Signal11 Apr 2024
Tipping fatigue sheds light on business expectationsPeople are increasingly critical of tipping culture, concerned that it shields businesses from properly compensating their employees. The shift points to mounting financial pressures and a desire among younger generations for transparency and accountability from employers.
A survey from Wallethub has found that nearly three in four Americans feel that tipping culture is too much, with businesses using it as an excuse to not properly pay their employees. More than half also report they leave tips due to social pressures. "It is becoming an issue, and should this feeling of tip burnout reach a crescendo, there could be negative outcomes for individuals who rely on tips as their primary source of income," says Cortney Norris, an assistant professor of hospitality and tourism management at Oklahoma State University.
Inflation has people operating with a heightened sense of value as financial despair becomes more commonplace. In the US, tipping fatigue has been under the spotlight due to inflation, as younger generations look to save where they can, with Bankrate finding that 66% of US adults have a negative view of tipping. While it has long been practiced, it rose to prominence during the pandemic as a way to support frontline workers. However, the study highlights people’s expectations for businesses as they look to ensure that companies adequately care for and support their employees rather than relying on customers to do the work for them. In response, some businesses have done away with tipping, instead noting they’re paying their employees higher wages.
©Dan Burton (2020)
