By Arte Nathan and Andrew Klebanow
Less Is More How to solve the staffing conundrum
By Arte Nathan and Andrew Klebanow
Tribal casinos were always looked upon as the preferred employers in their communities . In many cases , they were the largest employers . Even in communities with a diverse job market , they often operated in a more stable business environment .
Tribal casino operators resisted layoffs during economic downturns , often because those downturns affected their gaming operations less than other businesses . They had a diverse set of entertainment offerings , including showrooms and lounges that supported consistent work schedules . People in their communities saw them as good places for food and entertainment , and continued going there in response to attractive marketing efforts .
Tribes built trust with their employees because they never had to disappoint them — layoffs were rare and job security was good . Employees in turn provided loyalty for the stability casinos provided . Human resources academics refer to this as the “ psychological contract ” between employer and employee .
Then It All Changed
Covid-19 forced all employers to act quickly and decisively to reduce operating expenses in the face of a dramatic , once-in-a-lifetime shutdown . Because of the speed needed for this response , many companies acted without a comprehensive or well-thought-out plan .
Across the United States , companies laid off employees who never thought they would be laid off or need to collect unemployment insurance . That psychological contract and its sense of security that casinos had with their employees was shattered without much thought to the long-term impact this experience would have .
Add to that , the methods used to lay employees off were often also poorly planned : taking the time to talk to employees in person , staying in touch with them throughout the layoff period , and generally showing that they cared were best practices many failed to enact .
Unlike most commercial operators , tribal casinos remained very cautious about restarting . They laid people off , advising them that they would get a better deal with unemployment insurance and Covid supplementals . In many cases they assisted employees with completing the paperwork needed to enter that process . While well-meaning , the unintended perception and consequence was that the psychological contract between employer and employee was irreparably damaged .
Then Things Got Competitive
Laid-off casino workers discovered that their monetary value in a competitive labor environment was worth more than what they had been paid in the past . Add to that the wage increases introduced by Walmart ,
18 Global Gaming Business MARCH 2024