By Ryan Ashton
It’s estimated that 89% of all consumer transactions are now conducted digitally – a significant shift in consumer preferences that will have a profound impact on hospitality organizations as they are faced with the prospect of reduced cash on hand, and the downstream implications of this.
As businesses acknowledge and address these impacts, one area that will require a change in process is how organizations pay employees their tips. By moving to a cashless, digital-centric employee tips process, there are a whole host of benefits that come with this, including a reduction in cash carrying costs, increased employee retention and more.
But arguably the most important value that comes from shifting to an electronic tip process is the added safety it gives to employees.
Here are some key aspects to consider:
Reduced Cash Handling:
Electronic tipping eliminates the need for employees to handle and carry cash. This reduces the risk of theft or robbery, as there is no physical cash on the premises or carried by employees. Employees are less likely to be targeted for their tips when they are not handling large amounts of cash.
Enhanced Personal Security:
Employees often leave work late at night, and carrying cash tips can make them vulnerable to personal safety risks. With electronic tips, there is no need for employees to carry substantial amounts of cash, reducing the risk of being targeted for theft or other safety concerns when leaving the workplace.
Contactless Transactions:
Over the past few years, the emphasis on contactless transactions has increased due to health and safety concerns, especially in light of the COVID-19 pandemic. Electronic tipping systems often allow for touch-free transactions, minimizing the risk of transmission compared to handling cash.
Transaction Transparency:
Electronic tipping systems provide a transparent record of transactions. This transparency can be beneficial in case of any disputes or discrepancies. Knowing that all transactions are recorded electronically can deter fraudulent activities and provide a sense of security for both employees and employers.
Remote Tipping Options:
Some electronic tipping systems allow customers to tip remotely through mobile apps or online platforms. This means that employees do not have to handle any physical payment transactions, reducing the risk of exposure to potential threats or altercations.
Employee Empowerment:
Electronic tipping can empower employees by giving them more control over their earnings. With real-time access to tips and earnings information, employees may feel more secure and in control of their financial situation, reducing stress and improving financial wellbeing.
Preventing Internal Theft:
Electronic tipping systems, with their transaction logs and accountability features, can also contribute to preventing internal theft. This helps maintain a safer work environment by discouraging dishonest practices among staff members.
In summary, an electronic tipping solution like Instant Tips not only offers convenience and efficiency but also contributes to the safety and well-being of hospitality employees by minimizing cash handling, providing transparency, and offering features that enhance personal security. As the industry continues to embrace technology, prioritizing employee safety through electronic tipping solutions becomes an essential consideration.
To learn more about taking your employee safety to the next level, visit instant.co/tips or get in touch at instant.co/demo.
