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Spa Management Workforce & Education: Addressing Market Gaps The Challenge of Spa Management in Today’s Spa Industry Spa businesses are facing a fundamental challenge in their management workforce – they are simply not able to find enough people with the right skills to fill management-level positions. In the industry survey conducted for this study, 95% of spa industry leaders stated that they currently face problems in hiring spa managers/directors with the right combination of qualifications and experience; 52% stated that they believe these problems will stay the same or worsen over the next decade. The root causes behind the spa industry’s management personnel challenges are multifold and complex. First, it is important to recognize that these challenges are not unique to the spa industry. Over the last 25 years, economists in the United States and globally have documented that: 1) workforce is increasingly the most important factor for success in an increasingly competitive global economy; and 2) skilled and talented workers are increasingly difficult to recruit and retain, especially at the managerial level. McKinsey & Co. has dubbed this challenge the “War for Talent.” These trends are rooted in broad economic and societal shifts, including a decline in the supply of entry-level management-aged workers (35-44 years old) in developed countries; the increasingly high skills required for workers in knowledge, service, and innovation-based jobs; and the increasing ease with which workers can change jobs and companies. Second, there are three specific management challenges currently being faced within the spa industry: Challenges Relating to Current/Future Spa Managers, Skill Sets, and Career Pathways: Spa management is a very challenging career that requires a huge mix of hard and soft skills, combined with a deep passion and understanding of spa. Since there is no well-defined educational or career pathway for entering spa management, most spa managers/directors are deficient in at least one of these key skills areas (most typically in hard skills such as business/management/finance). Additionally, spa management is a highly demanding career (with long hours/weeks and significant mobility/travel required), and may lead to “burn out” or be difficult to sell as a “lifestyle career.” Challenges Relating to Education and Training Providers: The graduates of existing spa management-related degree programs at universities/colleges meet only a tiny fraction of the spa industry’s growing needs for welltrained spa management personnel. Therefore, the industry places very little There are approximately 4,000 students worldwide currently enrolled in spa management-related degree programs. There are an estimated 130,000-180,000 spa managers and directors currently working in spa businesses around the world, and this figure is continuing to grow. Clearly the number and size of spa management-related degree programs is not meeting the spa industry’s hiring needs for well-trained management personnel. ii © Global Spa & Wellness Summit LLC
Spa Management Workforce & Education: Addressing Market Gaps emphasis on educational credentials when hiring spa managers/directors – which contributes to the gaps in “hard skills” and technical/business skills that industry leaders complain are prevalent in spa management. Additionally, most spa management-related degree programs are fairly new and very small, and are not as well-connected to the spa industry as they ideally should be. Providers of continuing education services are also new, fragmented, and constantly evolving, and there is no one “proven” model for effectively delivering training to employees already in the workforce. Challenges Relating to Spa Businesses: Few spa companies invest adequate attention and resources into human resource development and training to support their spa staff as they move up the ranks into management-level positions – thereby augmenting the gaps in “hard skills” and technical/business skills among many spa managers/directors. Without proactive attention to succession planning and career pathways within a spa, employees are not likely to be prepared for management-level positions as they advance within the company. © Global Spa & Wellness Summit LLC iii
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