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068: How to Shift Estheticians from Hourly to Commission Without Losing Your Team or Your Mind
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Ready to transform your spa's pay structure but afraid of the fallout? You're not alone. Many spa owners find themselves trapped between financial necessity and fear of employee backlash when considering the switch from hourly to commission-based compensation.
This episode tackles this challenge head-on with a powerful reframe: "Hourly is capped. Commission is scalable." When properly presented, commission isn't a punishment but an opportunity for growth—both for your business and your team members. The fear that employees will interpret this change as abandonment is addressed with practical communication strategies that position commission as a partnership rather than a penalty.
Kari Jo shares from personal experience, drawing parallels between her transition of employees from 1099 contractors to W-2 status and the hourly-to-commission shift. She candidly discusses the benefits that emerged during COVID when her properly classified employees could access unemployment benefits while independent contractors couldn't—a perfect example of how doing things correctly protects everyone involved.
Before making any changes to your compensation structure, heed this critical warning: commission regulations vary dramatically by state.
Perhaps most importantly, this episode delivers the tough love many spa owners need to hear: "If you're scared to rock the boat with your team but your numbers are bleeding, you're not running a business—you're managing feelings." Leadership requires making difficult decisions, and protecting your vision sometimes means accepting that you might be the villain in someone else's story.
Ready to lead with confidence?
Book a free strategy call with Kari Jo here - https://stan.store/EstheLaunchAcademy/p/free-30-minute-consultation-
and transform your approach to compensation, leadership, and profitability.
To learn more about coaching please visit: https://www.karijopatterson.com
Connect with me on your fav social platform:
Instagram: https://www.instagram.com/kari.jo.patterson
Facebook: https://www.facebook.com/karijopattersonestheticiancoach
TikTok: https://www.tiktok.com/@karijopatterson
Threads: https://www.threads.net/@kari.jo.patterson
Links You May Want to Check out:
Join the Client Building for Estheticians group to go deep in learning all the latest tips and strategies https://www.facebook.com/groups/clientbuildingforestheticians
Check out Kari Jo’s courses here https://esthelaunchacademy.com
Chapters
1. Welcome to the Esthetician Podcast (00:00:00)
2. Switching Pay Without Being Bad Guy (00:01:07)
3. Commission vs. Hourly Reframed (00:04:00)
4. Legal Considerations for Commission Pay (00:07:21)
5. Leadership Means Making Tough Decisions (00:09:30)
6. Episode Closing and Resources (00:11:28)
74 episodes
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