From Fixed Wages to Flexible Rewards: How Businesses in Post-communist Countries Navigate Tipping
From Fixed Wages to Flexible Rewards: How Businesses in Post-communist Countries Navigate Tipping

Author(s): Andrej Raspor, Darko Lacmanović, Nikola Vukčević
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Tipping; Motivation; Service quality; Reward system; Work flexibility
Summary/Abstract: This article investigates tipping as a motivational factor in service industries, examining the reasons behind tipping, such as gratitude and social norms. The research explores how tips, especially early tips and compliments, can improve service quality, and how tipping behavior is influenced by gratitude and perceived service quality. The study focuses on Slovenia, Montenegro, Croatia, and Bosnia and Herzegovina, using a detailed questionnaire to assess tipping’s motivational impact on employees. Statistical analysis, including ANOVA Eta Square and Tukey HSD Post Hoc tests, reveals a significant difference in the reward system concerning tipping regulations. However, no significant differences were found in guest satisfaction, quality of work, compensation, or group relationships. The findings suggest that the regulation of tipping influences the reward system’s effectiveness, making it a potential tool for managing work flexibility, though it has limited impact on other aspects of work flexibility. Tipping thus can act as a managerial tool in specific contexts.

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