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John Reitman

By John Reitman

Superintendents say rising minimum wages in some states eventually will affect golf course operations

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Increases in the minimum wage in some states could affect golf course operations in some states. Photos by John Reitman

To say the golf business is facing a labor crisis is an understatement that could make Captain Obvious blush.

Whether it is on the course or in the clubhouse, golf facilities unable to keep up with wages offered in retail and other segments are struggling to attract and retain employees. In an industry where the cost of doing business continues to rise (including mandated minimum wage increases in some states), while the number of people who supporting the game declines, as Bachman-Turner Overdrive said so eloquently in 1974: "You ain't seen nothing yet."

In 2016, New York passed legislation that mandated gradual minimum wage increases across the state. The schedule varies depending on location, but eventually the law will bring the minimum wage up to $15 per hour from Buffalo to Brooklyn and everywhere in between. Some areas, like New York City, will reach the mandated wage by next year. Nassau, Suffolk and Westchester counties will reach that goal by 2021. The schedule for the rest of the state will be determined by New York's budget director.

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Justin Mandon at Pasatiempo Golf Club in Santa Cruz, California, has been trying to stay ahead of the minimum wage curve for several years.

That's a lot of golf courses in the Met area, including the Seawane Club in Nassau County on Long Island.

"In five years, that is an increase of $5 per hour," said Seawane Club superintendent Brian Benedict. "That's a one-third budget increase. Add taxes and benefits to that, and that is a substantial amount for one department.

"Throw in the pool, valet and clubhouse, and it's the same thing for them."

Eventually, robotic technology could help some in the golf business alleviate the challenges associated with finding labor and paying for it.

The ability to mow large areas with robotic technology is something many say they are awaiting.

"Thirty acres of fairways vs. 3 acres of greens? Put a pair of robotic fairway mowers out there to cut 30 acres and I'll cut those 3 acres of greens myself," Benedict said.

The problem, of course, beyond finding new money in a declining business model, is how finding a way to keep seasoned employees happy so they don't feel like they are getting the short end of the stick while their colleagues with less tenure get regular pay increases.

"What do we do about the other guys," Benedict asked. "There is going to be a revolt when they find out some people are getting a $1 raise every year and they get nothing.

"This is just the tip of the iceberg."

A very small tip.

The minimum wage in California increased to $10.50 per hour last year, $11 this year and will continue to climb $1 per hour each year until it reaches $15 per hour in 2022.

At Pasatiempo in Santa Cruz, superintendent Justin Mandon has been trying to stay ahead of the coming curve by giving his employees regular raises before he is told he has to.

"We're trying to be proactive. For our core group, we've been giving them raises to get them above $15 so we're not hit with one huge expense," Mandon said. "The average is about $16.75. It was closer to $14 a couple of years ago.

"We're not just bringing some up to $15. We're moving everyone equally."

With about 20 people on the maintenance team, the impact is substantial.

"We ran the numbers, and pushing everyone up over six years is about a $250,000 impact just in maintenance," Mandon said. "It's a huge impact. We're trying to pick it off slowly, $40,000 to $45,000 a year and work it into our budget.

"The cost of golf is the bigger issue, and how do you address that. You're going to have to increase the cost of golf or lessen expectations because you are not going to have the same number of people you had before."

So far, at Pasatiempo, the solution has been to increase the cost of golf to the consumer. 

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Austin Daniells at Navy-owned Monterey Pines in California says higher wages will mean making do with the number of employees he has on staff now.

In an effort to keep pace with the rising cost of paying its employees, Pasatiempo has raised green fees each of the past few years since Gov. Jerry Brown signed the minimum wage legislation. Fortunately, Mandon said, the club has had a good season this year, but he also knows that in a game that has been steadily leaking players for more than a decade, the number of people willing to pay north of $300 for a round of golf is a very finite one.

"In the past, we've had as many as 22 to 24 people on staff. That's just not going to be the case anymore," he said. "We've already made the reduction and eliminated a few positions. I feel like we can maintain this moving forward."

That won't be the case for everyone.

At Monterey Pines Golf Club, a U.S. Navy-owned course in Monterey, California, the defense department has been proactive in keeping up with wages.

"Nobody's leaving, but we can't get more bodies," Daniells said. "We're making it with what we have.

"In-N-Out Burger is paying $15 an hour. We have to compete with that."

Back in New York, Benedict believes changes to the pay scale and shifts in the golf industry could alter how some facilities conduct business at a very basic level.

"Big clubs are always going to be OK, but there are a lot more mid-level clubs than high-level ones," he said. "When you put pen to paper and look at the economies of scale, you're going to have a lot of superintendents become general managers and do both jobs. At the end of the day, are you going to pay a GM and a superintendent? Members aren't going to want to give up service, so give me the superintendent who can do both jobs."

Making ends meet also might mean more golf than ever at some facilities, he said.

"Do we do 36 outings instead of 18?" Benedict asked. "What if a member comes in on a Thursday and wants to play. 'Sorry, we have an outing so we can keep dues down for you.' "

Even with changes in the minimum wage structure coming to some states, no one is getting rich mowing greens on golf courses.

Despite the efforts at Pasatiempo to keep wages up and retain employees, most of the help there has more than one job.

"What is a living wage in California? To buy a home here, you need a dual income of at least $150,000," Mandon said. "The guys here get off at 1:15, and go to another job for seven hours."

It's the same on Long Island.

"Where are you going to live in Nassau County for $15 an hour for 40 hours? Benedict said.

"I understand why the state did it, but it's going to hurt small businesses. What is the threshold someone is willing to pay for services because wages are going up? We're headed in that direction.

"It's going to be up to us to adapt."

Whether it is a private club on Long Island, or a Navy course on the West Coast, golf facilities of all kinds will face a common goal, Daniells said.

"As superintendents, we put out the best product we can with what we have," he said. "But at some point something has to give."

Edited by John Reitman






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