Salary Structure - Esthetician/Eyelash Extension Tech

Hi I currently own a small day SPA where I currently employ one other Esthetician/Lash Tech.

I need some advice on how to structure salary correctly and fair.

I take entry level estheticians and I am a new SPA less than a year. We have been using groupon and social media to advertise and because of the competition and popularity of groupon as the new way for people to try different services for so much less I really have no option.

Because I take entry level without any following I am currently paying $10/hr flat and the also make tips. I do consider tips to be part of the composition of compensation for our field.

I have felt that is a fair compensation since I am giving a great opportunity for someone to be able to get out in front of clients and build their client base and also since I am currently taking in very little for services with having to draw new clients through groupon and such it seemed to make the most sense to me.

We provide, Facials, Hydrotherapy, Eyelash Extensions, Body Wraps,etc...

I appreciate any feedback/opinions/recommendations/experiences anyone would like to share.

Tags: Compensation, Esthetician, Extension, Eyelash, Salary, Tips, commission, pay, salary

Replies to This Discussion

Permalink Reply by Tara on October 29, 2014 at 10:38pm

I totally understand your situation. When just starting out, rent, supplies, utilities, liability insurance, payroll taxes and marketing eat into profits. Many estheticians don't understand how hard it is in the beginning and how lucky they are to get hourly pay while building their books. When I first opened, all I could afford to pay without breaking the bank was $10hr plus 10% commission on service and 10% on retail. I could not attract any experienced estheticians so I hired girls fresh out of school. It ended up being my best move!

That said with hourly, commission and bonuses I'm paying $16-$18 hr. With tips the girls make $20-$30 hour. The employees who "get it" and build their books do well. I pay for the marketing, training, branding, supplies, offer snacks and sometimes I buy lunch. When we started becoming profitable, I shared in our success and implemented a bonus program and offer paid vacation. Loyalty means a lot to me and the girls who stick around are taken care of.

I'm a business woman and if I give 50% commissions, I wouldn't be in business. Over all labor costs are about 30-35% of gross revenue that does not include my draw. That's were any healthy business should be. The idea that owners should pay 45-50% has never run a business or has to perform services just to make it. Instead of performing services, I market the business, provide a receptionist, supplies, business cards, scheduling and training, Only if had a rock star employee who brought in lots of business would I consider compensating outside the norm.