Employee Compensation in Hospitality
Paying employees well is a no-brainer for hotels. When workers are happy and well-compensated, they do a better job. This is particularly important in the hospitality industry, which has been hit hard by the pandemic. A recent study found that one third of hotel workers won’t be returning to the industry because they want higher pay. So it’s more important than ever for hotel managers to find ways to increase employee pay.
Tipping Reliability in Hotels
One potential solution is to focus on increasing the frequency of tips in the hotel. Tips are an important additional income for hotel personnel, but the problem is that tipping has become increasingly unreliable in recent years. With the decline in cash use and the shift to digital payments accelerated by the pandemic, guests may not have cash on hand to tip their housekeeper, or may simply decide not to tip because it’s inconvenient.
Digital Innovations for Hotels
A solution to this problem is using digital platforms like tiP.app. This platform allows guests to instantly send tips directly to housekeepers with no cash required, making it easy for guests to show appreciation for hardworking hotel staff while also boosting employee pay. Studies have shown that this type of solution can increase worker earnings by up to €4 per hour, providing a significant boost to hotel employee’s income.