Emerald Emerging Markets Case Studies

Tips & Toes: a total reward strategy fuels growth

Adrienne A. Isakovic Fatima Al Mansoori
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 Tips & Toes: a total reward strategy fuels
growth
Adrienne A. Isakovic and Fatima Al Mansoori
Adrienne A. Isakovic is
based at the eSchool of
Business and
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Management, Hamdan bin
Mohammed eUniversity,
Dubai, United Arab
Emirates.
Fatima Al Mansoori is
based in the Western
Region, Abu Dhabi,
United Arab Emirates.
The authors are very grateful to
Ms Tina Ghafurian, General
Manager of Tips & Toes, for her
enthusiasm in this project and
for providing such insight, time,
and resources needed to write
this case study.
Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making.
The author/s may have
disguised names; financial and
other recognizable information
to protect confidentiality.
DOI 10.1108/20450621211289458
Introduction
It was January 2012, and the UAE was recovering from the global economic crisis of
2008-2011. Ms Tina Ghafurian, the General Manager of Tips & Toes, a chain of nail spas in the
country, 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 as well as forging long-term relationships
with those customers (Spafinder Research, 2012). Up to this point, Ms Ghafurian used a
three-pronged approach to fuel her growth from the beginnings of the company, an approach
which was hard to find in the MENA region and indeed is not often found even in more mature
business environments: differentiation in the marketplace, a product leadership philosophy,
and the practice of a total rewards strategy with the employees. Would this approach
continue to sustain the growth and expansion strategy of Tips & Toes?
The wellness and beauty industry
The global wellness and beauty industry had turnover of almost $2 trillion in 2010, with the
segments of the spa industry and the beauty/anti-aging industries accounting for $60 billion
and $679 billion, respectively, (SRI International Research, 2010). Despite the recessionary
downturn, women still continued to spend on wellness and beauty, seeing such purchases as
both an affordable and harmless indulgence (Bhasin, 2010; Euromonitor International, 2010).
Indeed, many women view such spending as no longer an indulgence but a necessity. One of
the recent trends affecting the industry is that which has been termed ‘‘glambition’’:
What’s really fueling the global ‘‘Glambition’’ and grooming upsurge is the sheer impact and
saturation of celebrity culture and imagery, making ‘‘red carpet’’ levels of beauty and
maintenance [. . .] now ‘‘the standard’’ (Spafinder Research, 2012, p. 33).
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 (Mesbah, 2009). Such expenditure in this
industry is not surprising considering that the UAE is the first in a list of top ten emerging
countries in terms of real annual household disposable income in 2011, with $163,051 per
household (Euromonitor International, 2011). Just the emirate of Dubai has one of the highest
concentrations of spas per capita in the world (Dubai Department of Tourism and Commerce
Marketing, 2011); given that 80 percent of beauty customers in Dubai alone are either local
nationals or expatriates (i.e. not tourists) (Sawlani, 2008), the competition to gain new and
repeat customers is fierce indeed. Coyle Hospitality Group (2011) reports that emotions are
the drivers for consumer decision-making processes regarding spas and beauty; as the top
three primary reasons for visiting a spa are relaxation/stress management, hair/nail/waxing
maintenance, and improving appearance, the sensory experience and treatment is a
VOL. 2 NO. 8 2012, pp. 1-13, Q Emerald Group Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1
 paramount driver both for attracting new customers as well as in building a long relationship
with regular customers (Coyle Hospitality Group, 2011) (See Plate 1 for the company logo).

Tips & Toes: an idea born out of a gap in the marketplace

Tips & Toes was established in the UAE in October 2004 when three Emirati investors
invested capital into a new venture and appointed Ms Tina Ghafurian as the General
Manager to start and build the concept. Already a successful entrepreneur of her own
fashion design business in Iran, Ms Ghafurian parlayed her own business experience and
education from her MBA program into gaining deep industry knowledge in the beauty and
wellness industry in the role of sales manager for Creative Nail Designs. That position
ensured that she learned in detail all of the industry trends, players, and in-depth knowledge
of business practices – particularly those concerned with the employees who work in the nail
service industry.
While working as a sales manager, Ms Ghafurian noticed several key weaknesses in the
existing companies:
1. All had the same look and feel when it came to the customer experience.
2. Investment into employee training was considered a cost and therefore a liability for the
company.
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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.

