Case studies on ARISE
Summary of ARISE: A Destination-for-a-Day Spa
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
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