Hiring Preference and Operational Complexity for Tribal Enterprises

Abstract

Native American-owned enterprises commonly use preference hiring to promote tribal self-sufficiency and include a population historically excluded from the workforce. Based on interviews with tribal casino executives, we describe how this socially important practice creates operational challenges and how some casinos have addressed these. First, we show that Native American population density and customer satisfaction at tribal casinos are negatively correlated. While managers acknowledge the possibility of some bias against Native Americans, they emphasize the importance of training for tribal enterprises to succeed in their use of preference hiring. We then explore how tribal preference affects workforce recruitment and retention. Finally, we present challenges faced by these organizations in day-to-day capacity planning. Enabled by the unique legal circumstances and ownership structure of tribal enterprises, Native American preference hiring represents an extraordinary commitment to including disadvantaged workers and offers lessons for other organizations seeking to promote diversity and inclusion.