Salon Spa Staff Compensation
We just saved 50% on staff costs AND made our staff more happy at the same time.
How? Easy. Let us explain. Everyone knows that spas are dropping like flies. Even the big chains out there are having a tough time here in the US. This recession is really affecting a lot of people who were UNPREPARED. So with salons, medspas and day spas all closing their doors, caregivers are aware that their options are getting pretty slim. If you’ve ever been one of those types who felt ruled by your staff, now’s the time to stand tall. See, staff KNOW they’re lucky to have a job right now. And if they’re not aware, they’re EASILY replaced by someone else who is!
We have always paid $16/service (…on an $80/massage). We’ve wanted to switch over to an hourly setup for quite a while but since our payroll would be essentially the same, we haven’t made the switch. Recently, with things being in the “slow” month (Jan), our staff haven’t wanted to wait around and do “busy work” until a client arrives, even though it’s included in as part of their service pay. So we decided to pay them a fixed hourly rate of $8/hour. This covers their “wait time” and their “service time” so they make the same pay. They are now compensated directly for the down time, making them feel better. They’re also getting a more secure pay setup that they can count on, and won’t be effected by down months.
So how did we save? First, we’ve got them to stick around during the down time, helping around the spa, instead of trying to sneak out. Then, using the advice of our “how-to tv goldmine system” that we sell in our shop, we’re continuing our advertising. This is not only paying for itself, but building our brand, establishing ourselves as experts, and bringing in new clients on a daily basis. It has more than paid for itself and will, over time, keep my staff busy most of the time. Since I’m “eating” the down time now (not really, since pay is essentailly the same), I’ll reap the benefits of it in the future from having a fixed hourly rate when the numbers REALLY begin to pick up from my television advertising efforts. My staff will benefit GREATLY as well, with more tip income and retail opportunity, increasing their pay significantly. It really is a joint effort on both of our parts to create the most successful spa in town.
This of course, is assuming you’ve got everything else working how it should be, marketing, advertising, referrals, business setup, etc. (all the things we go into online here). We’re even working on a new VIP membership plan for those of you who are extra serious about making their spa THE place in town to be… but more on that later.