Tips and Gratuities
My first high school job was at Steak & Ale. I bussed tables and maintained the salad bar in a uniquely dim environment. For my efforts, I earned $2.13 per hour plus “tip share.” The gig afforded me a bit of extra walking-around money, but also such fringe benefits as first-person experience with tipping culture. A few years have since passed, I’m on the other end, and the world of tips and gratuities has gotten more convoluted along the way. Whenever I tip, I always try to remember 16-year-old me.
View From The Wing recently wrote about United Club bartenders demanding tips. It’s quite a read, including a bit of bigger-picture insight on the topic. VFTW rightfully points out that tipping enables employers to pay their workers less. I’d prefer to live in a society where everyone earns a living wage, and tipping isn’t involved. But we don’t, and I can’t imagine anything changing to the extent things need to anytime soon. In practicality, when I receive particular services, it’s on me to atone for these employers’ sins. I do my best to make sense of this conundrum, following the golden rule since the businesses don’t. These are a few areas I continue to reconcile.
Tip Creep
Like some of you, my experience tipping began on awkward dates. Before going out, I recall Mom and Dad imploring that tips start at 15% of the pre-tax total for sit-down restaurants. Over the years and as I learned more, rates increased to 18%, then 20%. The masses settled on 20% because math is hard, apparently.
And, perhaps in a quest for easier arithmetic, the starting point for many is 20% of the post-tax total. Some businesses helpfully calculate that rate with the bill before you sign for it. Despite other societal pressures, my rule of thumb is to start at 20% of the pre-tax tip. I feel no obligation to tip a worker more based on a given municipality’s tax whims. Based on the quality of service, I periodically tip more, but I always calculate based on the pre-tax total.
Services Vary
Since the level of attention and effort varies for different services, I’m comfortable adjusting tip rates to reflect that. Carrying out and dining in aren’t the same. I still tip when I pick up food, but it’s not at the same rate as I do for dining onsite. Given the wide variety of establishments which now accept gratuities, I think it’s key to remember that. Tip when you feel inclined, but don’t be overly swayed to tip a given rate or amount if it’s not in your heart. I follow this guideline whether I’m home or traveling. But it’s not always that easy, and in my view, we have one primary area to blame here – technology.
Technology
Technology’s great until it isn’t. And when technology and tipping come together, consumers are often the biggest losers. Let’s get into just a couple angles.
Obfuscation
Technology has made tipping and gratuities even more mysterious. Some businesses now deceive or guilt customers under the auspices of convenience. For example, my wife and I recently dined at a local establishment, and instead of a paper bill, the server provided a handheld device. Said doohickey merely offered a total on the screen and three or so preset selections with inflated tip amounts (and that other button – more on that in a bit).
I like to know what I’m paying for. It’s part of how I reached FI. But with this restaurant’s clever use of technology, the business discouraged transparency – and it worked, in this instance. The bill was a bit more than I was expecting, but I left a tip based on the one number I was provided. The restaurant was busy, and I didn’t want to wait for the paper bill – which would require two more visits from the server to settle up. I just wanted to be done. The value of my time was worth more than the amount they swiped from me. I’m confident this trick has worked on other patrons, whether they know it or not.
“Other Amount”
Technology jacks up tip shame, or more specifically, the fear of it. Thanks to technology, tips are accepted (read: expected) at a much wider scope of businesses these days, and their tactics are similar. We’ve all been there. A tablet or other gadget autopopulates three or so tip amounts (again, usually inflated) and you can select to quickly complete the transaction. Or you hit the “Other Amount” option, taking more time to leave a customized tip. The worker may stare or go on with their tasks while others in line wait longer. Regardless, they all know what you’re doing.
I generally don’t cave here. I customize my tip based on the service provided. Importantly, this means I sometimes don’t leave a tip. For instance, I don’t feel the need to tip a worker who hands me a $4.99 cookie from a case or a soda from a cooler behind the register.
Bigger Picture
Traversing the world of tips and gratuities is an inevitable part of many everyday transactions. But I think it’s important to follow the golden rule regardless of how much you tip (if you leave one at all). Beyond gratuities, we can do so much to fulfill others just a bit more, such as:
- Smile.
- Look people in their eyes.
- Greet others.
- Hold the door.
- Show a bit more patience than usual.
- Commend deserving employees by name to management.
- Return the cart or TSA Bin.
Yes, I’m preaching.
Tips and Gratuities – Conclusion
Some of you probably consider me the “get off my lawn” type, if you haven’t already. But when it comes to tips and gratuities (and other life angles), I know I can maintain a few principles while leaving room to grow. Again, I wish we lived in an alternate society where tipping didn’t enter into the equation. But since that’s not the case, I’ll keep providing gratuities based on the level and quality of service.
What are your rules of thumb for tips and gratuities these days?
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The nonsense tipping culture in the US needs to end. It’s a breath of fresh air when you are traveling somewhere that takes care of their employees, like Japan.
My personal pet peeve is the American tax, when tour guides in other countries expect tips from Americans and no one else tips. Sometimes on group tours, I wait to get off the bus to see what others do and they rarely tip. I refuse to pay a tip when no one else tips.