Spa+Clinic Team How does your Spa or Salon Measure up?
Last week I published a story about Labour Placement and Protection and the new regulation to protect Balinese Spa Therapists in our industry. This week I want to expand this further and provide you some interesting data about employee remuneration on a global stage.
The Global Spa & Wellness Summit has released the following information relating to therapist remuneration and interestingly Australia has not been sighted for its remuneration rate but in comparison it has a generous set rate of pay but we also have the highest cost of living.
Remuneration is, in most markets, the single biggest expense in spa business operations. This makes sense – after all; the inherent strength of spas is a labor-intensive product. However, even after recognising the differences in the cost of living in different areas of the world, it is interesting to note that there are major variances in remuneration around the world.
It is also important to keep in mind that every country has its own legal and cultural requirements for factors that impact remuneration, such as health insurance, retirement, and other social service benefits. The costs of these social services also vary widely, from an approximate nine per cent of payroll in the U.S. to as much as 40 per cent in Sweden. And in some countries, monthly pay is quite standard across the country, and in others, there are variations city by city, or, as in the case of the U.S., from one business establishment to another.
It’s no surprise that the countries that pay the least in direct remuneration also have the lowest cost of living. However remuneration may also be a reflection of the importance of personal skincare in a specific locale or region, and the value placed on overall health and appearance.
Esthetics sits right at the crossroads of beauty services and healthcare, and in most countries is attracting an increasing number of therapists and practitioners. In situations where the desired remuneration is outsized in comparison to the other costs of doing business, it can make the ability for a business to earn a profit almost impossible – and negatively impact the growth potential for the industry as a whole.
There will always be the argument that by paying remuneration to therapists your spa or salon will turn over more product as the therapists become hungry for the dollar. On the other hand you will need to monitor this behaviour as the last thing you need or want is for your spa to become ‘product pushers’
Keeping staff hungry and engaged while keeping your client’s happy and not bombarded with pushy sales is an art.
Article compiled by Madonna Melrose
Makeup artist and consultant, educator and beauty editor Madonna Melrose has been involved in the beauty and fashion industries for nearly 3 decades. She has experienced all sides of the industry as a cosmetics Importer, Wholesaler, Distributor and Retailer. Currently writing her first book she still travels with Olivia Newton-John when she is in Australia as her personal assistant while also raising her 11year old son and tour managing her partners live music shows.
