Business Leadership Kirsty MacCormick, The Spa Consultancy
‘When it comes to therapists, spas will get what they pay for’
E Kirsty MacCormick EXPERT CONTRIBUTOR
nsuring therapists are well paid and feel valued is an important part of any spa director’s role. Getting this right is even more vital now as businesses are still grappling with the challenges of the recruitment crisis. Over the past 18 months we have seen a shortage in the number of spa and beauty therapists and an increasing number of vacancies across the industry. Spa therapists are among the lowest paid workers in the UK – on average receiving £9.50-£12.50 per hour, which is roughly the same as a waitress or room attendant who hasn’t completed a two-year in-depth course studying to be a skilled professional. We’ve all done the maths and reviewed our P&L lines and still find that staffing is the highest cost sitting at 40-50% of revenue, so even if we wanted to, it can be hard to find a way to increase our therapists’ salaries. Ideally, payroll should be 38% against treatment revenue.
A tale of two countries
With over 30 years’ experience in the spa and wellness industry, Kirsty MacCormick is the founder of The Spa Consultancy. Her expertise includes development, pre-opening project management and operational set up of a range of businesses from commercial hotel and day spas to luxury five-star wellness destinations. www.thespaconsultancy.com
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The American model is usually based on 100% of the pay being directly connected to the number of treatments performed – if a therapist is not booked, they don’t get paid. A service charge is also added onto every treatment, which goes directly to the therapist, increasing their renumeration without pushing it onto the spa P&L. As a result, American therapists are among the highest paid in the global wellness industry, enjoying a career that is highly regarded and respected. In the UK most salons and spas pay a wage with a treatment and retail commission. Some businesses give
10% on everything – others may have a retail structure where they have a three-step target to meet and each time you reach that target the commission percentage increases. This really rewards the high achievers. Some employers choose to offer commission once the therapist has reached a set target to encourage more retail sales.
How pay can pay off
In the UK, we are now seeing spas compete for staff and they have subsequently had to increase pay. In some circumstances therapists are receiving £30,000 per year, equivalent to £15 per hour. However, I would argue this isn’t the best solution as it is going to have a major impact on bottom lines and put additional pressure on spa operations. Other options could include increasing treatment prices to enable an increase in staff pay. We could move to an American model, or should the business absorb the cost? I believe that one solution is to combine the real living wage with a strong commission structure. As of April 2023, the minimum wage is going to be £10.42 per hour and the real living wage is recommended to be £10.90. In my experience, you get what you pay for, so by paying minimum wage you will attract staff who will not feel valued. This is a skilled job which is very hard work and should be compensated as such. A good commission structure, which rewards hard work with higher remuneration really does work. Onboard cruise ships, therapists and hairdressers will have a target, www.europeanspamagazine.com