6.2 Human Resource Performance
Chillax Ltd
Chillax Ltd runs six luxury health spas in southern England. Health spas offer health and beauty treatments such as steam baths, exercise and massage. Chillax Ltd’s customers expect high levels of service.
The business focuses on quality. It emphasises the importance of getting the customer experience right. It feels this is more about how employees interact with customers than the facilities in each health spa. The quality of customer experience is monitored through frequent customer surveys using the Chillax App. The business regularly has positive reviews online.
Chillax Ltd invests heavily in training, consults regularly and provides frequent feedback to staff. It feels that its high level of employee engagement has many benefits and ultimately ensures happy customers.
Chillax Ltd is unusual in the Health and Beauty sector in that many businesses in that sector have very high rates of labour turnover averaging over 30%.
Table 2 Selected employee data for Chillax Ltd for 2020 (31 December 2020)
Number of employees on 1 January 2020 | 180 |
Employees leaving during the year | 24 |
Employees staying all year | 162 |
To what extent should all businesses be concerned if they have high rates of labour turnover?
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