The Management Assistance Contract: A Multi-Faceted Solution – Part 2

 

In the previous post, we discussed the different types of management contracts, defined the management assistance contract, and talked about the ideal situation and the most common trap in the business, it is time to move to the second entry. In this entry, we will discuss how a management assistance contract can help you and which formula can be mutually beneficial for the hotelier or the owner as well as for the operator.

 

What can a management assistance contract do for you?

A management assistance contract covers the services of a management company until an adequate spa director has been brought on board or alternatively a competent therapist has been fully trained by the management company to handle basic day-to-day operations. The spa will be supervised by a team of specialists in spa and technical staff management who will be able to guarantee the quality of the treatments that are provided. The management assistance contract allows the hotelier to maintain administrative control of its spa operations and of its trained spa staff.

The management company will oversee the staff while taking charge of the spa’s technical operations. In addition to this, the company will train other staff like Food & Beverage or Rooms Managers or an office staff acting as de facto responsible for the spa. The management assistance contract lasts from 1.5 to 3 years and is renewable as needed.

 

An ideal management assistance contract

An ideal management assistance contract should include a permanent hotline for emergencies, an email address to answer questions within 24 hours, and a monthly visit by the specialists of the spa management company in order to audit the spa’s operations, evaluate the spa’s performance and provide on-going training to all employees including the hotel’s key staff.

The advantage of this type of contract is that it is more affordable than a regular management contract. Additionally, it allows for significant savings on the sometimes unsustainable salary of a spa director. Depending on the size, location and complexity of the spa, a spa director (in Spain) can earn around 30.000€ per year.  In order to calculate the cost to the hotelier, 34% employer’s social security payments would need to be added in addition to annual leave holidays and public holidays.  This leads to an estimated total cost of 40.200€, not taking into consideration the knowledge the spa director might have and the training he or she would require in order to effectively manage the spa, all these costs being additional to the estimated total cost.

Another important factor that needs to be considered on top of these direct costs is staff turnover. This is quite common in newly opened spas where the turnover of directors is high because of the lack of expertise that some directors have compared to the level of work that is required from them.

A management assistance contract, which involves an ongoing training, would range between 20.000€ and 40.000€ and upwards, depending on location, size and complexity of the spa operations. It is an investment that guarantees that the spa and hotel staff are fully trained, encourages consistency in quality of treatments and services, ensures operational performance and optimizes profits thanks to the marketing and management know-how that our specialists have. The final result of such an investment is a significant reduction in operating costs including stability and consistency in spa operations.

 

The spa industry today

At present, there are only a few truly competent spa directors in the industry. One of the problems is that many directors lack sufficient knowledge of the industry, which means there is a need for specialist training in order to form  and promote competent leaders in the industry. In other words, the sector’s problem is actually a problem of HR and specialists training.

 

The management assistance contract: a multi-faceted solution

The advantages of a management assistance contract are numerous. Not only does it set standards of quality for treatments and services, but it also ensures adequate supervision  of the day-to-day spa operations and the required technical training for both hotel and spa staff. In addition to this, it provides the hotel with the essential expertise that very few spa directors are capable to offer. In this way, a management assistance contract provides a multi-faceted solution that besides its benefits is also affordable.

 

If you wish to receive additional information about our management assistance contracts, you can contact us at info@spa-balance.com. Our experts will be happy to assist you.

By Sonal

Sonal Uberoi creates and delivers smarter spas around the world. Spas and hotel groups hire Sonal to help them design, set up and manage their wellness businesses. Her finance background and worldwide operations experience in the spa, wellness and hospitality sectors make Sonal the go-to expert for business optimisation solutions. Connect with Sonal on LinkedIn www.linkedin.com/in/sonaluberoi.

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