Growth through service lines and geographical locations

Tips & Toes started with one location in Sharjah in 2005 and at the beginning of 2012 operated
a total of 13 branches in UAE (Table I). For the first three years, the branches focused on core
services of nail care, waxing, thread, and massage. By the year 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; in other words, the service lines were extended to cover further services
such as hair care, slimming treatments, and Moroccan and Turkish bath services (Plate 2).
This diversity of service lines were a direct result of listening to the market. Customers had
expressed their preference of enjoying more services under the same roof. After the
considerable success of the one-day spa concept of the Khaleej Al Arabi branch, Tips
& Toes offered the same service in a new location in Al Ain opening in 2010.
The service expansion plan did not stop at the spa concept but also reached to cover the
fitness and wellness market. Tips & Toes embraced the concept of luxury villas for the first
time in 2011 where they opened a new location in Khalifa City in Abu Dhabi. This location

Plate 1

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PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Table I Tips & Toes geographical expansion to date
Current locations
Date Location Emirate/city

2005 Al Fardan Center Sharjah

Arabian Ranches Dubai
Marina Mall Abu Dhabi
2006 Springs Dubai
Meadows
Greens
2007 Jumeirah Beach Residence Dubai
2008 Media City Dubai
Palm Jumeirah Dubai
Khaleej Al Arabi Abu Dhabi
2009 Spinneys Jumeirah Dubai
2010 Al Ain Al Ain
2011 Khalifa City Abu Dhabi
2012 Business Bay Dubai
Ras Al Khaimah Ras Al Khaimah
Al Barsha Dubai
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Plate 2

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’’. The studio did not offer membership as it provided only one-to-one training.
Customers had to book appointments before they decided to visit the studio (Table I).

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3
 The Tips & Toes family
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. In terms of 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. The vast majority of staff working for Tips &Toes
ranged in age from 20 to 40 years old.

Building the Tips & Toes brand

Tips & Toes started out as a nail haven, offering the core services of nail care (manicure,
pedicure and nail art) as well as waxing, threading, and massage. In many ways, these
services were similar to the offerings of their competition. However, the first level of
differentiation of Tips & Toes from the competitors in the UAE market was the customer
experience. Whereas the other companies in the market focused on maximizing customer
traffic through quick service and a rather sterile, clinical environment (for example: the staff
wear white lab/clinic coats and uniforms), Tips & Toes combined prompt service at a
competitive price in a much more relaxed and pampering environment. In other words,
customers coming to Tips & Toes for a manicure felt much more like they were in a spa
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environment rather than a nail salon. In order to enhance this feeling, Ms Ghafurian sourced
wooden furniture from Bali, created reclining, heavily cushioned lounge chairs for
customers, and chose rich, warm colors for decorations – even the staff wear
oriental-esque uniforms in purple and burgundy, each bearing the Tips & Toes logo.
The second level of differentiation that distinguished Tips & Toes from its competitors is the
product leadership strategy which is followed by Ms Ghafurian. This General Manager
understood that being the innovator in the market reaps huge dividends through a loyal
customer base. This strategy allows for an increase in market share through the offerings of
unique and/or first-to-market products and services resulting in competitors spending their
resources on simply catching up rather than on innovative ideas themselves.
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. Moreover, in order to 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. Tips
& Toes also gave its customers 2012 pocket diaries with each week containing tips about
hair, nail and beauty care. In addition, each month in the calendar offered between four and
11 special days in which customers are given discounts on different services or packages.
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 (Plate 3).
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.

The total reward strategy of Tips & Toes

The primary objective of a total rewards system (TRS) 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.

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PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Plate 3
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c. Align the interests of key stakeholder groups.

d. Create an image of value that will retain and engage employees.

