Casinos: A Guide to the Financial Benefits of Outsourcing
If you’re the CFO of a casino, success will always come in the form of cost management and improving profitability, while maintaining smooth operations. At The Service Companies, we have helped casinos achieve this for 20+ years. We service over 200 casino and hotel clients, including 19 AAA Five Diamond and 12 Forbes Five Star properties, cleaning 4.5 million square feet of the property daily. Here is a comprehensive guide covering the financial benefits of outsourcing, and how your casino can take advantage of them.
How does redistributing services to The Service Companies
benefit my casino?
1. Benefit Load
Housekeeping, environmental services, and stewarding are critical areas for running a well-operated casino. Let us say for a moment that your casino is already fully staffed. The first benefit of redistributing these services to The Service Companies is the cost savings in the benefit load.
In a large 2,000-room casino, one might have 200 line-level associates in housekeeping. At The Service Companies, we are paying anywhere from $25-40 per hour, including our benefit load. In a casino where the benefit load is 70-80%, this casino is paying at least $15 dollars more per hour. Remember, this only includes the housekeeping department.
200 employees x $15.00 x 2,080 hours per year = $6+ million potential savings with The Service Companies
For many smaller providers, providing this amount of financial savings is impossible. With The Service Companies, it is standard.
2. Recruiting Strategy
As you know, one of the biggest problems for the hospitality industry is the shortage of labor, and it is an everyday occurrence. At The Service Companies, we are on a mission to find top talent for these specific roles and have delivered on our promise, time and time again.
It is easy for casinos to find:
- Front Desk Agents
- Game Dealers
- Chefs and Assistant Chefs
It is difficult for casinos to find:
- Someone to Clean Large Bathrooms
- Someone to Wash 10,000 Dishes a Night
- Someone to Scrub Thousands of Walls and Floors
- Someone to Clean 10-12 Hotel Rooms a Day
Our industry-leading talent acquisition program attracts and recruits a large volume of qualified, compliant team members to fully staff our departments. In order to find the highest quality associates for these roles, one of the differentiating recruiting tactics we leverage is an out-of-market approach.
- Relocation – We source candidates from markets outside of your casino territory and provide them with travel and housing coordination, move-in support, and training.
- Partnerships – We partner with Haitian refugee centers around the country, and we also have community partners, like the National Down Syndrome Society and Vocational Rehabilitation of Nevada, to ensure we get the best and diverse candidates.
- H2B Visa Program – We source candidates from Jamaica and El Salvador and relocate them to work for us.
Lastly, we approach our work as a seamless partner and an extension of your property. We integrate easily and will adapt our standard operating procedures and trainings to incorporate your casino’s brand and culture.
3. Where do my financial benefits come in?
1. Lost Revenue Opportunities
- Hotel Room Revenue
- Gaming Revenue
- Restaurant Revenue
If you cannot clean a hotel room, you cannot sell that room. And in the case of a casino, you cannot offer that room to a player, resulting in a loss of gaming revenue and potentially a competing property picking up that guest.
Additionally, if you can’t staff your kitchens and restaurants, you can’t serve guests.
In a large 2,000-room casino, you normally have 200 line-level associates in the housekeeping department, but you are short-staffed. You currently have 140 active Guest Room Attendants cleaning 12 rooms per shift. And, for this example, let’s say your annual occupancy averages at 92%.
140 Guest Room Attendants x 12 rooms per shift = 1,680 clean rooms
Even if each attendant works overtime to clean one additional room, you are left with 20 uncleaned rooms per day.
20 rooms x $100 per night x 365 days a year = $730,000 annual revenue lost. This example accounts only for the room revenue lost, it does not take overtime pay owed into account. Additionally, it does not include all of the potential gaming revenue lost, restaurants revenue, shopping revenue, and more.