector to the Welsh economy. Economic value is expressed as Gross Value Added (GVA), which is a measure of the value of goods and services produced less the cost of raw materials and other inputs which are used up in production. GVA therefore measures the contribution to the economy of each individual producer, industry or sector in Wales.



5.4.1 ContextGVA per head of population is a useful way of comparing regions of different sizes and is an important indicator for both domestic and European policy purposes. It is calculated using the entire population (including the economically inactive).

Within the UK, Wales has a relatively low GVA per head. In 2012 London had the largest GVA per head at 37,232, while Wales had the lowest at 15,401.

Figure 1: GVA per head of population, 2012

Source: ONS, Regional Gross Value Added (Income Approach), December 2013



5.4.2 Economic sectorsGVA can also be expressed for the different sectors of the economy in Wales. In 2012 total GVA in Wales was 46,320m1. Just over a quarter of this (27%) is accounted for by public administration, followed by production (21%) and wholesale, retail, hotels and food (18%).

Across the UK as a whole, the government, health and education industries also provided the largest contribution to gross value (19%), followed by distribution, transport, hotel and restaurant industries (18%), and production (15%)2.

Figure 2: GVA by sector in Wales, 2012

Source: StatsWales, 2013

The GVA contribution by job can be estimated by comparing employment in each sector with the corresponding total GVA. This indicates that GVA per job in Wales is highest in the real estate, financial and production sectors.



Figure 3: GVA per job in Wales

Source: StatsWales, 2013

5.4.3 Hair and beautyHair and beauty is part of the other industries sub-sector within the other services sector.

Other services also includes arts, entertainment and recreation, and household activities: other industries also includes membership organisations, repairs, dry cleaning, funerals and fitness.

Total employment in other industries in Wales was 32,200 in 2012, and total GVA was 556m1: this represents 2.4% of employment in Wales and 1.2% of GVA. This data indicates that GVA per job in this sub-sector is 17,267. This is approximately half (49%) of the 35,110 GVA per job for all industries in Wales. In the absence of GVA data specific to hair and beauty, the GVA per job for other services will be used to inform the GVA estimates for hair and beauty.

The survey findings discussed earlier in this report provide estimates of total employment in the hair and beauty sector. This indicated that across the 2,635 hair and beauty business-es there are 10,831 employees. Applying the average GVA per job of 17,267 indicates that the hair and beauty sector contributes approximately 187m to the Welsh economy.



Source LMI Research data/Beaufort Research/HECL

The employment estimates also provide a split between the different regions in Wales. Almost half (47%) of the hair and beauty GVA is generated in South East Wales, followed by 28% in South West Wales.

Source LMI Research data/Beaufort Research/HECL



5.4.4 SummaryThe employment in the hair and beauty sector in Wales is estimated to contribute 187m GVA to the Welsh economy.

Approximately half of this GVA is generated in South East Wales.

5.5 Market size and services

5.5.1 Hair and beauty sector businesses in Wales At the time of interviewing, hairdressing businesses made up nearly three quarters of the hair and beauty sector (73%): most of these were classified as unisex hairdressers (61%).

Beauty salons and hotel spas accounted for around a fifth of hair and beauty businesses in Wales (17%): only relatively small proportions of businesses within the sector were aesthetic salons (6%), nail services (3%) or and beauty consultants (1%) see Figure 4 below.

Figure 4: Profile of hair and beauty sector businesses in Wales



Table 4 provides more information on the number of businesses as a whole within each business category, along with the number of interviews conducted with each sector.

It illustrates how the sample of interviews achieved broadly reflected the profile of the sector according to type of businesses, and shows that the response rate achieved varied between 21% for aesthetic salons to 47% for unisex hairdressers and beauty salons.

Table 4: Market size



5.5.2 Regional breakdown of businessesAt the time of interview, the majority (74%) of hair and beauty sector businesses were based in South Wales: nearly half (49%) were situated in South East Wales, with another quarter in South West Wales (25%).

North Wales contained around a quarter of businesses (22%), while only 4% of hair and beauty businesses were situated in Mid Wales.

On the whole, these proportions broadly reflected population densities across Wales see Figure 5.

Figure 5: Profile of hair and beauty sector businesses by region



Table 5 provides more information on the number of businesses in each region by busi-ness type. There are two interesting points to note:

North Wales contained a slightly higher than average proportion of hotel spas (28 businesses = 5% compared to 3% overall)

South East Wales contained a slightly higher than average proportion of nail services (53 businesses = 4% compared to 3% overall).

