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Once this decision is made, being an HR wizard will be a new hat to wear all on its own. However challenging, hiring W2 employees can be both rewarding and profitable when following the correct steps to success!

Benefits of hiring W2 employees within your spa practice include being able to utilize individuals to meet the goals of the business more efficiently. Hiring W2 employees gives companies the benefit of setting work hours for individuals, having set standards and proficiency metrics for individuals to meet, setting sales goals and performance guidelines, and setting up the company for additional streams of income. Being a solo practice has its pros and cons – and one con, specifically, is not being able to be everything to everyone, all the time. Bringing on additional team members can provide your clients with many more appointment opportunities and also provide you a helping hand with appointment booking, bookkeeping, ordering, sanitation, and much more. When managed properly, spa owners can grow their company and ensure financial success for many years to come.

The first step in hiring employees is to work with a payroll company to ensure tax compliance. While hiring W2 employees may be more expensive, it is worth it to provide payroll services and benefits to your team to ensure long-term fiscal responsibility and also staff loyalty. Working with companies such as ADP provides the opportunity for employees to receive direct deposits, view their pay stubs, and receive a potential tax return at the end of a fiscal year. When employers provide individuals with something as simple as a pay stub, it provides opportunities for purchasing cars, homes, and other important assets that propel employees to the next level. Employers taking on the responsibility of uplifting their staff members are more powerful than they realize – and being in compliance with payroll regulations is part of the real influence that makes a difference in the world.

Once an account is established by an insured payroll vendor, esthetics entrepreneurs will want to collect a W4 form for each employee. Employees fill out a W-4 form to let employers know how much tax to withhold from their paycheck based on filing status, dependents, anticipated tax credits and deductions, etc. If employees don’t fill it out correctly, they may end up owing taxes when the return is filed.

There are more important aspects to having employees than simply issuing someone a paycheck. Spa owners with employees must provide direction, education, and expectations. To communicate the mission of a company, the employees within it must believe in the person behind the magic – you! As an employer, you will want to ensure proper communication at all times and think of the ‘big picture’ at every turn. Anticipating the needs of both employees and clients alike will be part of your routine – which can be extremely rewarding and fulfilling to everyone involved. Become a servant leader, seek internal guidance and enlightenment to develop yourself professionally, and always be a forever student of business and life. Great leaders do not merely issue paychecks, but provide an experience and a feeling. Strive to be a tremendous leader everyday!

As a fair employer, ensure you are paying competitive wages and salaries – and offering avenues for growth. Compensation for employees must match the industry/area averages with possibilities for leveling up. Areas to grow your employees include providing annual wage increases of 1.3-2.0%, which is the national average. Look into providing group health insurance plans or provide monthly health insurance contributions. With the high cost of medical care in the United States, it’s no surprise that health insurance is one of the most highly sought-after benefits by employees. For small employers, benefit plans tend to be offered on a voluntary basis and are not legally required. For larger companies over fifty or more full-time employees, this is not the case and is required for 95% of their full time employees. Being fair and competitive in the provision of wages will set employers on the long-term scale of success and lower rates of employee turnover.

Streamlining other areas of the HR department within your company are critical for maintaining longevity and organization. Align your approach to interviews and hiring by always being on the lookout and forming connections. Even when you’re not hiring, attend job fairs and create meaningful relationships with Esthetician groups and esthetics/cosmetology schools. Gain more opportunities for face time with potential hires. You never know where you may end up finding new talent! Ensure employee contracts are well thought out and are part of the business culture. By ensuring contracts are already pre-formatted with zero room for question, employees will take your business practices seriously. Create continuity within your brand by ensuring trusting relationships through trustworthy business practices. Maintain set expectations and regulations that are easy to follow. Employees do not have respect for companies that don’t have important items set up such as contracts and Employee Handbooks from the start. They will find a way to complain, second-guess, and undermine your leadership. Ensure that your Employee Handbooks are detailed and always evolving over time. Update them at least twice annually with a revision date – and send to all employees each time regarding changes and updates.
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Finally, promise your employees an annual evaluation. Small businesses sadly don’t do this enough and it hurts the brand long-term. In my personal business, I provide monthly one-on-one meetings – along with annual evaluations. It’s important to acknowledge your team for their positive attributes and celebrate them. Annual reviews should truly be a celebratory moment that your employees won’t soon forget. The optional monthly one-on-one meetings are helpful for team members to discuss day-to-day items with you and also to discuss items that need to be addressed. You can document them and both sign at the end of the meeting. The monthly one-on-one’s are beneficial in supporting your annual evaluations and decisions on their annual wage increase and/or annual bonus.

Being a beauty boss is extremely rewarding if you harness the qualities of organization, communication, and follow through. You will move forward in success if you can ride the waves of employee highs and lows with grace. Looking at the big picture always is your savior in the journey of HR success – and esthetics entrepreneurs can most certainly take this on with pride and integrity when organized well. The sky is truly the limit!