Insider: Best Practices Controlling Your Spa’s Labor Costs
By Judith L. Singer, Ed.D., ISHC, President & Co-Owner Health Fitness Dynamics, Inc. (HFD)
Dr. Judith L. Singer
I am delighted to once again be able to share some best practices for the spa industry in my article “Best Practices – Controlling Your Spa’s Labor Costs", in the Hotel Business Review. As the spa industry continues to evolve and grow, and as more investors, developers and operators recognize the spa’s economic potential as a profit-center as well as a marketing tool and revenue-enhancer for the “core” business of selling rooms and real estate, there is an increasing need to develop business tools that assure success. While the staff are the most costly operating expense in a spa, I believe that they are also the answer to a spa’s revenue and profit potential. The staff are your most important asset. They are the heart and soul of your business. They relate to guests in a way that is very different from that of their colleagues in other hospitality departments.
As the founder, co-owner and consultant in an international spa consulting company, I never under-estimate the need to educate our clients on the economic realities of a spa venture as it relates to the number of staff needed as well as the compensation and benefits program required to recruit, train and retain the spa team. Spas are a labor-intensive business. It is not uncommon for 50% or more of every dollar to be dedicated to the compensation program. If you want to give your guests an exceptional experience, there is very little room for error in your staffing program.
This Best Practices article will not be about how to reduce salaries, but rather how to operationally control payroll expenses without adversely affecting the guest experience or the spa’s ability to drive the top line. Rather than looking at your staff as an expense, we will see how you can change the paradigm and look at them as “revenue-generators” and “profit-makers.”
As the spa industry continues to emerge and be an economically viable venture, there needs to be a focus on finding and developing more creative ways to hire, train and retain staff as well as on creating compensation and incentive programs that reward the staff and allow the spa to be profitable. When the spa is a successful venture, there is a positive impact on your “core” business. If you do not have enough qualified, passionate and dedicated spa staff, it will be very challenging, if not impossible, to provide the type of experience that the guests expect.
Over the past 25 years, HFD has developed numerous effective staffing tools that have been adopted by most of the successful spas in the United States. In addition, the industry is very fortunate to have many “super star” spa directors who understand the business-side of spa operations. In my article on “Best Practices – Controlling Your Spa’s Labor Costs,” HFD and 5 of the best spa directors in the US share some key strategies to help spas maximize their financial potential and minimize their staff-related revenue-expense ratio. Many thanks to these 5 spa directors for sharing their passion and strategies for success: Kim Huber from Pinehurst Resort: Alexandra Robinson from Topnotch Resort; Samantha Cooper from Cranwell Resort, Spa & Golf Club; Ella Stimpson from The Broadmoor; and Ryan Holt from Sandestin Hilton.
I am sure you will find…and hopefully be able to implement…some new, practical, proven ideas that will help you to recruit, train, retain, motivate and compensate your staff so that they truly understand their role and contribution to the success of your spa and your “core” business.
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With healthy regards,
Judith L. Singer, Ed.D., ISHC
President & Co-Owner
Health Fitness Dynamics, Inc.
954-942-0049
judysinger@hfdspa.com
www.hfdspa.com