Three quarters of the hair and beauty businesses in Mid Wales were gents/ladies/unisex hairdressers (67 businesses = 66%): there were very few beauty businesses in this region see Table 5 for more details.

Table 5: Market size by region



5.5.3 Services provided by hair and beauty sector businessesAs previously mentioned, hairdressing businesses accounted for around half (49%) of all hair and beauty businesses in Wales. Figure 6 provides details of the main services offered by these businesses.

Hair cutting/styling was provided by all businesses (100%), with the vast majority also providing hair colouring (99%) and perming (95%).

Around eight in ten catered for long hair/special occasions (85%), while a similar proportion sold hair products on site (81%). Other frequently offered services included hair and scalp treatments (60%), plaiting/twisting/locksing (51%) and shaving/beard trimming (45%).

Services offered by only around one in ten hairdressing businesses included eyebrow threading, mobile hairdressing (12% for both), hair loss treatments (11%) and ear/body piercing (10%). On average, hairdressing businesses provided around 9 types of service to their customers.

Figure 6: Main services offered by ladies hairdressers / unisex salons



The top five most frequently offered services amongst the other types of beauty businesses were as follows:

Beauty salons/consultants: - average 13 services Eyebrow shaping (97%) Body/facial waxing (97%) Manicures/pedicures (96%) Facials/facial massages (91%) Eyelash/eyebrow tinting (91%)

Hotel spas: - average 11 services Body massage (92%) Facials/facial massages (88%) Manicures/pedicures (83%) Eyebrow shaping (12%) Make-up/makeovers (91%)

Aesthetic salons: - average 3 services Complementary therapies e.g.

aromatherapy, ear candles, reflexology (84%)

Alternative therapies e.g. acupuncture, hypnotherapy, reiki (58%)

Sale of beauty products (29%) Electrical treatments e.g. non-surgical

face lifts (19%) Electrolysis (16%)

Nail services: - average 7 services Manicure (100%) Nail art (100%) Nail extensions (97%) Pedicure (93%) Gel nail polishes (90%).



5.5.4 Business size indicator treatment rooms and salon chairsIn order to gauge business size and potential turnover, businesses were asked how many salon chairs or treatment rooms they had at their site. This question was only asked of busi-nesses with permanent premises.

The average number of chairs/rooms across all businesses was 4.5. Beauty consultants/salons/spas and aesthetic salons/nail services tended to be smaller than this (2.7 chairs/rooms), while ladies/unisex hairdressers tended to be larger (5.3 rooms/chairs). Only a small proportion of businesses had more than 10 rooms/chairs (7%) - see Table 6 below.

Table 6: Treatment rooms / salon chairs by sector



5.6 Workforce profile

The following section of the report looks at employee numbers. Please note that the data has been modelled using the information gathered from the survey and the total number of businesses identified at the desk research stage.

5.6.1 Staff numbers by employment type and sector At the time of interview, around half of staff members in the hair and beauty sector in Wales were employed full-time (47%): a further 41% were employed part-time.

Only a small proportion of staff members were self-employed (5%) or trainees (7%) see Figure 7 below.

Figure 7: Profile of staff by type of employment



There were approximately 11,000 people working in the hair and beauty sector in Wales at the time of interview. Reflecting the distribution of businesses, most of these people worked in hairdressing establishments (76%): unisex hairdressers employed 67% of all staff in the sector.

Beauty salons employed 11% of all staff working in the hair and beauty sector, while hotel spas employed 6%. Aesthetic salons and nail services employed around one in twenty of all staff working in the sector (4% and 3% respectively): there were only a very small number of beauty consultants in Wales (



5.6.2 Regional breakdown of staff numbersThe regional profile of employee numbers reflected the regional distribution of businesses: around half of all staff members were employed in South East Wales (47%). Around three in ten were employed in South West Wales (28%) and a further 22% in North Wales. Only 3% of people working in the hair and beauty sector in Wales were employed in businesses located in Mid Wales see Table 8 below for more details of the up-weighted figures.

Table 8: Staff numbers by sector and region



5.6.3 Employee numbers by sector and gender

There was a very apparent employee gender bias in the sector: the vast majority of all staff members were female (90%): only 10% were male. This bias is also evident when looking at trainees in isolation (89% female; 11% male)

Looking at male employees only: eight in ten (879 staff = 79%) worked in hairdressing establishments, while only 21% (229 staff) worked in beauty/nail/aesthetic salons. Women had a slightly higher representation in beauty businesses (2,368 staff = 24%), but again most worked in hairdressing businesses (7,335 staff = 76%). According to our survey, there were no male beauty consultants in Wales at the time of interview see Table 9 for more details of the up-weighted figures.

