For the first time in a few years, there appears to be some minor increases occurring in club salaries despite the overall Australian stagnant salary position. Although it would be fair to say that management salaries in the Club Industry have not kept pace with inflation in the last few years in line with most other industries. The areas where slight increases have occurred are in Gaming Managers, Senior Duty Managers and Marketing Managers, although care needs to be taken when assessing these increases as they are more likely to relate to the increased level of experience and qualifications that clubs are now seeking in these key positions. For the first time in a couple of years I have added a new position to the list which is that of Gaming Analyst/Data Management.
Customer connection and loyalty programs are now playing a very significant role in more successful clubs.
The key knowledge and expertise of these analysts will be particularly critical for those clubs that will need to compete more directly with the casino in coming years, whether clubs wish to believe it or not it. Casinos are masters at database and gaming analysis, as any of you will notice if you have joined a casino’s loyalty program.
I have also noted an increase in Customer Service or Cultural Managers, which I may very well add to the matrix next year. These roles indicate the customer service focus that successful clubs are taking seriously. I mentioned last year that customer service will be a key battleground for market share against casinos. It’s also worth noting the decline in club gaming market share compared to hotels; whilst I believe there are many elements to this, one of the key areas may very well be the ability of hotels with smaller intimate gaming rooms to better connect with their gaming customers than large club venues. I am doing some more research into this recent club loss of market share to ascertain what are the elements driving hotels versus clubs and how might clubs address the issues. My results will be released in one of my regular communications.
New positions that are emerging and will continue to increase in our industry are Café Managers, as cafés in the club environment continue to grow in number, size and significance. Compliance Officers are also a new emerging role reflecting the ever-increasing regulatory responsibilities which committees and boards are demanding compliance with, however there is also some indication of this responsibility being outsourced.
On the issue of outsourcing, which the club industry has also been slow to embrace to gain efficiencies and increased expertise, an interesting example are HR management companies.
There is an increase in the level of outsourcing of industrial relations issues due to their complexity and legal implications, also returning to trend that was the practice quite some years ago where recruitment was being delegated to Department Managers.
2017/18 Average Salaries for the QLD Club Industry
The salary averages table below is generated from industry surveys, salaries for new management recruited positions, numerous club salary reviews and management restructure over the last 12 months, as well as our own empirical evidence. It indicates the various salary averages paid in clubs of varying sizes. Whilst these averages should not be taken in isolation from a club’s own situation, it does provide a general guide.
Selecting the right management is becoming increasingly complex and fraught with risk. We are still seeing the failure of clubs due to poor oversight by committees and boards of their selection process. The cost to a venue in employing the wrong management staff can have tragic consequences for several years. Regrettably, I have had too much experience of this over the years. Committees and boards have a fiduciary responsibility to their members to ensure that they are attracting the best quality management staff and are paying the appropriate salaries to attract and retain competent personnel.
Given the responsibility and skills required of the senior manager role in today’s club environment, boards and committees should consider independent expert advice when recruiting, conducting reference checks or setting salary levels. It pays to remember that good staff will choose to work for good employers and stay where they feel appreciated. The right and fair remuneration will always play a significant part in this decision.
Click here to read the full report and analysis.
