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ARISE: A Destination-for-a-Day Spa Case study analysis Rick (Yingchuan) Wang HRT 650: Human Resource Management in the Hospitality Industry Dr. Gary A. Hamilton March 4, 2015 Introduction & Analysis ARISE was a Dallas-based destination spa built in May 2009 by Kristen Chambers, an entrepreneur and a devotee to spa treatment, with herself being the President and CEO. The business of ARISE was structured into two units with the VP of business operations, Sam Solti, responsible for supervising accounting & finance, food & beverage, and facilities maintenance; and another VP, Twyla Thompson, taking charge of HR management, marketing, product development and retail sales, who also had a Director of spa services under…show more content…
The purpose of reinforcing PWC-client relationship was to have more multiple treatment bookings, and why ARISE had to lower turnover was because many clients may defect with the quitting PWC, and it did cost a lot to recruit and train a new PWC. In order to achieve these two goals, ARISE 1) provided a Mutual Commitment Contract emphasizing on empowerment and trust in the PWCs; 2) offered PWCs with training in complementary wellness services; 3) provided health insurance in the benefit package for PWCs; 4) provided other benefits like free treatment passes, discount in Café, other training opportunities, financial support for license courses, bonuses and even commissions, etc. However, these approaches didn’t seem to have worked efficiently, problems of morale even appeared which could be seen in: 1) tipping was far from being satisfactory; 2) turnover rate increased by the end of the first year to 31%; 3) problems appeared in work schedule and job duties; 4) majority of clients were not particularly interested in the PWC service with 6% even disliked it; 5) financial performance was not good with gross margin being in red for two years. PWCs’ compensation from tips was much lower than anticipated; the anticipation was made known as high as some 25% to PWCs in hiring period but the actual situation was only about half of the “promised”
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