Success can be a double-edged sword. The more a business grows, the more complex its challenges become—especially when it comes to managing a team. But compliance is just one piece of the puzzle. True success requires not just meeting legal requirements but also building a thriving, well-supported team.
The Journey of Growth
Mara started her MedSpa in 2023 with just herself, a front desk employee, and one esthetician. By late 2024, her business was thriving beyond expectations, with a team of twelve. As a licensed medical professional, she was prepared for patient care but not necessarily for the challenges of business growth. While this rapid expansion should be a cause for celebration, she feels overwhelmed. She’s juggling multiple roles—clinician, manager, accountant, HR specialist, and marketing director—just to keep things moving forward.
As the number of employees grew, so did the complexity of operations. Mara quickly realized that her team had inconsistent onboarding experiences, leading to confusion about policies and responsibilities. She also found that without a structured HR system, performance expectations weren’t always clear, causing friction among employees. Additionally, as her competitors ramped up marketing efforts, she felt pressure to keep up, which made HR and compliance seem like lower priorities.
Recognizing that she needed support, Mara recently hired an office manager to oversee daily operations. However, last night, she received an email that stopped her in her tracks:
“Why is the front desk employee on salary? Shouldn’t they be tracking their hours? And are we sure those two independent contractors should be classified that way?”
This morning, the conversation with her new manager left her with even more questions. If her front desk employee should be hourly, does that mean she owes them overtime and is everyone else on salary supposed to be tracking hours too? And if the independent contractors should actually be employees, what does that mean for her MedSpa payroll and compliance?
To complicate matters, Mara was recently approached with an opportunity to acquire another MedSpa with eight employees. She knows she needs to address these compliance issues before growing her MedSpa business any further, but she doesn’t know where to start.
More Than Just Compliance
Mara’s situation isn’t unique. Business owners across industries—especially in healthcare and wellness—often find themselves so focused on daily operations that HR management takes a backseat. But waiting until problems arise is never a good strategy.
At CEDR, we provide more than just compliance solutions. We offer a comprehensive, high-touch HR system that helps MedSpa owners streamline operations and build strong, effective teams. Our services include:
- HR Problem-Solving with Built-in Compliance – Ask us anything HR-related, and we can help.
- Employee Handbooks – Custom-built to reflect your policies and protect your business.
- HR Software – Manage employee records, PTO, timekeeping, and more.
- MedSpa Payroll and Compliance Services – High-service payroll at a reasonable price.
- Owner and Manager Training – Compliance education, leadership development, and employment law updates.
- HIPAA Training & Background Checks – Ensure safety, security, and compliance for your team.
Thinking about scaling your MedSpa but feeling overwhelmed by compliance and HR challenges? CEDR members have access to expert HR guidance, customized handbooks, and high-touch support to help you stay compliant while growing your business the right way. Become a CEDR member today.
The Unique Challenge of MedSpa Ownership
MedSpas have an additional layer of complexity: in many states, non-medical professionals can own them. This creates an interesting dynamic—business owners who can’t provide medical treatments themselves rely entirely on their clinical team to deliver services.
Because Mara is a clinician, she has the advantage of understanding patient care and medical procedures firsthand. However, if she weren’t, she would face a new set of challenges. A non-clinical owner would need to build and maintain credibility with their medical team, ensure legal compliance regarding supervision and delegation, and put even greater emphasis on strong leadership and HR solutions for her MedSpas to maintain employee trust and operational efficiency.
For both clinician and non-clinician owners, the key to success is ensuring the MedSpa runs efficiently and professionally. High-functioning, well-educated providers expect a professional and well-managed work environment. Without strong HR processes in place, morale, productivity, and ultimately revenue suffer.
Resource Highlight: CEDR members can access our MedSpa Hiring and Retention Toolkit, which offers best practices for hiring and onboarding the right team to support long-term growth.
The Path Forward: Building a Solid HR Foundation
Growing from a small team to a thriving business is an exciting milestone, but it requires a shift in mindset. Here’s what successful MedSpa owners do to stay ahead:
- Understand Compliance Obligations Early – Small business owners often assume that compliance only becomes a concern once they reach a certain size. In reality, HR laws apply the moment you hire your first employee. Knowing the rules about wage classifications, overtime, and contractor status can save time and money down the road.
- Recognize the Signs That It’s Time for HR Support – When a business scales beyond even just two employees, informal HR practices start to break down. Policies around overtime, paid time off, and performance management need to be structured. If your team is growing, your HR strategy needs to grow with it.
- Build an HR Infrastructure That Supports Growth – Successful MedSpa owners invest in tools, policies, and training that empower their managers to lead effectively. Implementing structured onboarding programs, employee handbooks, and payroll compliance strategies ensures that everyone understands expectations from day one. This prevents misunderstandings, protects the business, and creates a positive workplace culture.
- Commit to Being the Best Leader Possible – Whether you are a clinician-owner like Mara or a non-medical business owner, leadership is key. A well-run, professional workplace not only attracts and retains top talent but also drives profitability and customer satisfaction.
Resource Highlight: Our HR Strategy for Growing MedSpas webinar walks business owners through the critical HR steps needed for long-term success. Available for free to all members.
Preparing for the Future
The MedSpa industry is booming, and the challenges of rapid growth aren’t going away. At CEDR, we’ve seen firsthand how businesses across the healthcare industry experience growing pains as they scale. The most successful ones don’t wait until compliance issues arise—they build HR into their foundation from the start.
We’re here to help. As the American Association of Medical Spas’ trusted HR partner, we provide guidance tailored to the unique challenges of MedSpa ownership. Whether you’re managing a team of three or thirty, having a solid HR strategy will make all the difference.
Struggling to keep up with the HR and compliance demands of your growing MedSpa? At CEDR, we take the guesswork out of HR so you can focus on scaling your business with confidence. Our expert team provides customized solutions, compliance support, and leadership training tailored to the unique needs of MedSpa owners. Contact CEDR today and take control of your HR strategy before compliance issues take control of you.
If you’re attending one of the upcoming MedSpa conferences in April, be sure to check out our podcast. Scan the QR code on your conference swag to hear more about how to build a compliant, high-performing team while growing your MedSpa business the right way.
Success shouldn’t feel like a burden. With the right HR solutions for MedSpas, you can focus on what matters most—building a thriving, sustainable business.