Table 9: Employee numbers by sector and gender



5.6.4 Age profile of employees As well as there being a definite gender bias amongst employees in the sector, there was also a clearly evident age bias towards younger employees aged up to 34 years: nearly two thirds of staff members in the hair and beauty sector in Wales were aged 16 34 years at the time of interview, with the highest proportion (30%) falling into the 25-34 age band. Only around a third of employees were aged 35 or over (37%): older employees aged 55+ made up just 6% of the entire hair and beauty workforce in Wales see Figure 8.

Figure 8: Profile of employees by age (excluding trainees)



Table 10 provides more details on the number of employees within each type of businessaccording to their age.

Barbers and aesthetic salons were most likely to employ older people: around a quarter of staff employed by these types of business were aged 55+ years against an average of 6%:

Barbers: 35 staff = 27% Aesthetic salons: 91 staff = 23%.

At the other end of the scale, unisex hairdressers and nail services were most likely to employ school leavers: for both of these business types, 9% of their employees were aged 16-18 years (against an average of 8%):

Unisex hairdressers: 611 staff = 9% Nail services: 24 staff = 9%.

See Table 10 for more details of the up-weighted figures.

Table 10: Employee numbers by sector and age



Looking at the ages of employees by type of employment: on the whole the profile of full-time and part-time employees by different age groups was fairly consistent and in-line with the overall average, i.e. roughly a half of employees in each of the age group bands were employed full-time, around two fifths were employed part-time and the remaining were self-employed.

The only noticeable difference to this pattern concerned the over 55s in this age category, a much higher than average proportion of staff members were self-employed (268 staff = 44% against 6% average) see Table 11 for more details of the up-weighted figures.

Table 11: Employee numbers by employee type and age



Table 12 provides information on the ages of employees by region: there were no significant differences in the age profile of employees across the various regions of Wales against the overall average.

Table 12: Employee numbers by region and age



5.6.5 Welsh speaking staffA third of hair and beauty businesses in Wales employed Welsh speaking members of staff (33%), with the overall average number of Welsh speakers being 0.7 per establishment.

Amongst those businesses that employed Welsh speakers (359 businesses), three in five (60%) felt that it is important to employ Welsh speaking members of staff, although a sizable minority (40%) did not think it is important.

When asked whether they thought it would be more or less important to employ Welsh speaking staff in future, one in five of the business that employed Welsh speakers thought that this would be more important in future (18%).

Only a very small proportion (4%) thought that it would be less important in future to employ Welsh speaking members of staff: most felt that the level of importance would not change (76%) see Figure 9 below.

Figure 9: Welsh speaking staff



5.7 Apprenticeships5.7.1 Hair and beauty businesses with apprenticesJust over two in five hair and beauty businesses in Wales offered apprenticeships (43%): this rose to 53% amongst ladies/unisex hairdressers, but dropped to 17% amongst barbers/gents hairdressers and 15% amongst aesthetic salons/nail services see Figure 10 below. Figure 10: Proportion of hair and beauty businesses with apprentices



5.7.2 Members of staff receiving the offer of apprenticeshipsFocusing on those businesses that offered apprenticeships: the vast majority of these businesses offered apprenticeships to school leavers aged 16-18 years (94%), while around half (52%) offered them to 19-24 year olds. Only a quarter of businesses offering apprenticeships made these available to people aged 25 and over (25%).

In addition to this, the vast majority of businesses offering apprenticeships made these available to new members of staff (94%): only 20% made them available to existing employees see Figure 11.

Figure 11: Ages / employees that apprentices are offered to



5.7.3 Barriers to offering apprenticeshipsWhen businesses that did not offer apprenticeships were asked their reasons for this (57% of all hair and beauty businesses), the most frequently given response related to the financial impact: 17% said they could not afford to offer apprenticeships or that their insurance did not cover apprentices.

Around one in ten of these businesses said that they did not need to offer apprenticeships because all of their staff were fully trained (13%). A similar proportion reported that apprenticeships were not applicable to their business as they were sole traders (10%).

There was a certain lack of awareness and engagement amongst businesses: 6% said that they did not know much about apprenticeships, and another 4% said they had never considered offering them.