The components of an effective TRS are total pay, individual growth, a compelling future, and
a positive workplace (Figure 1) (Chen and Hsieh, 2011).
At Tips & Toes, Ms Ghafurian early on decided that the market standard of a more traditional
exchange-based type of compensation (i.e. pay in exchange for hours worked) would not be
an adequate mechanism through which to engage and retain her employees – particularly
given that she planned to invest more heavily in each employee than was the market norm.
She therefore created a TRS which covers all the components shown in Figure 1.
In terms of Total Pay, the technicians are provided with a basic salary, accommodation,
transportation, and benefits as are required under labor law (e.g. 30 vacation days annually,
a round-trip ticket home every two years, medical coverage, sick leave). In addition, all store
employees are provided with the opportunity to earn additional salary through both
individual sales targets and store-wide sales targets. Back office and management staff
have the opportunity to earn an annual bonus of one to four times their monthly salary, based
on performance.
For the component of Individual Growth, each new employee goes through orientation and
training during the first month on the job. Once they are certified in their primary role (nail
technician, massage, or waxing/threading), they then have the opportunities to cross-train
on an additional skill/technique or equipment. Once certified on that new training, they will
receive an increase in basic salary accordingly. Alternatively, there are different levels of
professional status to which the employees can aspire. For example, a nail technician can
seek to work towards being promoted to a senior or master nail technician, or an educator,

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5
 Figure 1 Components of a total reward system
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Source: From MELLO.Strategic Human Resource Management,

3E. © 2011 South-Western, a part of Cengage Learning, Inc.
Reproduced by permission. www.cengage.com/permissions

which means that they are certified to train others in Tips & Toes on a particular skill or
technique.

Loyal employees are also provided with international-standard training which sometimes
takes place outside of the UAE. Although Ms Ghafurian brings in international trainers from
Europe and the USA to train Tips & Toes employees, she has also senta few technicians and
her store managers for training and conferences in Europe and Thailand.

Ms Ghafurian believes strongly in promoting from within. This philosophy combined with the
opportunities for Individual Growth provides Tips & Toes employees with a Compelling
Future. There are many success stories of Tips & Toes employees working their way up the
ladder; for example, the current financial manager started out as a cashier and now makes
four times her original starting salary. Several women who started out as cleaners/helpers
have become nail technicians.

Of course, in order for the TRS components of Individual Growth and a Compelling Future to
be a success in engaging employees, it is crucial that the recruitment strategy is not a
random plan to fill seats but rather selective in targeting potential hires. Ms Ghafurian uses a
recruitment agency for her store hires but has a particular hiring philosophy to which the
agency must subscribe: do not hire for skill per se, as that can be taught. Rather, hire for
attitude: willingness to learn, to improve, make mistakes, and rise up to a challenge. At Tips
& Toes, the philosophy is to build talent inside and give them room to make mistakes, to
grow, and rise as far as their ambition wants to take them.

The last component in a TRS is a Positive Workplace. During the initial month of training,
Ms Ghafurian instructs her new employees to draw a smiley face on one of their palms; this
action is a physical demonstration of her instruction to staff to ‘‘let your hands smile – your
customers will feel it’’. In other words, she wants the employees to be engaged with the
customers to the point that they are enjoying the services they provide, which in turn stems
from their enjoyment of their workplace.

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PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Strong and frequent communication lines also help to support the Positive Workplace. Team
leaders and store managers act as the communication conduits between the corporate
office and the branch employees. Managers hold a town hall meeting with employees once a
week to channel information both up and down the hierarchy. Ms Ghafurian herself also
strives to visit each branch about once every two months. While availing herself of the
services, she has informal discussions with the employees to get a grass-roots sense of
attitudes and current goings-on. All employees also have direct access to human resources
if they feel they cannot go to their team leaders and store managers. The organization chart
of Tips & Toes reflects the simple and direct communication between employees, team
leaders and managers (Figure 2). New employees are familiarized with the management line
and reporting relationships along with the different departments during their first months.
In addition, each branch has copies of the employee manual, and printouts of employee
rights and responsibilities as per the Ministry of Labor posted up on bulletin boards in
each branch.
Ms Ghafurian also believes in rewarding hard work in non-traditional ways. For example, on
an individual level, any employee who receives four letters of appreciation in one year will
receive a round-trip ticket to their home country as a bonus. If an employee has been with
Tips & Toes for five years, they will receive one month’s salary as a bonus as well as a Loyalty
Certificate. At the group level, if a branch reaches its target for two to three months in a row,
the store manager is instructed to close the branch for one day, and take the entire branch
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out for a day of fun – examples include a picnic by the beach, a day at a water park, or a day
at an amusement park. In addition, the managers are occasionally treated to their own
retreat – most recently all managers were provided an expenses – paid two day holiday at
the Atlantis Hotel in Dubai.

