The service industry covers a lot of the job market and often are not compensated the same amount as regular industries due to their ability to gain tips; however the importance of tipping is often forgotten about. When it comes to the service industry, waiters, bartenders, valets, taxi drivers, hairstylists, doormen and baristas are the top jobs that earn tips.
However, what people don’t recognize is that people don't often tip enough for these professions. According to this infographic, the two professions not tipped enough are baristas and doormen. These jobs are often thrown under the rug when it comes to recognizing them as a service. Waiters and bartenders often make more than 60% of their income off of tips.
What Makes This Trend Stand Out
- Importance of Tipping in Service Industry
- As tipping serves as a primary source of income for many service industry jobs, there is an opportunity for businesses to explore innovative solutions such as incentivizing tipping through loyalty programs or providing digital tipping options.
- Undervalued Service Industry Jobs
- Jobs such as baristas and doormen are often overlooked in terms of tipping, leading to a potential opportunity for businesses to rally for increased recognition of these professions through education and awareness campaigns.
- Shift From Cash to Digital Tipping
- As cash transactions continue to decrease in several industries, there is potential for businesses in the service industry to adopt digital tipping options as a more convenient and contactless option for customers to tip service workers.
Sectors Adopting This
- Hospitality Industry
- Hotels, restaurants, and bars could explore innovative ways to incentivize and educate customers on the importance of tipping for their staff, such as offering discounts for customers who leave tips or implementing in-app digital tipping options.
- Transportation Industry
- Ride-hailing services and taxi companies could offer digital tipping options as a more convenient and preferred method of tipping for customers, potentially increasing overall earnings for drivers.
- Beauty/salon Industry
- Businesses in this industry can increase education on proper tipping etiquette for services provided, as well as explore digital tipping options for clients to tip service workers in a contactless and convenient way.
