The Constant
Starting at Impressions front desk in 2006 when he was 19 years old, General Manager Paul Petrowsky is a seasoned professional who owner Sarah Taylor says is responsible for much of her own success.
by Stacey Soble
The Case for Team-Based Pay
In a recent post to SALON TODAY's LinkedIn page, reader Joann Lefebvre posted the following question: "Any ideas on how to handle commissioned employees when a salon/spa offers promotional pricing for services and products?" I couldn't resist the opportunity to join the online dialog to talk about the benefits of team-based pay.
July 10, 2011
Neil Ducoff, founder and CEO of Strategies
3 min to read
In a recent post to SALON TODAY's LinkedIn page, reader Joann Lefebvre posted the following question: "Any ideas on how to handle commissioned employees when a salon/spa offers promotional pricing for services and products?" I couldn't resist the opportunity to join the online dialog to talk about the benefits of team-based pay.
This is how I responded:
This is the inherent problem with commission. By design, it creates 'independent contractor' thinking and has the technical staff and owners fighting over who gets what piece. The business can't grow when it's forced to get in 'negotiations' on 'who is going to take the hit' on promotions. The fact is, the business is taking a self-imposed hit because it's pay system is getting in the way. And, in these days when salons are fighting to stay alive, it's sad to see owners having to battle and deal with all the drama simply to run a promotion that boosts revenues.
The issue here is not whether promotions are good or bad. The issue is the "I/Me" thinking and behavior that can evolve in a commission business—when leaders fail to build and nurture team-based cultures. JoAnn clearly is just trying to grow her business, not rip off her employees.
I've never been a fan of commission pay systems because it is so narrow in focus. It's based on sales. Even with sliding scales and service charges, it's simple and still ends up being pay based on what the individual produces. It's even worse when the service payroll gets out of control and saps the financial life out of the business. There are lots of owners out there who would make more money if they were a commissioned employee in their own salons.
Commission and high payrolls have been the salon industry's elephant in the living room far too long. I've been teaching and coaching salons/spas on Team-Based Pay (TBP) for more than 30 years. Just the mention of TBP sparks debate. Owners say "I don't believe in TBP." First, it's a pay system—not a religion. Second, if a salon/spa's service payroll exceeds 40 percent of gross revenues (service and retail), it has a payroll problem.
TBP eliminates all the nonsense of "who takes the hit" because tech staff are paid by the hour. The salon's job is to effectively sell those hours and keep payroll at a manageable level. The culture that CAN evolve in a TBP system is proven to be more sophisticated.
Arguing over "who takes the hit" is low-level interference that just gets in the way. How about eliminating it with a pay system that lives above that interference? How about a pay system that is driven by first-time client retention rates, attitude, technical skill advancement, attendance, attendance, teamwork, retail recommendations, integrity, cooperation, collaboration, putting the customer first, follow through, etc.? Sorry...commission is too one-dimensional and lacks the horsepower to allow empowered teamwork to occur.
I'll be happy to e-mail anyone my White Paper on Team-Based Pay. Email me at neil@strategies.com if you are interested.
Subscribe to Our Newsletter
More Salon Management
The Most Wonderful Time in Salons and Spas
Planning is in full swing for the most anticipated events and promotions for the 2026 holidays. As owners share their favorite ways to celebrate, they prove that a carefully planned event can also build culture, increase client loyalty, boost sales, and set a business up for a successful 2027.
by Stacey Soble
Leading with Empathy, Humility and a Mastery of Systems
When things run amok at Mane Attraction Salon, Owners Chris and Jenny Knudsen say General Manager Sami Hernandez is their go-to resource and ultimate sounding board. Meet Sami in this installment of Meet the Manager.
by Stacey Soble
Pagoda Brings AI-Powered Operations to Skinovatio Medical Spa Locations
Pagoda, a new AI-native operating system for scheduling, payments, patient records, marketing, and client communications, launches at Skinovatio Medical Spa in Arlington Heights, Illinois.
