MONEY TALKS : Do Your Employees Speak The Language ? CONTINUED FROM PAGE 30
Take Mindy as an example , a service provider at a large spa we work with . Her average bi-weekly take home per paycheck is $ 1350 , so Mindy thought she made $ 35,000 per year . Yet her gross earnings averaged $ 1,925 per paycheck , and she wasn ’ t factoring in her tips — about $ 300 per pay period , on average . That takes her earnings to about $ 58,000 per year !
Once Mindy understood her paycheck better , she had a completely different mindset and a new appreciation for her job and her employer .
3 . Help team members understand the total value of their compensation . Yet as we all know , compensation extends beyond just a paycheck — but only 34 percent of Americans actually pay attention to the materials they receive about their benefits , according to The Society for Human Resource Management . In Mindy ’ s case , she didn ’ t realize that the combined value of her benefits — paid time off , health insurance , 401k contributions — added up to over $ 5,000 per year !
With the understanding of her gross earnings , tips , and the value of her benefits , Mindy ’ s total annual compensation is now almost double what Mindy thought she was making .
There ’ s a lot more to “ money in ” than just a paycheck . Benefits , both traditional and non-traditional , translate into real money in your team members ’ pockets . Benefits received as part of a total compensation package can be extremely significant . But employees don ’ t know that — so show them .
Taking full advantage of benefits can easily add 20 percent ( in dollars , sometimes even as high as $ 350 to $ 460 per paycheck ) or more to compensation . Helping your team members understand that the total value of their compensation goes beyond their net earnings will help them realize the grass is green on this side , not the other .
4 . Help team members become “ intrapreneurs .”
Since “ money in ” is a key indicator of financial wellness for both your team and your business , everyone wins when you grow the pie .
Intrapreneurs are employees who have a business within an existing business , and are usually on ‘ performance based pay .’ They also use entrepreneurial thinking to generate revenue , improve business operations , and ensure the business meets targets .
Progressive companies work by working together . Viewing team members as intrapreneurs means that they are partners and collaborators in meeting the overall goals of the company . This , in turn , helps the individual meet their personal goals .
To grow “ money in ,” your team needs to understand what drives sales . I recommend keeping it simple and focusing on just two numbers — client count and average ticket . These can make the biggest impact on total sales .
Mathematically , client count and average ticket are the only two numbers that , when multiplied together , equal total sales . And almost everyone in a spa can help to impact client count and average ticket ! A higher client count means your team is seeing more clients and impacting more people . A higher average ticket means your team is increasing the quality of each client ’ s experience through add-ons , retail , and appropriate pricing . When your team increases these numbers , they will increase their total sales . And everyone wins when you grow the pie !
5 . Consider bringing in financial wellness as a BENEFIT to your staff .
Financial wellness doesn ’ t happen in one conversation . It happens with consistent actions and behaviors . The majority of spas that do some sort of financial wellness training simply bring in their 401k provider once a year . This is not what we would consider a financial wellness benefit . This typically leaves more questions than answers , and let ’ s be real : it ’ s boring and it only impacts one component of financial wellness . Consider adding a robust financial literacy education to your spa ’ s training program instead .
While money may not be the most important thing to your staff , it is highly important . We hope these five tips give you a fresh perspective on the value of financial wellness in the workplace ! n
ERIN KUHN is president of Qnity , Inc ., a company providing financial intelligence training and consulting to beauty and wellness businesses around the world . To learn more , contact info @ qnityinc . com or contact Qnity at 952.237.7729 .
32 PULSE n OCTOBER 2022