Staff Shortages Stall Beauty Supply Momentum

Across the U.S., a jobs crisis is unfolding. With the shadow of a recession looming, rising unemployment, and a cooling labor market, many industries are struggling. Among them, the beauty supply industry faces unique challenges that require a slightly different perspective. The ideal candidates are more than just a pair of hands. They take on specialized roles and carry specific responsibilities—whether as experienced managers who understand store operations, frontline workers who function like a well-oiled machine, or reliable part-timers who step in during peak hours. There’s no one-size-fits-all approach to staffing needs, as they vary depending on a store’s size, location, and customer base. As a result, general labor market statistics don’t capture the unique realities of the beauty supply sector. Unfortunately, there’s no clear solution in sight. Right now, the most urgent concern for beauty supply owners across the country is finding the right people. It’s essential to take a closer look at why hiring has become so difficult—and what conditions are standing in the way.

 

Part 1. Inside the Candidate Drought

1) Work intensity and environment

One of the most commonly cited reasons is the demanding nature of the job. Employees often work long hours on their feet and are required to do heavy lifting. When this is combined with the rudeness of some customers, it creates a challenging—and often unbearable—work environment. Exposure to violent crime in the beauty supply industry also has a significant negative impact. Years of repeated thefts, threats, and robberies have contributed to the strong perception that the industry is unsafe.

2) A broken internal cycle, a lost labor flow

The beauty supply industry once had its own internal employment cycle. It was common for workers to start at a wholesaler to stabilize their immigration status, then transition to a retail store—or even open one themselves. This pathway allowed many foreign workers to establish themselves in the U.S. and build stable careers, while also serving as a reliable labor pipeline for employers. However, this cycle has significantly weakened in recent years. At the center of the shift is a reduction in the number of H-1B visas issued, along with stricter visa screening processes. Approval rates for H-1B visas are lower than in the past, and the process has become more rigorous, making it harder for foreign workers to obtain stable residency. Stricter immigration enforcement has significantly disrupted this flow. With increased activity from Immigration and Customs Enforcement (ICE) and the implementation of the Secure Communities (SC) program—which involves local law enforcement—hiring undocumented workers has become a substantial legal and financial risk for business owners. As a result, the once-reliable ‘wholesale to identity to retail’ pipeline no longer functions as it once did. The self-sustaining labor supply within the beauty supply industry has been disrupted, forcing employers to recruit from a much more limited talent pool.

3) How Korean conglomerates are reshaping immigrant job paths

The expansion of Korean conglomerates into the U.S. is also affecting labor availability in the beauty supply industry. For example, Hyundai Motor Company recently announced the opening of a large-scale production plant in Georgia, creating new job opportunities for Korean immigrants. As more large companies hire Korean temporary workers—particularly through the OPT (Optional Practical Training) program—talent that once gravitated toward beauty supply stores is shifting elsewhere. These Korean corporations offer clear advantages, including linguistic and cultural familiarity, stable salaries, benefits, and opportunities for career advancement, all of which make the beauty supply sector a less attractive option.

4) Evolving job preferences among job seekers

Job seekers’ preferences have shifted dramatically in recent years. In particular, Generation MZ (Millennials and Gen Z) tends to favor roles that offer autonomy and self-actualization over repetitive retail work. They prioritize flexible hours, growth opportunities, and creative work environments. The COVID-19 pandemic further reduced their interest in face-to-face service roles—posing a challenge for the beauty supply industry, which is highly customer-facing and hands-on. While younger generations remain interested in the beauty field, their interest is often focused on creative roles such as planning, marketing, and content creation. In contrast, traditional retail responsibilities—like stocking shelves, assisting customers, and managing inventory—are increasingly overlooked.

5)  Cultural barriers

In the beauty supply industry—largely composed of Korean-owned stores—cultural differences have contributed to recurring workplace tensions. On Reddit’s r/blackladies, a community for Black women, there was a lively discussion about “experiences working in Korean-owned stores.” Based on the experiences shared by many users, the following challenges emerged repeatedly:

Many participants shared that they felt mistrusted—for example, being restricted from handling cash registers or being subjected to excessive monitoring.

Some stories highlighted racially insensitive behavior by store owners toward both Black employees and Black customers.

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There was a sense among some that hiring Black employees was done purely as a business strategy, rather than out of genuine respect or trust.

In conclusion, the talent shortage in the beauty supply industry isn’t just a labor market issue—it reflects a complex mix of work intensity, safety concerns, and language and cultural barriers. What’s needed now is not just to fill positions, but to create an environment where people genuinely want to work.

 

 

Part 2. Building a Workplace That Attracts and Retains Talent

Things you can’t change vs. Things you can

The phrase “If you pay people well, they will come” is often heard in conversations about labor shortages. Wages and benefits are certainly the foundation of any job offer—everyone wants fair compensation and good working conditions. However, for self-employed business owners, especially in a volatile market, simply raising wages can place significant strain on operating expenses. This becomes especially risky when sales are inconsistent or profit margins are thin. This highlights the importance of making strategic decisions. With a limited budget, it’s crucial to consider alternatives beyond salary. Elements like flexible scheduling, a supportive atmosphere, a clear division of responsibilities, and opportunities for growth can have a surprisingly strong impact on employee satisfaction and retention. By focusing on what you can change—your workplace culture and internal structure—rather than what you can’t change immediately, you improve your chances of retaining current staff and attracting new talent in a sustainable way.

