Therapist wage structure?

[Zooks]

Hi All.

I am positive I posted something along these lines a while back but my head is swimming so do forgive me.

I hope you can offer some advice. I have been looking at taking someone on for quite some time and have decided that I have found the right girl, I know just need to finalise what I can offer her and this is where I get stumped.

I will have her working a 40 hour week and I will be offering her 10% of all retail sales minus VAT.

I would like to have her on minimum wage BUT have it so that when she earns 3.5 X her monthly wage that she takes a percentage of this also.

My reason for this is that I believe we deserve more than minimum wage but the business woman in me says that if I give her minimum wage and an incentive rather than going in at say £8 an hour she is much more likely to try to actively promote the salon and drive business in.

My question is does this seem like a reasonable deal? I am not sure what percentage I would be offering her, suggestions welcome! I am not sure she gets a that set percentage only on what she has earnt passed her target or on everything up to and including target.

I hope this makes sense. I would liek this girl to be with me for some time and have a chance to earn some decent money whilst also pushing the business forward.

Please let me know what you all do and if there is anything I should be doing that's better or easier!

Zooks

 

[squidgernetball]

Yay Zooks!!! How you doing?
I'm guessing business is going well!

I employ liv at 6.50 per hour then she earns 5% on all treatments and 10% on all retail. She had a cracking day today as we had an environ event!

I don't do targets or earn x before commission kicks in because I could not track it. Too hard and she's my little girl lol.

We are busy so she is earning really good money at the moment. Her wages aren't so hot when she has a holiday. If we have a great week I will give her a little extra. She is really happy with it at the moment.

I think everything has to be fluid and is sort of a work in progress with a first staff member, so you can always put something in place and review it!

Good luck, and lovely to see you on here if only fleetingly x

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[ColourGirly]

Sounds all good but 3.5 x basic must be within reaching distance.

Setting goals in business/life is all about realistic expectations.

Goals and targets you set staff must be feesable. So on minimum wage her target would be around £3000.

If she took £4000 a month you minus the VAT minus the basic then take a percentage.

I like the idea of your retail % reflects your services %. If you are over 10% retail sales you get 30% commission. If you are under you get 28% for example.

 

[cute-ickles]

Can I just say I want to work with Squidgernetball ha ha.

From a therapy point of view, I don't see what's so wrong with giving your all to an employee. Obviously we're not talking your life blood here but if you've found the right person, what's wrong with letting them know that?

How about something inbetween? A little more than minimum wage and an incentive? Of course I don't know all the details such as age etc. Personally I wouldn't even dream of working at minimum wage, then again I'm older, wiser and more advanced.

Treat them mean and they're not so keen...My opinion and my experience so just have an open mind knowing that if it doesn't work then it can be changed in the future going forward.

x

 

[coco.]

Reading this thread has got me wondering how often people give their employees a pay rise?

 

[Cheshire_Gal]

Sounds all good but 3.5 x basic must be within reaching distance.

Setting goals in business/life is all about realistic expectations.

Goals and targets you set staff must be feesable. So on minimum wage her target would be around £3000.

If she took £4000 a month you minus the VAT minus the basic then take a percentage.

I like the idea of your retail % reflects your services %. If you are over 10% retail sales you get 30% commission. If you are under you get 28% for example.

3.5 x basic is well within reaching distancei think. Its only £22.75 p/h. If shes busy 75% of the time on 40 hours a week then thats still achievable. 3 facials @ £50 and 3 lots of Shellac at £35 puts you at over £250 for the day. Decent therapist shpuld be taking at least £250 a day. Thats just my opinion mind.

25% of anything over £1040 (based on 4 week month) gives approx £200 bonus and everyones happy.

 

[adventuregirl]

Can I just say I want to work with Squidgernetball

x

Me too. She's so lovely!
X


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[squidgernetball]

Ah! Thanks guys x

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[souz]

Just wanted to say ive met squidgernetpball and she is very lovely, very knowledgeable and i can imagine fab to work for!!

Zooks, glad all is going well. Some great advice here and the one thing i woukd think about is minimum wage...think what you would like to earn in the same situation? Above minimum wage is where i would start and then give incentives, they dont have to be money incentives necessarily but voichers, cinema tickets, competitions to win products ( who can sell the. Most xyz?) for say the first 6 months and then say you will discuss a commison structure after 6 months which eill depend on how well she has been doing. That way you both have a trial period. Also think about other incentives like how many days holiday she can have etc. the happier envsironment we work in the better we work.

For me personally i dont think i could ever afford to pay staff enough to make them happy which is why i have taken on girls who are self employed and pay me a commission. This way they can earn far more for themselves, they work hard but at the same time when its quieter or holidays or sickness i dont have to worry about covering their wages plus the added admin that goes with.

Good luck xx

 

[Zooks]

Thankyou for all of your words of wisdom, it has given me some serious food for thought.

Squidgernetball that sounds like a very good deal, would you have done it if it hadn't have been Liv?

Certainly sounds easier than having a target as such and I already have a shed load of paperwork for just little old me.

I am now contemplating sticking with the wages x 3.5% but including retail in there so that it makes it more achievable?

Do those of you that target staff do it on an annual basis then break it down monthlyweekly or even daily?

Souz, I hope you're well! I certainly will need to put a trial period in place and I am sure she would take £7 and hour plus bonus. A competition is great but when there are just myself and her it's not viable. Vouchers may work!

I want it to be a happy healthy working relationship, I want her to want to be there and I need her to want to push the business forward....

Where did you all go to figure this all out? Business classes?? I need to learn more!

Zooks x

 

[daydreams01]

Hi zooks, I introduced a commission structure in August for my stylist and it's working well so far and giving her the chance to increase her salary without too much pressure on me. I give her a monthly target and then anything over she earns commission on which she gets in the following months pay packet. It isn't set as high as yours as x3 would be a bit hard for her to achieve at the mo as we are a new salon just getting established so it's set at x1.5 for now which I know is low but I didn't want to set it at an unachievable level which would be demotivating for her. I plan to review this annually plus increase the commission annually as well so that she can look forward to an increase in salary year on year. I also do 10% on retail. It has definitely increased her re-book rate so I think it is well worth doing but just consider if your therapist is busy enough yet to make anything on the x3 model, if she is then great!



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[squidgernetball]

I think it was more a case that because she was my daughter, she asked for a pay rise. I had actually just been reading about a geek giving a percentage on treatments and thought it was a great idea as she earns more if she's busier.

I offered her an hourly pay rise or same wage plus commission. She took a random day and did the sums and realised that commission would really bump her salary up.

Vic x

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[Zooks]

I have put my offer forward to her, now I just have to wait and see whether it is something she is interested in.

I have out it forward at 3.5 x her wages but I am actually contemplating making it just 3.

3.5 is achievable but that's when she would be almost full, I feel 3 may be more fair at least to begin with.

Fingers crossed Ladies

 

[squidgernetball]

Good luck zooks x

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[Redduck]

Hiya Zooks - great to see you are so busy. Let us know what happens x