The Trouble With Tipflation

Having worked in the service industry for many years, I relied on tips to supplement my income. However, there are fundamental problems with tipping culture and employers who don’t provide liveable wages. While tipping is socially accepted for certain positions, now it seems like tips are expected for every transaction. Here is the trouble with tipflation and how it is negatively impacting Americans.

What’s the Trouble with Tipflation?

There are times that you expect to tip. For example, when you order food and drinks, get delivery services, or want to express your gratitude for a job well done. However, we are now asked to tip for every transaction, even when you use the self-checkouts.  At this rate, where do you draw the line?

It seems like tipping has now become an expectation rather than a reflection of the quality of someone’s work. Unfortunately, it is so ingrained in our culture, people feel obligated to leave a tip even for subpar service. And, it feels as if more companies are shifting the responsibility to the customers to pay their employees’ wages.

It is also a growing burden on consumers who are already struggling to keep up with rising inflation and the cost of living. According to a recent Bankrate survey, 66% of respondents have a negative view of tipping and 30% think it is out of control. The pressure to tip more has increased, almost to the point of becoming aggressive in some cases. Not only is this negatively impacting customers, but also the employees who rely on tips to survive.

How Is It Affecting Americans?

Those in the service industry already know this, but the minimum wage for tipped workers is much lower than the federal minimum wage. Where I live, it is only $2.13 an hour, which hardly covers the taxes they take from your paycheck.

Furthermore, having to rely on tips creates less financial security since your income can vary dramatically between shifts. And, it can lead to more disparity between workers in the same roles, increasing tension, resentment, and hostility in the workplace. The unequal power dynamic and income inequality leave many tipped workers in a desperate position.

On the other side, consumers not only have increased prices but also need to tip more frequently. This puts more financial pressure on people who use these services and takes up a larger portion of their budget. If people can no longer afford it, they will either tip less or stop using them altogether. And without customers, businesses will fail.

How Can We Combat Tipflation?

The only way to completely end tipflation is by eliminating tipping culture. This can only happen through intrinsic labor reforms that put more pressure on companies to fairly compensate their employees instead of passing the responsibility on to their customers. Although some companies are moving away from this, tipping remains a fundamental aspect of the service industry.

No matter how much you dislike it, tipping won’t be going away anytime soon. So if you plan on using services that require tipping, it’s best to include it in your budget instead of treating it like an optional expense.

Read More

• Joe’s Crab Shack gets rid of Tipping
• This Is How Much You Should Tip At Massage Envy
• 5 Things You Can Do to Earn More Tips

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Jenny Smedra

Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.