Weeding Out Non-Performers
Implementing these goals will help to weed out staff who don’t contribute to the business’ bottom line.
“There are three kinds of people who work for you. There are super producers — the top 20%. …these 20% will usually generate 80% of the revenue in a medical spa. You have people in the middle. They’re good, but you’d like them to do a little more. Then, you have the bottom 20%. I call them cave dwellers,” Durocher says.
Many owners and managers spend all their time with the cave dwellers, begging them to do the minimum.
“The good news is when you have a compensation program like this and you’re interviewing people, people who do not want to be held accountable won’t want to work for you, which is great,” he says.
Durocher sells the program to would-be staff by promising to arm them with the tools they need to be successful. For those that are up to the task, Durocher has four levels of pay structure: silver, gold, platinum and diamond, with different hourly wage associated with each.
Accountability to compensation goals does not only apply to providers. All staff, from the front desk concierge to practice manager, are accountable and can earn more money related to the goals.
“You have to choose software that tracks these things because this is a retail business,” Durocher says. “The wrong compensation program is the number one reason why a medical-aesthetic practice is not profitable.”
Durocher recommends that a medspa’s total compensation in comparison to service dollars should be no more than 35%, where the total payroll burden from the spa would not exceed that percentage.
In essence, an RN that is paid $75,000 a year in the medspa would need to generate at least $300,000 a year in services and products to be profitable, according to Durocher.