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Employee Benefits and Tipping Study Report Highlights
August 09, 2024
Uncover how frontline workers feel about benefits, work environments, and tipping culture in Paylocity's latest study.
Blog Post
Executive Summary
Organizations that employ frontline workers face a looming turnover crisis fueled by discontent and a shift in their priorities. Long gone are the COVID-era days of rounds of applause and accolades from the public, who hailed them as heroes. Today, nearly 9 in 10 frontline workers (89%) are considering leaving their jobs, with employee well-being among the primary factors.
The well-being of our workforce is paramount to their satisfaction and productivity. Employers must take proactive steps to address the evolving needs of frontline workers, including training on new technologies like Artificial Intelligence (AI). Providing mental health support and flexible work options are benefits and essential components of a healthy and sustainable work environment.
The Employee Benefits and Tipping Study, conducted in conjunction with The Harris Poll, sheds light on the perspectives of employed Americans, particularly frontline workers, on various employee benefits and workplace features. Additionally, the study explores views on the current tipping culture in the U.S.
Definitions
- Employed Americans: U.S. adults 18+ employed part-time or full-time.
- Frontline Workers: Employees required to work in a public setting within specific fields such as healthcare, public safety, retail, etc.
Key Findings
Benefits and Compensation
Wages and Financial Needs
- Sufficiency: 69% believe their wages meet basic financial needs, but only 27% strongly feel this way.
- Demographics: Millennials (73%) are more likely to agree than Gen Z (62%).
- Frontline Workers: 65% agree, with 23% strongly agreeing.
- Willing to Leave: 82% would consider leaving their job, with low pay (47%) and burnout (38%) being top reasons.
- Demographics: Gen Z (93%) are most likely to consider leaving.
- Frontline Workers: 89% would consider leaving, with low pay (48%) and unsatisfactory conditions (37%) as top reasons.
Implications for Employers:
Ensuring competitive wages that meet financial needs can improve job satisfaction and retention. Employers may need to review wage structures and provide financial wellness programs to support employees. Addressing issues like low pay and burnout can reduce turnover intentions. Employers should consider strategies to improve compensation and reduce burnout to retain talent.
Importance of Mental Health Support and Services
- Necessity: 89% believe it is important for employers to provide mental health support, with 60% saying it is extremely or very important.
- Demographics: Millennials (69%) are most likely to view it as extremely or very important.
- Frontline Workers: 91% believe it is important, with 63% saying it is extremely or very important.
- Agreement: 84% of employed Americans believe all employers should offer mental health services, with 43% strongly agreeing.
- Demographics: Gen Z employees are less likely (76%) to agree compared to Millennials (87%) and Baby Boomers (87%).
- Frontline Workers: 86% agree, with 46% strongly agreeing.
Implications for Employers:
Offering mental health services can enhance employee satisfaction and retention. Employers should consider targeted strategies to increase engagement with employees regarding mental health support.
Health and Wellness Benefits and Solutions
- Adequacy: 71% feel they receive adequate health and wellness benefits, with 31% strongly agreeing.
- Demographics: Millennials (75%) and Gen X (76%) are more likely to agree than Gen Z (60%) and Baby Boomers (63%).
- Frontline Workers: 70% agree, with 34% strongly agreeing.
- Modern Solutions: 59% of employed Americans think their employer offers modern wellness solutions (e.g., mindfulness apps, virtual therapy).
- Demographics: Millennials (65%) are more likely to agree than Baby Boomers (49%).
- Frontline Workers: 59% agree, with 18% strongly agreeing.
Implications for Employers:
Adequate health and wellness benefits are crucial for employee satisfaction. Employers should consider enhancing benefit packages to meet the expectations of all demographic groups. Evaluating the effectiveness of these programs and increasing awareness could enhance their perceived value.
Employer Support and Recognition
Support and Recognition
- Wellbeing: 77% believe their employer cares about their wellbeing, but only 30% strongly feel this way.
- Demographics: Millennials (78%) and Baby Boomers (86%) are more likely to agree than Gen Z (67%).
- Frontline Workers: 77% agree, with 31% strongly agreeing.
- Recognition: 49% feel their employer does not adequately recognize their contributions, with 17% strongly feeling this way.
