Pulse May 2020 | Page 28

PULSE POINTS BY JOSH CORMAN THE COMPENSATION SITUATION MONEY, LIKE POLITICS AND RELIGION, is one of those things that isn’t supposed to be discussed at the dinner table. That said, we’re about to dive into the dollars and cents of the spa industry, so if you happen to be reading Pulse at a dinner table, now might be a good time to relocate. The 2019 ISPA U.S. Spa Industry Study Compensation Supplement may not provide ideal mealtime conversation fodder, but it does offer a clear breakdown of how spa em- ployees are compensated, what they earn and what the staffing picture looks like across the industry. A closer look at the numbers reveals some notable recent trends. First, it’s worth noting that compensation levels across the spa industry have continued to trend upward over the last five years. For example, in 2014, 86 percent of full-time spa directors in resort/hotel spas and 45 percent of those in day spas earned more than $60,000. In 2019, those figures rose to 94 percent and 74 percent, respectively. 20 PULSE ■ MAY 2020 Similar gains 1 are evident among other positions as well: l In 2014, 27 percent of spa managers earned more than $50,000; in 2019, that figure rose to 38 percent. l In 2014, 73 percent of estheticians 2 earned more than $30,000; in 2019, that figure rose to 98 percent. l In 2014, 70 percent of massage therapists earned more than $30,000; in 2019, that figure rose to 96 percent. l In 2014, 54 percent of nail technicians earned more than $30,000; in 2019, that figure rose to 81 percent. Rising wage levels aren’t the only notable change to the industry’s compensation landscape since 2014. In ad- dition to earning more, service providers are also earning differently. In 2014, 45 percent of day spas reported paying service provider employees a straight commission on serv- ices, while only 26 percent used straight hourly pay plus a commission on services. In 2019, however, the number of day spas that reported using straight hourly pay plus a commission on services rose to more than 60 percent.