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Consumers are tired of ‘tipflation.’ Should employers reconsider their compensation approach?

  • Tipping culture in the U.S. is facing criticism, with rising cost of living and social pressure to tip leading to 'tipflation'.
  • A study shows that the majority of Americans feel uneasy about businesses requesting tips, with baby boomers being more uncomfortable than Generation Z.
  • Employers are urged to consider alternative compensation models that reduce reliance on tips, as 83% of tipped workers prefer higher wages without tips.
  • Fair wages are important for both employee experience and public perception, with most respondents opposing paying tipped employees less.

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