Affiliate Post by Keely Hungate of Kickfin
Recruiting and retention have always been major pain points for the restaurant industry, pandemic or not.
Of course, the events of the past year haven’t helped. Covid-19 has made a tough labor market even tougher. Throughout the spring, restaurants have moved toward reopening, diners have eagerly returned—but workers? Not so much.
If you’re struggling with staffing, or if you’re losing people to other employers: instant, cashless tip payments can be a win-win for your team and your bottom line. Here are five reasons why now is the time to switch to instant payments.
- Managers aren’t bank tellers: Cash payouts come with a host of hidden costs that negatively impact your profits and your people. Managers waste precious hours every week making bank runs when there isn’t enough cash on hand to tip out. Then they have to count, recount, and distribute tips—sometimes multiple times per day. Meanwhile, employees are either waiting around for payouts after every shift, or they have to make a special trip to get their tips later. Suffice it to say: cash isn’t working for anyone anymore.
Instant tip payments take cash out of the equation by sending tips straight to employees’ bank accounts, the second their shift ends. That’s a major work perk for both managers and employees: managers don’t have to hassle with cash, and employees get their money in their bank accounts instantly, where they prefer it.
- No one wants to wait: Some restaurants are solving the “cash problem” by switching to payroll tips. But for employees, that actually creates more problems. They’re in the industry to get paid every day; they don’t want to wait weeks for their tips. And many of them simply can’t afford to. Leveraging digital tip payments ensures they have the financial security they need and deserve. When restaurants use Kickfin, tips are instantly in their bank accounts (wherever they bank) and immediately available for use, whether it’s 2 a.m. or Labor Day.
- The other guys are doing it: Restaurant employers are losing labor to gig economy jobs (think: Uber, DoorDash), which pay out earnings daily. An instant payment platform gives restaurants the power to compete with those daily pay options. That becomes one more selling point for your job candidates, and it gives your current employees one more reason to stay loyal to you.
- Digital is safer: Leaving a restaurant with a pocketful of cash is never a great idea, especially late at night. Instant, digital tips are safely in your employees’ bank accounts—not their wallets—the second their shift ends, eliminating the risk of theft. Making a decision that keeps your employees safer speaks volumes about the kind of employer you are and the way you care for your people.
- Transparency matters: When you switch to digital tip payments, you and your employees have 100% visibility into their payment history. In addition to making reporting a breeze, that can eliminate tip disputes and show that, as an employer, you prioritize trust and transparency.
Hiring is harder than ever, but instant tip payments are a major selling point for job candidates. At the end of the day, hospitality workers want and need immediate access to their earnings. Modernizing your approach to tip payments makes life easier for your people, it shows them you care about their wellbeing—and it gives them a compelling reason to join your team and to stick around.
About Kickfin: Kickfin is the only way to send tips instantly to your employees’ bank of choice, the second their shift ends. Restaurants use Kickfin to solve for cash shortages, cut labor costs, and improve recruiting and retention. Implementation is fast and free: restaurants can get Kickfin up and running overnight—no contracts or setup fees. Get a demo today!