Incentives that Dare Stylists to be Fabulous, too
The most valuable asset in our salon, like every other salon or spa in the US, is our team. To ensure progressive growth and consistent performance at Salon Jaylee, we restructured our incentives program. Over the 15-year course of our incentives program, we have offered a variety of benefits to continue to inspire and motivate our team. The most successful incentive always has, and continues to be, a variation of a retail bonus. Some of our team has been with us for over two decades and they have maintained their enthusiasm through the course of their career, as they did when they first began. Our retail business is very strong, to which we can credit our staff.
However, incentives alone do not always work. They must also run in tandem with extensive continued education and be reinforced with impeccable communication.
In our 3 salons, we have approximately 60 licensed professionals, all of whom are offered both commission or minimum wage in our structured, tiered system. With 7 tiers total, as team members advance to the next level, they earn higher commissions and receive more benefits. To advance, we utilize performance-based metrics such as repeat bookings, referrals, pre-booked appointments, chemical count and additional services. As they reach the fifth tier, they are earning 45% commission and two weeks paid vacation. All employees receive health benefits, 401K and one-week vacation.
In addition to service commissions, our team has the potential to earn three additional and innovative bonuses. We offer the traditional bonus on based total retail sales. However, rather than a fixed amount, team members earn their retail-to-sales percentage, allowing their bonus to increase with more sales. They can earn anywhere from 8-18% commission on their retail sales. For example, if someone sells $100 in retail and serviced $1000, they will receive 10% of their retail sales.
Our second bonus is our Super Bonus. It is also a tiered system. If a team member sells $1,500-$1,999 of retail in a month, they earn a bonus of $100. If they sell $2,000-$2,499, they earn $150, and if they sell $2,500 or more, they earn $200 cash. Furthermore, we offer what we call a “TENAJ Spiff.” TENAJ is our own brand of hair care. If a team member sells $500-$750 of TENAJ products in a month, they earn an extra $50. They have the potential to earn up to additional $200 cash bonus through the sales of TENAJ. Both of these cash bonuses, the Super Bonus and TENAJ Spiff, are presented to our team members at our monthly, salon-wide celebrations, and are paid in cash (with taxes sorted and paid for by Salon Jaylee). This enables our team to earn up to an extra $400 cash each month in addition to their commission of retail sales.
We have restructured throughout the years, so they all team members may benefit. We want to reward our staff for their hard work and dedication, but we also want to continue to motivate and inspire. Everyone benefits when we celebrate successes together.