Editor’s note: This article is based on the presentation that will be given by author Denise Dubois during the Advanced Education Conference Program at Face & Body Midwest® on March 9, 2013. For more information, log on to www.FaceandBody.com/midwest.
Compensation is a combination of what you pay your employees plus the benefits you provide. The right benefits program not only allows you to maintain profitability, but it helps distinguish your business and its services from the competition.
The majority of skin care facilities operate using a straight commission compensation plan, paying between 35–65% on services. This involves skin care professionals being paid a percentage of their gross sales for the work they performed during a certain period of time. Decisions for raises are often based on emotions when feeling pressured, especially if the request comes from a busy service provider. In many situations, service providers are caught feeling stagnant with no motivation to change the way they do business. This can lead to poor morale and high turnover. It is not uncommon for service providers to earn low wages and, ultimately, leave the industry all together. Many owners are losing the battle with unnecessary profit losses and a lack of accountability for their team in meeting performance goals.