Total Rewards - Kiyasu Consulting

My family and I visited Hong Kong, Vietnam and Cambodia for our summer holiday/vacay- all wonderful places to visit, by the way. As anyone who has travelled to different countries can attest, tipping (aka gratuity) practices vary from one country to another. Even within a given country, what type of service provider should get a tip and how much varies.

I did some research prior to landing in these countries, but even then, I was never confident that I was giving people the “right” amount- not too little or too much. Some might argue that you can’t tip too much in countries where life is a struggle for most people, especially those in service jobs. Although I can really empathize with that point of view, I disagree; it can create misguided expectations for everyone involved. I found this aspect of our travels to be very stressful, especially combined with not having brought enough cash- I had incorrectly assumed that ATMs compatible with my personal banking network would be plentiful (more inaccurate online research!). Did he think I was cheap? Did she think we didn’t enjoy the meal, tour, driving, etc?

Plus, all the guilt- oh the guilt. We got to know many of our guides and drivers- their personal histories, current living situations (often multiple jobs or gig-to-gig, cramped apartments, taking care of extended family), and dreams and ambitions (and the expense and challenges of achieving these). Meanwhile, my family and I are beneficiaries of very comfortable lives.

Meanwhile, is this sort of system best for workers in any country, including the US? Does it really incent and reward the desired behavior. For example, how well does it incent and reward teamwork? And, what about the “back office/kitchen” staff? Conversely, if everyone is required to pool their individually “earned” tips or the “tip jar” is used, how does that affect individual motivations? Alternatively, does the level of service improve collectively if a business-wide “incentive” plan or profit-sharing is implemented for all employees?

Frankly, I find it sad and demeaning that instead of employers paying employees more they expect them to earn their “worth” on the “obligation and generosity” of customers. Why not eliminate tipping and instead raise wages and pass on the additional cost to customers and reduce the stress placed on both employees and customers? And while we’re at it, why not treat employees like we really care about them and create a culture where employees are encouraged to care about each other. Maybe start with asking instead of ordering, saying “please” and “thank you” (sound like we’re back in pre-school?)? And even “sorry” when that’s called for and sometimes even when it’s not- and, no I don’t believe it makes you seem weaker or less competent when you say it (according to some “experts”).

Finally, for employers/managers who want to engage and retain the best employees, the “golden rule” should be to think and act in ways to make your people the most marketable they can be. Huh? That’s probably the mildest of reactions I often get when suggesting this. Others are more along the lines of “are you out of your f— mind?” Why would you want to help your employees be marketable so they can more easily leave you for better opportunities elsewhere?

First of all, if we’re talking about whether to tip your employees or not, you’re in a business where you likely experience constant high turnover. And, even if you work in a sector that typically has a more stable workforce, you risk losing your best employees. Yes you need to pay people competitively, but genuinely caring about them goes a long way. And, if you really invest in them to help them become the best version of what they want to be, including making them more attractive to others (whether within or outside of your company)- how do you think they would feel? How would you feel about your manager if she treated you similarly? Would you feel more loyal to your manager and employer? Maybe be more patient or conflicted when presented with an attractive opportunity?  To quote Sir Richard Branson, “Train people well enough so they can leave, treat them well enough so they don’t want to.”

Even if you lose a great employee, many good outcomes are likely. Others find out that you’re a great manager to work for. And since you’ve done a great job with others on your team, you’ll likely have someone who is ready to step into the vacated role.