Pulse January / February 2018 - Page 41

COMPENSATION SUPPLEMENT AVERAGE ANNUAL COMPENSATION For the 2017 study, respondents were asked to state the average annual compensation (including gratuities) received by full- time service providers as well as directors and managers. Compensation levels vary considerably around the average levels, both by category of employee and by spa type. $69,700 SPA DIRECTOR $64,300 $84,100 $47,900 SPA MANAGER $46,600 $52,800 ALL SPAS $48,100 DAY SPAS $45,300 ESTHETICIAN RESORT/HOTEL SPAS $52,200 $45,300 MASSAGE THERAPIST $43,500 $54,400 $35,800 NAIL TECHNICIAN $34,200 $40,800 61% When asked if they have any unstaffed service provider positions that they are actively trying to fill, 61 percent of spas answered in the affir- mative, including 72 percent of resort/hotel spas, 60 percent of day spas and 55 percent of other spas. 18,780 Massage therapists account for the largest number of unfilled positions that spas are currently trying to fill, representing one in two unfilled positions (57%). 75% When asked to select the compensation structure used for service provider employees in respect of paid time off, paid education/training or paid sick leave, a large majority of spas in each service provider category said they use straight hourly pay , ranging from 71% for estheticians to 75% for nail technicians. 95% When asked how they handle gratu- ities/tips , almost all spas (95%) said they go directly to the service provider. 32,930 The number of unfilled service provider positions is estimated at 32,930 of which 14,580 are full time and 18,350 part-time. US$8.35 billion The spa industry is highly labor intensive. This is reflected in the labor costs share of revenues, averaging 49 percent according to the businesses surveyed for this study. When set against the estimated US$16.8 billion of revenue generated by the spa industry in 2016, the payroll share of revenues translates into US$8.35 billion in wages and salaries paid to persons employed in the industry, either as employees or contractors. The size of the spa payroll is an important economic impact of the spa industry, helping to sustain the local communities in which staff live and work. January/February 2018 ■ PULSE 39