A small proportion of businesses reported having bad experiences in the past regarding apprenticeships: 5% said that past apprentices had not been of a good standard, and the same proportion (5%) reported that they had had bad experiences with training providers in the past see Figure 12 below for more details of the spontaneous responses received.

Figure 12: Reasons for not offering apprenticeships



5.7.4 Levels of interest in Higher Apprenticeships for hair and beauty in Wales

The majority of hair and beauty businesses in Wales said they would like to see a Higher Apprenticeship for their industry (78%): levels of interest were highest amongst ladies/unisex hairdressers (82%), but lowest amongst aesthetic salons/nail services (48%).

Reflecting high levels of interest, 69% of hair and beauty businesses in Wales said they would consider offering Higher Apprenticeships to their employees if they were available. Ladies/unisex hairdressers were most likely to say they would consider offering Higher Apprenticeships (74%) while aesthetic salons/nail services were least likely (33%) see Figure 13.

Figure 13: Interest in Higher Apprenticeships for the hair and beauty sector in Wales



5.8 Recruitment

5.8.1Staff recruitment in the last two yearsAround half of hair and beauty businesses in Wales had recruited staff in the last two years (56%). Amongst the remaining 43% who had not recruited any staff, most of these had no available vacancies during that time (42%), although a very small proportion of businesses had not been able to fill available vacancies (1%).

Two in five hair and beauty businesses had recruited 1-2 new employees in the last two years (40%). A further 11% had recruited 34 employees: only a small proportion had recruited more than 4 employees in the last 2 years (4%). The average number of new recruits per establishment was 1.3 see Figure 14 below.

Figure 14: Staff recruitment over the last two years



5.8.2 Age profile of new recruitsThree quarters of new recruits to the hair and beauty sector in Wales were aged 16-24 years (72%) there was a fairly even split between new recruits aged 16-18 years (35%) and those aged 19-24 years (37%).

One in five new recruits were aged 25-34 years (19%): only a small minority were aged 35 and over (10%) this pattern reflects the younger age bias of current employees seen in section 4.4 of this report.

Figure 15: Ages of new recruits

Looking at the ages of new recruits by business type: ladies and unisex hairdressers were most likely to have employed school leavers aged 16-18 in the last two years:

Ladies hairdressers: 29 recruits = 49%Unisex hairdressers: 913 recruits = 43% - see Table 13 below for more details on the up-weighted data.



Table 13: New recruits by sector and age

5.8.3 Recruitment channels usedAmongst those businesses that had recruited new staff in the last two years, the most frequently used recruitment channel was word of mouth/personal recommendation (31%).

A fifth of business recruited via the Job Centre (21%) or at careers fairs (20%), while around one in six had used social media channels such as Facebook or Twitter (13%) usage of social media rose to 31% amongst larger businesses (10+ employees).

A tenth of businesses recruited new staff in the last two years via Government programmes such as Jobs Growth Wales or The Work Programme, with the sameproportion using Careers Wales (9% for each). Another 9% simply placed posters on notice boards or in shop windows in order to recruit new staff see Figure 16 for more details of the recruitment channels used.



Figure 16: Recruitment channels used

5.8.4 New recruits and qualifications The majority of businesses who had recruited staff over the last two years said that either all or some of these recruits had relevant vocational qualifications when they joined them (72%). Around half (53%) of qualified new recruits came straight from college, while seven in ten came from previous employment (69%).



Figure 17: New recruits and qualifications

5.8.5 Difficulties recruiting new staffA third of hair and beauty businesses in Wales (33%) reported that they had experienced some difficulties in recruiting new staff in recent years. The main reason given for this was that candidates did not have the right attitude, personality or motivation for the job (73%).

There were also reports of candidates lacking the necessary skills (60%), work experience (49%) and qualifications (30%) required for the position.



A third of businesses experiencing difficulties in recruiting said that candidates had provided poor quality applications (33%) see Figure 18 below.

Figure 18: Difficulties experienced when trying to recruit new staff

Those businesses reporting that candidates were lacking the necessary skills and/or qualifications were asked to expand on this.

In terms of skills gaps, a third of these businesses said that some of the candidates applying for positions did not have the right people skills, knowledge of how to deal with clients or team working experience (33%). Another quarter felt that certain candidates did not have sufficient enthusiasm or motivation (23%).



Comments were made by some businesses on how candidates lacked very basic technical skills (17%), with others specifying that there were gaps in their knowledge of how to deal with different hair types, colouring techniques and perming (10%). One in ten of these businesses felt that some new recruits had not been able to demonstrate other basic skills such as numeracy, hygiene and cleaning (8%).

