Survey reveals tipping ‘boosts staff morale’ in hospitality industry

More than half of respondents are in favour of the legislation introduced by the Government last year, designed to ensure staff received 100% of tips given to them by customers

The Restaurants Association of Ireland (RAI), in collaboration with URocked and Paynt surveyed businesses in the hospitality and service industry to establish attitudes around tipping and its impact on both staff and the business as whole. 

The survey has found that all respondents firmly believe tips contribute to staff morale and directly influence provided customer service. 

Seventy-five percent of respondents agree customers in Ireland are ‘generally predisposed’ to tip for services. The survey also shows confusion surrounding new tipping legislation. 

Tipping and staff 

All respondents confirmed their staff receive tips: 

• 100% agreed that tips contributed to staff morale 

• 92% said their staff viewed it as a means of supplementing their income 

Sam Kohli, founder, Paynt, said: “URocked transforms tipping with a comprehensive solution that ensures staff receive 100% of their tips, free from administrative and tax burdens. 

“Proven around the world, it empowers businesses to stay compliant, boost revenue, and support their hardworking staff. With URocked powered by Paynt, the hospitality industry can embrace a simpler, fairer, and more transparent future.”

URocked solutions 

Currently trialling their solutions with more than 100 businesses across the country, those using their services have reported they’ve seen the number of staff tips triple. 

• 83% of businesses surveyed by URocked, Paynt and the RAI said they did not see tips as an additional strain of revenue for the business 

• 64% also confirmed they did not have a cashless solution in place 

• One-third of those who didn’t have cashless solutions in place said they felt they could benefit from implementing them 

New legislation views

The survey also examined views on new tipping legislation introduced by the Government last year, designed to ensure staff received 100% of tips given to them by customers: 

• 54% said they were in favour of the legislation 

• 27% were not sure if they were in favour of the legislation 

• 18% said they were opposed to the legislation  

Barriers  

• 50% of those surveyed said there was confusion surrounding the financial elements of the legislation and payments to staff/the splitting of tips 

• A further 30% said they lacked understanding of the legislative language and how it impacted their business 

• Another 20% felt they had insufficient processes in place within their workplaces for staff to benefit from the legislation 

• 42% said the legislation benefited them 

• 33% said it did not provide them with any additional benefits 

•  15% said they were unsure 

Adrian Cummins, chief executive officer, Restaurants Association of Ireland, said: “This new survey confirms what we have long known: tipping boosts staff morale and income, playing a critical part in the functioning of the hospitality industry as a result.  

“Despite some initial confusion around the new tipping legislation, a majority of restaurateurs now support the legislation and are working hard to ensure it is enacted in establishments across the country. 

“Going forward, I am confident that clearer guidance from the Department of Enterprise, Trade and Employe, along with the adoption of cashless solutions by businesses, could enhance the new legislation further.” 

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