Entitlement: Bad for Business
June 6th, 2008 • Posted by Ana Loiselle-Donahue • Permalink
Noun: entitlement – 1(a): the state or condition of being entitled. 1(b): a right to benefits specified especially by law or contract. 2: a belief that one is deserving of or entitled to certain privileges.
No other element of the salon and spa business is more worshiped than followings or “full books.” The “full book” syndrome, as I like to call it, creates an untenable sense of “client entitlement,” and serves to shift customer loyalty and income security from the salon and spa, to the technician. A “full book” is prized by technicians and feared by the owners and managers. It creates an unfair sense of ownership, or “my client” mentality, by the technician. Technicians all too often use a “full book” to hold management hostage, and it fuels the “walk-out bomb” that has devastated many an otherwise successful salon and spa.
I am no longer surprised when I hear employees saying, “I’m paying the salon/spa I work for 50% of what I bring in;” it’s a sure sign of a salon and spa being contaminated with entitlement.
Do your employees have the mentality of “client entitlement” in your salon/spa?
- Technicians use the phrase "my client" instead of "our client."
- If a particular technician is unavailable, the front-desk lets the client go without a booking, rather than try to find another technician to service the client.
- Technicians get angry if a client decides to go to another technician, and says “That was my client!”
There is good news. Salon and spa owners have tools available to them, to move away from this dusty relic from the salon industry’s glory days. Followings don’t fit today’s fast-paced, streamlined business thinking. Clients want access to salon/spa services when they need them.
The Three “C’s” – Factors Affecting the Client Entitlement Mentality
Commission ~ One of the biggest contributors of this client entitlement phenomenon is the commission pay structure. Since commission pay rewards only individual sales, it’s no wonder employees feel entitled to “their clients.” The strongest message that commission pay delivers is to “build my following.” Reward your employees for building a following and they’ll feel entitled to build it and take it. Your pay program must reward over-all performance. What gets rewarded, gets repeated. Consider implementing a compensation system that rewards technicians for sharing clients … and communicate it to your clients.
Culture ~ It is never too late to change the culture of your business. A culture of client sharing; the ability to share, move, pass and feed clients to other technicians is imperative to growing your business.
Instead of it simply being assumed that when a new client arrives, who they are scheduled with will become their exclusive technician, develop an orientation program for new clients explaining that there is no need to feel locked into any one technician.
Contract ~ Every client that walks through the door rightfully belongs to the spa, not the random technician who happens to be available when the new client showed up. Having a strong contract in place with your technicians doesn’t just protect the long-term viability of your business; it sets the expectations of your technicians and tells them you mean business when it comes to clients. There is much confusion about Non-Compete Agreements. Read Larry Donahue’s blog article, Non-Compete Agreements: They Can Work for more information.
With almost 10 years experience in new business start-ups and transformations, Ana Loiselle-Donahue is a specialist in finding new sources of revenue and growth for companies of all sizes. She founded theSECRET in 2004 to help businesses flourish through creative —and powerful —new solutions; including brand development, strategic financial planning and employee training. Mrs. Loiselle-Donahue can be reached at 866/288-7353 or at www.thesecretconsultant.com. Check out her blog!
• Trackback • Posted in General, Spa Business Management, the SECRET
This is a great article — very succintly hits the nail on the head about what destroys the team environment. At our spa we are absolutely team based, and pay hourly to avoid the commission/entitlement trap. Consequently, we have a work/spa environment that is peaceful and harmonious 99% of the time. And isn't that how spas are supposed to be? We have monthly meetings with mantras for the month, and how we can better focus on being "other-centered." It seems to be working!
Congratulations Sandra. Sounds like a great spa to work for. I think you make a good point that the key is an environment of harmony and team. I agree with the article to a point, but like most articles on this blog, it only views these issues from one side — the spa owner. Which makes sense as that is mostly who reads it. However, if you as a owner create a work environment that creates a feel of teamwork, sharing and growth, most therapist won't have to use a "walk-out bomb" as you call it. Therapist are just like everyone else, we all want to make the best living we can. Most would gladly give up a little money to work in the right environment. So spa owners, create that environment and you won't have to worry about therapist threats of leaving. And maybe rewarding therapists or "technicians" on occasion will keep them from even thinking about leaving.
