I assume that the theory behind tipping is that by putting a portion of an employee’s wage at the discretion of the customer, the employee will be motivated to do a better job.
In practice, there’s a big problem: In all but the most extreme cases, customers don’t design their tip to reflect performance. Employees know that, and come to look at tips as a right rather than a privilege.
As a result, tips don’t provide the intended motivation. When comparing within an industry (e.g. Starbucks vs. Dunkin Donuts), the places that tip don’t actually seem to have better service. That’s my anecdotal experience, anyway.













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