Could we please cancel ‘tip’ culture?

I have traveled quite a bit over the past few years.  I am always in awe of employees in the hospitality industry.  Who else loves wonderful service when you’re traveling or patroning a restaurant or hotel???  I believe high quality customer service is something we all value. 

I just returned from the HR Conference Cruise.  (NOTE: If you have not yet attended, I encourage you to check it out!  A vacation with awesome HR people and continuing ed credit – yes, please!  https://hrcruise.com/)  The level of service on the ship was truly astounding.  My cabin steward took one look at me and reminded me that I need to wear sunscreen!  The attention to detail was fabulous.  Even better, the pride with which each member of the crew performed their duties warmed my heart.  They were a true depiction of servant leadership. 

However…

Employees should not have to rely on tips from customers to make a decent, fair living.  Companies need to pay employees what they are worth and charge what they need to accordingly for their goods and services.  Frankly, it’s degrading for employees to have to ask/beg the public for additional money just for doing the job they were hired to do.  Adequate pay is the duty of the employer. 

This ‘tip culture’ is part of the reason jobs in hospitality are regarded as low-level and employees are regularly subjected to disrespect.  These employees are treated as less than.  Yet, we all want great customer service. 

Pay inequity is real.  For too long, companies have prided themselves on hiring quality employees at below-market rates of pay.  ‘He/she/they are currently at 40, we know this position is worth 60 to us, but let’s offer 45.’  Sound familiar?  The worst part is that we, employees, have taken it.  We’ve allowed it.  Especially women.  Because at the end of the day, we all have to earn a paycheck.  Even a slight increase in pay is an increase, right?  The result is a deep rut called pay inequality that is alive and well today.  This must stop. 

HR, we have a tremendous opportunity here to make a real impact on an issue that affects everyone.  How do we do it?  Here are my recommendations:

1. Start the conversation in your organization.  If pay equality is not being talked about, nothing will be done to make change. 
2. Research and present the data.  Utilize credible market salary data to compare where your positions currently stand in relation to the market. 
3. Don’t reinvent the wheel – many HR-centric organizations are doing research on the state of pay equality.  Check out the great work being done at SHRM, HRCI, and various compensation associations across the world. 
4. Make a plan to address discrepancies.  Include top leaders, especially your CFO or Controller, in the conversation.  Understand that it may take several years to align compensation across your organization. 

My hope is that one day tipping won’t even be a thing in our society and everyone will have the opportunity to be paid what they’re worth.  And I believe HR can help make that hope a reality.