Figure 2

TIPS & TOES' ORGANIZATIONAL CHART

Partner Managing Director/Owner Partner

General Manager

Brand Executive
Ambassador Secretary

Admin/HR Public Relations

Marketing Mgr. Finance Mgr. Purchasing/Control SPA Oper. Mgr.
Mgr. Manager
Mgr.
Maint. Coordinator
Marketing Control Asst.
Sr. Accountant Admin/HR Asst
Coordinator

Electrician Purch./Logistic
Sr. Accountant Asst. Admin/HR Officer
Maint. Personnel
Purch./Logistic
Accts. Clerk/Data Officer Room 209 & 213
Encoder Office Secretary cum
Office Boy & Girl Receptionist
Control Inventory
Dubai
Office Driver
Maint. Driver and
Control Invnetory Dubai Shops' Drivers
Abu Dhabi
Nipper Sharpener
Khalifa Villa
Product Delivery Watchman
in-charge
Abu Dhabi Shops'
Drivers
Delivery Driver Conrol Helper Stockroom Keeper

Shop Manager Area Manager Area Manager Area Manager Area Manager Shop Manager SPA Manager SPA Manager SPA Manager

Al Fardan Al Sufouh Arabian JBR Palm Marina Khalifa Al Khaleej Al Ain

Supervisor Supervisor Ranches Supervisor
Jumeirah Mall Asst SPA Mgrs.
Supervisor Supervisors Supervisor Supervisor
Cashiers Cashiers Supervisor Cashiers Supervisor Cashiers Cashiers
Cashiers Cashiers
Techs. Techs. Cashiers Techs. Cashiers Techs. Techs.
Techs. Techs.
Helpers Helpers Techs. Helpers Techs. Helpers Helpers
Helpers Helpers
Helpers Helpers

Springs Greens Meadows Spinneys

Supervisor Supervisor Jumeirah
Supervisor Supervisor
Cashiers Cashiers
Cashiers Cashiers
Techs. Techs.
Techs. Techs.
Helpers Helpers
Helpers Helpers

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7 j
 At the end of every year, all employees are brought together for a Christmas party in a
five-star hotel in Dubai. During this many-hour event, employees compete in contests such
as beauty pageants and dance team contests between the branches. Each employee also
receives a Christmas gift. On that day, all branches close early so that the employees can go
home and get ready and dressed up for the party. The 2011 Christmas party expenses
totaled over 250,000 AED. Ms Ghafurian considers spending such a sum as a worthwhile
investment in her employees. Indeed, her focus on employee happiness and engagement
shows first and foremost in her talking about the Tito nail polish line. Rather than picking
favorites based on color or unusual names, she lists those colors that were named after
employees such as Jihan’s Pride (the Purchasing/Logistics Manager), Michan
(a combination of the Admin/HR Manager and her husband’s names), and I Did it Again
(Ms Ghafurian’s Executive Secretary) as her favorites.

The impact of Tips & Toes’ TRS

The beauty and wellness industry is quite dynamic, providing a real challenge for operating
a business in such an environment. Taking into consideration that many options are usually
available for service employees to move from one business to another, employees are often
attracted by higher pay offers made by new start-up companies without considering the
other aspects of the package – sometimes even without a guarantee of future business
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sustainability. As a consequence, according to Ms Ghafurian, the employee turnover rate is

