The Global Wellness Institute 2018 Economy Monitor shows that spa employment worldwide totals over 2.5 million, and that number has grown 20% between 2015 and 2017. However, the forecasted need for staff by 2022 shows another sobering 22% increase. And yet, I cannot think of a single spa globally that would say they don’t need to hire any staff at the moment. Even now, never mind in the next couple of years.
At a recent We Work Well event, we asked the group of 80 industry veterans in attendance 8 questions regarding the status & future of the spa and wellness industry; I think every answer included an element of the labor situation. What do I mean by “situation?” The challenges in finding, hiring, and retaining qualified and interested staff members, both service providers as well as front line and management positions. We are an industry that is people-centric; businesses cannot expand and reach their potential without committed staff members. But those are getting harder and harder to find. Is it us? Is it them?
I suspect the answer is a little of both, with some other factors thrown in for good measure.
The labor-specific query the group debated was, “What Can We Do To Attract More People to Careers in Spa & Wellness?” Which of course is a different question than what can we do to keep them, but more people would certainly help!
Some of the ideas and concepts included, in order of frequency:
- Formalized education-related issues such as: a task force for high schools, courses for spa as a second career, giving scholarships at the high school level, provide clear career growth opportunities, elevating education standards
- Sharing our wellness story
- Providing lectures and tours
- Pay more
- Offer better benefits, flex time, comp for self-care, offer good vacations w/other spas
- More technology in place to attract millennials
- Modernizing Image
- More PR & Marketing to consumers (school lectures, sharing our wellness stories, connecting w/guidance counselors)
- Hire out of passion, not skill
- Give a sense of leadership, take employees ideas to heart
Regarding the compensation-related issues, here are some recent data points. According to the Bureau of Labor Statistics, the median annual pay for massage therapists in 2018 was $41,420. For estheticians, the 2018 median was $31, 290, and both positions also carry “above average” job outlook ratings. These compensation estimates are of course reported wages, and certainly before gratuities; many of us know colleagues in both fields who easily make twice these figures. But, as regards the bullet points of “paying more” and “better benefits,” the majority of spas don’t have the ability to do so. Labor is already our largest expense, and with margins as narrow as they are, paying more is generally not an option.
The ground-breaking 2018 ISPA Workforce Study delves deeper into issues of dissatisfaction for current staff in both service provider and management positions, and the issues are wide-ranging, although the top 3 negative causes were all environment/culture-related:
In fact, ISPA is taking the lead and introducing a Talent Symposium for early 2020, so that spa leaders can gather to discuss insights and best practices for today’s spa workforce, and develop strategies moving forward. Certainly something has to be done, and if you are reading this you should waste no time in making sure you’re involved in this discussion.
In short, it sounds like we need to reach out to indoctrinate prospective staff members beginning in high school and offer better education standards, pay them more and include benefits, and ensure there is a clear career growth path. Simple, right?
Oh, and also make sure they don’t have to work too many hours and they can take off whenever they need to. This last one is doable soonest; we just need to hire even more people so we have enough to deploy to meet client demand.
At any rate, the labor shortage is one of the biggest challenges to the continued growth of the wellness & spa industry, and it will not be solved any time soon. More innovative solutions and out-of-the-box thinking are in big demand here, so if you have either, or both, don’t sit on the sidelines!
About the Author
Lisa Starr is the Principal of Wynne Business Consulting & Education, which specializes in spa, wellness & salon businesses. Lisa has over 30 years of experience in the beauty industry, in all aspects from technician to regional manager. She has spent the last 18 years as a consultant and educator, helping companies maximize spa operations performance in both front and back of the house, and consults on a variety of topics including operations issues, finances & compensation, marketing, inventory management, retailing, human resource development, and business process improvement. Lisa is leading the Grow Well, professional development for We Work Well.
Follow Lisa on Twitter@StarrTalk, on Instagram@WynneBusiness, or email lstarr@wynnebusiness.com
