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. 20