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SkyCity Pays $1.6 Million In Bonuses To Waged Staf

22 August 2006


Following SKYCITY Entertainment Group's annual result announcement yesterday, a cash bonus will be paid out to waged staff at SKYCITY Auckland, lifting the total amount paid in staff bonuses across the SKYCITY Entertainment Group to $NZ 6.7 million to date.

Around 1600 wage earning staff at SKYCITY Auckland and another 1220 from other SKYCITY properties in New Zealand and Australia) who work in a variety of roles ranging from dealers to cleaners, chefs, waiters and car park attendants, will share in a total bonus pool of $NZ 1.6 million which will be paid to them over the coming week.

Full time employees will receive ($450) cash in the hand, with those who have been with the company longer than five years receiving an additional $50.

SKYCITY Auckland General Manager, Attractions and Support Services, Noel Dempsey, says the bonus rewards staff for working together to achieve strong financial and customer service targets.

"We recognise the significant role employees play in the success of the business - especially with regard to the delivery of excellent customer service," said Mr Demspey.

"Our incentive programme ensures employees have the opportunity (twice a year - every six months) to share in the company's success, and we are delighted to have extended the SKYCITY Auckland model across all of our sites."

"The CEI incentive based performance programme at SKYCITY is proving a fantastic way to incentivise staff and for everyone to share in the company's success. The past six months have actually produced some of the strongest ever customer service results.

"These results are not easily achieved. At SKYCITY we set high standards for customer service, and our performance is independently measured each month through market research.

"The results show that our people provide great customer service. Their hard work is central to SKYCITY's successful financial result," he says.

CEI - Background:

SKYCITY is unique in the entertainment and hospitality sector in offering incentive based bonuses to waged staff.

Waged employees at all SKYCITY Entertainment Group properties (SKYCITY Auckland, SKYCITY Hamilton, SKYCITY Queenstown, SKYCITY Darwin and SKYCITY Adelaide) all participate in a similar incentive based bonus scheme.

The CEI (Customer Experience Index) customer service based bonus scheme for waged staff was originally introduced at SKYCITY Auckland in December 2000, with other company properties following suit in succession. Waged employees at all SKYCITY Entertainment Group properties throughout New Zealand and Australia are entitled to a bonus, on top of ordinary wages and other benefits, if both customer service target levels and company financial targets are met.

Independent market research is undertaken monthly through the complex, surveying customers to determine levels of customer satisfaction. When the financial and customer service levels exceed the targets, waged staff are rewarded with cash bonuses half yearly.

The six-monthly bonuses for waged staff at SKYCITY sits alongside a similar plan for salaried staff, under which employees are rewarded annually for meeting company and individual performance targets with a mix of cash and SKYCITY shares. Many individual performance targets for salaried staff are linked to CEI targets, ensuring equal ownership of customer service delivery from front-of-house personnel through to executive management.


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