Team culture
Everyone takes responsibility for the client experience and the company’s available hours—not just their own column.
Free team assessment
Take the culture quizTeam-Based Pay
for salons & spas.
If you want to be team, you need to pay team.
Team-Based Pay combines an hourly rate with a team reward, backed by the financial systems, leadership and career paths that help a salon, spa or medspa grow as a company.
Free call · Tell us about your business and ask your questions.
What is
Team-Based Pay?
Team-Based Pay (TBP) is a salon and spa compensation method built around an hourly rate plus a team reward. An employee’s growth in pay reflects their overall contribution: skills, performance, teamwork and individual strengths, rather than individual service sales alone.
The pay method is one part of the Team-Based Business Model. Cash-flow planning, shared goals, consistent service systems and clear employee growth paths make it work. Simply replacing commission with an hourly wage doesn’t create a team-based business.
At Strategies, we believe the way you pay affects everything from bottom-line profit to client retention. The goal is a company where everyone helps fill the appointment book, serves the client and works toward shared results.
Read our complete Team-Based Pay guideThe four parts of Team-Based Pay
Financial discipline
Build a cash-flow plan that supports payroll, operating expenses, owner pay and profit.
Free benchmarks e-book
Get the benchmarksConsistent systems
Use shared service standards, training and communication to make teamwork part of everyday operations.
Free Happiness System training
Explore the trainingCareer growth
Show employees what skills, behaviors and responsibilities help them progress and earn more.
Coaching for your business
Explore coaching supportTeam-Based Pay vs. commission:
what changes?
The biggest change is what the business rewards. Commission centers service pay on individual sales. Team-Based Pay looks at the employee’s contribution to the whole company.
Compare the two approaches in each area below.
Service pay
- Individual service commission
- A percentage of the services the employee sells.
- Team-Based Pay
- An hourly rate, with a team reward tied to company goals.
Pay growth
- Individual service commission
- Higher service sales or a higher commission rate increase service pay.
- Team-Based Pay
- Defined growth paths consider skills, performance, team behaviors and strengths.
Client care
- Individual service commission
- Individual sales incentives can put the focus on building a personal clientele.
- Team-Based Pay
- Shared systems encourage the whole team to serve and retain the company’s clients.
Payroll planning
- Individual service commission
- Service commission rises with the sales it is calculated on.
- Team-Based Pay
- Scheduled hours, pay rates and a planned team reward are part of the cash-flow plan.
The tradeoff: changing the pay method takes more than changing payroll. Owners need to build trust, communicate expectations, review performance and follow the financial plan. An hourly rate without that work won’t deliver the Team-Based Business Model.
Team-Based Pay is the best thing I EVER did for my salon. If you want to run a highly-sustainable business, and to be able to offer your team great pay and benefits, AND pay yourself, it's a no-brainer. I started out as a commision-based salon, and when I went Team-Based Pay I never looked back!
How do you switch
to Team-Based Pay?
Start with your business and your people. A successful conversion needs a financial plan and a team that understands how the new system works.
A Certified Strategies Coach can help you evaluate your current structure, prepare the conversion and keep working on the systems after the change.
Review the numbers.
Understand current earnings, scheduled hours, payroll costs and cash flow before designing a new pay structure.
Build the growth paths.
Define the skills, performance and team behaviors employees need to grow their pay and responsibilities.
Prepare your team.
Explain the plan, work through questions and make expectations clear. Trust matters throughout the conversion.
Coach the business after the switch.
Keep reviewing financial results, service standards, productivity and employee development. The payroll change is a starting point.
Why I love Team-Based Pay.
Hear salon owners and their teams describe their own experiences with the Team-Based Business Model.
Questions about Team-Based Pay
Is Team-Based Pay the same as hourly pay?
No. Hourly pay is part of the compensation method. Team-Based Pay also includes team reward, financial planning, shared operational systems and employee growth paths. Paying hourly without those systems is not the full model.
How can employees earn more on Team-Based Pay?
Employees progress through defined growth paths based on skills, performance, teamwork and individual strengths. The model also includes a team reward budgeted around company goals. Earning opportunities depend on the business’s plan and the employee’s development.
How does the team reward work?
The team reward is planned in the company’s cash-flow budget and connected to shared service and retail revenue goals. The plan should make the goal, budget and expectations clear to employees. It is not an individual service commission.
What are the benefits and challenges of Team-Based Pay?
The model is designed to support teamwork, consistent client care, planned payroll and employee career growth. The challenge is implementing the systems that support it: transparent communication, clear expectations, financial discipline and ongoing leadership. Changing the pay method alone does not guarantee profit or retention.
Can a commission salon switch without cutting everyone’s pay?
A conversion starts by reviewing employees’ actual earnings and scheduled hours, rather than choosing an arbitrary hourly rate. Your coach helps you work through the numbers and design a plan your business can support. Individual circumstances need to be reviewed before any pay change is made.
What does it cost to get help implementing Team-Based Pay?
Strategies coaching plans depend on the support your business needs. Explore coaching plan options or use the free call below to discuss your current pay structure and next steps.
Keep learning about Team-Based Pay
The free white paper · 2026 edition
Before you change how you pay, change how you think.
Get The New Team-Based Pay: Why the Future Belongs to Team Thinking. A closer look at the leadership, career growth and shared expectations that make Team-Based Pay work.
Enter your details to download the free PDF.
Let’s talk about your pay structure.
Tell us about your salon, spa or medspa. Schedule a free call to ask about Team-Based Pay and the support you need to make a change.