Med Spa Success Strategies: Why Med Spas Lose Their Best Providers (And How to Stop It!)

Hosted by Ricky Shockley and featuring Mary Beth Hagen

Introduction

In the February 14, 2025 episode of the Med Spa Success Strategies Podcast, host Ricky Shockley welcomes back his first-ever guest, Mary Beth Hagen. Mary Beth, the founder of Titan Aesthetic, brings over two decades of experience in aesthetic medicine, having worked with leading companies like Medicis, Galderma, and Allergan. The episode delves deep into the critical issue of provider attrition in med spas, exploring why practices lose their best talent and offering actionable strategies to prevent it.

Understanding Provider Attrition in Med Spas

Provider retention is fundamental to the success of any med spa. Mary Beth identifies three primary factors contributing to high attrition rates, especially in the first quarter of the year:

1. Decline in Patient Volume: Post-holiday seasons often see a significant drop in patient appointments, leading practices to reassess their financial health.
2. Financial Scrutiny: With tax season approaching, practice owners closely examine their Profit and Loss (P&L) statements, revealing the often “tiny margins” in aesthetic medicine.
3. Personal Reassessments: The holidays prompt many providers and staff to evaluate their career and life goals, leading to personal decisions to seek new opportunities.

Mary Beth Hagen [02:45]: "Early in the year, a lot of practices are feeling like, 'Oh my gosh, nobody's coming in, we're not busy,' and then they start looking at their P and L."

Effective Recruitment Strategies

Recruiting the right talent is not merely about filling vacancies but ensuring a cultural and professional fit. Mary Beth emphasizes the importance of a robust screening process:

1. Innate Aptitudes: Assess whether candidates possess the natural skills and artistic sense required for aesthetic medicine.
2. Willingness to Learn: Aesthetic medicine is ever-evolving. Providers must be self-directed learners committed to continuous education.
3. Blend of Art and Science: Successful injectors must balance technical proficiency with the ability to understand and fulfill patient expectations.

Mary Beth advises against solely seeking experienced injectors with established books of business, as they often have multiple options and may prioritize personal brand building over practice loyalty.

Mary Beth Hagen [04:09]: "If you hire an experienced person, unless they're moving across the country, they're bringing their brand to your practice, and they might want to leave when an opportunity arises."

Job Posting Recommendations:

• Indeed and SnobB are recommended platforms for posting job listings.
• Networking through industry events and leveraging existing contacts can uncover potential candidates.
• Focus on cultural fit rather than just experience to enhance retention.

Developing and Training New Providers

Building a competent and loyal team requires investing in the development of new hires:

1. Structured Training: Implement a phased training approach—initial months focused on shadowing and foundational skills, followed by gradual introduction to procedures.
2. Performance Planning: Establish clear goals and provide continuous feedback to guide providers through their development journey.
3. Encouraging Community: Foster relationships among injectors through community engagement and learning from peers.

Mary Beth highlights the importance of a sliding pay scale during the developmental year, compensating providers appropriately as they build their skills and patient base.

Mary Beth Hagen [12:54]: "Set up a development plan where the first six months are dedicated to training, and gradually increase responsibilities as skills improve."

Compensation Structures and Incentives

Compensation plays a pivotal role in both attracting and retaining top talent. Mary Beth provides insights from Titan Aesthetic’s compensation survey, revealing:

• Average Earnings: As of 2023, the average injector earns approximately $200,000 annually, generating around $1.2 million in patient revenue.
• Compensation Flexibility: Practices should consider various profit-sharing models, such as phantom equity, ESOPs, and individual revenue-based incentives.
• Value Alignment: It's crucial to align compensation with provider performance and the overall financial health of the practice.

Mary Beth encourages transparent discussions about compensation, ensuring that both employer and employee understand the financial dynamics.

Mary Beth Hagen [23:42]: "When you understand the ratios and the perspectives, it makes transparency easier and fosters a collaborative environment."

Communication and Transparency

Open communication is essential for a harmonious and productive workplace. Key strategies include:

1. Regular Check-ins: Implement a performance management calendar with monthly, mid-year, and annual reviews to track progress and address concerns.
2. Goal Alignment: Align the practice’s goals with individual provider aspirations, creating a mutually beneficial roadmap.
3. Transparency in Financials: Share relevant financial information with staff to foster a sense of ownership and accountability.

Mary Beth emphasizes demystifying compensation conversations, breaking down how providers contribute to the practice’s financial success.

Mary Beth Hagen [37:20]: "Everybody has misperceptions about what the other thinks. Transparency bridges that gap."

Building and Maintaining a Positive Culture

Culture within a med spa is shaped by leadership and permeates every aspect of the practice. Important considerations include:

1. Top-Down Leadership: The practice owner must embody and nurture the desired culture, setting the tone for the entire team.
2. Cultural Fit: Assess candidates not just on skills but also on how well they integrate with the existing team dynamics.
3. Mutual Respect: Foster an environment where providers and staff feel valued and respected, enhancing loyalty and job satisfaction.

Mary Beth shares an example of a successful non-provider practice owner who effectively collaborates with her team by defining clear roles and fostering mutual respect.

Mary Beth Hagen [53:37]: "Trust and communication are vital. Culture starts at the top and requires active participation from the practice owner."

Conclusion

Provider retention in med spas hinges on strategic recruitment, comprehensive training, fair compensation, transparent communication, and a strong, positive culture. By implementing these strategies, med spa owners can cultivate a loyal, skilled, and motivated team, ensuring long-term success and exceptional patient outcomes.

For more insights and resources on building a successful med spa team, visit TitanAesthetic.com or follow Mary Beth Hagen on Instagram @Titan_Aesthetic_MB_Hagen.

This summary is based on the transcript from the "Why Med Spas Lose Their Best Providers (And How to Stop It!)" episode of the Med Spa Success Strategies Podcast, featuring Mary Beth Hagen. For the full conversation, please listen to the podcast on your preferred platform.