Joy and tears – that’s how thousands of Hard Rock workers react when they learn that their wages are about to get a lot bigger.
As inflation mounts and recession fears linger, Hard Rock International and Seminole Gaming will spend more than $100 million to significantly increase wages for half of the US workforce, more than 10,000 employees.
The increase is substantial, more than 60% in some cases, with wages starting at $18 to $21 an hour for workers in 95 different jobs, including chefs, housekeepers, security guards, etc. public spaces, call centers and front desk staff. In Florida, where the company is headquartered, some team members can get as much as $16,000 more than the state minimum wage, Hard Rock said.
Jim Allen, Hard Rock President and CEO of Seminole Gaming, said he was certain the investment would help the company retain workers and stave off revenue, although it would have a major impact on profitability. .
“We could have dramatically reduced the total amount of capital we’re willing to commit to our employees, which could, hypothetically, be increased by $2 or $3 an hour compared to $6 or $7 [an hour]”Allen told CNBC,” but I looked at it and said, “Be the leader. Get ahead of the curve.'”
Allen said he wants to show his appreciation and he bets there will be a substantial return on the investment, with colleagues working at the highest level to give guests a great experience. Memorable.
However, Allen added, he is also concerned about soaring inflation and its impact on employees. “We have really changed the lifestyles and living standards of thousands of people,” he said.
According to Allen, inflation is having an impact on the company, leading to a slight dip in July. Rising exchange rates and American savings pressure could weigh on Hard Rock in the second half of 2022 and the first two quarters. 2023, he said.
The company is facing pressure from currency concerns, he said, as a strong dollar is making it more expensive for European tourists to visit the US.
Allen said Russia’s continued invasion of Ukraine – which has already pushed up the cost of energy and other living expenses in Europe – is also affecting the company’s cafes in key cities. alleys, prime locations like Barcelona, Athens and London, Allen said. Tourism is down 40% in some cases, he said.