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Staff Compensation

A question submitted to Spas2b:

I know that what you pay your staff is the most important expense category, but how do you match up what employees want with what you can afford to pay?


Our Response:

Sometimes you won’t be able to pay what potential employees expect (or even existing employees). However, if you have done your homework, you will know:

  • What the generally accepted methods of payment are in your area;
  • What the average hourly/commission/fee for service/salary looks like; and
  • You will know what you can afford.

Wages all in, including base and incentives should not exceed 50% of projected revenue, in fact, the total should range between 30-45%. If you are unable to pay what potential employees expect, make sure you supplement with a compensation package that boasts non-tangible rewards as well as tangible ones:

  • Great leadership;
  • Flexible work arrangements;
  • Growth potential;
  • Recognition programs, etc.).

When making a compensation offer, be sure to include not only the base wage, but all such incentives:

  • Retail commissions;
  • Average expected service gratuities;
  • Service and product allotments provided by you;
  • Training reimbursement or paid training programs; and so on.

Employees MUST understand that their rewards do not only include base wages, but so much more. Make the package interesting and enticing, with room for growth and rewards.  Leslie Lyon

See tons more!  on Spa Finances  and Staff Compensation within our Spa Business Management Education Courses & Training Tools


About Leslie

Spas2b Inc. is a full service Spa Development company, specializing in Online Spa Management Distance Learning Courses, Spa Business Manual Instant Downloads & Resources, and Spa Consulting Services.
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