NVQ Level 3 was the most frequently mentioned qualification that candidates were missing (14%) see Table 14 below for more details.

Table 14: Qualifications and skills gaps amongst candidates



5.9 Training

5.9.1 Provision of vocational trainingHalf of the hair and beauty businesses in Wales arranged training for their employees that led to a vocational qualification (51%) vocational training was most likely to be arranged by ladies/unisex hairdressers (59%) and least likely to be arranged by barbers/gents hairdressers (22%).

NVQs were the most frequently arranged vocational qualifications (89%), with NVQ Level 2 being arranged by 81% of establishments that gave their employees the opportunity to train for a vocational qualification. Around three in five of these businesses arranged for NVQ Levels 1 (62%) and 3 (60%), with only very small proportions arranging for their employees to progress beyond Level 3 (5%).

Around a fifth of these businesses included arranged for their employees to undertake training leading to a City and Guilds (19%) or Essential Skills qualification (14%) see Figure 19 below.

Figure 19: Provision of vocational training by employers



5.9.2 Uptake of NVQ3 qualifications Amongst those businesses arranging for employees to take NVQ Level 2, the vast majority said that these employees also went on to take Level 3 (91%): 38% said that this was always the case, while 53% said that this was sometimes the case.

Ladies/unisex hairdressers and beauty consultants/salons/spas were most likely to provide their employees with the opportunity to take NVQ Level 2 once again the majority of these businesses reported that their NVQ Level 2 students went on to take Level 3 (93% and 88% respectively) please note the low base sizes, therefore caution should be taken when interpreting these results (see Figure 20 below).

Figure 20: Whether staff taking NVQ Level 2 continue to NVQ Level 3



5.9.3 Barriers to arranging vocational trainingJust under half of hair and beauty businesses in Wales did not arrange any vocational training for their employees (49%). The main reasons given were that staff members were already qualified and adequately trained (22%), or that the businesses in question were family enterprises, small businesses or sole traders (20%).

Around one in ten of these businesses said that their staff did not want to gain any vocational qualifications (8%), while 6% said that they were too expensive to deliver (this rose to 13% amongst aesthetic salons/nail service businesses).

Several other reasons were given by small proportions of businesses: Figure 21 below outlines these in detail.

Figure 21: Reasons for not arranging vocational training for employees



5.9.4 Provision and use of Continuous Professional DevelopmentSix in ten (61%) hair and beauty businesses in Wales provided employees with the opportunity to undertake continuous training or development (CPD). Beauty consultants/salons/spas were most likely to offer CPD to their employees (69%), while barbers/gents hairdressers were least likely (27%).

Eight in ten of these businesses arranged internal training (80%): a slightly smaller proportion arranged external training (77%).

Internal training took the forms of on-the-job instruction (71%) and courses/training sessions (56%). External training included manufacturer demonstrations (53%) and training provided by private training providers (49%), further education colleges (20%) and universities/higher education colleges (7%) see Figure 22 below.

Figure 22: Provision / use of CPD by employers



5.10 Business growth

5.10.1 Changes in employee numbers over the last 12 monthsHair and beauty businesses that had been trading for more than twelve months were asked whether their employee numbers had changed at all over the past year. For most businesses (64%), employee numbers had remained unchanged over the past twelve months. And while 16% reported an increase in their staff numbers, a slightly higher proportion (21%) said that staff numbers had decreased.

Staff increases were most evident amongst beauty consultants/salons/spas (23%) while decreases were most evident amongst ladies/unisex hairdressers (24%) see Figure 23 below.

Figure 23: Changes in employee numbers in the last 12 months



5.10.2 Expectations for the business over the next 12 monthsWhen asked whether they felt their business would grow, remain the same or decline over the coming twelve months, hair and beauty businesses in Wales were fairly optimistic.

Nearly half (45%) felt that their business would grow: reflecting the increase in staffing numbers, beauty consultants/salon/spas were most optimistic about the future, with 59% saying that they thought their business would grow over the coming year.

Another 45% of all hair and beauty businesses thought that their business would stay the same. Only 7% thought that their business would decline over the next twelve months (increasing slightly to 10% amongst aesthetic salons/nail services) see Figure 24 below.

