Have we truly reached... The Tipping Point?
Photo by Petr Sevcovic on Unsplash
There are a good number of things we take for granted on a day-to-day basis. Seriously, there's stuff that happens that we don't even question or bat an eye at anymore. For instance, when's the last time you considered that going for a drive means you're hurtling down a road at sometimes insane speeds inside of a metal box on wheels? As a teenager, driving is taken extremely seriously, requiring you to pass tests and ensure you're returning your parent's car in perfect condition. It's dangerous, it's risky, it's expensive, but we do it anyway. Millions of us do it every day. Some of us have made a career out of it. Heck, most of us think basically nothing of it anymore. It's just what you do.
If there's one thing that came of the pandemic that swept through the world not even a few years ago, it's that it made everyone consider the things they took for granted. It made people see their daily lives from a different angle. It made people question the way we did things.
Why are we commuting to work when we can do it remotely?
Why am I doing the grocery shopping when I can order it and pick it up?
When am I going to be able to see all my friends again, and why don't we meet up more often?
It's all things that we likely had to ask ourselves at some point since 2020. Driving, grocery shopping, being with friends... it's all stuff that we took for granted. It's just what you did.
So while we're on the topic of "Things that are just what you do", let's chalk up another item to the "Stuff you don't really think about" board... Tipping. I mean really, you go to a restaurant with family and friends, and you will inevitably be leaving money on the table beyond the bill. Tip culture is a heavily North American practice, and yet it's something that you don't even second guess if you live here. To not tip is to be considered rude. It's just what you do.
There is something to be said for "The People" rallying around servers and people in the service industry during the last couple years. The service industry was among those most affected by the events of the pandemic, and to see communities pull together and tip extra (generally) to offset the lost wages actually gave me hope for humanity (just a little). But now we see tipping a lot, and by a lot I mean it in more than one way. It's seemingly everywhere, and it's literally asking for more. And people are starting to take notice. No longer is it "Stuff you don't really think about".
What's the whole idea behind tipping? Why and how is it getting "worse"? And what impact does the increase in tipping have on both sides of the bill?
Photo by Blake Wisz on Unsplash
Tip of the iceberg
For the most part, the idea of tipping is not going to be uncommon knowledge. You're giving a percentage of your bill extra to the person who served you (or provided a service to you) as a sort of token of appreciation for their efforts. You already knew that. Everyone already knows that. I'm interested in the stuff that you may not be aware of.
Tips are generally regarded as a good thing, especially if used correctly. Yes, it costs you a little extra, but if truly exceptional service is provided, then a few spare dollars on top of the bill is a great way to reward that level of service. In Europe and other areas of the globe that allow tips (that aren't North America), that's exactly how it works. In North America however, if you have poor service, you tip, but less. It's a running joke at this point. And for good service? Say goodbye to a pile of money if you want to follow the trend (more on that later).
Some would argue that tipping high is good to incentivize good service. Others would argue that tipping even some amount is the "Thanks for not spitting in my food" fee. Regardless of a high or low tip, there's a decent amount of money to be made in these gratuities. A bartender can easily amass $500 in tips over a given night if they know what they're doing. Being able to collect tips can be a very attractive perk of the job. Think of it sort of like commission for part time service workers.
That's all great as long as the tips are not being abused by the business management. That tip you gave to an incredible server; there's a chance it ended up in a "Tip pool" which gets doled out at the end of the night (sometimes fairly, sometimes not). Non-restaurant locations that ask for tips (definitely more on those later) may just pocket any of the tips as additional revenue. And then there's the businesses that take the idea of the tip too far (yes, it's too far) and use it to offset wages, wielding it as an excuse to pay their employees less. Anti-bonus points for places that pay less than minimum wage and use the earned tips to make up the difference (yes, in the USA that's a thing).
Whether you want the burden or not, there's a high chance that tip is going towards keeping a roof over the server's head. It's often not vanity money. And companies know they can exploit the guilt of people knowing that's the case.
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All the places all the time
Alright, so we're tipping so the people working service jobs can take home a decent paycheck and hopefully not wipe my drink's straw on the floor. Sounds about par for the course. So why then does it seem like there's so much hate towards tipping these days? Seriously, it seems like everywhere you turn in the news cycle there's another piece detailing how tipping is getting worse, or how people are starting to hate tipping as a concept, or how tipping is now bad business practice. There's no shortage of them and they're not hard to find. Here's one! It took one google search to find (so like 15 seconds max).
The sad truth is that you're not imagining it. Tipping is getting worse.