quite high in this industry.
In contrast, the successful execution of the planned TRS in Tips & Toes has had a positive
impact on the employee turnover rate. Considering that 98 percent of the technicians in Tips
& Toes have family back home and the poor economic situations in their respective countries,
employees might be induced to work for a competing business that pays higher salaries.
However, Ms Ghafurian emphasizes to her staff to focus on future aspects rather than the
present. The decision to move to another business should not be based solely on a direct pay
basis. Instead, employees should consider other important factors regarding present and
future growth before they decide to end their employment and move elsewhere. Ms Ghafurian
places great importance on an individual’s personal and professional growth which is clearly
reflected in her perspective that employee training is an investment, not a cost drain, to the
organization. Such a philosophy and practice has resulted in creating a sense of employee
loyalty, increased levels of employee engagement and a lower turnover rate compared to the
market. Indeed, Ms Ghafurian estimates that 75 percent of her staff renew their employment
contracts while the remainder either decide to leave to work at a competing business or have
reached their personal goals and prefer to go back home. Of those employees who leave the
company for a position with a competitor, within one year 60 percent call HR to express their
regret in leaving Tips & Toes and their desire to rejoin the business.
Another appreciable outcome of the implemented TRS at Tips & Toes is the business growth
level. Ms Ghafurian reports an average annual revenue growth of 30-35 percent, staff growth
of 25-35 percent and store growth of 20-25 percent. The driving factor in this growth is the
deep understanding of the market and the building of strategies needed to serve current
needs. These factors are embedded within and throughout the organization from the head
office to the branch and area managers.

Future strategic focus

The main strategic foci for Tips & Toes are centered on ensuring a proper geographic
coverage and increasing the profitability of the stores. Tips & Toes strives to be the biggest
nail and beauty service provider in the Middle East with its mission to provide first class
services to their clients.
The business growth plan is clearly reflected by the planned new location openings in the
next few years: four new locations to be opened by the end of 2012 and a plan to expand
internationally by 2013 with the first international location in Qatar (Table II). Tips & Toes has
also projected an average revenue growth for the next five years of 30 percent.

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PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Table II Tips & Toes planned geographical expansion
Date Location Emirate/city

2012 Al Falah Residence Complex five different Abu Dhabi

locations
2013 Sadiyaat Island two different locations Abu Dhabi
2013 TBD Qatar
2014 New York University Abu Dhabi

Tips & Toes is also considering expanding their service line to reach out to male customers.
This new market segment would require different kind of services, thereby challenging Tips
& Toes to carefully consider whether the addition of such services would increase their core
strengths or not.

Keywords:
Conclusion
Total rewards strategy,
Employee engagement, Tips & Toes has shown remarkable growth and agility in a service industry which is heavily
Women entrepreneurs, dependent on client experiences and the development of long-term relationships with those
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Small to medium-sized clients. This growth is directly attributable to being a strong differentiator in the marketplace,
enterprises, following a philosophy of product leadership, and – most importantly – by implementing
Employee attitudes, and following a total rewards strategy with the employees. What remains to be seen is
Reward pay structures, whether this approach will continue to sustain and nurture Tips & Toes’ planned growth for
United Arab Emirates the future.

References
Bhasin, G. (2010), ‘‘Premium positioning: innovative retail hallmarks of Middle East beauty market’’,
Market Report: Middle East, GCIMagazine.com, November, available at: www.gcimagazine.com/
marketstrends/regions/aftrica-middleeast/106763183.html

Chen, H.-M. and Hsieh, Y.-H. (2011), ‘‘Key trends of the total reward system in the 21st century’’, in
Mellon, J.A. (Ed.), Strategic Human Resource Management, 3rd ed., South-Western Cengage Learning,
Mason, OH, pp. 508-12.

Coyle Hospitality Group (2011), 2011 Global Spa Report, available at: www.coylehospitality.com/2011-
global-spa-report

Dubai Department of Tourism and Commerce Marketing (2011), Industry Segments: Spa Tourism,
available at: www.dubaitourism.ae/about/industry-segments

Euromonitor International (2010), ‘‘The new consumer mindset’’, paper presented at 4th Annual Global
Spa Summit, Istanbul, Turkey, available at: www.globalspaandwellnesssummit.org/images/stores/pdf/
euromonitor_gss_2010.pdf

Euromonitor International (2011), ‘‘How hard times are altering consumer mindsets’’, paper presented at
5th Annual Global Spa Summit, Bali, Indonesia, available at: www.globalspaandwellnesssummit.org/
images/storeis/pdf/euromonitor_consumer_mindsets.pdf

Mesbah, R. (2009), ‘‘Spa industry annual turnover in ME is Dhs2.5bm with UAE alone holding 42% or
Dhs986m’’, AME Info, May 25, available at: www.ameinfo.com/197993.html

Sawlani, E. (2008), ‘‘WWDBeautyBiz: United Arab Emirates’’, Women’s Wear Daily, Vol. 195 No. 55, p. 24.

