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

DEVELOP is a company which runs in spa industry. DEVELOP provides its consumers a "destination-for-a-day health club" with health club treatments, wellness, appeal services and also individual coaching related to nutrition, fitness and tension decrease. OCCUR is differentiated from standard health club centers with its goal of constructing strong client relationships by employing a personnel of full-time professional health spa professionals. These professionals are called individual wellness coaches (PWC), who are accountable for both delivering specialty treatments and coaching-related activities. Besides, EMERGE provides special training sessions and practices for its workers.

ARISE's technique is to supply high quality services and facilities while keeping rates slightly lower than the competitors and offering its personnel a modest income with strategy of "Employ the best and keep them for less". Nevertheless, business supplies its employees other benefits like big pointers, profession advancement, expert treatment, medical insurance, totally free medspa treatments and bonuses.

Although customers 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.

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In spa market, turnover rates are extremely high however low turnover rate is really essential for the success of ARISE. When a PWC gave up, EMERGE loses an average of 55% of that PWC's customers because of the truth that there is close interaction and high interaction in between clients and PWCs of ARISE. In addition, the majority of the bookings in May, June and July 2009 came from clients who had experience with among the PWCs.

Management thought that payment package and benefits were extremely attractive for task candidates and workers. However, employee studies reveal that employees are not satisfied. The main issue for them is that business raises the expectations of employees offering high tips however tips do not satisfy worker's ...

Arise Health Club Essay

Established by Kristen Chambers in 2009.
Concentrated on main services of pedicures, hair styling and manicures. Vision: To establish a spa that had a feel of a destination center. Emphasis on health advantages of day 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.

1. Team Building.
2. Organizational Structure
3. 17% turnover in first 3 quarters.
4. 37% Turnover at the end of first year.
5. 63% of the PWCs hired in first two years quit the job.
6. Expected tipping rate was 25% when the spa started.
7. 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...