UPSKILLING VERSUS REPLACING STAFF: STRATEGIC GROWTH DECISIONS.
Written by Hulisani Ravhudzulo
The Hairdressing, Cosmetology, Beauty and Skincare Industry is constantly evolving. New technologies, changing client expectations, innovative treatments and increased competition require establishments to adapt continuously to remain relevant and profitable.
For establishment owners, managers and employers, growth often raises an important question: Should the establishment invest in upskilling existing Employees or recruit individuals who already possess the skills required for the next stage of growth?
This is not merely a recruitment decision. It is a strategic management consideration that affects productivity, service quality, employee morale, operational costs and the long-term sustainability of the establishment.
Upskilling involves investing in existing Employees through training, coaching, mentoring and professional development to improve their skills and prepare them for new responsibilities. Recruiting new staff, on the other hand, involves appointing Employees whose skills, qualifications or experience better meet the establishment's changing operational requirements.
Both approaches may be appropriate in different circumstances. However, employers should carefully assess their business needs, the capabilities of their existing workforce and the potential consequences of their decisions.
In the Hairdressing, Cosmetology, Beauty and Skincare Industry, where client relationships, technical expertise and service consistency are essential, the decision to develop or recruit Employees can significantly influence the establishment's ability to grow.
1. Understanding the Need for Change
Change is an inevitable part of growth. An establishment that initially offers basic hairdressing services may eventually expand into advanced colouring, specialised treatments, skincare, nail technology or other beauty services.
As the establishment grows, Employees may be required to acquire new technical skills, operate modern equipment, adopt digital booking systems or provide more specialised customer service.
Before deciding whether to upskill or recruit Employees, employers should identify the reasons for change.
These may include:
Expansion into new services or treatment categories.
Introduction of new technologies, equipment or products.
Increased client demand and higher service expectations.
Poor productivity or inconsistent service delivery.
A shortage of specialised technical skills.
Changes in establishment strategy, structure or operational requirements.
For example, an establishment introducing advanced skincare treatments may discover that its existing Employees require additional training to perform the new services safely and effectively.
The employer should first determine whether the skills gap can reasonably be addressed through training or whether the establishment requires expertise that is not readily available within the existing workforce.
Practical lesson for employers: Identify the skills required for future growth before making decisions about recruitment, training or restructuring.
2. Upskilling Existing Employees: Investing in Human Capital
Upskilling is the process of improving Employees' existing skills or equipping them with additional competencies to meet changing establishment requirements.
In the Hairdressing, Cosmetology, Beauty and Skincare Industry, this may include advanced colouring techniques, specialised skincare treatments, product knowledge, customer relationship management, digital administration and supervisory development.
Investing in existing Employees can provide several advantages.
Firstly, Employees who already understand the establishment's culture, procedures and client base may adapt more easily to new responsibilities.
Secondly, training can strengthen Employee confidence, improve service delivery and create opportunities for career progression.
Thirdly, upskilling may help employers retain experienced Employees while reducing the disruption associated with recruiting and integrating new staff.
For example, an establishment may choose to train an experienced Hairdresser in advanced colour correction rather than recruiting a new specialist immediately.
This approach may allow the establishment to expand its service offering while retaining an Employee who already understands its clients and operating standards.
However, upskilling requires planning, time and financial investment. Employers should consider training costs, the time required to achieve competence and the potential impact on daily operations.
Training should also be relevant to the establishment's actual operational needs.
Practical lesson: Upskilling is a strategic investment when the Employee demonstrates the potential and willingness to develop the competencies required for the establishment's future growth.
3. Recruiting Staff: When Recruitment Becomes a Strategic Necessity
Although upskilling offers significant benefits, it may not always address the establishment's skills requirements.
There are circumstances in which recruiting Employees with specialised expertise may be necessary.
For example, an establishment introducing advanced aesthetic services may require Employees with specific qualifications, technical competencies or professional experience that cannot reasonably be developed through short-term internal training.
Similarly, a growing establishment may require an experienced manager to oversee multiple branches, manage budgets, supervise Employees and implement operational systems.
Recruitment can provide immediate access to specialised skills, fresh perspectives and industry experience.
However, recruiting new Employees is not automatically the most efficient solution.
Recruitment involves advertising, interviewing, onboarding and training new Employees in the establishment's procedures. There may also be disruption to client relationships and team dynamics.
Employers should therefore assess whether the required skills are genuinely unavailable within the existing workforce before deciding to recruit externally.
Where a decision involves terminating existing Employees because of operational requirements, the employer must distinguish between a dismissal for operational requirements and ordinary recruitment to obtain additional skills.
Practical lesson: Recruitment should address a clearly identified establishment need rather than being treated as an automatic response to Employee development challenges.
4. Financial Considerations: Training Costs Versus Recruitment Costs
Growth requires careful financial planning.
Employers may be tempted to recruit experienced Employees because they believe this will produce immediate results. However, recruitment can involve significant direct and indirect costs.
These may include:
Recruitment and advertising expenses.
Salaries and benefits associated with new appointments.
Induction and onboarding costs.
Training on internal systems and procedures.
Temporary productivity losses during the transition.
The time required to establish client relationships.
Upskilling also carries costs, including training fees, equipment, learning materials and time away from normal duties.
The difference is that training may strengthen the capabilities of Employees who already understand the establishment's operations.
For example, an establishment considering the introduction of a new treatment should compare the cost of training an existing Employee with the total cost of recruiting a suitably qualified specialist.
