The spa industry continues to enjoy growth. In May, the International Spa Association (ISPA) released the findings of its 2023 Industry Study, which covered January 2022 to January 2023, indicating continued industry growth after the previous year’s initial recovery from the COVID-era downturn.
The study reveals that U.S. spa industry revenues grew from $18.1 billion in 2021 to $20.1 billion, an increase of more than 11%. The revenue figure sets a new all-time industry record, outpacing the previous high of $19.1 billion revenue realized in 2019. Indicative of the vitality of the market is staffing – especially full-time employees- which increased more than 5%. [1]
Understand hiring trends
With spa staffing needs on the rise to meet growing consumer demand for spa services, it is important to understand what workers are expecting in today’s labor market to stay competitive. Following are the findings from the 2024 Salary Guide[2] from Robert Half, the international human resource consulting firm. The survey indicates how employers are responding to worker expectations on pay, perks, and raises. The survey finds that majority of professionals are confident asking for raises and looking for flexible work opportunities.
Survey highlights
Workers want raises
Workers are not retreating from asking for raises. Nearly two-third (63 percent) report plans to ask for a raise before the end of the year. They are concerned about:
- Higher inflation (39%)
- Taking on more responsibilities (26%)
- Feeling underpaid after checking salary market rates (16%)
Almost one-third (31%) of workers said they will look for a new job if they do not get a raise.
Flexible work options matter
More than 6 in 10 workers (62%) would rather stay in a job with flexible work options than accept a higher paying position with rigid in-office requirements.
Salary transparency attracts candidates
About 6 in 10 hiring managers said that including salary information in job postings helps attract qualified candidates (63%) and provides an edge against competitors (60%). Workers also want pay transparency, and 57% said they would take themselves out of consideration for a role if salary ranges are not provided upon request.
Companies ready to pay more
The hiring market is still primarily candidate driven, with more job openings than available talent. As a result, more than half of employers (51%) plan to increase starting salaries in 2024 to attract highly skilled workers. Another 46% said they are adding new perks and benefits.
The findings were based on two surveys (collected May 2023 and August 2023) of more than 1,000 workers 18 years or older and 2,000 hiring managers at companies with 20 or more employees in the United States.
[1] “ISPA Releases Findings of its 2023 U.S. Spa Industry Study, American Spa, May 26, 2023. https://www.americanspa.com/spa-news/ispa-releases-findings-its-2023-us-spa-industry-study
[2] Press Release, “2024 Hiring and Compensation Trends: Numbers to Know in a Complex Labor Market,” October 23, 2023. https://www.prnewswire.com/news-releases/2024-hiring-and-compensation-trends-numbers-to-know-in-a-complex-labor-market-301945047.html