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MANAGEMENT WORKSHOP likely be able to immediately fully perform all aspects of the position. Successful companies in any industry are those that provide ongoing mentorship and professional development opportunities, and invest in their staff. Key challenges: • Spas believe on-the-job training is important, but most don't budget for management training. • Little formal training is provided beyond point of hire. • One-off training sessions are not as effective as a long-term, coordinated approach. • Lower-level staffers require mentoring in order to move up the management ranks. MAKING THE INVESTMENT Examining the best practices in employee training and development in the corporate world, the American Society for Training & Development estimates that American companies spent $1,182 per trainee on employee learning and development in 2011. Of this total, 56% was spent on internal training; 30% on external training; and 14% on tuition reimbursement. The median training budget averaged 2.9% of payroll. Yes, these are large companies with multi-million dollar MULTI-LEVEL SOLUTIONS Now that the GSWS/SRI report has revealed details about the size and scope of the management training gap in our industry, it's clear that we need a coordinated, ongoing approach to make real inroads. Among the report's industry-wide recommendations: • Share more information about spa management training opportunities • Share internship opportunities • Create scholarships for management training • Invite educators to industry events • Strengthen relationships with existing schools and universities that offer spa management training • Encourage schools to offer these courses revenues, but we can examine how that budget percentage would equate in the spa world. Let's imagine a median-performing, 3,000-square-foot day spa with 18 employees is booking revenues of $825,000 per year. With a progressive compensation plan, total payroll costs should not exceed about 55% of revenue—so let's assume $453,750 annually. If we apply that corporate training budget of 2.9% of payroll, that comes to $13,158.75, or dayspamagazine.com/freeinfo • Use FreeInfo #50 94 DAYSPA | APRIL 2013