What Award Winning Salon/Spa Productivity Looks Like
Strategies definition of Productivity: “The productivity business outcome is all about doing the work of the business — and executing that work in the most efficient and timely manner possible to the highest no-compromise standards.”
Winner of the 2020 Team-Based Pay Productivity Award
Bill and Linda Moore are the owners of Natural Remedies Spa located in Vienna, WV. They converted to Team-Based Pay in October 2013.
Note: We had a few connection issues with Bill & Linda's interview, but the message is powerful...stick with it!
What was Natural Remedies Spa’s culture like prior to implementing the Team-Based Pay Business Model?
Bill and Linda: Prior to our Team-Based Pay conversion, our culture was wicked and backbiting. We had regular turnover of staff members that were unhappy, discontent, and convinced that the company was ripping them off. What we really had was weak leadership that allowed compromise at every opportunity, and in turn the compromises were demoralizing our staff, and wrecking our business which was losing money every year.
The I/me/my mentality was awful. Conversation in the break room was toxic. The staff was demoralized because we, as leaders, allowed a few strong personalities to get away with not following the company rules.
We were afraid of a mass walkout, taking “their” clients, and bankrupting the company. We needed every dollar to stay afloat because we were already in debt, particularly credit card debt. It was an “us versus them” culture. Some employees even felt they should get their commission on unredeemed Gift Certificates.
The saying "culture reflects leadership" is absolutely true. Until a company’s leadership takes responsibility, it has little chance of surviving. Leaders have to communicate, coach, and live a clear vision and help guide that vision’s success.
Describe your culture after implementing the Team-Based Pay Business Model.
Bill and Linda: The first challenge that we had to overcome was gaining their trust. We began practicing open-book management and sharing our numbers so they could understand where the money was going. Once they understood that the company was investing in their education, new equipment, and strengthening their financial security, they started believing in Team-Based Pay.
As their paychecks grew, and their voices were being heard, they began to trust us. We worked really hard on our communication, and still do. Now, when we communicate, it’s an open conversation that welcomes their input. They now recognize that we value their input and judgement. Inclusion and transparency do amazing things for a culture.
This is the third Team-Based Pay Productivity Award your company has won. What happened in 2020 to earn this year’s award?
Bill: Just as we were making the necessary preparations to reopen from our ten-week Covid-19 shutdown, I became seriously ill with a gall bladder that became Septic. My gall bladder and part of my liver had to be removed, and I was given heavy doses of IV antibiotics to kill the infection. The doctors said that I evaded death by about 36 – 48 hours.
Linda and I were completely away from the business from May 22nd until July 13th. We returned on July 13 on a part time schedule until August 3rd.
We had never been separated from our company for this amount of time. Our 16 employees rose to the challenge. It was as if our hard work these past years prepared them for this moment.
Our productivity rate is consistently +/-90%. For the six weeks we were out, our team never took its eye off the productivity ball. In fact, if you look at all our critical numbers, before and after the shutdown, including the six weeks we were out, our critical numbers didn’t skip a beat.
Your company was debt free for the past few years. What impact has the shutdown and COVID-19 had on your financial condition?
Bill and Linda: Our company has worked our way out of debt and turned a back-biting culture into a business that was debt free prior to the COVID-19 shutdown with a happy and dedicated team.
The company now has debt — but only if the PPP loan is not forgiven. If the loan is forgiven, we will actually have $82,000 in the bank, plus whatever we manage to save by the end of 2020.
All things considered, we are proud of our team and our company for all we have had to overcome in 2020.