Business and Entrepreneurship INSTRUCTIONS: During the pandemic, some restaurants automatically included ″Gratuity″ in your bill. There was even a ″COVID-19″ fee included. I′ve seen ″suggested″ tip st

Video: “Why Tipping is an American Custom”

a.      What are your thoughts about the video and the topic ″Tipping System″? You can respond as an employee and as a business owner. Are there pros and cons associated with this topic?

            After watching the video, I believe it is an interesting and good source of information about tipping in the United States. Ideally, the video has provided me with substantial insight into the economic and historical aspects of this practice in the country. Apart from this knowledge, the video also provides details about how tipping has become embedded in American culture. I consider the video a useful source since it combines reenactments, images, statistical data, and vivid explanations that allow the viewer to reflect on the evolution of the tipping practice and its impacts. On the other hand, I believe the toping “Tipping System” is a controversial issue in the United States after watching this video. I consider the topic controversial since it has split American society into two groups: proponents and critics. The latter oppose the practice by emphasizing that it can be unfair and initiate inconsistencies in the business world. The proponents, however, support tipping as they consider it an opportunity to earn more income, especially for workers. Therefore, this topic is a debatable issue in society.

            Furthermore, there are numerous pros and cons associated with the tipping system. As an employee, one of the main advantages of this practice is that it can allow an individual to obtain an extra income. Essentially, tipped workers usually receive money frequently during their shifts. These employees; thus, earn additional spending income beyond their allocated base wages and salary by collecting these tips during each shift. However, the tipping system can have disadvantages for employees despite this benefit (CNBC, 2021). For example, the practice can be unfair and contribute to inconsistencies in earnings for the employees. This problem occurs since tips in the corporate world vary based on factors that the employees cannot control, such as the business or company they work in or the perceptions of their clientele.  As a result, maintaining uniform tips to allow all workers to earn equally is impossible.

            As a business owner, the tipping system can also have several pros and cons. The major pros of the tipping practice are boosting employees’ motivation and productivity in the workplace. CNBC (2021) found that tips are essential incentives that inspire workers to focus on providing quality services. Such practices eventually improve customer satisfaction, leading to increased customer retention.  Nevertheless, tipping can have drawbacks despite these benefits (CNBC, 2021). For example, the tipping system can perpetuate unfair treatment in the workplace which may demotivate some employees. Meaningfully clients may choose to offer a small tip or leave no tip at all even when the employees provide excellent services. This behavior can discourage the workers who depend on tipping to supplement their wages, necessitating poor performance in the workplace.

 b) Do you believe ″The Tipping System″ causes more harm than good to the progress of increasing the ″Minimum Wage″ within the hospitality industry? Be sure to include an example

            Based on this video, the tipping system causes more harm to the progress of increasing the minimum wage in the hospitality industry. For example, depending on tips from clients leads many business owners in the industry to pay their employees lower base salaries and wages (CNBC, 2021). Unfortunately, these practices often obstruct the effort by the relevant authorities to improve the minimum wage. Tipping; thus, has created a system where most workers rely on customer kindness rather than getting the regular minimum wage. The situation has led employees in the hospitality industry to continue receiving lower wages than stipulated in the minimum wage provisions.

Reference

CNBC (2021). Why Tipping Is An American Custom https://www.youtube.com/watch?v=Gyjr7Fvpl74