ARISE: A Destination-for-a-Day Spa OVERVIEW The ARISE: A Destination-for-a-Day Spa case describes how a spa going through the business development stage is struggling with employee turnover as well as has been operating at a loss for the past two years. ARISE, the spa in question, was built on the business strategy of differentiation which emphasizes employee-customer relationships. Within these relationships, ARISE employees act as Personal Wellness Coaches (PWC) helping clients create “integrated health and happiness plans”. The key stakeholders in the case are the President and CEO: Kristen Chambers; Vice President of Business Operations: Sam Solti; Vice President of Spa Operations: Twyla Thompson; and Director of Spa Services: …show more content…
Exit interviews are not enough and are in no way proactive in catering to the wants and needs of employees. Give surveys to employees in order to determine whether or not current business operations are effective. Ask specific questions such as: What is your favorite aspect of working at ARISE? (Explain) What is your least favorite aspect at being an employee at ARISE? (Explain) In regards to your experience as an employee at ARISE, what are some improvements ARISE can make? (Explain) Do you value having benefits offered by ARISE? (Explain) Would you like more flexibility in your schedule? (Explain) Do you like being a part of an All-Star Team? (Explain) etc... With this information Thompson can make appropriate adjustments to the employee operations. Because of comments made in exit interviews along with previous employee surveys, it is recommended that ARISE keep the All-Star Team organizational design, offer more flexible schedule options (new parent, sick time, etc.), a higher base pay (in return for cutting benefits), as well as give employees a more realistic job preview when they enter employment at ARISE, as to not create false expectations. Providing ARISE employees with a higher base pay would greatly improve the turnover rate. Employees have stated during previous exit interviews that they were leaving to look for a higher salary. ARISE employees have also noted
By interviewing employees as a group I will be able to ask them as a whole group how they feel about working with Roanoke and what kind of problems that they have been having. I can also ask them if they are having problems with other employees. Also while asking the employees the questions that I have written down as problems within the company and questions on how the employees feel about things, I can also ask the employees what is their opinion on how do they think some of the problems that their having, how can they be solved and bring their ideas to the table as well as my own and come up with a conclusion to solve these problem to make it a better working environment for everyone.
The case upholds Aline DeNeuve’s conversations with some of the employees of her workplace regarding the relevancy of taking a business retreat, and what expectations and outcomes can come out of it. After going through the talks with her employees, it can be clearly stated that the management system of the firm is broken down as the low morale and attitudes of the staff are deeply shocking. This mainly caused due to perception error among the employees and their higher ups.
Most companies can reduce turnover rates by addressing overall issues that affect moral and motivation. By offering benefits, flexible schedules for family and work balance, performance reviews, incentives, paid holidays and sick days. The problem is that low levels of motivation in Hertz
It has been proven that when expectations of employees are handled properly, it will lead to a committed employees thus the occurrence of turnover is lower (Luscombe, 2013).An employee who is happy with his or her work setting would be an unlikely candidate to be yearning to go.
High employee turnover has monetary costs. Though estimates vary, most experts agree that turnover costs, when all things are considered, equals at least 25% of a leaving employee’s annual wages (Silva & Toledo, 2009). For example, for an employee making $25,000 per year, the total turnover costs associated with replacing that employee would be at least $6,250. This includes cost of prescreening measures such as drug tests, background checks, application reviews, interviews, pre-employment training and other recruitment costs (Dolfin, 2006). It also includes implicit cost associated with on the job training and the productivity loss experienced by other employees that must help acclimate new employees to their environment
The case upholds Aline DeNeuve’s conversations with some of the employees of her workplace regarding the relevancy of taking a business retreat, and what expectations and outcomes can come out of it. After going through the talks with her employees, it can be clearly stated that the management system of the firm is broken down as the low morale and attitudes of the staff are deeply shocking. This mainly caused due to perception error among the employees and their higher ups.
Through this case study I will be discussing strategic management. Strategic management can be defined as a process where an organization attempts to determine what actions need to be taken to achieve the overall objectives and more importantly how to meet them (Mello, 2015, p. 114). For a company to strive and meet their goals, deadlines, and missions they must stay conscious of the strategic plan put in place for the success of the company. If the company does not have a good strategic plan the company could fail. With correct planning a company could succeed without fail. Something that needs to be taken into consideration in the strategic plan should be investing into the company’s human assets. At first it may look like it is causing the company more issues however in the long run it will strengthen the company and moral making a more successful company. This could help with customer relations, and the organization status which will help produce additional revenue for the company.
When employees decide to leave your company, do you know why? Turnover is costly for any organization, and if your top performers decide to leave, it is a definite concern. Conducting exit interviews with each employee who leaves can uncover problem areas and reasons these people were dissatisfied with their jobs. You can then address these issues to reduce future turnover.
Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.
There are two types of turnover, voluntary turnover happens when the employee makes the decision to leave and involuntary turnover is when employees has no choice in their termination (Schmitz, 2012). Every month or sooner managers experience some of their exceedingly qualified employees leave the company. After realizing that their company is becoming less profitable is when they begin to wonder why and brainstorm on ways to retain them. In Information Technology, “the cost of recruiting new staff is high and the loss of continuity when staff leave can also be very expensive” (Bott, 2005, p. 111). In IT, human resources strive to maintain their highly skilled employees while employees’
For the last eighteen years REI has found its name in the list of ‘Best Place to Work, “Every year since 1998, FORTUNE magazine has saluted REI as one of the ‘100 Best Companies to Work For” in the country. This recognitions is especially meaningful because it’s largely based on anonymous employee feedback” (REI, 2015). Being one of the 100 best places to work in the country for 18 years running places REI in a positive employee satisfaction climate before any changes were made. Being a leader in the retain industry in this area REI doesn’t wait until there is a problem to change their company culture. Proactivity being a key to success is the rational REI used to implement this employee benefits package change in
In a free market, such as the one used in the United States of America, competition between companies is cutthroat as businesses look for every possible way to have the edge over competitors. One of the major ways that businesses stay ahead of the competition is attracting and retaining the most talented employees. It is common practice for companies in the United States of America to provide several non-wage compensations to employees with the aim of sweetening the employment and reducing turnover (entrepreneur.com, n.d). Employees have come to appreciate the benefits offered by companies and consider benefits just as important as their salary.
This would not only be advantageous for the employer but also the employee since it would result in higher wages. Due to this, the worker’s level of motivation and drive to do better would escalate leading to overall productivity of the organization (Salimath and Jones, 2011, p.88).
In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.
The Endeering Day Spa is a full-service day spa dedicated to consistently providing high customer satisfaction by rendering excellent service, quality products, and furnishing an enjoyable atmosphere at an acceptable price/value relationship. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.