It's easy for me to say that and just hand wave it away by saying you're paying more, but that wouldn't do the argument justice. It's boiling down to three things at this point, and I challenge you to see how many of them you've experienced:
They're everywhere! (It seems)
Tips used to be reserved for places where a person did some form of labour which involved possibly going above and beyond the call of duty. It's why restaurants still implement things like automatic gratuity for large groups. That being said, this is no longer the case. Fast food joints, liquor stores, and hardware stores (personal experience, was super confused) now flash an option for a tip in front of you at checkout. First of all, I shouldn't be expected to pay a gratuity because someone did their job and nothing else. Second of all, I don't consider someone watching me from a till before ringing me through that till to be "above and beyond the call of duty". Third, a hardware store? Funny enough though, it's that last sentiment that sticks the most. Businesses are asking for tips where they traditionally would never have been seen.
Show me the money
The old way of tipping was that a standard 15% was acceptable. 20% was considered incredible service. Poor service could see you get no tip. Again though, that was the old way. It's the one we are all used to. Nowadays, you go anywhere and can expect to be handed a device that immediately demands 20% up front and upwards of 30% for great service. That 15% option is now reserved for if service was poor. Coupled with the information from earlier and the fact that it's increasingly well known that poor practices exist, it comes off as a massive price gouge. The rates were increased to help during the pandemic, and it seems we forgot to pump the brakes on that train. How long until we see 40%?
Beep Boop
Technology has begun catching up with people in terms of its capacity to do certain things. Yes, it's not better than us in a lot of ways and mostly functions as powerful tools, but self-checkouts have proven that they are versatile and able to take on simple tasks. That being said, the machine doesn't have to budget meals, bills, and provide for a family. I AM NOT TIPPING A MACHINE. There's no human element to it. At that point, you're just asking for more money (and that just goes into the void I guess?). On the other hand, most tipping options that involve people are often now done just as much with machines. You press the button to tell it what to take before tapping your card on the back of whatever tablet is available and boom! It's not personal. You have no idea where your money just went. It takes the gratification out of it (what little was there in the first place.
Photo by Sam Dan Truong on Unsplash
Tip Fatigue
The spiral in public opinion cannot continue without some form of knock-on effect down the line. If tipping continues to go down the current path it's taking, expect all the problems mentioned above to become worse. That 40% I mentioned... will it start to push 50%? Would it just get renamed and hidden on the bill? Is that tip going to be alongside increasing costs that seem to only slightly be slowing down their crazy rate of increase? Will tips continue to be the only method used to offset wages or will businesses eventually crack and pay their workers a rate more in line with the cost of...well... everything?
If you haven't picked up on it yet, nobody wins when the tip amounts start to get as high as they are. People paying the tips start to see it less as a nod of appreciation and more of an invasion of their wallet. Coupled with the increase in price, the increase in tip cost could be just enough to push people over the edge as far as "Guess we won't go there" goes. Asking for 30% on top of an already 50% inflated bill is overkill and it's choking many tip-centric markets.
As for those who are just trying to make their living, they will begin to see the effects by way of a similar cause. Less people coming into a business means less tips to offset a low wage. And then there's dealing with those that don't leave a tip. I'm not saying you should be expected to tip in every circumstance, but there are certain industries that rely on that sort of extra money flow to keep the electricity on in their house. It means that people are actively punished for something out of their control and for something they can't do anything about regardless of effort put in.
The best way to reverse the damage is two-fold. Decrease the tip totals back to regular levels and increase pay to the people who depend on those tips. The only entity that stands to lose in that scenario is the business, but if they can't keep servers on and customers in, they'll end up losing anyway.
Photo by Blake Wisz on Unsplash
And that's my tips for today
Tipping is not going away anytime soon. It has reached too many industries and been rooted in North American culture for too long to just disappear into the night. That doesn't mean that we can't begin to find ways to crawl it back to where it was before. The pandemic brought about a bunch of "New Normals", but ever-increasing tip costs on top of ever-increasing prices should not be one of them. I can understand the argument that they are there to offset low wages, but maybe we're looking at the wrong problem if that's the case.
For all the grumbling that I do alongside everyone else, I will continue to tip where it's appropriate. As much as we all want to say we would do otherwise, it's hard to look at someone who genuinely tried their best and tell them they won't be earning the extra money. If things continue the way they are though, more people will begin to start looking past the guilt of not buying in. It's certainly an easier pill to swallow when the expectation is 15% and not 30%, let alone however much higher the number wants to climb. Only time will tell if the industries that utilize tipping will pivot before things reach ridiculous heights. Here's a tip... it's probably better to do it sooner rather than later.
~IR
What's your rules on tipping? Have you noticed tipping is getting more aggressive? Or maybe you just have a comment to add? Check out the Facebook, Twitter, Instagram, or LinkedIn page and let everyone know. Don't forget to follow or like the page for updates! And share this article if you feel others should give it a read!
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