Hard Rock International, a top performer in the American casino services industry, has recently made an announcement to the effect that it will be spending over $100 million in a payrise initiative that the brand is committed to enforce this year. The plan is to increase earnings for about 10,000 workers whose workstations do not expose them to the privilege of earning tips. By increasing the basic wage, the casino operator will in a large way help its employees to cater for the rising cost of living.
The casino operator has observed that customer-facing roles are highly rewarding for tips and other handouts that guests often give. These employees will always be cushioned from economic hardships even when their retainer salary is minimal. It is for the employees that do not directly handle casino clients that Hard Rock Casino has thought to boost. With higher pay, they will be able to afford the necessities of life and even improve their lives.
In a report published by the Associated Press news service, the management of Hard Rock revealed that the planned salary increment will be for the benefit of its workforce working in the United States. The move will amount to a hike in the hourly wage to about $21 which is approximately 17% of what they currently earn. The company further provided details about the boost specifying more than 95 roles that will be benefiting from this wage increment. Some of the employees who are targeted in the initiative include cage cashiers, front desk clerks, housekeepers and cooks.
For the management of Hard Rock International, which is an enterprise of the federally-recognized Seminole Tribe of Florida, the incoming scheme will result in some of the workers in the non-tipped employees’ category get a salary boost of 60%. The casino operator currently has operations in 265 locations spread out in 70 countries. The current arrangement is meant to cover multiple merit-based perks for salaried employees and its design is supposed to assist its existing members of staff in dealing with a gradual increase in post-pandemic inflation.
The Chairman and Chief Executive Officer of Hard Rock International, Jim Allen, reportedly revealed that it was important for the company to come up with such a policy because economic times are stiff and they have a responsibility to their workers. By increasing salaries, Hard Rock International will be actively attracting and retaining talented workers with an aim to reduce staff turnover. The seasoned executive highlighted that the action of implementing the scheme was informed by an internal survey and the expectation is that up to 50% of the firm’s United States workforce will benefit directly.
“We looked at all the starting salaries of all our frontline employees, certainly recognizing the economic conditions that have been going on, and wanted to do something to really help out and show our appreciation. We’re trying to find the highest quality employees, thanking them for their efforts and recognizing that with compensation.” This level of consideration is rare and the direct return is a hardworking lot of employees eager to show loyalty to their employer.
Hard Rock International has been in the mainstream casino industry for a long time during which it has established several prestigious casino resorts around the United States. The most notable establishment among all of them is the 2,000-room Hard Rock Hotel and Casino Atlantic City venue. The casino is also famed for a ‘historic’ deal which was inked in July in order to settle a labor dispute with this New Jersey property’s workforce.
Based on this understanding, the company increased the hourly rate for its workers to $18 and signed an agreement that would automatically raise the rate to $22 by 2026. As with the current initiative, the casino acted on goodwill for its employees’ welfare. There were a number of roles that would benefit from this plan including housekeeping.
Allen is reported to have asserted that the $18 hourly rate paid to their New Jersey employees was two and a half times more than the associated federal minimum of $7.25. The firm was obviously operating in excess of this benchmark in each one of the American jurisdictions in which they have operations.
The boss ended his statement by commenting on an observation he had made following the announced increment in salaries for Hard Rock International Employees. Allen believes that new employees joining the Atlantic City operation will receive up to $6 more than the state’s $13 base which will translate to the pocketing an extra $10,000 per year for a minimum annual salary of up to $37,440.
Commenting on the commitment of Hard Rock to improve the lives of their employees through a pay rise, gambling historian at the University of Nevada, Las Vegas, David Schwartz, termed it as a strategic business move. Even though the entire industry is struggling to keep afloat, extending such goodwill to employees is definitely going to be noticed by the players as well.
In July 2022, the AC casino workers union signed a contract with the nine leading betting brands in the area. Within the agreement that many termed as historic for the industry, the operators agreed to provide massive increases in remuneration including setting a minimum rate. According to president of Local 54 of the Unite Here union, Bob McDevitt, who was part of the negotiation team, Hard Rock has set the pace for employee compensation that should be emulated nationwide. The federal minimum wage as stipulated by the federal government is $7.25 per hour and so the $18 hourly starting salary exceeds this by 2 1/2 times.
Conclusion
New employees joining Hard Rock International from now on will be ushered in with an hourly rate that is $8 to $11 above the state’s $10/hour minimum wage. According to the company, this pay hike will equate to a yearly increase of over $10,000, from $27,040 to $37,440.
