Why Having a Casual Pay Roll is a Bad Idea
In a bid to save money or keep things “flexible,” many salon and clinic owners opt to pay their therapists casual rates. On the surface, it seems like a smart business move. You only pay them when you need them, avoid holiday and sick leave, and don’t feel locked into guaranteed hours.
But here’s the problem: what looks like a cost-saving measure often backfires—and can end up costing you more in the long run.
Let’s unpack why.
1. Casuals Cost You More Per Hour—Full Stop
Casual employees are overall paid 25% more to compensate for the lack of entitlements like paid leave. That means if you’re paying award rates, you’re already paying a quarter more per hour than you would for a part-time employee.
Do the math: over a full week or month of regular hours, this adds up fast. Especially if that casual therapist is working consistent shifts—which leads us to the next issue...
2. Regular Hours? You're at Legal Risk
Under Australia’s Fair Work Act, if a casual staff member works consistent and predictable hours for an extended period, (like full and part timers do), you’re at risk of backpay claims for things like sick leave, annual leave, and other entitlements. This is real and through random audits happen frequently. That’s a legal and financial headache no business owner needs.
3. Casuals Don’t Always Stick Around
Let’s be honest—if a therapist has no guaranteed hours, no job security, and knows they can be dropped at any time, how loyal do you think they’ll be?
Great team members want to know they have a future with you. They want stability, certainty, and a clear career path. If you can’t offer that, they’ll look elsewhere—and usually won’t give much notice, if any, when they do.
4. Casuals Can Decline Shifts (and They Will)
Unlike part-timers, casual employees can legally say no to any shift you offer.
So when you're slammed and need all hands-on deck, they might not be available and are in their rights to refuse a shift. You lose control, leaving you scrambling to fill the roster, resulting in missed revenue, reduced profit and inconsistent service delivery.
5. Inconsistency Hurts Client Retention
Client retention is the cornerstone of profitability. And clients want consistency. They want to see the same therapist, trust the same advice, and feel confident their treatment plan is progressing smoothly.
But casual staffing often leads to gaps in availability, inconsistent service delivery, and disrupted client relationships. And when clients don’t feel looked after, they simply don’t return.
6. Casuals Rarely Buy into Training and Performance
Want a team that hits targets, takes training seriously, and genuinely wants to grow?
That’s hard to achieve with a team of casuals. Without long-term commitment and risk of lower income if sent home when not needed, they’re less likely to invest in learning your systems, improving their performance, or caring about their results. They’re just not as bought in—and why would they be?
Training casuals can feel like pouring into a bucket with no bottom. They’re often gone before you ever see the return.
🤔 But Isn’t It More Flexible?
It might feel that way. But here’s the truth:
- It’s only flexible for them, not you.
- It gives you short-term relief, but no long-term gain.
- It feels cheaper but actually costs you more.
What you lose in control, team stability, loyalty, client retention, and long-term profitability far outweighs any short-term cost saving.
If you’re still not motivated enough to not employ casuals, really think about reason #2. I know someone who was required to pay over $180,000 in back pay claims plus an ATO fine. Is the risk worth it?
The Smarter Move? Shift to Part-Time or Full Time
Hiring your team as part‑time or full‑time staff is the game‑changer your business needs. Here’s why:
👉 Better Control of Your Roster
With guaranteed hours on the books, you can plan your schedule weeks or even months ahead. No more panicked last‑minute calls chasing someone to cover a shift. You’ll know exactly who’s working, when they’re available, and can optimise peak times (think evenings and weekends) to maximise bookings and revenue.
👉 A Stronger, More Loyal Team
People crave stability. When therapists know they have a reliable income and clear career path, they’re far more likely to stick around. Loyalty grows, turnover drops, and your best performers become brand ambassadors—referring friends, contributing ideas, and genuinely caring about your salon’s success.
👉 Legal Protection and Less Risk
Part‑time and full‑time employees come with built‑in entitlements—annual leave, sick pay, super, the lot. Yes, it’s an upfront cost, but it removes the lurking threat of back‑pay claims and fines under the Fair Work Act. You sleep better knowing you’re compliant, audit‑proof, and steering clear of surprise bills.
👉 Higher Client Retention Through Consistent Service
Clients want familiarity. Seeing the same therapist month after month builds trust, reinforces treatment plans, and leads to better results. Consistency means happier clients, glowing before‑and‑after photos, and people who happily rebook (and refer) rather than ghost you after one session.
👉 A Team That’s Invested in Training, Performance, and Results
When team members feel secure in their role, they’re far more likely to take training seriously—showing up for workshops, mastering new techniques, and hitting productivity targets. You’re not just paying for hands on deck; you’re cultivating true professionals who care about your bottom line as much as you do.
Bottom line: swapping out casual shifts for part‑time or full‑time contracts isn’t just a compliance play—it’s a strategic investment in a happier team, a more consistent client experience, and a healthier profit margin.
