8545 Meadow Bluff
Cincinnati, OH  45249
Phone: (513) 530 - 0122
Dave@Tremblay-Consulting.com

Spa/Salon Compensation Conversion:  Correct. Your Future.



Read Client's Testimonial/ Recommendation from a recent compensation conversion at a major, high-end Day Spa

See "Testimonial:   Why I Really Like
an Hourly and
Pay-For-Performance" Pay System
from a Real Hair Stylist.

 

Introduction

Welcome all spa/salon managers and owners!

Are your payroll costs too high? Do you want more influence with your staff?

Throughout North America, spas and salons are in distress. Most are financially struggling - many are going out of business or forced to make tough decisions. More times than not, high payroll expenses, sub-optimal staff performance, inadequate business processes, and increased competition have contributed to these dire situations.

Our industry has wrongfully held onto the practice of commission-based pay for service providers. "Modern", more equitable pay systems need to be implemented to attract, motivate, and retain service staff. IF you want to create, build, and sustain a business that promotes brand identity and sustainability, then you need to at least consider the switch from commission-based pay.

This website and our efforts are dedicated to help you better understand and potentially change your business' compensation system and staff management systems..

Specifically, I can provide you tools and help you convert your commission-based pay system to a superior non-commission based pay system along with support systems.  

I will greatly help you in changing your pay structure.  This change is key for your business, clients, and service providers.


Why is This Change Important? 

Here are documented business results from a non-commission pay system:

  • Increased Client Satisfaction
  • Greater Client Retention
  • More Profitability
  • Improved Cash Flow
  • Enhanced Teamwork and Professional Development
  • Added Flexibility for Price Increases
  • Optimization of Personnel Administration

And, very importantly for service providers and staff:

  • Improved Wage Security
  • More Opportunity – Professional & Personal
  • Greater Interest in Helping the Business Succeed

In short, it is a real, long-term win/win/win situation for the business, clients, and staff!

Purpose

As a spa and salon professional manager and/or owner, you have many pressing daily issues. It is necessary, however, to address your compensation system.  Changes must be driven by data and support your business objectives as well as goals.

Your compensation system is the foundation of your business.  Much of your staff's behavior stems from the type of pay system.  Pay is the biggest expense in your operation.

If your pay system is not giving you 100% of your needed results, you must bravely change it!  If it is killing your business, change it immediately based on data and wise decisions.

This website deals with spa/salon compensation systems.  Specifically, the site deals primarily with your potential conversion from a commissioned-based compensation program to a hourly/salary pay system. Even better, the conversion would include a Pay-for-Performance system. These systems are based on ideas from leaders within the industry as well as world-class business system like Six Sigma.

Please be open-minded in order to consider the merit and logic of this option.  We will be presenting a bit of necessary background with concrete examples that could help in the conversion!  There are many real-life examples to highlight points and systems.  Many of these are available by simply contacting me.

Background & Objectives

One of the biggest, far-reaching influences you deal with is your compensation system. Your compensation system needs to fill many requirements.
 
The most important aspect is that it needs to leverage your ability to give superior client service. Also, these are other important requirements:

  • Helps you achieve profitability
  • Supports and aligns your business’ vision and mission
  • Assists in giving equitable, defined opportunities to staff
  • Enhances the level of risk between the business and staff
  • Aids in building a progressive, team-based work environment
  • Enables professional advancement and skills sharing

Additionally, if you elect, this pay system can be the foundation for an implemented Pay-for-Performance (PFP) system within your operation. 

Here are some performance factors that industry experts advocate within a PFP system.  You can use some or all of these in order to inspire and motivate individuals, departments, and the entire business:

  • New Client Retention
  • Current Client Retention
  • Frequency of Visit (FOV)
  • Productivity
  • Average Ticket Price
  • New Clients Per Month

In short, consistent, seamless, high-quality staff performance is paramount to delivering the best client services possible.  Just using a commission system is detrimental to achieving this result.

Compensation is an important facet and when integrated with true staff cooperation and teamwork, this can greatly enhance business success. It is my opinion – and other spa and salon professionals/consultants – that the commission-based system is counter to most of the above identified compensation system requirements. 

Materials within the site are based on real-life numbers and practices for a day spa. This website discusses and deals mainly with the Compensation within the Spa/Salon industry.  Other staff management tools are available and please contact me to discuss these tools.

Important, data-driven solutions and related examples are provided for spa and salon owners and management to consider - or better yet - implement.

Your Next Steps

My company, Tremblay Consulting, has developed Spa-AnalyticsSMand Salon-AnalyticsSM tools, techniques, and methods that can quickly show you how to convert your commissioned-based pay system.  These will clearly demonstrated the more beneficial hourly/salary structure.

Some of these are within the website. The tools are based on world-class management systems (for instance, Six Sigma, Process Management) and use real-life day spa information. Purposely the charts have been simplified so that they can be easily explained witin your business.  

Our analysis, however, is highly comprehensive and integral in recommendations and implementation. We hope that you find this website useful in understanding one of the biggest issues that this industry is facing – the “Correct” compensation system. With the proper support, communication, support, and administration, this will help enable you and your staff to be successful.  Afterall, it is "Your Future".

I look forward to working with you to implement the system with your operation(s).   Please contact me via any of the methods below.


Interactive Spreadsheet Tracking Service Volume

Try this interactive, useful statistical example. Service Level Spreadsheet. It shows the important of "we manage what we measure".

This simple tracking of services performed is a critical factor that EVERY spa/salon should accurately, consistently track. Data can be easily downloaded from your is-house computer system to create and update this table and chart.

We have even better tools for you to better understand, manage, and approve your level of services. Contact me right now! Dave@Tremblay-Consulting.com. We can easily go through this in less than 10 minutes.

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8545 Meadow Bluff
Cincinnati, OH  45249
Phone: (513)-530-0122
Dave@Tremblay-Consulting.com