Figure 24: Expectations for the business in the next 12 months




6. Regional Focus Group



6. Regional qualitative Focus group6.1.1 Overview Two Regional Focus groups we held on 29 April 2014 at the Thistle Hotel Cardiff City Centre 5.30-7.00pm and on 30 April at Venue Cymru Llandudno 5.30-7.00pm.

The Key Objectives of these meetings were to explore the below points via a number of open ended questions:

To explore why there is a low progression rate in this sector from level 2 to level 3 (currently understood to be less than 28%). This will help to understand barriers to progression and inform interventions to overcome these

To identify the skills shortages of those entering this workforce (this can help to inform lower level or provision at younger ages)

To identify the current skills gap apparent in the sector (this will help to inform CPD related training and connection with other projects and programmes)



6.1.2 The Findings The responses from the focus groups

6.1.3 Question 11. Why do you feel there is a low progression rate in the sector particularly from Level 2 to Level 3?

Responses

Loss of revenue for the business Lack of funding for progression Issues relating to wages An ascending pay scale inhibits employers from choosing

older candidates Aspirations of business Motivation Hairdressing salary versus what they get elsewhere, ability! Salon unable to afford more salary Trainee attitude. Until legislation is brought into the equation, that you have to be

qualified to Level 3 standard, you will always have students/apprentices that will seek employment after Level 2. They think they are qualified and do not need

further qualifications Lack of confidence or fed up of paper trails Awareness of NOS for industry regarding individuals entering the profession. Lack of

recognition by industry that Level 3 is the standard for a stylist I would disagree with the statement above regarding college provision/progression as

the learner journey is all about progression from L1/L2/L3/L4/L5 Historically the sector has individuals practicing skills who have no qualifications as this

was not mandatory state registration has rectified this They are not given enough time to complete the Level 2 and finish the qualification Not experienced enough to have the confidence to start at Level 3 or the

behaviour to Too big a skills gap between Level 2 and Level 3. Standard required to pass Level 2

should be raised in order to create a smoother progression and shorter gap between L3

I feel that the students enjoy Level 3 more because they get to do more hands on work with clients rather than an assistant role. It means theyre gaining experience which makes them progress faster

Salons encourage Level 2 qualified stylists to build their own clientele and when busy in the salon, it leaves little time or energy to study. A further qualification may seem un-necessary if they are already busy and earning money, to a young mind

Lack of salons willing to provide facilities Level 2 should not be operating unsupervised on the shop floor Poor schooling and poor key skills



L2 provision runs in schools, therefore schools are happy for pupils to undertake L2 usually taught by FE college staff. There is then reluctance to offer L3 or offer college course advice to pupils, with schools preferring to retain pupils rather than releasing them

The staffs seem to think that as soon as they achieve a Level 2 they are ready to open their own barbers. They are not informed of what it takes to achieve a Level 3

Information at schools and careers work on Level 2, and they dont come through to the schools /colleges. Level 2 / 3 gap running salon

Not productive. L3 need to run a column. Cost prohibitive and often in no position to offer a full time job. Full qual takes 5yrs. Focus on industry not cascaded. Its seen to be a (thicky), schools can discourage. Barbering at L2 its possible to run

Working in a big spa our apprentice girls already finished their first unit within 3 months so they were already making money

6.1.4 Question 2 2. Are there any barriers that you see to the progression? 12 Yes 3 No

Responses

Lack of apprenticeships funding to over 25s Employers wont rent a chair Salary. Some employers cannot afford to keep a trainee beyond their apprenticeship

duration due to wages relative to cost against income or taking Employability differences salons motivation to create opportunities for progression

and CPD Registration will now address criteria required to practice and hopefully influence an

increase in progression through the levels Not given enough time to complete, set in stone each unit. 78 weeks of funding to

complete L2 is not enough for learners to fine tune their skills and learn everything before L3, but if more time is given then funding becomes an issue

Financial constraints if offered employment with further work based training enough to carry out the job of a Level 3. Less funding for learners 19+ which is barrier to those learners continuing their training

Career advice perceptions of the industry are poor Sector skills council to address the need for Level 3 and promote. They do not drive the

fact that Level 3 is the recognised standard. Career advisors need to understand this Time and motivation. Time is needed to study and practice to improve Many students do not feel comfortable progressing as they dont have experience



Salon owners. Lack of facilities. Having to run a column isnt always possible in larger salons, even though the candidate is capable, as this is a qualifying criteria this can be a barrier

Schools releasing learners Attitude of employers. Compulsory registration. Create regulation in the industry.