- Demographics: Gen Z (54%) and Millennials (54%) are more likely to agree than Baby Boomers (40%).
- Frontline Workers: 54% agree, with 19% strongly agreeing.
Implications for Employers:
Demonstrating genuine care for employee wellbeing can boost morale and loyalty. Employers should implement programs and communication strategies that effectively convey their support to all employees.
Flexible Work
Flexible Work Schedules
- Desire for Flexibility: 70% do not have a flexible work schedule, but 87% would prefer flexibility over higher pay.
- Top Reasons: Better work-life balance (53%) and improved mental health (46%).
- Frontline Workers: 72% do not have flexibility, but 89% would prefer it over higher pay.
- Current Flexibility: 76% say their work schedule allows flexibility for personal needs, with 34% strongly agreeing.
- Demographics: Baby Boomers (83%) and Gen X (78%) are more likely to agree than Gen Z (68%).
- Frontline Workers: 73% agree, with 33% strongly agreeing.
Implications for Employers:
Offering flexible work schedules can attract and retain talent, improve work-life balance, and enhance mental health. Employers should consider prioritizing flexibility to meet the strong employee demand.
Modern Scheduling Solutions
- Interest: 84% of employed Americans are interested in modern scheduling solutions, with the top choice being remote work options (39%).
- Demographics: Gen Z (94%) and Millennials (90%) show more interest than Gen X (77%) and Baby Boomers (67%).
- Frontline Workers: 87% are interested, with self-scheduling tools (34%) being the top choice.
Implications for Employers:
Adopting modern scheduling solutions, such as remote work and self-scheduling tools, can meet the high demand and improve employee satisfaction.
Artificial Intelligence (AI)
AI Work Impact and Concerns
- Positive Impact: 50% believe AI has had a positive impact on their work experience, with 15% strongly agreeing.
- Demographics: Millennials (62%) are more likely to agree than Baby Boomers (33%).
- Frontline Workers: 54% agree, with 17% strongly agreeing.
- Worries: 81% have concerns about their employer adopting AI, with top concerns being job loss (36%) and reliability (36%).
- Demographics: Gen Z (47%) worry more about job loss than Baby Boomers (24%).
- Frontline Workers: 83% are concerned, with job loss (39%) being the top concern.
Implications for Employers:
Employers should focus on effectively integrating AI technologies and addressing the concerns of employees to maximize positive impacts. Addressing employee concerns about AI, particularly around job security and reliability, is critical. Transparent communication and training can alleviate fears and foster a positive attitude towards AI adoption.
Tipping Culture
- Paying Tipped Employees: 61% oppose paying tipped employees less, with 28% strongly opposing.
- Demographics: Gen X (65%) and Baby Boomers (70%) oppose more than Gen Z (53%).
- Frontline Workers: 58% oppose, with 25% strongly opposing.
Implications for Employers:
Ensuring fair wages for tipped employees is important to maintain employee satisfaction and public perception. Employers should evaluate their pay structures and consider policies that promote fair compensation.
- Expansion of Tipping: 67% are uncomfortable with more businesses asking for tips, with 29% very uncomfortable.
- Demographics: Baby Boomers (74%) are more likely to be uncomfortable than Gen Z (66%).
- Frontline Workers: 64% are uncomfortable, with 23% very uncomfortable.
Implications for Employers:
The growing discomfort with tipping suggests a need for businesses to reconsider their tipping policies. Employers might explore alternative compensation models that reduce reliance on tips.
- Tipping Practices: 78% want more transparent tipping practices, with 31% strongly agreeing.
- Demographics: Gen Z (66%) are least likely to agree.
- Frontline Workers: 76% agree, with 33% strongly agreeing.
Implications for Employers:
Transparent tipping practices can enhance trust and satisfaction among employees and customers. Employers should implement clear policies and communication around tipping.
- Tipping Mandate: 78% feel tipping is starting to feel mandatory, with 38% strongly feeling this way.
- Demographics: Gen X (83%) and Baby Boomers (83%) are more likely to agree.
- Frontline Workers: 78% agree, with 40% strongly agreeing.
- Demographics: Gen X (83%) and Baby Boomers (83%) are more likely to agree.
Implications for Employers:
The perception of tipping becoming mandatory may negatively impact employee and customer experiences. