To Tip or Not to Tip, what is the answer?

Every modern day management book that you pick up will include at least one chapter on customer care, or about how to improve customer service. Contrary to this however, is the old tradition of tipping.

Tipping is obviously beneficial to some business owners, as it is one way to cut salary costs, by convincing employees that even though their salary is low, the tips they will get from the job, will make up for this. This may have worked a few decades ago, but these days, satisfied customers are the key to a company's success.

So, why do we still encourage our employees to smile and provide good service for the sake of earning a tip? Why don't we train employees to give real service to customers regardless of whether they expect to receive a few coins a the end of the day, and reward them according to the job they are expected to do and their performance?

The answer is simple, as long as we continue to employ people on the basis that they will "act" in a manner that will enable them to earn a tip, we will not be too concerned with training them! But how do we know that they will "act" in a way that is congruent with the company's philosophy or expectations?

However, the consequences of this old tradition could be quite detrimental to a business and its reputation. What if an employee doesn't care about the tips at the end of the day, does this mean that he or she will not smile at the customer, give adequate information, or provide a satisfactory service? What if a customer doesn't leave a tip after the employee has provided an excellent service, will the employee shun the same customer the next time he or she returns?

It's time for business owners to assess the methods that motivate employees so that they can provide the acceptable level of service expected by clients and customers, as the future of businesses, especially in today's harsh economic climate, depends on SATISFIED CUSTOMERS, and not satisfying employees with big tips!

Debbie Phylactou

Human Resource Management and Marketing Specialist

Lecturer CIM

Specialist Business and Management Consultant

Motivation Stagnation

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Have you ever wondered why people are becoming less and less enthusiastic with everything? Why is it getting harder and harder to motivate people, employees, customers and business associates?



Well, there's no correct answer to this, but a diagnosis of certain developments over the years can help explain what has contributed to what I call, "Motivation Stagnation".



Abraham Maslow, described in his hierarchy of needs, the fundamentals of what motivates human beings. It's important to note that this theory was first introduced in the early 1940's when the entire world was still experiencing the effects of the second world war, jobs were scarce, money was difficult to come by, food was rationed and people were feeling frightened and insecure.



Maslow used a pyramid diagram to demonstrate how the largest and most essential human motivators are the most basic needs; food, water, shelter, and the last level - self actualization, the desire for self fulfillment. This is the smallest section of the pyramid, as 70 years ago, it was considered difficult to get to this level, i.e. where people have all they need in life and are finally able to be happy with what they have achieved and no longer yearn for anything in order to survive.



2010, and Maslow's pyramid, should now be viewed "upside down". Basic needs are the smallest of the needs, and self actualization the largest. Human beings are striving for self fulfillment and can't find it. We are living in a world where even though everything is so much easier, our original instincts have been inhibited.

Einstein once said "Everything should be made as simple as possible, but not simpler."

It's by no way a coincidence that the easier things get, the harder it is to motivate or be motivated. So put away the carrot and the stick, they're no longer attractive or feared!

Think about it!

Debbie Phylactou
Human Resource Management and Marketing Specialist
Lecturer CIM
Specialist Consultant