No one would be foolhardy enough to ask a roomful of women to report their weight for publication in a statewide magazine. It would be even more foolish to expect the results to be accurate. Asking Nevada’s private firms to reveal their revenue figures for a published ranking proved to be an equally daunting task. The usual response was something like, “What part of ‘PRIVATE’ don’t you understand?” Privately-held companies, whether sole proprietorships, partnerships or corporations, are not required by law to disclose their earnings, and they guard this right very jealously.
However, in our quest to rank Nevada’s Top 25 Private Companies, we did have access to employment figures from the state’s Department of Employment, Training and Rehabilitation. The largest employers in the state, not surprisingly, are public corporations such as MGM Mirage and Park Place Entertainment, as well as government organizations such as the Clark County School District. By eliminating public entities, we pared the list down to the top private companies ranked by number of employees. While a few were eager to be featured in the article, several were reluctant to reveal any information at all about themselves, preferring to maintain their privacy as much as possible in this information-hungry world.
Ranking the firms by number of employees gave us an opportunity to ask our Top 25 how they attract and keep quality people, an issue currently at the forefront due to the tight labor market. We were also curious to find out their opinions regarding rumors of an upcoming economic downturn. As befits entrepreneurs, they proved to be an optimistic, though taciturn, group.
Following are the results of our survey questions:
What is the economic outlook for your industry for the upcoming year?
10 Business will improve
2 Business will stay about the same
1 Business will decline
12 No response
Nearly half of our top 25 companies chose not to answer this question, which might be an indication of the uncertain state of today’s economy. However, those who did respond were decidedly upbeat about future prospects.
In the event of an economic downturn, what plans do you have for keeping revenues up?
In keeping with the preceding statistic, several firms reported they were not making plans for a recession. “Business as usual,” reported one hotel/casino, while NOS Communications claimed, “Our business is recession-proof.” Yellow Checker Star Transportation said, “We don’t believe the economic downturn will have an impact on our industry.” St. Rose Dominican Hospital pointed out, “Healthcare is still a requirement, even in the event of an economic downturn.” The hospital did, however, stress that it is focusing on operating efficiently. Those who were devising contingency plans for a downturn reported the following strategies:
“Our success is built on our employees and on our quality.”
Increase market share through contracting
Provide better service than our competition
Participate in joint ventures and relationships
Strategic marketing plan
Increase operating efficiencies
Officials at the Venetian reported that, “The meetings and conventions business, which books years in advance, should keep us financially buoyant.” The Eldorado Hotel & Casino said, “The [Reno/Sparks] community is working together to better market Reno and provide better venues.”
What are the top business challenges facing your company in the coming year?
Our Top 25 companies reported a variety of challenges. As in previous NBJ surveys, problems attracting and keeping quality personnel led the list, but this time they were not the overwhelming choice of respondents, perhaps due to concerns about the faltering economy, which came in a close second. Here are some of the other challenges anticipated:
Keeping up with the growth of the city [Las Vegas]
Devoting large amounts of capital to stay abreast of technology
Remaining the best and delivering unmatched service while maintaining an exceptional work environment.
Growth of Indian gaming
Energy costs/power shortages
Reaching out to new customers/Business growth
Facility problems/limitations of current facility
Maintaining operating efficiencies to pay down capital debt
As a large employer, what are your strategies for attracting good people to key positions?
As might be expected, competitive salaries and benefits packages were most often cited as ways to attract employees in the current tight labor market. Some of the benefits specifically mentioned were: 401(k) plans, company-paid life insurance, healthcare plans and profit-sharing. NOS Communications reported that it “continually advertises and keeps [its] name in the public eye.” As reported in a March 2001 NBJ article, hospitals utilize focused recruiting strategies, including visiting local high schools to encourage students to enter the healthcare field, providing scholarships, paying for relocation costs, and offering sign-on bonuses and other perks. St. Mary’s Health Network stated, “Nevada is a great place to live, a big selling point in our recruitment efforts.” Other strategies for attracting employees include:
Work environment that provides challenge and the opportunity to excel
Professional atmosphere
Recognition and appreciation
Advancement opportunities
Succession planning for key leadership positions
An exceptional work environment
Clean, attractive surroundings
What programs do you have in place to retain employees once they have been hired?
