Hard Rock International and Seminole Gaming has invested over $100 million (£87.9 million) in order to raise wages for more than 10,000 employees, making up half of its US workforce.
Some staff will receive a more than 60% pay increase, with starting wages at between $18 (£15.81) and $21 (£18.45) an hour for 95 different roles, constituting an approximate hourly raise of $6 or $7 (£5.27 or £6.15). This includes cooks, housekeepers, security, call centre and front desk employees. Some Florida-based team members, where the organisation is headquartered, could get $16,000 (£14,057) more per year than the state’s minimum wage.
According to the business, this investment reflects its concerns about rising inflation, and the impact on employees. It is hoped that the increases will help retain workers and prevent turnover, even though it will have an impact on the bottom line.
Hard Rock also said that senior leadership wanted to show appreciation for staff, who are able to provide a significant return on the investment through their job performance.
Jim Allen, chairman of Hard Rock and chief executive officer of Seminole Gaming, said: “We could have substantially reduced the total capital that we’re willing to commit to our employees, hypothetically, maybe given $2 or $3 an hour raise versus a $6 or $7 an hour, but I looked at it and said, let’s be the leader. Let’s be ahead of the curve. We have really changed the lifestyle and the standard of living of thousands of people.”
The business stated that rising rates and pressure on Americans’ savings could make trading for the second half of 2022 and the first two quarters of 2023 more difficult, while it has also seen pressure from currency concerns, as the strong dollar is making it more expensive for European tourists to visit the US.