THE COMPENSATION SITUATION CONTINUED FROM PAGE 26
PROJECTED SERVICE PROVIDER WAGE
Average Price of Service Provider Hourly Wage
Service Commission % Service Commission
Service Charge % Service Charge
Retail Sales Retail Sales Commission %
Retail Sales Commission
Total Projected Wage Per Service
Hr + Com % Comm %.
$ 125.00 $ 11.00
20.00 % $ 25.00
20.00 % $ 25.00
$ 50.00
8.00 % $ 4.00
$ 65.00
$ 125.00
“ We reduced the hourly rate and increased the commission amount … being able to post and advertise that higher commission rate seemed to make a difference in the perception of applicants .”
— ANGELA BIEHL , Senior Director of Talent Acquisition , WTS International
— 30.00 %
$ 37.50
20.00 % $ 25.00
$ 50.00
8.00 % $ 4.00
$ 66.50
Flat Rate
$ 125.00
$ 35.00 00.00 %
—
20.00 % $ 25.00
$ 50.00
8.00 % $ 4.00
$ 64.00 sion amount . It did raise compensation just slightly , but being able to post and advertise that higher commission rate seemed to make a difference in the perception of applicants .” WTS International made similar changes in compensation at another spa . There , the overall compensation amount under the new structure remained the same as it was before . Despite this , the spa began receiving more applicants purely because of the higher commission percentage .
When listing a job opening , think of the curbside appeal and perception of your compensation and benefits . How will applicants perceive these numbers ? Finding ways to lift service providers ’ compensation percentages and better showcase your existing suite of benefits is essential to succeed in a hyper-competitive job market .
MAKING BIG CHANGES While perception is important , it might be equally important for your spa to update your overall compensation and benefit strategy — changing the perception of them can only do so
Ways to Increase
Your Appeal
The spa industry has never faced a more fiercely competitive market for massage therapists , estheticians and other service providers . Here are a few quick ideas from ISPA members on how to make a job at your spa more appealing to potential new hires .
Extend Health Insurance to Part-Time Providers : As Tompkins mentions , offering health
1 . insurance to part-time service providers ( massage therapists and estheticians ) is perhaps the most effective way to increase the appeal of your spa ’ s compensation package . With the pandemic still on everyone ’ s mind and fresh in their memories , health insurance might be the difference between a new hire and another one that gets away .
Offer a Sign-on Bonus : A signing bonus is a smart way to induce an applicant to take a
2 . job at your spa for two reasons . First , even a large sign-on bonus will cost a spa less than a modest increase in salary would because it ’ s a one-time expenditure . Second , a dose of cash upfront is particularly appealing to those who are still feeling the effects of the financial insecurity created by the COVID-19 pandemic .
Increase Compensation for Peak Hours : To entice new hires to work during those times
3 . of peak need , offer additional compensation or perks to those who can work an “ ideal ” schedule — this might take the form of a higher hourly rate , an enhanced sign-on bonus , greater schedule flexibility during non-peak hours , or more .
28 PULSE ■ JULY 2021