I would like to see an article about client entitlement in regard to no show appointments. We have a written policy in place that requires the client to read and sign in two different places, yet when informed that they are responsible for payment of the missed appointment as stated in our policy, I have 99% of these no show clients pitch fits, and act totally improperly in language and behavior, stating that they just would not come back to our spa. Even after we ask for 24 hours cancellation notice at the time of booking. It is amazing how many clients will book and then show up 20 minutes late thinking they should still get their full massage time, which is also covered in our written cancellation policy. We as a society have groomed the customer to think they are always right without ever addressing that same individuals responsibility in being morally correct in regard to their own personal behavior towards others when booking appointments, weather it be with a dentist, attorney, or massage therapist.
Great point Carol! We also have the same policy, overall it has cut down on cancellations, the clients are told about, agree to it and it is stated everywhere, on the service ticket, that is mailed out, gift certificates, menu and website, however we have the "cancellation policy fits" also and the "I will never come back threats." I would as well love to hear feedback on this. In regards to the staff, I understand Gary however, the more you give to your staff the more they take advantage and they still walk out!
I agree with Gary and Sandra, it's logical that the spa owner will want to have a non competitive environment, but with most spas not being able to afford salary and only commission… the technicians are going to be competitive in order to afford to live. A spa owner is always going to get paid their part of commission not depending on which technician does the service. It's understandable when a technician is out of town and the client goes to another technician, but it is only natural to feel a client is your client, that one have become friends with, for a long period of time.
Wow Penny, that is a very sad statement. So all employees are just given stuff, and then want more and take advantage of business owners? They don't earn anything you "give'" them, you give only out of the goodness of your heart? And am I to believe that owners wouldn't take advantage of staff? Ask for more without "giving" more in return? See, that is the mentality that I think creates so much workplace disharmony and dissatisfaction for all. Create an environment where your employees are empowered to be part of the business, not just a technician, reward them fairly, and ultimately you can create a team of people that will work together to create a successful situation for everyone. But, alas, most people think only of themselves, owners and therapists alike. What is sad is that we are in a business of helping others, yet so many only seem to think about what's best for them and the hardship others put upon them.
A very challenging subject! It is critical to the growth of this industry that we professionalize and build standards and expectations. First, the schools need to provide a better business (financial and ethics) education to their students. Stop teaching students 1) 'that what they make' or their 'income' is equal to their gross receipts, and 2) most importantly to work somewhere to build a clientele then go out on their own. This is the root cause for much of the dissatisfaction. Second, staff should be employees with all the associated responsibilities, benefits and privileges. Finally, Spa Owners, learn to continually recruit by having a stack of resumes and candidates and regularly hire new people with a 90-120 day probationary period. Use your marketing to fill their book, while paying them a reasonable hourly rate, and test out how well they help you build your business, as well as their technical skill. "Promote to customer" any employees that appear to be 'poison pills' as fairly and quickly as possible.
Yes, Gary, it is sad. These are things that technicians need to know and understand that the spa owner deals with. The more you give, the more they take advantage, unfortunately.
So I am curious, Penny. How do you stay in business if your staff constantly takes advantage of your generosity and then leaves?
Hi Gary. I learned from experience so I have never put myself in that position again. That took care of most of the problem. I also needed to replace a lot of staff. I have a great disciplinary program in place as well as rules and regulations now, when I bought my locations the prior owner did not have any of the sort. I enforce both of these programs and there are no problems whatsoever, only respect by the staff towards me and respect to them from me. They completely understand that my job is to market and bring clients to the spas, their job is to provide excellent service and together it is a win-win situation. I do not take advantage of them and they do not take advantage of me. So it works out wonderfully now!