The Great Resignation:
In 2021, employers began receiving resignation letters at the highest rate in recent history. According to the U.S. Bureau of Labor Statistics, over 4.5 million Americans left their jobs in November alone. Propelled by the shift from in-person to remote work brought on by the COVID-19 pandemic, employees were more empowered than ever before to quit their jobs and explore other career options.
The Great Resignation is thought to be caused by a combination of company culture and low or unsatisfying pay. Employees are no longer willing to tolerate undesirable work environments, toxic cultures, or low wages. Some of the hardest hit industries losing employees are the same industries that saw closures during the height of the pandemic including service-based roles. Restaurants, parking garages, building attendants, and other people-centric roles are experiencing a mass exodus.
During this time of shifting industries or looking for new work, employees have indicated that feeling valued through adequate wages and a positive work environment that encourages work life balance. They are seeking to counterbalance the reasons they left their old role and find positions that fulfill them in these ways. As they seek new positions, these are the elements on the forefront of their minds.
Employers Struggling to Keep Staff
As we mentioned above, some of those feeling the greatest impacts of the Great Recession are employers and managers in the service industry. Even with large numbers of employees leaving, employers still have the responsibility to keep the buildings, parking garages, restaurants, and other services running smoothly as normal. This leads to higher stress at work for the staff who remain and has the risk potential to push even the most loyal employees to seek new positions.
However, internal dynamics are not the only thing that an employer has to worry about during the Great Resignation. High staff turnover or staff stretched too thin not only leads to tricky internal dynamics, but also increases rates of customer dissatisfaction. Longer wait times, searching for available staff, or poor attitudes of burned-out employees all contribute to negative customer experiences. When customers have repeated complaints about their experiences at a business, they are less likely to return and more likely to tell others about their experience. This negative feedback loop can have serious impacts on overall patronage and revenue.
Trouble with Tipping
Unhappy employees lead to unhappy customers and unhappy customers tend not to leave tips. With the service industry being the hardest hit during the Great Resignation, the loss of tips in addition to lower wages could be pushing hard working staff right out of the door. Tips are one of the most incentivizing parts of keeping a service industry role and the absence of them tends to make the difficult jobs even less appealing. Keeping staff happy can have a positive impact on the customer experience and fix that vicious cycle.
However, the experiences are not the only things impacting a decline in tips. The transition away from cash has also had a notable dent on this revenue stream. Service employees who were motivated by cash tips have felt the shift to the digital age when it comes to payments. A study done by Travis Credit Union found that less than 16% of people are carrying cash on a regular basis. Consumers are trading out the traditional wallet for the convenience and security of digital transactions. The problem is that the service industry has yet to keep up with these trends. Even those employees who are going above and beyond for customers and providing a positive interaction in the midst of being short-staffed still might not be recognized with a tip in the way that they deserve. As they begin to feel devalued with a lack of financial recognition, they too might join their peers who are resigning to explore other industries and opportunities.
How Tipper Can Help
In the digital age, a fintech platform like Tipper just might be the answer employers need to help prevent their staff from moving on. The Great Resignation is a unique problem and Tipper is a creative solution. The study done by Travis Credit Union also cited that 64% of individuals regularly use mobile payment apps, making the likelihood of a customer using them much higher than having cash.
Tipper is a platform that allows users to send and receive tips based on the places they go, not just the people they know. Employers can register their building, parking garage, or other business and employees can register an account underneath that address. Customers then scan a QR code, find the desired employee, and send a safe, secure, and fast tip all on their phones. This helps show staff that their employer is looking out for them, without adding any extra overhead responsibilities.
Registering your business on the Tipper app will help put more money in the pocket of your hardworking employees, providing motivation for them to continue their employment and provide above and beyond customer service. When staff know they have an opportunity to be recognized for their work, they tend to be happier, show up with better attitudes, and form meaningful customer relationships.
Finding ways to increase employee engagement and satisfaction is critical in the age of the Great Resignation and Tipper is the perfect tool to help get your service-based business back on track.