The Ongoing Debate about Independent Contractors vs. Employees

The debate about massage and spa professionals being independent contractor versus employees continues. Although I personally advocate for employees in spa settings, it may not always be the best fit for a particular business model or setting.

My friend, Laura Allen, posted a column about this subject on her blog, Massage Collage, last month. I just finally got around to reading it and am posting my response below. To read her whole post and comments, click here.

Hi Laura and fellow MTs -

This is a big topic for sure. In my work as a spa consultant I hear all kinds of stories about compensation issues, independent contractors vs. employees and so on. Before I worked as a consultant, I was also an independent contractor who later opened a business of my own and became a spa owner and employer of many others. As such I have a pretty broad view of the subject.

There are a lot of variables when it comes to deciding upon pay structures and employee vs. IC status. Every business is different and must look at the factors that affect it - area/location, price of services, target market, cost of the facility’s overhead, product costs, taxes, availability of workforce, and business model and goals. All of these must be considered, among many other things, before deciding upon how and what everyone gets paid.

Sadly, many business owners that I talk to did not take the time to think about any of these issues before they opened up and just decided to pay people “the going rate” or perhaps a little bit more so they could attract a good staff. Then after a few months or more into the business, they aren’t able to draw much of a salary let alone profit. Their debt is climbing as their own morale drops lower and lower.

So as much as I want all licensed therapists to make a ton of money through doing massage, I can’t agree with that happening if it is to the detriment of the owner and business. How I wish that all massage and spa professionals could get a clear picture of the costs, risks and stresses that their employers deal with! (Non-service provider spa/practice owners would do well to switch roles as well.) Having been on both sides of this issue, I know there would be a much greater understanding about the fees/commissions/salaries being paid out and less of a mind-set that most business owners are taking advantage of their practitioners.

The bottom line is that there has to be a middle ground…a place where both owners AND employees/staff can both profit and succeed. That they can all be rewarded and respected for their hard work and investment in the business and industry. And that they all can work together to create massage and spa workplaces that are truly healthy and healing for everyone that comes through the door.

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