Call 803-814-1772 | Financial Aid & Enrollment 803-317-2160 | Email 24-7: info@seestheticsinstitute.com
Southeastern Esthetics Institute
  • Book Appointments
    • Book Spa Appointments Online
    • STUDENT SPA MENU
    • COVID-19 Check List - Client Check In
    • Clinic Client Survey
    • Client Care Plan
    • Membership
    • Advanced Academy Consent Forms
  • Attend SEEI
    • ESTHETICS LICENSURE COURSE
    • ADVANCED ESTHETICS ACADEMY
    • COSMETOLOGY | HAIR, SKIN +NAILS SCIENCES PROGRAM
    • NAIL TECHNOLOGY PROGRAM
    • ESTHETICS EXCELLENCE CERTIFICATION PROGRAM
    • Continuing Education >
      • DOWNLOADABLE GUIDES
    • Certification Courses
    • Enroll >
      • Student Housing
      • Student Aptitude Test - SKIN . HAIR . NAILS .
      • Student Aptitude Test - Advanced Esthetics Academy
    • Financial Aid >
      • CARES ACT
  • About
    • Contact
    • Accreditation
    • Blog
    • COVID-19 Written Plan >
      • Esthetics Student COVID Acknowledgement
      • Advanced Esthetics Student COVID Acknowledgement
    • Med Spa Consulting
    • Our Mission
    • Alumni Packages
    • Written Plans
    • Meeting Minutes
    • Instructor Guides
    • Admissions Guides
    • Meet Our Team
    • Alumni Spotlight
    • Careers
    • Completers & Employer Survey
    • Data Security Plan
  • Student Portal
  • Book Appointments
    • Book Spa Appointments Online
    • STUDENT SPA MENU
    • COVID-19 Check List - Client Check In
    • Clinic Client Survey
    • Client Care Plan
    • Membership
    • Advanced Academy Consent Forms
  • Attend SEEI
    • ESTHETICS LICENSURE COURSE
    • ADVANCED ESTHETICS ACADEMY
    • COSMETOLOGY | HAIR, SKIN +NAILS SCIENCES PROGRAM
    • NAIL TECHNOLOGY PROGRAM
    • ESTHETICS EXCELLENCE CERTIFICATION PROGRAM
    • Continuing Education >
      • DOWNLOADABLE GUIDES
    • Certification Courses
    • Enroll >
      • Student Housing
      • Student Aptitude Test - SKIN . HAIR . NAILS .
      • Student Aptitude Test - Advanced Esthetics Academy
    • Financial Aid >
      • CARES ACT
  • About
    • Contact
    • Accreditation
    • Blog
    • COVID-19 Written Plan >
      • Esthetics Student COVID Acknowledgement
      • Advanced Esthetics Student COVID Acknowledgement
    • Med Spa Consulting
    • Our Mission
    • Alumni Packages
    • Written Plans
    • Meeting Minutes
    • Instructor Guides
    • Admissions Guides
    • Meet Our Team
    • Alumni Spotlight
    • Careers
    • Completers & Employer Survey
    • Data Security Plan
  • Student Portal

Legal Requirements, Liabilities, & Benefits of Estheticians Seeking W2 Employees

7/6/2021

4 Comments

 
Picture
Estheticians in 2021 require more than basic business knowledge when growing their companies and expanding their reach to consumers! Esthetics entrepreneurs require a system of processes to be able to not only run their independent business, but to grow and expand. Through growth and expansion, leaders may choose to hire employees to assist in gaining more market reach to share its mission and vision - and ultimately be able to rely on other sets of hands to perform services reaping revenue streams alongside them! Spa owners must first look within themselves to determine whether hiring individuals and being a servant leader to others is in their long-term vision. 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. 
​

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!
4 Comments
Hailey Miller link
10/15/2021 07:46:59 pm

Thanks for pointing out that being a beauty boss is very rewarding. This is helpful because my sister wants to be a beauty expert. I guess I should tell her to look for a beauty school on Monday that can help her learn skills and gain experience.

Reply
lyceum of the philippines university link
10/26/2021 04:41:06 am

Really an interesting blog I have gone through. There are excellent details you posted here. Thank you for sharing this blog.

Reply
Victoria Addington link
11/23/2022 11:52:20 am

It made sense when you mentioned that we should establish meaningful relationships with esthetician groups and cosmetology schools. My friend told me that she wants to pursue a career in skin care. I should advise her to attend a school that provides an accredited skin care diploma.

Reply
Millie Hue link
11/30/2022 08:58:37 pm

I totally agree when you said that there should be competitive wages and salaries to ensure that you are a fair employer. I guess any kind of worker has to know about this so that they understand their rights to fair pay. It makes me wonder if such information would be shared while a person is attending an esthetics school program or any kind of course to help them pursue their dream career, since it should be included for the protection of the individual before they work in the real world.

Reply



Leave a Reply.

    Picture

    Author

    Courtney Sykes, Chief Administrative Officer of Southeastern Esthetics Institute, not only loves educating students in the classroom setting - but travels to esthetics trade shows and teaches amazing lectures to hundreds of licensed professionals around the country - and writes amazing articles for national trade magazines in esthetics. Her passion is expansive for the industry & she is exceptionally passionate about assisting you with your career goals!

    Archives

    July 2021
    January 2020
    July 2018
    February 2017
    August 2016

    Categories

    All

    RSS Feed

Picture
Picture

Book appointments online!
501 Spears Creek Church Road
Elgin, SC 29045
​
General Questions & Appointments 803-814-1772 | Financial Aid & Enrollment 803-317-2160
​For 24/7 Inquiries, Email info@seestheticsinstitute.com
​Fax:​ 803-806-7216​
Site Powered by Splash Omnimedia
© COPYRIGHT 2023. ALL RIGHTS RESERVED.