TIPS & TOES: TOTAL REWARD STRATEGY FUELS GROWTH

TIPS & TOES: TOTAL REWARD STRATEGY FUELS GROWTH

• 2.
  • Tips &Toes, chain of nail spas in UAE. • Ms Tina Ghafurian, the General Manager of Tips & Toes was ready to launch an aggressive growth and expansion strategy designed to capitalize on her company’s position as market leader and innovator. • Competition in the wellness and beauty industry is fierce and requires sustained innovations in diverse, new sensory experiences and treatments for customers. • Ms Ghafurian used a three-pronged approach: a product leadership philosophy, and the practice of a total rewards strategy with the employees
• 3.
  • The globalwellness and beauty industry had turnover of almost $2 trillion in 2010 comprising segments: spa industry for $60 billion & beauty/anti-aging industries $679 billion • In 2008, the spa and wellness industry in the Middle East region had a turnover of $631 million, and $268 million of that was in the UAE. • Dubai has one of the highest concentrations of spas per capita in the world ; given that 80 percent of beauty customers in Dubai alone are either local nationals or expatriates. • Emotions are the drivers for consumer decision-making processes regarding spas and beauty, main aspects are : relaxation/stress management, hair/nail/waxing maintenance, and improving appearance.
• 4.
  Ms Ghafurian noticedseveral key weaknesses in the existing companies:  All had the same look and feel when it came to the customer experience.  Investment into employee training was considered a cost and therefore a liability for the company.  Employees were motivated primarily by direct compensation, and so therefore would jump to a competitor for just a minimum amount more salary per month.
• 5.
  • Tips &Toes started with one location in Sharjah in 2005 and at the beginning of 2012 operated a total of 13 branches in UAE. • For the first three years, the branches focused on core services of nail care, waxing, thread, and massage. • In 2008 when they opened their new branch on Khaleej Al Arabi Street in Abu Dhabi, they extended their services under the roof of one- day spa(hair care, slimming treatments, and Moroccan and Turkish bath services)
• 7.
  • This diversityof service lines were a direct result of listening to the market. • The service expansion also reached to cover the fitness and wellness market.
• 8.
  • Tips &Toes embraced the concept of luxury villas for the first time in 2011 in Khalifa City in Abu Dhabi. • This location consisted of five luxury villas each totaling 3,500 sq ft in size and resembled the concept of a small village. The location offered a new line of service: a personal training fitness studio named ‘‘PeTi’’.
• 9.
  • The Tips& Toes family started with one employee, Ms Ghafurian, in 2005. In January 2012 it numbered 544 employees. • 15 of whom (2 percent) were male employees, It is truly a women-operated business. • demographic details:  50 percent of the employees were from Philippines  20 percent from Nepal and India  10 percent from Bali and the remaining  20 percent were a mix of different nationalities including Iranians and Arabs from Morocco, Jordan, Lebanon, and Egypt. • Age of employees are from 20 to 40 years old. THE TIPS & TOES FAMILY
• 10.
  • The othercompanies in the market focused on maximizing customer traffic through quick service and a rather sterile, clinical environment, Tips & Toes combined prompt service at a competitive price in a much more relaxed and pampering environment. • The second level of differentiation that distinguished Tips & Toes from its competitors is the product leadership strategy which is followed by Ms Ghafurian. • Tips & Toes has been first to market with products, promotions, and corporate social responsibility in its field in the region. For example, Tips & Toes was the first nail spa/salon in the UAE to offer eyelash extensions. BUILDING THE TIPS & TOES BRAND
• 11.
  • In orderto more accurately tailor nail care offerings to the unique population mix of the UAE, Tips & Toes started its own nail polish line called Tito offering over 120 colors. Many of the color names reflect local culture, fashion, and sensibilities: Dubai Diva, Sandstorm, London Calling, Macchiato, and Jumeirah. • In terms of Corporate Social Responsibility, in 2011 Tips & Toes publically donated 20 percent of revenue from all services involving pink shades of nail polish during October Breast Cancer Awareness month and will include the planting of a tree whenever a customer avails of a particular service in June 2012. • The third area of differentiation for Tips & Toes has been Ms Ghafurian’s insistence on creating an engaging and productive ‘‘home away from home’’ atmosphere for her employees through a total rewards strategy.
