As restaurants look for ways to retain their employees, the convenience of instant tip payouts can go a long way toward driving hospitality worker satisfaction.
The study “Generation Instant: Hospitality and Tips,” a PYMNTS Intelligence and Ingo Money collaboration, drew from a survey of more than 2,600 U.S. consumers. It found that 85% of hospitality workers are highly satisfied with instant tips payouts, and 82% choose this method when given the option.
The most common reason cited for preferring this instant payment method is convenience, with 81% of hospitality workers who favor instant tip payouts listing this as a key factor.
In a blog post in August, Brent Beatty, vice president of product at restaurant scheduling software company 7shifts, which had just announced its instant Tip Payouts feature, discussed how these immediate payments can boost employee retention.
“Employees will appreciate the convenience and transparency Tip Payouts provides them,” Beatty said. “They can get their tips faster (no more delays) and have a digital record of all the tips they received. Increased transparency and trust means happier employees, and happier employees stay longer.”
Moreover, Brian Hassan, co-CEO of instant cashless tip payouts platform Kickfin, discussed in an interview with PYMNTS earlier this year that he sees instant digital tip access and payouts having much the same transformative effect that early wage access had when it appeared several years ago.
“When we look at the total addressable market of digital tipping, call it a few years ago, it has grown in multiples,” Hassan said in January. “What used to be only in full service is now in full service, quick service, airports, stadiums, personal services, and the list goes on. It touches our lives every day and almost every transaction we might encounter outside of retail.”
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