Salon & Spa Compensation Structures

Probably one of the most talked about topics in the Salon and Spa Industry today is compensation. As the variety of compensation options change and the Federal and State employment laws change, there is good reason why it is a hot topic. Your labor costs can quickly grow out of control and eat away at your profits.

As an owner you can choose from a variety of compensation options ranging from:

  • Employee

  • Independent Contractor

  • Team Based Compensation

  • Booth Rent

  • and more…

And each type of compensation plan will have an impact on:

  • Performance

  • Profits

  • Client Retention

  • and more...

It is important that you do an annual review of your compensation structure to determine if it is still the best method for your Salon or Spa, and to determine if our overall labor costs are within industry standards. As part of your annual compensation plan review you should contact your CPA or Payroll Service to be sure your compensation is still within Federal and State guidelines.

Determining which plan to choose and how to successfully implement the plan and monitor the results is a complex task. We are here to help you navigate this topic with the best outcome for your success. Our Salon and Spa coaches are all prior Salon owners or managers, and we spend countless hours staying up to date on best practices for this industry. Give us a call and take advantage of our Free Coaching Session to discuss your Compensation Plan.