Once again, salaries and benefits led the list of attractions. Some of the more creative benefits mentioned were: tuition reimbursement, corporate fitness membership, company-paid childcare and a four-day workweek. Employers also attempt to develop a spirit of teamwork and a sense of community among their staff. Yellow Checker Star Transportation organizes company picnics during the summer and an employee banquet each winter. NOS Communications stated, “We are always working to keep work fun with incentives such as car giveaways.” Several companies encourage workers to participate in community events and charity fundraisers as part of their teambuilding efforts. Other retention programs include:
Treating people with dignity and respect
No lay-off policy
Numerous recognition programs
Policy of promotion from within
Training programs geared toward employee advancement
A caring, hands-on employer
Training management staff to better manage employees
Challenging work environment
Seniority benefits — the longer employees are here, the better shifts they are given
Why has your company remained private?
The overwhelming majority of our Top 25 Private Companies listed “owner preference” or a similar phrase as their reason for remaining private. “We are a large company with an entrepreneurial spirit and would like to keep it that way,” said NOS Communications. “At this point, we are not in need of additional funding.” The three hospitals on the list agreed their mission in providing for the community’s healthcare was best served by private ownership rather than concerns about stockholder profits. Binion’s Horseshoe cited “family pride.” While this was not mentioned specifically by other firms, it may certainly be a factor in other family-owned businesses as well.
Plans for the Future:
Not content to rest on their laurels, several of our Top 25 have recently expanded, and others were planning new projects despite a soft economy.
Our leader, Coast Resorts, began a $100 million expansion project this spring at the Orleans, which will include a 9,000-seat special-events arena, a 620-room hotel tower, a new parking garage and additional movie theaters and restaurants.
In addition to constructing an additional 1,000 hotel rooms atop its parking garage, the Venetian is planning two even more ambitious projects with the planned September opening of a $21 million, 63,000-square-foot Guggenheim museum and a separate $6 million, 8,000-square-foot Guggenheim-Heritage Museum.
NOS Communications plans to expand the number of its sales representatives and diversify into local phone service; it is also investigating the possibility of offering wireless communications.
Saint Mary’s Health Network will open Saint Mary’s Galena Health Center this year and will also begin an extensive master plan for expansion of its facilities.
The Stratosphere is nearing the completion of its $75 million tower expansion project, which will add 1,000 rooms and a new pool and spa area.
Yellow Checker Star Transportation is moving into a new 40-acre headquarters facility, including a 65,000-square-foot maintenance and administration building.
Which of the following best describes the organization of your company?
15 Corporation
2 Subchapter S Corporation
1 Partnership
2 Sole proprietorship
2 Limited Liability Company (LLC)
3 Unknown/No response
Year company founded in Nevada:
The average company responding to the survey was founded in 1968, which means it has been successfully operating for more than 30 years. We left Washoe Health Systems out of this calculation for fear of skewing the numbers, since it reported that Washoe Medical Center was founded in 1862 to care for smallpox victims.
Number of employees:
The average number of employees was 2,159, a number large enough to present challenges for human resources staff at most companies. In addition, the three hospitals on the list are all facing a nationwide shortage of skilled healthcare professionals
Conclusion:
Our Top 25 Private Firms proved a good reflection of Nevada business as a whole. The majority of the firms (17 out of 25) are hotel/casinos, and another two businesses depend on the resort industry for their livelihood. Healthcare, public transportation, telecommunications and manufacturing rounded out the list. Despite all the publicity given to new companies, these firms have stood the test of time. Their optimism, sense of independence and pride of ownership are part of Nevada’s heritage as a free-spirited state welcoming entrepreneurs and encouraging their businesses to thrive.
