This course will help you CALCULATE exactly what you are REALLY paying your employees so that you can REALLY work out what they need to produce for you. You pay more than you think and they need to produce more than they think!
Service industries, ESPECIALLY the beauty industry need to make sure wages is kept under control. If wages are blown out, high revenues don’t mean a thing. As we know, all that matters is PROFIT; Revenue less expenses and the easiest area to blow out in the expenses department is wages.
There is a wages benchmark to follow to ensure you are profitable in your business. The benchmark is that your wages should not exceed 30% of your revenue. Under certain circumstances, 35% tops.
The other benchmark you must pay very close attention to in order to be profitable is productivity (revenue) and the productivity benchmark for a beauty therapist (in most circumstances) NEEDS to be 4 times her wage. Her total wage.
But wages are not simply what you pay out every week. You must take into consideration tax and superannuation – two costs to the business that are inevitable but do not appear in the employee’s bank account every week.
You also need to ‘factor in’ the Annual leave and Personal Leave. Why? Because at some point, your therapist will take 4 weeks Annual Leave, and up to 2 weeks Personal Leave and during that time SHE WILL NOT BE PRODUCING! You must factor all of this into your productivity expectations during the time she IS working; the other 46 weeks of the year.
Factoring everything that you need (tax, superannuation, annual leave, personal leave and all relevant loadings) is not always easy to calculate. The Wage and Productivity Calculator course will not only make this easy for you but will also coach you to understand these unbelievably important benchmarks in your business.
Table of Contents
Video 1 – Getting Clear on What you REALLY Pay Your Team Members (14:44)
Video 2 – Filling in the Calculator (12:55)
Video 3 – Why You Must NEVER Pay above Award (7:52)
Wage and Productivity Calculator Template in Excel format
What You Need
Excel Software (don't worry if you're not a whizz with Excel. This course will simplify it all for you)