I stay at Marriott Hotels over 50 nights a year. I was surprised to learn that with the help of Maria Shriver, Marriott Hotels recently started a formal program to encourage guests to tip employees that clean their hotel rooms.
The campaign, called "The Envelope Please," places envelopes in 160,000 rooms in the U.S. and Canada to solicit tipping by guests. The "name of the person who cleans the room will be written on the envelope along with a message: "Our caring room attendants enjoyed making your stay warm and comfortable. Please feel free to leave a gratuity to express your appreciation for their efforts." Source
One of the motivations behind this campaign is that these employees want an increase in their compensation. The company's assumption is that this increase should come from tips, the same way other hotel employees accomplish this. This is a surprise coming from a company like Marriott that has $13 billion a year in revenue, and $626 million in profits. Arne Sorenson, the CEO, who suggests you leave $1 or $5 a night, makes $7 million a year. Source
Is this fair to the guest after paying hundreds of dollars a night? Should a small business support the tipping of employees through various solicitations like signs and tip jars?
Unlike the rest of the world, restaurant tipping is a large part of employees’ compensation. It allows employers to pay less than minimum wage in some states. Expected tipping is a terrible custom. It allows the employer to pay low wages and puts that burden on the customer. For example, in Chicago, a meal costs 30 percent more when tax and tip are added in. Pricing on the menu almost amounts to false advertising!
People that argue for tips will improve service. In fact, TIP stands for "to improve performance". But evidence suggests something else.
Brian Palmer of Slate writes that “Tipping does not incentivize hard work. The factors that correlate most strongly to tip size have virtually nothing to do with the quality of service. Credit card tips are larger than cash tips. Large parties with sizable bills leave disproportionately small tips. We tip servers more if they tell us their names, touch us on the arm, or draw smiley faces on our checks. Quality of service has a laughably small impact on tip size." Source
Small business owners should not encourage tips for employees. This sends a strong message that they value their employees and pay them fairly. It states that they do not ask customers for more money beyond what is charged for the service.
If a customer wants to leave an extra tip for exceptional service let them, but the company should not expect customers to supplement employees’ wages.
When I stay at a Marriott, I expect a clean room. I shouldn't have to pay more to get one.