Backdraft ….. of Talent

Posted on October 30, 2007
Filed Under Gaming, Best Practices, Companies That "Get It", Job Growth, War for Talent |

As often as I find myself discussing the upcoming War for Talent in Las Vegas, I find myself talking about the impending Backdraft of talent leaving Las Vegas.

So what does this mean? Backdraft???

Well, the Las Vegas workforce is primarily made up of talent that migrated here from all areas of the country. Most really enjoy the quality of life but reality is, all do not. And many consider moving back home after some time whether it is to rejoin their families or raise their kids where they grew up.

We witnessed a backdraft of teachers just a few years back when the housing market was booming. Why? Because many moved to Las Vegas from the East Coast or the Mid West when the cost of living was one of the lowest in the country (Yeah - we all miss those days). Many purchased homes back when the median cost of a new home was $140,000. A few years later - they find themselves living in a home valued at over $300,000.

They consider the facts, sell their house, stick a $150K+ in their pocket and move back home. That profit allows them to buy a beautiful home paying cash, pay off their student loans, stick a bunch of money in the bank and live happily ever after in Podunk (name your state).

So where is the next backdraft? Gaming. As gaming proliferates around the World, these new resorts and gaming establishments are going to need seasoned talent at the top. Where does that talent exist? Las Vegas of course. And again, most of that talent has migrated here from one of the cities where gaming has recently been legalized.

So, let me give you an example:
I came from Pittsburgh, Pennsylvania. A great city to ‘be from’ but I am truly in love with the State of Nevada and will never leave. However, many Pittsburghers would love be go home, but for the past two decades, there were no good paying jobs. Now all of the sudden - casinos are being built up and down the three rivers and guess who’s skills are in high demand? You got it - Mr./Mrs. Pittsburgher who moved out here in 1993 for the first big boom in Las Vegas. With 15 years experience, they have worked their way up the gaming corporate ladder and now hold mid-level management positions, but have found it a little crowded at the top.

Well, that glass ceiling is now removed and there are senior level positions available for them back home. Mr./Mrs. Pittsburgher can pack up their belongings in Las Vegas, move back to Pittsburgh, cash out of their real estate equity here, buy a house they could never have afforded had they stayed in Pittsburgh, get a big fat raise for their new job…. and best yet - be king of the block back in their home town where their friends still have the same job from when they left, don’t own a home and will beg to get VIP treatment at the new casino where Mr./Mrs. Pittsburgher works.

I know this sounds a little crazy, but its’ happening already.

Expect more to come. And for gaming - it is a win~win. They are ‘growing their own’ - which many organizations struggle to do. And they are developing solid career ladders along with upward (and now outward) mobility for all employees. Pretty brilliant in my opinion.

The problem is the casinos will be competing with themselves in these other markets as Las Vegas enters the next big boom where over 200,000 jobs will be created and Las Vegas needs to import that talent as we have done in the past. This time, however, we will not have the luxury of inexpensive housing and a low cost of living to offer.