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Summary of ARISE: A Destination-for-a-Day Spa Essay

ARISE is a company which operates in spa industry. ARISE offers its customers a “destination-for-a-day spa” with spa treatments, wellness, beauty services and also personal coaching related to nutrition, fitness and stress reduction. ARISE is distinguished from conventional spa centers with its objective of building strong customer relationships by hiring a staff of full-time professional spa specialists. These specialists are called personal wellness coaches (PWC), who are responsible for both delivering specialty treatments and coaching-related activities. Besides, ARISE provides special training sessions and practices for its employees. ARISE’s strategy is to provide high quality services and facilities while keeping prices slightly lower than the competitors and offering its staff a modest salary with strategy of “Hire the best and keep them for less”. However, company provides its employees other benefits like big tips, career development, professional treatment, health insurance, free spa treatments and bonuses.

Although clients are mostly satisfied with their overall experience with ARISE, ARISE have issues of HRM, high turnover and accordingly a financial performance which is lower than expected. In spa industry, turnover rates are very high but low turnover rate is very important for the success of ARISE. When a PWC quit, ARISE loses an average of 55% of that PWC’s clients because of the fact that there is close interaction and high communication between customers and PWCs of ARISE. In addition, most of the bookings in May, June and July 2009 came from clients who had experience with one of the PWCs. Management thought that compensation package and benefits were very attractive for job applicants and employees. Nevertheless, employee surveys show that employees are not satisfied. The main issue for them is that company raises the expectations of employees offering high tips but tips don’t meet employee’s…

Arise Spa Essay

Established by Kristen Chambers in 2009.
Focused on main services of pedicures, hair styling and manicures. Vision: To establish a day spa that had a feel of a destination facility. Emphasis on health benefits of spa treatments.
Overview
Originally hired 12 PWCs.
Increased to 32 full-time PWCs.

“By taking time to train our PWCs about new health and well-being practices, we’ll be role-modeling the type of coaching we want them to provide to their clients.” In addition to providing treatments, PWCs also provided coaching to the clients. Chambers wanted to hire the best employees and wanted to keep them for less. PWCs were encouraged to keep up to date with new services and products.

Challenges

High Turnover.

Low tips.
Recruitment & Selection.
Challenges
Lack of employee training.
Compensation & Benefits not sufficient.
Lack of performance management system.

Recommendations
Planning

Recruitment & Selection
Recommendations
Orientation & Training.
Leadership Development
Recommendations
Compensation & Benefits.

Team Building.
Organizational Structure
17% turnover in first 3 quarters.
37% Turnover at the end of first year.
63% of the PWCs hired in first two years quit the job.
Expected tipping rate was 25% when the spa started.
Compensation from tips were 50% lower than expected.

No specific recruitment procedure.
Only Highly-Experienced candidates were hired but, were not given a high pay rate. No job descriptions and specifications were provided.
Almost no time devoted for training.
No programs in place for training and development.
Highly experienced staff was hired without sufficient pay of benefits. Bare-bones benefits package.
No formal performance appraisal system in place.
Employees were directly appraised by the director.
Management should hold quarterly meetings.
An HR personnel should be hired.
360-degree appraisal method should be followed.
PWCs schedules…


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