The way you set up your spa’s payroll is a foundational cornerstone upon which the spa’s culture is built. This decision deserves serious consideration. Whether commission, hourly, or team-based pay, 1099 or W2, or selecting the best payroll provider, the choices can seem endless and lead to decision paralysis. Clarity of vision is vital in all areas of running a successful spa, including payroll. Choosing the desired team culture of the spa is always preferred to falling into a default culture determined by uninformed decisions.
The Competition Culture
Commission-based pay is the compensation model most spa professionals are familiar with, receiving a percentage of the revenue generated from the services they provide to clients. It is particularly beneficial for high-performing professionals with an established clientele; they may earn a higher income than they would with an hourly rate. However, it can also lead to a lack of stability for employees because their income may fluctuate monthly based on the revenue generated. This can make it difficult to budget and create stress and uncertainty. Also, it may not be suitable for newer spa professionals who are still building their books; they may need help, guidance, and time to earn a consistent income. Additionally, this type of compensation can lead to competition instead of teamwork and perpetuate the misconception of client ownership.
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Melissa Allen has lived many lives as a dance teacher, biologist, and marketing director before becoming a successful aesthetician and spa owner. All of these former positions helped color her opinions, actions, and style. Allen’s career in aesthetics has also been far-reaching; she has been an aesthetician in the back of a salon, a solo aesthetician, a spa owner with several employees, and a global brand consultant. Allen has experienced many of the paths of aesthetics and is open, honest, and willing to share her adventures. As her time in the treatment room comes to an end, she is focusing on mentoring and guiding the next generation of thinking skin care professionals and spa owners.