Tribal Gaming and the Changing Economic Landscape!
For many years, Tribal Gaming has been a source of financial security for many north American sovereign nations. It provides a way for federally recognized tribes to prosper by running a niche business unavailable to other entities. Although traditionally gaming has been a very successful business model, 2009 proved to be the beginning of economically challenging times. With no other immediate answer, slashing the labor force seemed to be the only way to stop the hemorrhaging. Many casinos have had to layoff employees for the first time in many years leaving them understaffed and vulnerable. This seemed to be the mantra at the CNIGA Western Indian Gaming Conference last week in Palm Springs, CA.
Labor cuts are often most severe in “Non-Revenue-Generating” departments such as Payroll Processing, Human Resources, Benefits Administration and Safety Services. While these departments don’t produce revenue directly, they can have a direct impact on the bottom line through increased efficiency and cost savings. Conversely, cuts to theses vital departments, leaving them with limited staff and minimal resources can negatively impact the bottom line. Payroll delays, unresolved Human Resource headaches, safety scares and increased workers’ comp losses are just a few examples.
The real challenge for tribal gaming in this financial meltdown is decreased gross revenues. Patrons have less discretionary income to spend and as a result expenses must be cut to stay in the black. Typically labor is the first to go, but is that the right answer?
At a time when businesses most need to reduce expenses and tighten their bootstraps, increased efficiency, safety, compliance, and oversight are more important than ever. It’s the old adage of treating the symptom rather than the disease. But how else are casinos to prosper with reduced cash flow? Labor cuts and decreased resources in all of these vital areas are inevitable, aren’t they? Not any more.
In an effort to provide a remedy to these concerns for our clients, we have come up with a solution known as Tribal Worker Benefits. This revolutionary approach to cutting employee related expenses while increasing resources and support is unheard of before now. Through a Strategic Partnership with our clients, we can now offer an all-inclusive bundled service, including Payroll Processing, Human Resource Management, Benefits Administration (optional), Safety Services and Workers’ Compensation coverage all for about what you are now paying for just your workers’ compensation policy. You may even pay less than you are now! (See an actual quote)
In no way is this program designed to replace your current staff, but rather to give them the additional support and resources they may need to run their departments efficiently and effectively. Our goal is to give them as much or as little support as they may need. Each tribe, casino or other entity has unique challenges and this program is designed to be customized to their individual needs.
Large Deposits and Annual Audits have become additional obstacles for tribal gaming. These requirements force casino management to predict the economic future of the establishment and budget accordingly. But how can management be expected to precisely predict the future? With Tribal Worker Benefits this is not a requirement. We have eliminated the need and the penalties sometimes associated with miscalculations. It is simply, pay as you go. Your worker’s comp cost is calculated based on true payroll numbers, not an educated guess. Therefore, when there are immediate changes to payroll, your work comp cost is immediately corrected as well.
In addition, we believe in rewarding you for running a safe business. A safer work environment translates into lower losses and happier employees. Therefore, we have included an annual safety rebate as part of this program. We will put 1/3 of your qualifying premium equivalent aside to be available to you as a safety rebate at the end of the year. Your reward for safety is the balance left in your basket after claims are paid. You literally control how much rebate you get by preventing losses. Your annual rebate will be calculated and paid within 60 days of your program anniversary and may be used however you see fit. This is just one more way the Tribal Worker Benefits program can partner with you to combat the changing economic landscape that tribal gaming is faced with today.
Contact us to see how the Tribal Worker Benefits program can give you a real solution to your current economic challenges.
Jason Watson is the National Administrator for the Tribal Worker Benefits program. He can be reached at (800) 627-1555 ext. 4833 or info@tribalworkerbenefits.com .
