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Medical Spa and Spa Compensation Programs

By: Bryan Durocher
Posted: December 18, 2008

page 5 of 8

When an employee has reached one year of employment, they would receive one week of paid vacation based on an average week of their service earnings less retail sales. You would divide their yearly service earnings by 52 weeks in order to get their weekly average. For example, an employee generates $52,000 in service sales during the period of one year. Dividing the gross total by 52 weeks gives a weekly average of $1,000. Then pay the appropriate percentage of commission based on the average dollar amount. After an employee has reached three years employment, the vacation pay can increase to a two-week time period.

With a small business, it is recommended that vacation be used in the period earned and not roll over. If an employee did not choose to use their time during the allotted year, they would be compensated and not accumulate the time. If an employee wants to take more time off than their paid vacation allows, the additional time would not be compensated and would have to be negotiated with the business owner.

Sick days

Offering sick days can be optional. Standard offerings range from 3-5 days per calendar year. The days can be taken with or without compensation, based upon benefits budget. If compensation is offered, use an average of their daily commission to determine pay. If the employee were compensated for sick time and exceeded their leave time, there would be no compensation.

Wellness days

One incentive an owner can provide to ensure consistent productivity is to offer wellness days for people who do not miss any scheduled work time in a calendar year due to sickness. If the employee did not call in sick or miss their scheduled shift, they could receive 2-3 days average pay in a bonus form at the end of the employee’s calendar year. If the employee missed any time, the incentive would become void.

Paid education

Each full-time employee receives $500 per calendar year for advanced education. The education has to be approved by management in advance. Any expenses over the education limit would be the responsibility of the employee.

Profit sharing