Spafinder Research (2012), Spa Trend Report: Top 10 Global Spa Trends Forecast, available at: www.
globalspaandwellnesssummit.org/images/stories/pdf/Presentations.Scribes.2012/USB/8%20-%
20spafinder%202012%20spa%20trend%20report.pdf

SRI International Research (2010), Spas and the Global Wellness Market: Synergies and
Opportunities, May, available at: www.globalspaandwellnesssummit.org/images/stories/pdf/gss_
spasandwellnessreport_final.pdf

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9
 About the authors
Dr Adrienne A. Isakovic is an Assistant Professor of HRM at the Hamdan bin Mohammed
eUniversity in Dubai, United Arab Emirates. She is an award-winning teacher and HRM
leader with extensive experience in both academia and in senior HRM roles in the Middle
East and the USA. Adrienne A. Isakovic is the corresponding author and can be contacted
at: a.isakovic@hbmeu.ac.ae
Fatima Al Mansoori holds a Master’s degree in Strategic Human Resource Management
from the University of Wollongong Dubai, and a Bachelor’s degree in Business
Administration – Marketing track from United Arab Emirates University. She also worked
as a research assistant during her undergraduate studies. She is currently preparing for her
PhD in HRM.
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PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Teaching notes
Adrienne A. Isakovic and Fatima Al Mansoori

Synopsis
The General Manager of Tips & Toes has grown this company from just an idea into a high
growth and revenue enterprise in the span of less than a decade, most notably during the
time of great economic downturn and turbulence throughout the world. The keys to the
success of this organization lie in a philosophy of market differentiation, product leadership,
and most importantly for this case study, a total rewards strategy for employees. Tips & Toes
has mapped out an aggressive growth and expansion strategy both in terms of
geographical location and services lines; it is crucial therefore to ensure that operations
and human resource practices currently in place are sustainable or will need modification in
order for the company to successfully hit the growth targets.

Teaching objectives
This case is suitable for both advanced undergraduates majoring in HRM as well as
MBA/graduate students taking a survey course in strategic HRM. Particular points of interest
are successful entrepreneurship in the UAE: a woman-led business, a strategic focus of
product leadership, and the HR strategy of implementing a total rewards system (TRS) for
employees.
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Suggested assignment questions

Question 1. Given the components listed in the TRS in place at Tips & Toes, what do you think
an appropriate performance management system for these employees would look like? In
other words, how would you ensure that the various components of the TRS are tied to
employee performance?

Question 2. Tips & Toes is aggressively pursuing further growth and expansion over the next
five years. Critically evaluate the current TRS and highlight its strengths and weaknesses in
supporting the strategic growth plan.

Question 3. Tips & Toes emphasizes and invests in professional training for the employees.
Critically evaluate the merit of providing large amounts of training and development during
uncertain or deflated economic conditions.

Question 4. It was mentioned in the case study that Tips & Toes is currently evaluating
expanding their service lines to cater to male customers. What would be the HRM impact on
Tips & Toes if they decided to implement this strategy?
Potential discussion points related to the questions
Question 1. Given the components listed in the TRS in place at Tips & Toes, what do you think
an appropriate performance management system for these employees would look like? In
other words, how would you ensure that the various components of the TRS are tied to
employee performance?
In order for any compensation or rewards package to be effective it must also be tied to
performance. The TRS in place at Tips & Toes has several components: direct/cash-based
compensation, benefits, individual development, promotion opportunities, as well as
group/team/store-based compensation and rewards. For a TRS such as this, would a typical
performance management process work? How often would performance need to be
measured? What would be evaluated – just performance, or also behavioral competencies?
Question 2. Tips & Toes is aggressively pursuing further growth and expansion over the next
five years. Critically evaluate the current TRS and highlight its strengths and weaknesses in
supporting the strategic growth plan.
Tips & Toes is unusual in its industry in that it supports and implements such a robust TRS for
the employees. Students should discuss whether this is sustainable, and what elements of
the TRS will be an advantage for achieving the strategic goals and what areas should be
evaluated that might hinder the planned growth. This point should be discussed with respect
to retaining employees in whom Tips & Toes has so heavily invested, market demands for
such personalized and pampering service, and whether any challenges will exist in
implementing this TRS once Tips & Toes expands internationally to other parts of the GCC.

