If You Are Tired of Being Asked to Tip for Minimal Service – You Are Not Alone!

In case you missed it, Drew Desilver and Jordan Lippert from the Pew Research Center released results on U.S. consumers’ perceptions of tipping. From my perspective, here is the central finding: 72% of U.S. adults say tipping is expected in more places today than it was five years ago…The adoption of point-of-sale tablets, apps and digital kiosks has made it easier for businesses to provide customers with tip prompts and suggestions.

In addition to looking at age, gender, and socioeconomic differences in perceptions of tipping as an “obligation” vs. “choice, the researchers note that:

The public is more negative than positive when it comes to automated tip suggestions, whether listed on a bill or shown on a screen when checking out. Four-in-ten U.S. adults strongly or somewhat oppose suggested tips.

What’s a Leader to Do?

Great leaders find a way to navigate dilemmas respectfully and fairly. In the case of tipping, they craft strategies that reflect care for both customers and team members. If you face the tipping challenge, here are a few things you might consider:

1. Transparency and Clarity: Ensure that the tipping process is transparent. Customers should clearly understand why they are tipping, who the tips are going to, and how they benefit the service staff. This can be communicated through signage or on the payment screen.
2. Optional, Not Presumptive: Tips should be presented as an optional way to express gratitude for quality service, not as an expectation. Automated requests can offer options but should also include a simple, guilt-free way to opt-out.
   Service Quality: Focus on providing service excellence. Customers are more inclined to tip when they feel they’ve received something above the standard level of service. Train staff to be courteous, professional, and efficient.
3. Customize Tip Requests: Tailor the tipping experience to the context of your business. For example, in a fast-food setting, a tipping option might not be as relevant as in a full-service restaurant.
4. Fair Wages: Ensure your staff are paid fair wages. A tipping culture that supplements fair wages is more positively received than one that is seen as compensating for insufficient pay.
   Technology Use: When using automated tipping systems, ensure they are user-friendly and non-intrusive. Technology should facilitate the tipping process, not complicate it.
5. Educate Your Team: Educate your staff about the importance of tips and how their behavior drives tip revenue.
6. Review and Adapt: Regularly review your tipping policy and adjust based on customer and team member feedback.

Ultimately, tipping decisions should ensure:

Staff can earn tips from customers when customers wish to show appreciation for caring and skillful service.

Written by Joseph Michelli, Ph.D.
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