Employee Turnover is the Bane of the Gaming Industry, Says Robinson & Associates, Inc.

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Employee turnover is the bane of the gaming industry because it drains casinos' resources and hinders delivery of quality customer service.

Employee turnover is the bane of the gaming industry because it drains casinos' resources and hinders delivery of quality customer service, according to Robinson & Associates, Inc., a gaming industry consulting firm.    

"Some casino executives say they struggle with employee turnover that runs as high as 80 percent," says Martin R. Baird, chief executive officer of Annapolis, Maryland-based Robinson & Associates. "They want to get this problem under control. If they knew just how truly harmful employee turnover is, they would be even more determined to rein it in."

Baird offers the following thoughts on how employee turnover impacts casinos.

Replacing An Employee Who Does A Complex Job Is Expensive. Cornell University research shows that it is more expensive to replace an employee doing a complex job than someone doing less demanding work, Baird says. "In the hospitality industry -- and this should also hold true for gaming -- Cornell researchers say turnover in less complex jobs costs $5,693 per hire," Baird notes. "The cost of replacing someone in a complex job is $9,932. Most jobs at casinos are of the complex variety. This means it costs a casino almost $10,000 every time an employee leaves."

Turnover Is Even More Expensive At Pre-Eminent Properties. Cornell reports that turnover may only cost a "mid-market and below" property $4,434 per person, Baird says. "If the property is upscale, that cost skyrockets to more than $12,000 per person," Baird says. "If a casino's vision statement includes words and phrases such as pre-eminent, leader, destination resort and the number one destination, it is an upscale property or hopes to become one."

Do the Math. "If a casino has 1,000 employees and 40 percent turnover, it could be watching between $2.7 million and $4.8 million strolling out the door each year," Baird says. "That is a serious drain on company resources."

Turnover Is Not Exclusively A Human Resources Problem. Turnover is not 100 percent a problem of the human resources department at casinos, and HR should not be expected to solve it, Baird says. "Turnover is a problem that must be addressed by the leadership at the casino, not a department," Baird notes.

Baird offers the following suggestions for trimming employee turnover.

Turnover Can Be Reduced With Pre-Hire Assessments. A solution to
the turnover problem can start with the hiring process, Baird says. "Casinos should assess the position itself by looking at the people who are currently doing the job well and seeing what makes them successful," Baird suggests. "Use that as the benchmark for assessing candidates for the job. Assess applicants before making a hiring decision."

Employee Advocacy Lowers Turnover. "Employee advocates love their jobs, show up for work on time and say positive things in the community concerning the casino where they work," Baird says. "They wouldn't think of leaving for another property." Baird suggests casinos determine the degree to which they have employee advocates, express that data as an index and then make internal improvements that drive the index number ever higher. The higher the index, the more employee advocates the casino has, he says.

Robinson & Associates, Inc., is a global customer service consulting firm for the gaming industry. It helps casinos determine their Advocate Index, a number that indicates the extent to which properties have guests who are willing to be advocates. The company then implements its Advocate Development System in combination with the proven methodology of Advocate Index and best business practices to help casinos create more guest advocates and chart a course for growth and profitability. Robinson & Associates may be reached by phone at 480-991-6420, by e-mail at mbaird@casinocustomerservice.com or via its Web sites at http://www.advocatedevelopmentsystem.com and http://www.casinocustomerservice.com.

Robinson & Associates is a member of the Casino Management Association and an associate member of the National Indian Gaming Association.

Contact:
Martin R. Baird
Robinson & Associates, Inc.
http://www.advocatedevelopmentsystem
http://www.casinocustomerservice.com
480-991-6420

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