Hotel Online Special Report

Harrah's Entertainment Pays  $1.9 Million in 
Quarterly Bonus to 12,000 Line-Level Employees
MEMPHIS, Tenn., April 30, 1999 -  More than 12,000 employees at eight Harrah's brand casinos are receiving checks totaling $1.9 million today as a result of Harrah's Entertainment's (NYSE: HET) one-of-a-kind line-level quarterly bonus program. It's all part of Harrah's Entertainment's innovative plan to further secure its position as the service leader in the casino industry.

The first quarter 1999 checks are the first to be issued in the Harrah's Entertainment Performance Payout plan, a bold new quarterly bonus for line- level employees. The following Harrah's properties hit at least one of their Performance Payout goals for the first quarter: Reno, Lake Tahoe, Laughlin, Atlantic City, East Chicago, Cherokee, Shreveport, and St. Louis.

The Harrah's Entertainment Performance Payout is the first bonus plan of its kind in the casino entertainment industry. If a Harrah's brand casino property meets all of its quarterly goals, each non-management employee at that property could earn as much as $300 in incentive compensation for a total yearly bonus of $1200. The goals are tied to targeted customer feedback survey results in areas most important to target customers and to market share* goals. 

The property's general manager and division president determine each quarter's goals. Harrah's Entertainment Chief Operating Officer Gary Loveman says, "Getting employees involved in first, pursuing the critical goals of the business and, second, benefiting from the achievement of those goals is the purpose of the plan. It helps everyone focus on the same goals and rewards performance that makes a difference with our customers."

Harrah's Reno bartender Doug Martinsen agrees. "This plan is innovative and gives employees something tangible to work for," he says. Back-of-the-house employees also have a responsibility for customer service leadership; so, they share in the quarterly rewards. Harrah's Reno wardrobe clerk Rosalinda Zareno saw how she makes a difference every day. "I know that if I give great service when employees start their day, they will give great service to our guests."

Property general managers and division presidents are now setting goals for the second quarter. "I'm pleased with the progress we made in the first quarter, as we paid out more than $1.9 million to nearly half of the employees at Harrah's properties across the country," said Loveman. "Going forward, Harrah's employees have the opportunity to reach more service goals and impact tens of thousands more customers. We have put a potential $24 million behind this plan for 1999. This further strengthens our commitment to truly great service, which combined with our Total Gold program and our knowledge from the industry's most complete database, allows Harrah's to deliver exactly what gambling customers want in casino entertainment."

Employees like Titania Hines of Harrah's Shreveport accurately sums up what Harrah's employees can do to impact customer service feedback results and market share. "I give fast and accurate service to my guests in a spotless environment which ensures that guests come back to see us," says the Harrah's Shreveport Festival Buffet server. "I always greet guests with a smile."

Harrah's Entertainment, Inc. is the most recognized and respected name in the casino entertainment industry, operating 18 casinos in the United States under the Harrah's, Showboat and Rio brand names, and the Star City casino in Sydney, Australia. Founded more than 60 years ago, Harrah's is focused on building loyalty and value with its targeted customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

* Goals for casinos managed by Harrah's for Native Americans are tied to customer feedback surveys only.

Pat Martin of 
Harrah's Entertainment, Inc., 
Also See: Successful Bonus Programs Conceived by Linking Incentives with Performance / HVS / Kefgen / July 1996 
Key Property Level Positions Post Salary Increases Over 3% Inflation Rate / HVS / Kefgen / Oct 1998 
Employee Turnover: It's Keeping Me From Having a Boat! / Oct 1997 / Kirby D. Payne, CHA 

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