Business

Hard Rock to spend $100M on employee pay raises

Cheers and tears – this is how thousands of Hard Rock workers reacted when they learned that their salaries would soon be much higher.

As inflation rises and recession fears persist, Hard Rock International and Seminole Gaming will spend more than $100 million on massive pay increases for half of their US workforce of more than 10,000 employees.

The increase is significant, in some cases more than 60%, with starting wages of $18 to $21 an hour for workers in 95 different roles, including cooks, housekeepers, public area security guards, call center and front desk attendants. In Florida, where the company is headquartered, Hard Rock pointed out that some team members could be making up to $16,000 more than the state’s minimum wage.

Jim Allen, Hard Rock chairman and CEO of Seminole Gaming, said he is confident the investment will help the company retain employees and prevent turnover, even though it will have a big impact on bottom line.

“We could significantly reduce the total capital that we are willing to allocate to our employees, hypothetically, maybe $2 or $3 an hour increase versus $6 or $7,” Allen told CNBC, “but I looked at it and said, ‘Let’s let’s be leaders. Let’s be one step ahead.”

Allen said he wanted to show his appreciation, and he’s betting that the investment will pay off because colleagues will work at the highest level to give guests an unforgettable experience.

Hard Rock invests $100 million in employees

But, Allen added, he is also concerned about soaring inflation and its impact on employees. “We have really changed the way of life and living standards of thousands of people,” he said.

According to Allen, inflation is having an impact on the company, which led to some decline in July. Rising rates and pressure on American savings could put pressure on Hard Rock in the second half of 2022 and the first two quarters of 2023, he said.

The company is already under pressure from currency issues, he said, as a strong dollar makes visiting the US more expensive for European tourists.

Russia’s ongoing invasion of Ukraine, which has driven up the cost of energy and other living expenses in Europe, is also hurting the company’s cafes in upmarket cities like Barcelona, ​​Athens and London, Allen said. In some cases, tourism has dropped by 40%, he said.


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