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 Question 3. Tips & Toes emphasizes and invests in professional training for the employees.
Critically evaluate the merit of providing large amounts of training and development during
uncertain or deflated economic conditions.
Whereas the norm during periods of economic downturn is for training and development to
be the first component cut from an organization’s budget, time and again companies which
thrive during periods of economic crisis show that by continuing to invest in employee
development should be a central strategic focus during the downturn. Students should
weigh the pros and cons of heavy investment in training and development, particularly
during hard economic times, and then extrapolate those pros and cons as to how this will
affect market share, profitability and the ability to meet strategic targets. It should be pointed
out to students, if they do not produce this on their own, that when training and development
is combined as an investment tool for personal and professional growth along with the right
mix of a total rewards strategy, better rates of employee engagement and retention will in
turn result in better results in the bottom line.
Question 4. It was mentioned in the case study that Tips & Toes is currently evaluating
expanding their service lines to cater to male customers. What would be the HRM impact on
Tips & Toes if they decided to implement this strategy?
Students should think about the specifics of the HRM impact of this strategy. For example, in
order for this new service line to be successful, the employees will play a crucial role. So
therefore what criteria should be used in the selection process? What services would be
offered – leading to decide what training and development would be necessary? Where
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would these new services be offered – in standalone locations or in wings of the now-female
establishments? What impact would that have on employee housing and transportation?
And finally, how would such a decision affect the focus on the core business of Tips & Toes?

Recommended reading
Suliman, A.M.T. (2006), ‘‘Human resource management in the United Arab Emirates’’, in
Budhwar, P.S. and Mellahi, K. (Eds.), Managing Human Resources in the Middle East,
Routledge, London, pp. 59-78.
Tornikoski, C. (2011), ‘‘Fostering expatriate affective commitment: a total reward
perspective’’, Cross Cultural Management: An International Journal, Vol. 18 No. 2, pp. 214-35.
Treacy, M. and Wiersema, F. (1997), The Discipline of Market Leaders: Choose Your
Customer, Narrow Your Focus, Dominate Your Market, Addison-Wesley, Reading, MA.

Further reading on Tips & Toes

www.tipsntoeshaven.com
www.titonails.com

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PAGE 12 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Abstract
Title – Tips & Toes: a total reward strategy fuels growth.
Subject area – Human resources (compensation, total rewards, employee engagement, training and
development), strategy.
Study level/applicability – Undergraduate HRM majors and postgraduate business and management.
Case overview – This case highlights the strong growth and expansion of a former small to
medium-sized enterprise (SME) in the United Arab Emirates, Tips & Toes. The company is a leader in the
beauty and fitness service industry, and much of its growth and success is attributable to the leadership
of its general manager and her implementation of a differentiation strategy, a market innovator in
concepts, products and services, and a total rewards system for engaging and retaining employees.
Tips & Toes is planning for continued, aggressive growth and expansion over the next five years. This
case also highlights an underrepresented area of focus for case studies: women-led businesses, SMEs,
and entrepreneurship and innovation.
Expected learning outcomes – The main focus of this case is for students to examine the benefits of
using a total rewards strategy to engage and retain employees, and more importantly to see the links
between such a strategy and business and revenue growth. This is particularly a salient learning point
for students in emerging markets, where more traditional types of compensation and views of the
employment contract tend to prevail. In addition, this case could be used as a supplementary learning
experience regarding strategy and strategic focus of an organization (i.e. the Treacy and Wiersema
model of product leadership, customer intimacy, or operational excellence as a strategic discipline for a
firm). And finally, this case provides an example of a woman-led organization which grew out of SME
status into a market leader; this example provides students with insight into workable entrepreneur
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opportunities to which they might not see a direct linkage when reading case studies of large
multinational organizations or conglomerates.
Supplementary materials – Teaching notes are available; please consult your librarian for access.

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