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Aesthetic Practices: Pay Up, Train Up or Close Up?

Updated: May 15

With our extensive work in California over the last year it’s become apparent that the talent pool for Medical Aesthetics practices is well below industry demand. Experienced Registered Nurses, Nurse Practitioners and Physician Assistants are in high demand in this heavily regulated market and if you are searching for someone to represent your brand with great experience and the ever-elusive sales skills…, well that’s what we call a Unicorn in the recruiting business.

That’s not to say these folks aren’t out there and cant be enticed into joining your team, but it does mean your choices are limited and getting to these talented folks is expensive one way or another. So what are your choices and how can you go about securing the essential talent you need to make your business a success? Well you really have three options:

1. Pay up – Skilled PAs and NPs make upwards of $180k per year with many well over $200k. In some smaller markets $150k total Annual Compensation (T.A.C.) will fly for a full-time position. If you think you can get away with lower base and heavy incentive programs think again. The best people out there understand that newer, smaller market practices just don’t have the volume necessary to hit revenue targets that will yield the kind of T.A.C. they expect and can get elsewhere quite easily. There is a market out there for Part Time or Per Diem providers as some seek to find a life / work / commute balance, but they’re tricky to find and will be very specific in their demands (no real room to negotiate).

2. Train Up – to fight the dearth of talent, larger organizations spend their dollars on finding midpoint entry staff and training them up over time. This is a tough one for an independent provider as training budgets are pretty thin as well, not to mention the time and energy it takes to get someone up to speed and the risk that you get them trained up and they leave for greener pastures. So even if you are training up you’ll need to make sure you map out a career path for your team members so they can see a reason to stay once they get their skill level up to where you need them to be. Some organizations (outside of CA) have chosen to require their staff to sign draconian non-compete clauses and enforce them just enough to scare off new employers. Not a problem in California but if you are going the “Train Up’ route, you will certainly need legal advice on non-solicit terminology in your contracts.

3. Close Up? – Ugh, not the greatest of options but certainly one many providers choose. The average lifespan of a Med Spa is 3-5 years. One of the biggest reasons for closure is lack of qualified staff (not to mention lack of marketing and sales skills). The good news is we have seen several Private Equity groups pouring into the market which may, if your business is reasonably successful, present an opportunity to join a larger group and take advantage of the economies of scale, or just plain sell out. On the downside, we have not seen any consolidators yet in this space, rather we see builders, which, at least for now, may limit those opportunities.


 

OnCall Medical Aesthetics Recruiting

‘Beautifully Staffed’

www.thebeautyagentoncall.com

info@thebeautyagentoncall.com

Toll free N America: (866) 886-3335

Recruiting throughout North America: Aesthetic MD, PA, NP, RN, MA, LE, Sales, Practice Managers & more!





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