 

1. Hiring non-Korean employees

In the beauty supply industry, Korean managers have traditionally been preferred due to their reputation for efficiency and strong sense of responsibility. However, it is becoming increasingly difficult to find qualified Korean managers, and this trend is expected to continue.

Example: Mr. C hired a non-Korean employee as a manager. Their wage was set lower than that of experienced Korean managers but higher than that of general staff. Mr. C provided systematic training in product knowledge and customer service. Initially, there were some challenges due to cultural differences. However, the employee’s ability to follow training protocols and communicate effectively with a diverse customer base proved to be key strengths. One important aspect Mr. C focused on was a clearly written employment contract, which outlined responsibilities and expectations regarding tardiness, unexcused absences, and other workplace issues.

 

 

2. Empathy is the best perk

Costco is known for offering generous benefits to its part-time employees, but the most frequently cited source of satisfaction among staff is the “sense of belonging.” An atmosphere of respect, care, and meaningful connection with coworkers is what truly makes a workplace great. Small businesses are no different. It’s the little things—like coffee breaks, a small cake on someone’s birthday, or team meetings to talk about goals—that foster a sense of connection. And that connection, in turn, encourages long-term commitment and loyalty.

Example: Manager S had to travel to Korea for a family emergency. Unfortunately, it was the store’s busiest season, so he carefully explained the situation to his boss. The boss’s first reaction was, “How can we manage the staff?” In the end, Manager S was granted permission to take the trip, but he felt disheartened that a genuine expression of empathy came only after the boss’s operational concerns. He was disappointed, as he had always taken full responsibility for the store—as if it were his own.

 

 

 

 

Example: When Mr. M receives promotional samples from a hair company, he gives the expensive products to his longtime employees to try. Not only do they appreciate the gesture, but they also demonstrate the products to customers instead of keeping them for personal use—ultimately helping to boost sales.

 

 

 

 

 

 

3. Thinking about the ‘future’ while working

People work for different reasons—whether it’s to make a living, grow professionally, or prepare for their own business ventures. The key is helping employees feel that their current job is connected to their future. They should have firm confidence that “My career will definitely grow as I work here.” Initiatives can vary—from profit-sharing based on sales, to flexible scheduling that respects their preferred hours, to offering guidance for those interested in running their own business one day. Moving beyond the traditional employer-employee relationship and positioning yourself as a partner in their growth can make a lasting impact. A boss who communicates and supports employees through this process is remembered not just as a boss, but as a mentor.

Example: Employee K, who dreams of opening her own hair salon, is put in charge of the wig section. Her boss offers to share the sales margin from wig sales and gives her full responsibility for customer service, inventory management, and promotions. As a result, she doesn’t feel like just an employee—she treats the role as if it were her own business.

 

 

 

4. Establishing clear roles and authority

Lack of benefits and overwork aren’t the only reasons longtime employees leave. Unclear roles and vague lines of authority can also cause emotional strain. This is especially true when assigning responsibilities to managers—the scope of their roles should be clearly defined. Trust is built when there are clear boundaries between what a manager can decide independently and what needs to be reported or approved. Well-defined job responsibilities help reduce misunderstandings and conflict, while an organized structure lowers employee stress.

Example: Manager R was given full responsibility for running the store, including employee training and day-to-day operations, while the boss was typically present only once or twice a week. Following an internal meeting, she made the decision to terminate an employee with a pattern of ongoing issues. However, the boss later reinstated the employee without offering much explanation or involving her in the discussion. Feeling that her judgment wasn’t valued and her authority had been undermined, Manager R ultimately decided to resign.

 

 

What it really means to say “People make it hard”

Many beauty supply store owners say, “I can handle the physical work, but when people make it hard, I hate the business.” People problems are emotionally draining. Once trust has been broken, it becomes difficult to rely on others again. In hiring, the focus should be on building long-term relationships—not just achieving short-term efficiency. Investing in those relationships is essential. A simple bonus, a word of appreciation, or a small act of care can spark meaningful cultural change within a workplace. One owner shared, “I tried hiring my son, and all we did was hurt each other.” This reflects more than just family dynamics—it illustrates the challenges that can arise in any employer-employee relationship. Without mutual understanding, both parties can end up feeling hurt. Employees want to feel valued, and employers want reliable partners to share responsibility. Bridging that gap requires communication and genuine care.

 

 (Note) Hiring smart—Start with a background check

Mr. A shares his experience:

“I’ve been in this neighborhood for about 10 years, so I know most of my customers by face, and I generally know who’s who. One day, I asked a regular customer, ‘Would you like to work here?’ She seemed like a good fit, so I hired her. But later, she was caught stealing. I let her go—and a few days later, she came back and asked if I would hire her again. At that point, I thought, ‘I’m better off just doing it myself.’”

In business, the completely unexpected often happens. It’s not uncommon to work with someone who seems trustworthy at first but turns out to be very different. When someone breaks that trust—by stealing or being dishonest—it’s the business owner who bears the consequences.

Because of these risks, more and more business owners are choosing to use background check services before making a hire. Several online platforms—such as TruthFinder, Instant Checkmate, Spokeo, US Search, PeopleFinders, and GoodHire—offer screening services, typically ranging from $20 to $30 per report or per month. Each service offers different features, but most include access to criminal records, credit reports, past employment history, drug testing options, and even social media activity. Of course, no screening method is foolproof. But taking precautions can help prevent serious problems down the line—and it never hurts to make use of the tools available.

 

COVER STORY By BNB MAGAZINE
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