Working Through Tips: Examining Labor Dynamics in Tipped Workplaces

The Tip of the Iceberg: A Roadmap for Management Research on Tipping

“…Tipping has traditionally been common in a small number of mostly service-based industries in several countries, with governments sometimes creating alternate minimum wages for workers in these contexts in anticipation of tipping (Azar, 2011). Recently we have seen a surge in tipping in contexts with traditionally weaker or non-existent tipping norms, which include industries like limited-service restaurants, coffee chains, and some retail establishments (e.g., Karabas et al, 2020; Wilson & Setter, 2020), and countries like Sweden (Mulinari, 2019) and the United Kingdom (Jones, 2020). Tipping has also spread to new industries with wholly different compensation structures like gig work platforms and live-streaming services (Jain & Qian, 2021; Wilson & Setter, 2020).…”

“…In the majority of cases, these efforts were short-lived and unsuccessful, though the international cruise industry stands out as an example of an industry that transitioned away from tipping to automatic service charges (Lynn & Kwortnik, 2020). In addition to shifts in who gets tipped, the nature of tipping is changing rapidly due to its intermediation through platforms and payment systems (Warren et al, 2021; Wilson & Setter, 2020), suggesting its interpersonal dynamics and impacts are also likely to evolve significantly.…”

“…Recently we have seen a surge in tipping in contexts with traditionally weaker or non-existent tipping norms, which include industries like limited-service restaurants, coffee chains, and some retail establishments (e.g., Karabas et al, 2020; Wilson & Setter, 2020), and countries like Sweden (Mulinari, 2019) and the United Kingdom (Jones, 2020). Tipping has also spread to new industries with wholly different compensation structures like gig work platforms and live-streaming services (Jain & Qian, 2021; Wilson & Setter, 2020). Curiously, in tandem with the rise of tipping in newer contexts, we are seeing concerted efforts by some actors to abandon long-standing tipping practices, like some full-service restaurants and cruise ships (Azar, 2020; Ren, 2021).…”