Employee Wages, Benefits & Incentives

In addition to increasing an employee’s bottom-line wages, incentives play a huge role in motivation. The prospect of earning a reward for a job well done is a great way to ensure that employees maintain a high level of productivity while at the salon, which translates to more sales. Similarly, many salon owners find that commissions and bonuses are a very effective way to determine which staff members are top salespeople—and therefore, the top earners for the salon—versus those that are not really contributing to the profit of the business.

In the tanning salon setting, where many of the sales involve relatively small-ticket items—like lotions and tanning packages—commission and incentive systems can be quite flexible. Most often, commission is a paid percentage of the products and services sold. This can be per sale, or can be for a particular amount sold; ultimately, it’s up to the salon owner to design a system that works best for the salon and employees.

Salon owners should keep in mind that incentives do not necessarily have to be cash or percentage rewards. There are many types of non-monetary rewards that make a position more attractive to an employee. Perks like free tanning and lotions are commonly associated with a job in an indoor tanning salon and can be very attractive to those that desire to work in a salon because they would probably be paying for these services and products even if they were not an employee. Similarly, various rewards can be designed to boost morale and show appreciation for staff in a fun manner. From rewards of recognition and acknowledgement—such as plaques, employee of the month awards and newsletter mentions—to gifts like movie tickets and gift certificates, these types of remuneration efforts have a more personal impact and make employees feel appreciated, which increases their level of job satisfaction and encourages them to continue their efforts.

Benefits Can Pay

Money is important to the retail salesperson, but it isn’t everything. A compensation plan should include more than just base pay and incentives.

According to the employee cost index (ECI), benefits can be paid leave such as vacations, holidays and sick leave; premium pay for work in addition to the regular work schedule (such as overtime, weekends and holidays); insurance benefits; retirement and savings benefits; legally required benefits such as Social Security and unemployment insurance; and severance pay.

By offering a quality benefits package, companies will attract and retain employees at a better rate than the competition.

Service With A Smile

Ultimately, salon success is dependent on keeping good employees content with their job, because happy employees will bring in the big bucks. At the same time, it’s important to understand that productive, qualified workers will come and go. It’s just the nature of the retail sales business. But by giving employees what they need—good salaries and wages—and what they want—competitive commissions and incentives—salon owners increase the chances their employees will be happy and will stay to work as hard as ever for the company.