According to the U.S. Bureau of Labor Statistics (BLS), consumer prices rose 8.5% in the last year: this is the highest inflation rate since 1981. The BLS also recently reported that hourly earnings fell 2.7 percent from March 2021 to March 2022.
Simply put, for hotel workers: higher inflation means the purchasing power of your workers’ take-home pay is shrinking. From gas to food, consumer expenditures rose 2.7% amid a 7.8% increase in prices.
How can your hotel organization balance the restraints of your budget and respond to the impact inflation is having on your employees?
If you can afford it, compensation changes including bonuses and salary increases are the logical place to start. But let’s face it, given the last 2+ years, what organization has the budget to increase your housekeepers, bellhops, and valet’s take-home pay?
Consider cashless tipping. With guests rarely carrying cash anymore, guess where else your employees are getting squeezed? Tips!
At TipYo, the leading cashless tipping platform for hotels, we fill the void by enabling guests to make a tip using their phones in less than 10 seconds. TipYo takes complete responsibility for tip matching, payroll integration, and customer care. As a new client recently shared: “TipYo has made this process unnervingly easy.”
For an average property cost of $125 per month, our industry-first innovation can put as much as $2,700 in cashless tips in the pockets of each non-point of sale employee annually. That extra $50 per week will go along with purchases like gas, milk, and childcare. Not only will your current employees appreciate the extra income but cashless tipping will set your hotel apart from the competition and help attract and retain workers.
TipYo’s cashless tipping is an affordable human resource benefit with a great Return on Investment! During these tumultuous financial times, we can help. Sign up for a quick cashless tipping consult with TipYo here.