Standardisation. Pay the employers to do the training. Cost prohibitive

6.1.5 Question 3

3. What do you feel could be done to address these barriers?

Responses

Raise profile of Level 3. Ensure Level 2 students can see and understand benefits of Level 3 qualification. The potential to earn more. NOS reflect professional qualifications

Funding for employers needed. Salons should give a contract of employment after Level 3 is completed

Raise the funding for further time, not 100% but enough to fund 1 day a week Recognition of the industry and change of attitude to the industry professionalism Compulsory registrations for qualifications and regulations of operators. No-one can

operate unless SRH! Standards awareness marketing campaign is required to impact on this More emphasis on students needs and not on money. Some students need more time

on certain areas than others. Some students cannot read and write well but they are creative and can do hair well. There needs to be a tier for the weaker/dyslexic students who are usually creative

More 1 to 1 individual training to improve progression of each individual student Legislation that would encourage a Level 3 qualification to become full

qualified recognised Funding timescales for qualification at Level 2/3 I feel they need more training in all aspects of hairdressing, to give more knowledge Habia marketing must get employers to agree More advertising/marketing of apprenticeship opportunities Address the time to deliver Level 2 and the changes needed to bridge the gap be-

tween Level 2 and Level 3 Agreed training wages should be established or alternatively we should be able to

target school leavers as before More objective career advice in schools with signposts allowing FE colleges into

schools to advise pupils of the opportunities available More information about the training within the careers department in the schools to

encourage youngsters to take the hair and beauty path Issues to do with colleges. Nurturing on site. Covering salary with unit training. Product

supplier training CPD



6.1.6 Question 4 4. What skills shortages do you think there are for potential people entering the workforce, particularly for young learners or learners working at a lower level?

Responses

Retail skills/customer service Commercial skills Lacking communication skills/literacy low expectations, base set at school and

onwards. Lacking in language skills, personal presentation and common sense (life skills). Lacking work ethics, work skills, public skills, confidence, poor career advice learners do not understand the opportunities available to them in the hair and beauty sector

Numeracy skills low expectations, base set at school and onwards From college expectations that they are qualified and able. Many are far from it! Change of attitude and expectations of the industry from career advisors! Vocational skills to be streamlined Extra help for them to be competent More 1 to 1 training for young learners or learners at a lower level, to help them

progress Expectations of the Hair and Beauty sector Patience, enthusiasm. An understanding of what the job entails, especially for

apprentices i.e. servicing and cleaning when only hairdressing is expected. Could be combatted with work experience, also more information given at job interviews, workshops/workdays etc.

Re-educate career advisors and politicians Clear instructions and layouts on what is expected for them. A realistic time guide

needs to be clear for individuals entering the industry. Skill shortages I think are lacking in work ethic, expectations of life

Customer service skills, people skills Numeracy. Literacy. Attitude. Spa beauty for college leavers they will always need extra training on waxing and

nail painting they should be assessed more in college



6.1.7 Question 5

5. What do you feel are the key skills gaps within the sector and how can we address these with training and staff development?

Responses

Customer service. Retail skills Needs of a skills based qualification post Level 3 management is not all that

everyone wants for CPD practical qualification in industry relevant activities are needed!

Gaps between NVQs needed, to grow expertise and confidence! Salon experience, not aware of good salons Making training more in-depth e.g. cutting/more practice. Some students are not

confident after qualifying with cuts Hairdressing retail skills, business acumen, customer service Barbering retail skills Literacy, numeracy, customer service skills answering the phone, ability to do a full

days work. Knowledge of what is involved with going to work. Biggest impact can be made with schools and parents. Some learners not that ambitious. Lacking life skills

Just providing the correct information to the youngsters Higher apprenticeships needed. CPD every other month. Creates aspiration Within a company I feel there are no gaps

6.1.8 Question 6 6. Do you have any other relevant comments regarding the Hair and Beauty sector within Wales? Responses

The government needs to recognise that the industry employs huge numbers of people who may not be academic but are artistic money needs to be put in to change the mind-set of those who wish to go into the industry but who are put off by the you can do better than that attitude of educators and politicians etc.

