down and bring everyone in individually , so it doesn ’ t turn into a meeting where they all start to burn each other up . You write it out for them and you explain that this is what you ’ re earning on average now , this was what our average person is earning here , and this is what you can earn with the new program . You really have to spell it out . Keep it very inclusive . Really listen to them . If they have a valid point , say so . Tell them : “ Let ’ s go to our HR team . Let ’ s go to our fi- nance team , and let ’ s take a look .”

Pulse : When you ’ re looking at your monthly statements or creating a compensation plan and you ’ re looking at your labor cost , what percentage of revenue are you aiming for ? SH : It ’ s very specific to market . If you look at LA , Chicago , New York , it may be closer to 85 percent . We make almost no profit at those properties . In those spas , it ’ s a rite of passage to have a spa and we need it . But then you may go to Florida or Arizona , where you ’ re probably running in around 60 to 65 percent with our payroll and benefits .

Pulse : How do you handle annual pay increases ? Is it the policy in most of your spas that use either a flat rate or a commission that they get raises only when service prices go up ? Or do you have other kinds of bumps to increase compensation ? SH : They do get a cost of living increase every year on their hourly base , which is usually tied to minimum wage . That doesn ’ t necessarily make a practitioner very happy , because that ’ s such a small part of their salary . When you look at the continued price increases in the last few years , they have been astronomical . Treatments went from $ 150 in a luxury hotel to $ 250 and they ’ re receiving this huge commission and service charge on it . I don ’ t think there ’ s any other way to do it , but I think that for a really good provider we might incentivize them on repeat bookings . With this , along with upgrades , enhancements , home care and retail incentives , they can earn a lot . My stance is that we give you the tools and resources to make that money , but it is up to you how much money you make .

THREE LEADERS IN THE FIELDS of personnel management and employment policies offer the following insights that will be of special interest to spa leaders . With their knowledge of employee compensation and their experience guiding businesses through the complexities of hiring and workforce development , these professionals share valuable perspectives and provide practical advice and strategies on key employment topics . l Candra Bryant leads Hanna Resource Group , an HRfocused consulting firm dedicated to creating thriving workplaces . With a rich background in corporate HR leadership and consulting , Bryant excels in crafting employment policies that align with applicable regulations , best practices and organizational culture . l Alison Harrigan is a senior client partner and leads travel , hospitality and leisure practice for global organizational consulting firm Korn Ferry . Harrigan ’ s career background includes experience with franchised businesses , hospitality , real estate and wellness .

l Julie Keller-Callaghan is a co-founder of Well Defined and managing director of recruiting for Hutchinson Consulting : An Arch Amenities Group Company . A longtime influencer and advocate in the wellness world , Keller Callaghan serves as a consultant and content strategist for numerous wellness brands .

Be aware of critical wage law changes for 2025 According to Title 29 of the Code of Federal Regulations , as of January 1 , 2025 , salaried workers must be compensated at a weekly rate of not less than $ 1,128 ($ 58,656 annually ) to qualify as an exempt executive , administrative or professional employee . At any lower pay rate , most salaried employees will become eligible for overtime pay .

Offer a competitive wage Candra Bryant : We run compensation for 40 to 50 different companies that outsource their entire programming because they don ’ t have access to relevant employer

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