SNAPSHOTSURVEY2012
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This chart was taken from the February 2012 ISPA Snapshot Survey which focused on training and wage increases. The February Survey had 339 ISPA members participate. The chart provides data as to whether or not the recession changed the way day spas and resort / hotel spas addressed wage increases.
The recent recession changed the way many companies do business. Wage increases, of course, were one area where many spas had to adapt to the economic downturn. The spa respondents who said the way they addressed wage increases did change due to the recession were then asked how they changed. The following is a sampling of the responses.
“ We shortened our appointment times and lowered our wages to match.”
“ Bonuses have been on hold and raises are based on revenue performance.”
“ Got rid of hourly wages and went strictly commission.”
“ We did not increase or do cost of living adjustments, but we did not discount commission for discounted spa treatments; therapists receive same pay regardless of retail price of treatment.”
“ Over the past couple of years, annual increases have sometimes only been given to those who earn below a specific annual salary.”
“ We did not change our review process for merit increases; but we did stop the 401K match.”
“ The downturn in the economy has seriously impacted our ability to give wage increases and only as responsibilities increase are we increasing wages.”
“ Until July there had been a wage freeze for three years. In July, there was a 0.3- 0.5 percent increase for all non-tipped positions based on employee appraisal scores. In January, the entire property raised minimum wage as well.”
“ Since service providers are commission-based they do not receive an increase; only the hourly staff received a cost-of-living increase.”
“ Providers originally were on hourly wage plus a commission and it was changed to no hourly wage and a higher commission.”
“ Only increases based on individual performance that has a direct impact on the bottom line.”
“ We did across-the-board increases during the recession with a flat rate increase for everyone. This year we did performance-based again.”
“ Pay increases are 50 percent of what they would normally be due to the recession.”
“ Held flat for two years and this year approved a 3.5 percent budget increase.”
“ Decreased from potential five percent to maximum 2.5 percent.”
“ Cap on performance or merit increases.”
“ We had a temporary freeze on any salary or wage increases for two years. We focused on increasing occupancy since our staff is 100 percent commission-based.”
May 2012 ■ PULSE 57