In an enlightening discussion between Katlin Cauffman, CEO of Diamond Accelerator, and Sara Shikhman, founder of Lengea Law, these industry veterans shared critical insights on avoiding common hiring pitfalls in the med spa industry.
With their combined experience working with over 1,400 med spa clients, they outlined key strategies for protecting your business while building a successful team.
Understanding Practice-Specific Needs
Every med spa has unique requirements when it comes to hiring.
As Shikhman explains,
"Someone's practice could be really small and be hiring their first person and maybe could hire that person as a contractor with like a 90-day trial period where some other practice could have 20 employees already and have a standard and deviating from that standard could create problems."
Timing Your Legal Preparation
One of the first questions addressed was when to begin legal preparations in the hiring process.
According to Shikhman,
“It’s better to start before to figure out legally where they’re going to fit into your organization.”
She emphasizes determining key factors upfront:
- Employment structure (contractor vs. employee)
- Work schedule expectations
- Insurance responsibilities
- Reporting structure
- Full-time vs. part-time status
Essential Contract Elements for Modern Med Spas
Shikhman emphasizes that contracts must be state-compliant and comprehensive.
"In some states, certain things in the contract could be illegal. For example, in a state like California, if you put in certain non-compete provisions, that's actually illegal, you could actually be subject to fines."
Critical Contract Components:
- Social Media Policies: Modern med spa contracts must clearly define med spa social media ownership and usage rights. This includes specifying whether employees can maintain their own professional accounts, how patient photos and results can be shared, and what happens to social media assets post-employment.
- Training Investment Protection: With significant investments in employee training, contracts should outline specific terms for training reimbursement. This includes detailing the monetary value of provided training, timeline expectations, and repayment terms if an employee leaves before a specified period.
- Schedule Specifications: Detailed scheduling requirements must be explicitly outlined in contracts. This includes regular working hours, on-call expectations, weekend rotations, and flexibility policies. Clear scheduling terms prevent future disputes and ensure alignment between employer and employee expectations.
- Role Classification: Proper employee classification is crucial for legal compliance. Contracts must clearly distinguish between employees (W2) and independent contractors (1099), with appropriate terms and conditions for each classification. Misclassification can lead to significant legal and financial consequences.
Non-Compete and Non-Solicitation Evolution
The landscape of non-compete agreements is constantly changing. Shikhman provides detailed guidance:
Non-Compete Considerations:
- Urban areas: “In a place like New York City, a two-mile non-compete may be non-enforceable”
- Suburban/rural areas: “For a place like Ohio, maybe it’s 20 miles or 10 miles in a year”
- Time limits: “Courts are not going to enforce a three year non-compete, no matter where you are”
Non-Solicitation Challenges:
“Non-solicitation is very hard to enforce and it’s very hard to really figure out what constitutes solicitation,” Shikhman notes.
She recommends clearly defining what constitutes solicitation in contracts, particularly regarding social media usage.
Building a Sustainable Talent Pipeline
Cauffman emphasizes the importance of continuous recruitment:
"You want an evergreen recruitment system so that you are never held hostage by an employee."
She outlines a comprehensive approach:
Key Recruitment Strategies:
- Maintain ongoing candidate relationships
- Have backup options for every key position
- Conduct thorough vetting processes
- Complete reference checks
- Verify professional credentials
- Check regulatory boards for complaints
Financial Protection and Compensation Strategies
Training Investment Protection:
Shikhman suggests two primary approaches:
- Training Reimbursement Contracts
“Make sure that you have a training reimbursement contract… with a training plan that outlines the time you’re going to spend because your time is valuable.”
- Retention Bonuses
“Hire someone at a lower rate to start, but… after you complete training and you stay with us for a year or two years, you get a bonus.”
Market-Appropriate Compensation
Cauffman warns against both underpaying and overpaying:
"They either are grossly underpaying or they're grossly overpaying, and both are not good."
She emphasizes the importance of:
- Understanding market rates
- Knowing your financial capabilities
- Creating sustainable compensation plans
- Offering clear growth opportunities
Cultural Fit and Career Development
Cauffman stresses looking beyond technical abilities:
"They spend all of their time worried about... can they inject beautiful lips... while that is wildly important... that's just a small piece of the puzzle."
Essential Assessment Areas:
- Vision alignment
- Core values compatibility
- Work style preferences
- Growth mindset
- Operational expectations
- Team dynamics
Shikhman adds:
"Top talent needs a plan where they know where they're going to and how they're going to grow in the role."
Handling Hiring Mistakes
Both experts acknowledge that mistakes can happen, particularly with first hires.
Shikhman advises:
"With your first hire, it is possible that it's not going to be your perfect hire. It's a learning process... It's like, did you get married to your first boyfriend? Probably not. That's okay. You learned from that relationship, right?"
Dispute Resolution
When issues arise, Shikhman advocates for practical solutions:
"Maybe it's just practical to settle with them for $5,000 rather than having it escalate... There's no point in you spending 20,000 legal fees to negotiate a settlement amount lower than $10,000."
Moving Forward
As practices evolve, both experts emphasize the importance of continuous learning and adaptation.
“When you know better, you do better,” notes Cauffman.
Download Your Complete Hiring & Firing Checklist
Take the overwhelm out of employee management with our comprehensive guide for aesthetic practices. This essential checklist covers:
- First-day preparation and employee orientation protocols
- Clear onboarding timelines and documentation requirements
- Strategic team communication during transitions
- Exit interview guidance and offboarding procedures
Download now to streamline your hiring process and protect your med spa.
Ready to transform your med spa into a thriving multi-million dollar business that runs without you? Book your strategy session now!
Get Expert Legal Guidance
Book a complimentary consultation with Sara Shikhman at Lengea Law to review your contracts and ensure your med spa’s legal protection. As the author of “MedSpa Confidential”, Sara provides invaluable insights for aesthetic practice owners.
For additional insights, Shikhman’s book “MedSpa Confidential” offers comprehensive guidance for aesthetic practice owners, available on Amazon and Audible.
For personalized guidance on med spa recruitment, contact Diamond Accelerator for business operations support or Lengea Law for legal consultation.
