Popular July 24, 2022 4 min read

How Good Tip Management Can Help Reduce Employee Turnover

How Good Tip Management Can Help Reduce Employee Turnover

Tip management software can do a lot to ease tensions within restaurants. Tip sharing and tip pooling going wrong will cause some front or back-of-house employees to feel undervalued and have less motivation to keep working for you. Everyone wants to feel that they’re getting due compensation for their hard work. Without solid tip distribution software to improve tip allocation among employees, you face having to look for new employees to hire and train, which can be incredibly time-consuming.

More restaurants are using point-of-sale tip management systems to solve these issues as they try to counteract the notoriously high turnover rate within the restaurant industry. As you’re struggling to determine how to fairly distribute tips, here’s how quality tip distribution convinces more of your employees to want to work for you for the long haul.

How Does Tip Management Software Help Restaurants?

Companies have turned to point-of-sale systems to optimize their tip management capabilities. These systems have enabled workers to score bigger tips while also fostering greater accountability and making the rewarding of top performing employees a straightforward process.

Once your employees know that more significant tips are coming and believe that a restaurant tip is automatic each time they head to work, your worries about employee turnover will reduce. This is vital because tips are the primary income source for most restaurant workers. However, tips are taxable forms of income that come with particular responsibilities for employers and employees alike.

Federal laws introduced in 2018 allow tip pooling between front-of-house and back-of-house employees as long as an employer pays employees the full minimum wage. By introducing tip distribution software that works, both sets of employees clearly indicate how much tip money they’re entitled to, creating more transparency and making it easier for managers to track tip allocation.

Tip Management Software Offers Much-Needed Convenience

By using quality tip management software, restaurant managers can rely less on spreadsheets and cash payout whenever they’re determining how to calculate tips and ensure their employees are paid correctly.

The good thing about today’s tip management software is that it’s fully automated and works well in sync with various point-of-sale systems. Many software types provide a wide range of methods to perform tip pooling or tip sharing successfully. They are also very definitive, seamlessly paying tip income on the payroll at every turn.

Many restaurants using tip management resources maintain strong tip compliance, using tip pooling software or tip sharing software to track all the tip earnings accrued each day successfully. Furthermore, quality tip management software helps restaurant managers navigate the tricky world of gratuity laws. It’s important to know the recent changes to tip pooling and tip sharing rules before you decide to emphasize either tipping strategy within your restaurant.

Tip management technologies allow you the option to allow cash tips as well. They also allow employees provided with tips on an order receipt to input their tip amounts before closing the order manually, so it’s entered in the system. You can enter tips from receipts and close batches seamlessly. The software also provides dashboards to help you determine any missing tips for any of your employees. You’ll get transaction information from tips provided to each of your employees.

Whether or not an employee’s tips were paid on separate or joint bills, you’ll be able to keep track, so your tip allocation is always on point. All tip distribution is calculated in real-time. You can edit, adjust and view tips at your convenience in a system that’s easy for restaurant managers to navigate. You can also access payroll in one click, saving you money and time, cutting out the spreadsheets and managing tips accurately.

Get tip management software that is transparent, easy to use and affordable, giving your employees more incentive to work for you. Let’s get to know each other today and work out how best our software can meet your needs to improve productivity while improving automatic tip sharing and tip pooling.

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