A well-articulated and compelling employee value proposition can set IR operators apart from the crowd when it comes to sourcing and retaining the best talent.
Over the next five years, the casino industry wants to invest US$65 billion into new casino projects in Asia. According to Grant Govertsen and John DeCree of Union Gaming, “Given the scale of the pipeline relative to the EBITDA required to justify it, we think – for the first time in Asia – the amount of new supply is simply too much over too short a period.”
The Union Gaming memo suggests that companies have clearly not thought through the financials before making their investment pronouncements. Besides ROI, the greater challenge will be to acquire and retain the hundreds of thousands of employees that will be needed to run the new casino integrated resorts. Macau has faced critical shortages of frontline employees for years and the wage bill of every operator keeps spiraling year after year.
Apart from frontline employees, thousands of executives will also be required to manage the IRs and little thought seems to be given to attracting and retaining capable management level employees. Currently, across the existing casino properties in Asia, we find a musical chairs game being played by senior managers. Through 2025, when most new integrated resorts begin their operations, there will be too many chairs and very few managers to occupy them. Operators desirous of attracting and retaining top talent need to start thinking about their recruitment plan today. First and foremost, they need to design a well-articulated and compelling employee value proposition (EVP).
WHAT IS EVP?
An EVP is a documented statement encapsulating the essence of the exchange relationship between the employer and the employee. Typically, the EVP consists of one core statement (the EVP tagline) plus additional statements about what benefits your organization offers to employees, what you expect from employees in return and, most importantly, what differentiates you as an employer. The EVP thus underscores key offerings provided by an organization in return for the skills, capabilities and experiences an employee brings to the employer.
For example, Lottery.com, the online lottery operator, has crafted this EVP, “We know that the world owes us nothing and that our incredible team is our biggest asset. We have a phenomenal culture and unparalleled drive, and each member of the team is carefully selected because they fit with our tribe and our vibe.”
Shopify has crafted its EVP as, “We’re Shopify. Our mission is to make commerce better for everyone – but we’re not the workplace for everyone. We thrive on change, operate on trust and leverage the diverse perspectives of people on our team in everything we do. We solve problems at a rapid pace. In short, we get shit done.”
Creating your EVP is easier said than done. The EVP design process should start out with asking four key questions of the organization:
- How unique are the rewards we offer our people?
- What’s great about our management?
- How is our culture special?
- How do we uniquely impact society, our community, our planet?
Most casino companies desirous of operating in Asia do not have a clearly articulated EVP. To prepare for the looming hiring frenzy, they need to start today. Recruit a skilled facilitator who will help you design your EVP. Use this EVP in your employer branding. Hire and retain the best by having the EVP guide every employee decision you make.
According to McKinsey, the productivity gap between an average performer and a high performer for jobs requiring high complexity is 800%. The days of “Build it and they will come,” are long gone for the casino industry in Asia. As Govertsen and DeCree rightly conclude, “For too long Asia has been an unbelievably forgiving place to be a casino operator, thanks primarily to China’s rise.
“There will be a notable and growing divergence in operator performance in virtually every market in Asia, with market share gains captured by the most capable.”
Capability is defined solely by high quality, highly productive employees. This is where a winning EVP matters.