Pulse December/January 2024-25 | Page 58

Insights from Several Experts on Ways to Attract and Retain Both Providers and Leaders

Compensation in the Spa Industry

Insights from Several Experts on Ways to Attract and Retain Both Providers and Leaders

BY KRISTINE HUFFMAN
Throughout 2024 , Pulse featured interviews and insights about front desk and frontline roles , highlighting opportunities for career development within the spa industry .

Meet Suzanne Holbrook

SUZANNE HOLBROOK is senior corporate director , spa operations , for Marriott International Ritz-Carlton , where she drives spa performance for more than 160 hotels and resorts . Holbrook ’ s focus on business strategy and revenue generation is complemented by her passion for supporting the education and career development of spa employees at all levels .
“ If they come up and say , ‘ I don ' t want to leave that 20 percent service charge ,’ then I think it ' s a red flag to find out if the treatment or service was good enough and follow up on that .” — SUZANNE HOLBROOK
Kristine Huffman for Pulse : There are potentially four parts of provider compensation : the base ; a commission or a kick for a booked appointment ; the tip or portion of a service charge ; and then incentives on top of that . What did you find when you started researching all of this as you were looking at setting your policies for next year ? Suzanne Holbrook : As we start to really drill down , first you ’ ve got to understand what the law is by state , and even by city , to make sure you ’ re following legal guidelines and meeting the market demands . But I ’ ve always recommended putting in place an hourly base , plus a commission , plus a portion of an automatic service charge . Let ’ s say , if we have a 22 percent service charge , generally 18 percent goes to the provider , two percent is pooled and goes to the support staff , and then two to four percent goes to the house .
Pulse : You use the word service charge versus tip or gratuity . SH : It makes it easier for everyone . If it ’ s an automatic service charge , it ’ s mandatory . If it ’ s a gratuity or a tip , it ’ s optional . So , we don ’ t have to ask the guest if they want to add it or not . If they come up and say ,“ I don ’ t want to leave that 20 percent service charge ,” then I think it ’ s a red flag to find out if the treatment or service was good enough and follow up on that .
But you need to let guests know . In California they call it “ staff charge ” versus “ service charge ” and it must be reflected on your menu . So , if your massage is $ 200 and there ’ s a 22 percent staff charge , the listed price has to show as $ 244 . Then , there ’ s certain verbiage you have to write within every piece of collateral , whether it ’ s your online menu or your bill when you check out , explaining how
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