I am with the overall training, maybe more individual training is needed for people who find the course harder, as I have found that some students are less knowledgeable than others

Drastically underrated. Children are encouraged to be teachers, solicitors, lawyers etc., working in a salon is seen as menial or below other professional vocations

An apprentice would say the job is underpaid, which can be demoralising when its difficult to afford to get to work in the first place

More funding needed for small businesses to take on more trainees



Too many FEI F/T P/T students that do not go into the sector The whole sector is set in the past, there needs to be a massive reform of the way the

industry is regulated, male and female sides. The industry needs to be promoted for those who are creatively able to achieve

Relationships with suppliers. Educating the people who represent us to the government to get things changing. Get an MP/assembly members to work a day

6.1.9 Question 7

7. Do you feel that the diagram accurately represents the market size of hair and beauty businesses by region?

4 Yes 2 No

Responses

Not qualified to answer We are more populated in the North and South hence why theres a low percentage This reflects previous research I have looked at My salon is in small area in Ross-on-sea, including myself there are eight salons It reflects +/- % of all LMI project carried out privately in 2012 4% in Mid Wales seem very low



6.1.10 Question 8

8. Looking at the above figures, do you feel this accurately reflects the popular services offered within hairdressing and beauty therapy in Wales?

6 Yes 4 No

Responses Not qualified to answer Perming far too high I feel the figures are right because hair cutting and colouring are the most popular in

salons In hair salons yes. However in my experience there arent as many stylists able to perm

as there could be. Its not surprising to see shaving being as low. There doesnt appear to be as much of a demand now

I am surprised at the popularity of perming, but speaking to salon owners they all want this to be a mandatory part of the NVQ

In North Wales I feel these figures do reflect popular services in this area Think 100% of salons provide Reflect 2012 LMI report commissioned by ISA Training. Although surprised at high level

of perming Beauty Level 3 Beauty retain Collated over the phone and not through open discussion Perming compulsory in Level 2 Yes all do; but difference of opinion on perming. Perming shouldnt be optional



6.1.11 Question 9

9. Do you feel the above figures accurately outline the number of businesses that are working with apprentices?

4 Yes 1 No

Responses

If NO, please state why

Not qualified to answer I feel ladies and gents hairdressers are most popular for apprentices Reflects 2012 LMI report commissioned by ISA Training I can only give opinion about my own sector Thought it would be higher due to funding being received


7. The Industry Chairs meeting




7. The Industry Chairs meeting



7. The Industry Chairs meeting 7.1.1 Overview The industry chairs were invited to a specific meeting at the St David Hotel Cardiff Bay on the 08 July 2014 11:00am to 3:00pm to provide qualitative feedback on the emerging findings from the research completed by Beaufort Research.

Aim To complete a qualitative discussion and validation on the findings from the LMI research from a UK Industry chairs and Wales Strategic perspective

Objectives To qualitatively discuss and validate the:-

1. GVA Information provided within the evidence

2. Telephone survey response rate Information provided within the evidence

3. Market size and services Information provided within the evidence

4. Workforce profile Information provided within the evidence

5. Apprenticeships Information provided within the evidence

6. Recruitment Information provided within the evidence

7. Training Information provided within the evidence

8. Business growth Information provided within the evidence

9. To explore why there is a low progression rate in this sector from level 2 to leve3 (currently understood to be less than 28%). This will help to understand barriers to

progression and inform interventions to overcome these.

10. To identify the skills shortages of those entering this workforce (this can help to inform lower level or provision at younger ages).

11. To identify the current skills gaps apparent in the sector (this will help to inform CPD related training and connection with other projects and programmes).



7.1.2 Question 1 Evidence - GVA Research findings Figure 1: GVA per head of population, 2012

Q1a. Do you feel this is an accurate representation of the GVA in Wales?

The group felt that taking into account the extremely limited amount of information in Wales on the Hair and Beauty sector and the fact that the sector is grouped into different industries the group accepted the methodology for the calculation for the GVA as acceptable.

The group stated that taking into account the geographical spread of business in Wales such as the high economic turnover in urban areas against the low economic turnover in rural areas the methodology was acceptable.



Q1b. How do you feel this relates to the rest of the UK?

The group also agreed that this calculation could be applied UK wide again taking into account the geographical spread of business (high economic turnover in urban areas against the low economic turnover in rural areas)

Q1c. Further discussion

Central London would be predominantly higher with salaries escalating to four times the salaries calculated.

The group also stated that this would also potentially include Glasgow, Edinburgh and Belfast.

The group also stated there was a pocket of African type Hair Specialist Salons in the South East.

7.1.3 Question 2 Evidence telephone survey response rate

Table 3 below details the outcomes of calls made during the fieldwork period:

* Please note Unable to make contact includes numbers th

Wales State of the Industry Report for Hair and Beauty

Documents

Transcript of Wales State of the Industry Report for Hair and Beauty