• 12.
  • The primaryobjective is to have employees become engaged members of a productive and energized workforce for the organization. • An effective TRS must satisfy the following criteria: a. Motivate, direct and educate employees. b. Keep employees focused on current objectives while preparing them for future challenges. c. Align the interest of key stockholder groups. d. Create an image of value that will retain and engage employees. TOTAL REWARD STRATEGY OF TIPS & TOES
• 13.
  Ms. Ghafurian plannedto invest more heavily in each employees to get a better result.  Technicians are provided with basic salary+ accommodation + transportation cost + extra benefit required by Labour Laws  Store employees can earn additional salary through individual sales target and store wise sales target.  Back office and management staff can earn annual bonus of one to four times their monthly salary based on their performance. For individual growth new employees have training For first month, once they are certified they can have additional skills. A certified employee will receive a increase in basic salary also they can upgrade their professional status.
• 14.
   Total pay Individual Growth  Positive workplace  Compelling future Ms. Ghafurian brings in international trainers from Europe USA to train her employees, she also sent few Technicians and store managers for training and conferences in Europe and Thailand. She believes in promoting from within, which leads her employees to success. There are various success stories started at Tips & Toes, Cashier promoted to Financial Manager, Several lower employees are promoted to Nail Technicians.
• 15.
  Recruitment agency ofMs. Gahfurian use to hire employees according to their criteria. The person should have the attitude i.e. willingness to learn, to improve, make mistake and rise to take another challenge. Tips & toes allows the employees to build talent inside gave room to make mistakes and learn from it, to grow and rise for their ambitions. Ms. Gahfurian instruct the employees to draw face on their palm to let their hand smile. She wants her employees to engage with their customer and enjoy the work which makes a positive work culture. She wants there should be easy flow of communication in the workplace whether with the customer or within the employees inside the office of employees of other branches, there should be easy and direct flow of communication among each and every employees New employees are also familiarized with the management & every department is provided with the manuals of new employees and their rights.
• 16.
   The successfulimplementation of the planned TRS in Tips & Toes has a positive impact on the employees.  Ms. Gahfurian emphasizes to her staff also to focus on future aspects rather than only the present.  She believes that employees training is an investment not the cost to company which created a sense of employee loyalty, increased in level of employee engagement and lower turnover rate compared to the market.  Her philosophy gives the employee satisfaction to stick to the job.  75% of the staff renews their employment contract to continue to the organization and 60% of the ex employees call HR to express regret for leaving the organization and desires to rejoin the business.
• 17.
  Tips & toescentered on ensuring a proper geographic coverage and increasing the profitability of the stores. It strives to be the biggest nail and beauty service provider in middle east and to provide first class service to their clients. It has four new locations openings. They also expanding their service line to reach out the male customer. New market segment would require different services.
• 19.
  key weaknesses inthe existing companies in the market: 1. All had the same look and feel when it came to the customer experience. 2. Investment into employee training was considered a cost. 3. Employees were motivated primarily by direct compensation, and so therefore would jump to a competitor for just a minimum amount more salary per month.
• 21.
   Tips andToes differentiated itself from its competitors in UAE market through customer experience, product leadership strategy.  They combined prompt service at a competitive price in a much more relaxed and pampering environment.  By creating an engaging and productive “home away from home” atmosphere for employees through a total rewards strategy.  All employees had direct access to HR if they feel they can’t approach their team leaders and store managers.  The organizational chart reflects simple & direct communication between employees, team leaders & managers.
• 22.
   Job switchingnature of employees.  Ensuring a proper geographic coverage and increasing profitability of the stores.  To expand their business through new location openings.  Expanding their service line to reach out male customers.
• 23.
   Other Competitorsor businesses attract employees through higher pay offers.  The employee turnover rate is quite high in this industry.