Scaling Culture in ‘Vertical Cities’: HR Lessons from Las Vegas

In Las Vegas’ high-stakes hospitality sector, HR leaders are navigating a uniquely complex operating environment—one defined by intense customer expectations, evolving unionization dynamics, and a workforce that spans generations, roles, and backgrounds. At the same time, they are being called on to sustain engagement, reinforce culture, and serve as stabilizing forces across their organizations.

The challenges took center stage at the recent Unleash America conference, where Mike Bollinger, global vice president of strategic initiatives at Cornerstone, a talent management platform, moderated a panel featuring senior HR executives from some of the Strip’s largest employers.

As Bollinger framed it, “Hospitality runs on a human connection. It’s also high pressure, with one chance to make a first impression on customers.” In Las Vegas, where companies like MGM Resorts, Caesars Entertainment, and the Venetian operate what he described as “vertical cities,” the stakes for getting people strategy right are exceptionally high.

Event: SHRM Talent 2026

Engagement Starts on the Floor

Rick Jost, senior vice president of HR for MGM Resorts International, said that maintaining alignment with organizational mission begins with visible, consistent leadership presence. The key, he said, is “Getting our leaders out of their offices and onto the floor, hearing directly from guests about what is going well or questions they have,” he said.

This proximity to both employees and customers is more than symbolic, it is operationally critical. Jost noted that engagement surveys often surface fundamental breakdowns, such as employees lacking basic tools to do their jobs. “The only way that happens is if their leaders are not with them every day,” he explained. “If they were, they would see that. When that happens, management loses credibility.”

Leadership visibility also creates a cascading effect. “If you can get your GM onto the floor, that sends a signal to all the other managers,” Jost said. “It’s a force multiplier effect.” In environments with tens of thousands of employees, this kind of modeled behavior becomes essential to scaling engagement and accountability.

Yet even well-intentioned engagement initiatives can fall short without the right behavioral foundation. Jost shared a cautionary example from MGM’s past implementation of a recognition platform. While the organization tied recognition activity to manager bonuses, the effort faltered due to insufficient change management.

“We decided that managers needed to provide at least five instances of recognition per month,” he said. “Unfortunately, we had not done enough at the front end with behavioral change —providing the ‘why’ behind giving recognition.” The result was predictable: “For some, it became an exercise to dole out recognition in the last week of every month. Employees caught on that the recognition was obligatory.”

The lesson, he emphasized, extends beyond recognition programs to emerging technologies like AI. “It may be best to look at quality over quantity there,” Jost said, underscoring the importance of meaningful adoption over superficial metrics.

Navigating Complexity with a Clear North Star

For Stephanie Lepori, chief administrative and accounting officer at Caesars Entertainment, the complexity of a highly diverse workforce spanning union and nonunion roles, multiple generations, and varied skill sets, requires a grounding principle.

“All demographics at our properties want the same things: clear expectations, to feel valued, to feel purposeful at work,” Lepori said. “That is your North Star as you manage a very complicated workforce composition.”

This shared set of expectations also informs Caesars’ approach to labor relations. “That’s a conversation we are having with our union partners,” she noted. Flexibility and incentives, she added, are becoming increasingly important to ensuring that “up-and-coming generations are still interested in working at our properties.”

As new technologies reshape hospitality operations, transparency has emerged as a critical lever for maintaining trust. Lepori acknowledged that automation and monitoring tools can initially trigger fear among employees, but emphasized that outcomes and communication make the difference.

“It’s all about the outcomes,” she said. “Being transparent about the ‘why.’ People are excited about it.” By positioning technology as a way to simplify work and eliminate tedious tasks, organizations can shift perception from threat to opportunity. Caesars has reinforced this approach by involving employees directly in implementation through AI strategy committees. “Being involved in the process is important,” Lepori said.

At the same time, she stressed that any transformation effort must begin with a deep understanding of frontline realities. “You must first understand the frontline work before implementing new things,” she said, pointing to opportunities for centralized platforms to reduce administrative burdens on managers and employees alike.

Underlying all of these efforts is a fundamental requirement: trust. “Employees must feel that you are a trusted partner,” Lepori said. “Relationships are built on trust.”

Continuous Listening as a Strategic Capability

Matt Krystofiak, CHRO at the Venetian Resort, said that trust is built through consistent, visible listening practices. “We take the approach of listening intently and frequently as well as being transparent,” he said. “That’s not an engagement survey once a year. That’s out on walk and talks, holding skip-level meetings, roundtables — being on the floor.”

This continuous listening model proved especially valuable during a period of significant organizational change. “For 25 years we were nonunion,” Krystofiak explained. “In less than a year and a half we went to 60% unionized.” Despite the scale of that transition, the organization achieved record employee engagement and customer service scores, he said.

“Our union partners helped us hear the collective voice,” he said, citing insights into the needs of large employee groups such as housekeepers. In this context, unions became not just stakeholders, but strategic partners in amplifying employee voice.

Krystofiak also highlighted the role of technology in improving both employee and customer experiences. In the Venetian’s call center, AI has streamlined workflows that were once highly fragmented. “It used to be that the employee had about 40 different screens to look through to get the guest an answer,” he said. Now, AI tools recognize guest needs, direct employees to the right information, and even provide suggested scripts, reducing call times and improving job satisfaction.

Equally important has been rethinking traditional performance management. To address burnout and improve engagement, the organization eliminated formal, twice-yearly reviews in favor of frequent, structured one-on-one conversations. “People just want a conversation about how they are doing,” Krystofiak said. “It didn’t add value to sit down twice a year with a formal document.”

Resource: Performance Management

HR as a Stabilizing Force

From all panelists, a common theme emerged: HR’s role as a stabilizing, integrative force within complex organizations. This includes balancing compliance with empathy, structure with flexibility, and business outcomes with human needs.

“There is so much rigor around compliance,” Jost noted, “but policies can’t replace empathy.” In hospitality, where guest experience hinges on employee experience, leaders must continuously ask, “What are we trying to accomplish?” and work toward a culture of solutions.

Krystofiak echoed that balance succinctly: “HR must lead with heart, but balance that with what the business needs.”