The decision should also consider the expected revenue generated by the new service, the time required to recover the investment and the establishment's ability to maintain consistent service quality.
Practical lesson: Employers should compare the total cost and expected establishment value of both options rather than focusing exclusively on immediate salary or training expenses.
5. Employee Morale, Retention and Workplace Culture
Decisions about upskilling and recruiting staff can have a significant effect on workplace morale.
When employers invest in Employee development, Employees may feel valued and recognise that the establishment is interested in their professional growth.
This can support Employee engagement, strengthen loyalty and encourage a culture of continuous learning.
In the Hairdressing, Cosmetology, Beauty and Skincare Industry, experienced Employees often develop strong relationships with clients. Retaining these Employees may help preserve client confidence and service continuity.
Conversely, replacing Employees without meaningful communication may create uncertainty, reduce morale and increase concerns about job security.
However, retaining Employees without addressing persistent skills gaps can also affect productivity, service quality and establishment performance.
Employers should therefore communicate openly about changing establishment requirements and provide Employees with reasonable opportunities to understand and prepare for new expectations.
A workplace culture that encourages learning, accountability and professional development can help Employees adapt to change while supporting the establishment's strategic objectives.
6. Labour Relations Considerations: Managing Change Fairly
Employers in South Africa must consider the labour-law implications of decisions involving Employee development, restructuring and recruitment.
The Labour Relations Act 66 of 1995 (LRA) provides the framework for fair labour practices, including the management of dismissals for operational requirements.
Where an employer intends to dismiss Employees because of operational requirements, section 189 of the LRA requires consultation with the affected Employees or their representatives, as applicable.
The consultation process should address relevant issues, including the reasons for the proposed dismissals, alternatives to dismissal, measures to minimise dismissals, the selection method and severance pay where applicable.
Recruiting a new Employee with different or additional skills does not, by itself, establish a fair basis for dismissing an existing Employee.
Employers must carefully assess the genuine operational requirements of the establishment and comply with the applicable legal process.
Where training is a reasonable alternative to dismissal, it may be relevant to the employer's consideration of alternatives.
Employers should also ensure that changes to Employees' duties, remuneration, working hours or contractual terms are handled lawfully and fairly.
In the Hairdressing, Cosmetology, Beauty and Skincare Industry, employers must additionally consider the applicable National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry Main Collective Agreement, including relevant employment conditions.
Practical lesson: Growth does not remove an employer's obligation to follow fair labour practices when implementing workplace changes.
7. Developing a Strategic Workforce Development Plan
A structured workforce development plan can help employers make informed decisions about training, recruitment and future staffing requirements.
The process should begin with an assessment of the establishment's current workforce and its future objectives.
Employers should identify existing Employee competencies, operational weaknesses and the skills required to support expansion.
A practical workforce development plan should include:
Skills assessment: Identify the skills Employees currently possess and the competencies required for future operations.
Training priorities: Determine which skills gaps can reasonably be addressed through training, mentoring or professional development.
Recruitment planning: Identify specialised skills that may need to be sourced externally.
Performance management: Establish clear performance expectations and provide Employees with appropriate feedback and support.
Budget allocation: Determine the financial resources required for training, recruitment and development.
Progress monitoring: Evaluate whether training and recruitment initiatives are improving productivity, service quality and establishment performance.
Career development: Identify opportunities for Employees to progress into senior, supervisory or specialised roles.
For example, an establishment planning to open a second branch may develop an experienced Hairdresser into a team leader while recruiting an additional specialist to address a technical skills gap.
This approach can support expansion while retaining institutional knowledge and developing future leadership capacity.
8. The Employer's Responsibility: Making Informed and Sustainable Decisions
The responsibility for managing change rests with the employer.
Before deciding whether to upskill or recruit staff, employers should consider the following questions:
What specific establishment objective is driving the proposed change?
Which skills and competencies are required to achieve that objective?
Do existing Employees have the potential to acquire the required skills?
What training, mentoring or professional development opportunities are available?
Would external recruitment provide a necessary specialised competency?
What are the financial and operational implications of each option?
How will the decision affect Employee morale, client relationships and service delivery?
Are there contractual, collective-agreement or labour-law considerations?
If dismissals are contemplated, have lawful and reasonable alternatives been properly considered?
How will the success of the chosen approach be measured?
Employers should maintain appropriate records of training, performance discussions, skills assessments and workforce planning decisions.
Where a proposed change may affect Employees' employment or contractual rights, employers should seek appropriate labour-relations guidance before implementing the change.
A well-planned approach can reduce unnecessary workplace disputes while helping the establishment adapt to changing market demands.
In conclusion, upskilling versus recruiting staff is a strategic decision that can influence the long-term growth and sustainability of an establishment in the Hairdressing, Cosmetology, Beauty and Skincare Industry.
Upskilling can strengthen existing Employee capabilities, support retention and create opportunities for career development. Recruitment can provide specialised skills, new expertise and additional capacity where the establishment requires competencies that are not readily available internally.
Neither approach should be adopted automatically.
Employers should evaluate their establishment objectives, existing workforce capabilities, financial resources and operational requirements before deciding how to address skills gaps.
In South Africa, these decisions must also be managed in accordance with applicable labour legislation, employment contracts and bargaining-council requirements.
The message for employers is straightforward: Invest in the skills and potential of existing Employees where practical, recruit strategically where necessary, and manage workplace change fairly.
For establishment owners, sustainable growth is not only about expanding services or increasing revenue. It is also about building a capable, adaptable and motivated workforce that can support the establishment's long-term success.
