2019 US Spa Industry Study 2019 Compensation Supplement | Page 20

Compensation Structures for Service Provider Employees
Compensation structures tend not to vary greatly by type of service provider.
For each type of service provider, straight hourly pay plus commission on
services was the most frequently mentioned structure, followed by straight
commission of services and straight hourly pay.
The two slides following show compensation structures by type of spa for each of the
three service provider categories.
Among day spas, straight hourly pay plus commission on services was most frequently
mentioned for estheticians (63%) and massage therapists (63%).
In the resort/hotel sector, straight hourly pay plus commission on services was also the
most frequently mentioned structure across each category of service provider, followed
by straight commission of services.
Compensation structures – service provider employees
70
63 62
60
60
50
40
40
29 28
30
20
10
0
17
11 11
16
13 13
1 0 1
23
13 13
Estheticians
1 1 1
Massage therapists
Nail technicians
Respondents to the survey were provided with the following definitions:
Hourly pay – the service provider receives a fixed amount per hour for each hour they work
Commission - the service provider receives a percentage amount for each of the services they
perform. The employees’ earnings are determined by the revenue they generate.
Fixed/flat fee- a fixed dollar amount for each treatment.
In selecting a compensation structure, respondents were asked to consider employees’ typical
work structure in a standard week, excluding paid time off, training, service fees and gratuities.
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