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Consumers Grow Weary of 'Tipflation': Can Employers Fix the Compensation Crisis?

The growing discomfort with tipping, or "tipflation," is sparking debates over the fairness and future of tipping practices in the U.S. A study reveals that many consumers, particularly Baby Boomers, feel uneasy about the rising pressure to tip, and workers overwhelmingly prefer a higher base wage over relying on tips. Experts suggest that businesses reconsider their compensation strategies to reduce reliance on tipping, which could improve both employee satisfaction and public perception. Click here for article.

  • A Paylocity study shows that most U.S. consumers are uncomfortable with the growing prevalence of tipping, with Baby Boomers expressing more discomfort than Gen Z.

  • Many consumers believe tipping should be reserved for specific businesses, and 83% of tipped workers prefer a higher wage without tips.

  • Employers are advised to explore compensation models that reduce dependence on tips to improve employee and customer satisfaction.

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