Americans are increasingly dissatisfied with the current state of the tipping culture, and many workers who rely on tips are ready to move away from the tipping system altogether. This is according to a new survey from the HR software company Paylocity, conducted by The Harris Poll earlier this month.
The survey, which included responses from 2,000 people, including 133 tipped employees, explored attitudes around various workplace issues. The results reveal some surprising insights about tipping culture in the United States.
Tipping culture has reached an inflection point, largely due to the pandemic era, when tipping more frequently and generously became a common way to support frontline workers. However, in the aftermath of this phenomenon, many Americans are now uncertain about what is expected of them when presented with a tipping option, whether at a fast food restaurant, clothing boutique, or grocery store. In fact, a 2023 Pew Research study found that only about a third of respondents said it's "extremely or very easy" to know when and how much to tip.
The new Harris Poll survey provides further evidence of the unease that can arise from unexpected tipping prompts. According to the findings, 64% of Americans are uncomfortable with more types of businesses and services asking for tips, and 78% would like to see more transparent tipping practices.
Perhaps the most surprising finding, however, is the perspective of tipped employees themselves. An overwhelming 83% of tipped employees – more than four in five – reported that they would rather be paid a higher wage with no tips at all rather than receive a lower base pay with tips. Most other respondents supported this stance, with 61% of Americans agreeing that they opposed employers paying tipped employees less than those who don't receive tips.
While "tipflation" may still be on the rise, the growing frustration with the seemingly endless prompts for an additional fee suggests that businesses may need to consider new approaches, both for consumers and for workers.