by Staff
How Women are Rewriting the Rules of Grey Hair
At a panel discussion hosted by L’Oréal Professionnel in Paris in early July, French Philosopher Sophie Galabru explored the cultural shift where women are increasingly choosing natural, personalized color results over traditional grey coverage. In an exclusive interview with SALON TODAY, Galabru and L’Oréal Professionnel Colorist Pierrick Beringer discuss this shift and how salons and colorists respond.
by Stacey Soble
Warm Leadership and Analytical Precision
At Salon Blonde, Director of Operations treats the staff as the salon's most important guests, while her wonderful 'nerdy' side, loves data, systems, and numbers. Find out how she makes Salon Blonde tick.
by Stacey Soble
Trotting the Globe, Forging Connections, Fostering Artistic Creativity
In an exclusive interview with SALON TODAY, Salon Owner Salvatore Minardi reflects on his past 18 months as Intercoiffure America Canada's World Talent Exchange Ambassador and how his experiences will help encourage cultural and artistic exchange and support greater engagement between ICA and the global organization Intercoiffure Mondial.
by Stacey Soble
Client Retention Guidebook
Everything you need to know about client retention as a salon owner.
Success Grown from Within
Owner Shelby Bills says her general manager, Sydney Osborne, reminds her of the power of leading with heart. Find out how Osborne became a great leader in our lastest installment of Meet the Manager.
by Stacey Soble
How Salon Leaders Can Process the Pain and Lead Forward When a Team Members Leaves Unethically
In her latest blog, Kati Whitledge identifies the five stages salon owners go through when a team member leaves the salon unethically, offering advice for each stage.
How AI Is Closing Revenue Gaps for Salons and Spas
The beauty and wellness businesses pulling ahead aren’t just working harder—they’re using AI to capture demand, personalize pricing, and convert more of every guest interaction into revenue. Here’s what the benchmark data reveals about the growing gap between AI adopters and everyone else.
Sponsored by Zenoti
The Premium Talent Magnet: The Modern Salon Playbook for Attracting Six-Figure Stylists
Stop chasing recruitment ghosts on generic job boards and start curating an elite team. Discover the framework that top-tier salons use to bypass phone tag, automate visual portfolio vetting, and attract high-earning, culture-first beauty professionals directly through real-time messaging. Turn your recruitment process into an exclusive brand invitation that keeps your highest-ticket chairs permanently filled.
Sponsored by Beautista
Five Revenue Leaks Hiding in Your Salon
Your calendar looks full, but is all of that demand actually converting to revenue? From phantom rebookings to underpriced peak hours, the 2026 Benchmark Report exposes five revenue leaks that most beauty and wellness businesses don’t even know they have.
Sponsored by Zenoti
The Heartbeat of Zandi K's Success
After moving to Colorado and teaching at a cosmetology school, Allison Stock joined Zandi K as a stylist, eventually becoming part of the Leadership Team, Education Team and Master Bridal Team. Today, as Director of Operation, Stock is Owner Nicki Wenz's right hand, managing human resources and operations, education and career development, and coaching and culture.
by Stacey Soble
Rethinking Retail in the Era of E-Commerce
In a world dominated by e-commerce, salon owners push back with proven strategies to increase retail sales while motivating team members to educate their clientele and delighting clients with retail-themed events and clever merchandising displays.
by Stacey Soble
The Harper Ellis Hair Co. Certification Program Teaches Stylists a Smarter, Safer Way to Install Extensions
The company's Concealed Bead Method is raising the bar for what professional extension education can deliver.
by Staff
The Micro-Salon Blueprint: How Kat Scott Quadrupled Income by Maximizing Her Suite
Scott maximized her micro-salon by transitioning from stylist to strategic owner, focusing on recruiting and station-sharing. By prioritizing her ownership role over behind-the-chair work, she grew her team to six stylists within the two-chair, 150-square-foot space before eventually moving to a larger facility.
by Staff