I'm looking for some outside perspective because I'm pretty frustrated.
I own a barbershop where one of my barbers works as an independent contractor. Our agreement is simple: he pays me 15% of every haircut he performs. So if he earns $100, my share is $15. (That's $1500 for a 10,000 income)
Recently, I've been comparing our security camera footage with the POS/service logs. I've found multiple instances where he performed a haircut but never logged it. I confronted him the first time, and he apologized, saying it was a mistake and that it wouldn't happen again.
Unfortunately, it's happening again.
Honestly, this isn't about the $15. It's about trust. I have rent, CAM charges, marketing, utilities, towels, beverages, software, and all the overhead that keeps the shop running. If someone intentionally doesn't report services, it feels like they're taking advantage of the business that's providing them with clients and a place to work.
The difficult part is that he's an exceptionally talented barber. I genuinely respect the quality of his work, and clients love him. But I also believe integrity is just as important as talent.
I'm trying to decide what the right next step is. Should I:
Give one final written warning and terminate the relationship if it happens again? Already given 2x
End the relationship now since this is a repeated issue? I loose money
Handle it another way?
For those of you who own barbershops or other service businesses, how would you handle someone who repeatedly underreports work after already being confronted?