Does tipping employees really help a business? Here are three reasons why the answer is definitely a YES!

Many Industries Depend on Tips

Tipping is good for business because it supports people more than you may realize, there are even specific rates to tip movers. The United States is one of the few countries that rely on tips to help supplement employee wages. It is so prevalent nowadays, that it is quite offensive to leave a small tip, or no tip when at a restaurant or receiving other services. Other countries such as Italy, England, and Japan actually deem tipping as rude; a foreign thought in America. For Americans, the reality is that tips are how people pay their bills. For instance, waitresses usually make below minimum wage as their base pay. They rely on tips to help them make their paycheck substantial. The same goes for employees who work for moving companies. Their base pay is rather low, so they rely on tips from home or business owners to make up for their low salary wage.

Encourages Good Work Ethic

Because many employees receive more money in tips than their actual pay rate, they have to work extremely hard to make that money. Tipping is good for businesses in this area because it encourages work ethic. If a waitress does a shabby job on serving a table of customers, then they are probably going to leave a pretty small tip. The waitress should realize her mistake when she gets her small tip, and will usually be more careful about how she takes care of her next customers. This is the same for movers, car repairmen, or cosmetologists. The tips that they receive are normally based on their performance. Great performance and customer service should equal great tipping.

Tipping Boosts Employee Morale

It is customary for people to leave 15-20 percent tips as a courtesy for the services a customer receives. Sometimes they leave more, and sometimes they leave less. It all depends on the quality of work that the employee demonstrates. There are a few times when people leave less of a tip than they should, but this is only in the case of nasty people. But when an employee receives a great tip after their work, they are usually in a happier mood and can better serve their customers.

Tipping is part of American culture. Tipping encourages a good work ethic and can even boost employee morale, two great things to have in a business. Encourage tips in your business and don’t forget to tip people when you go out as well.

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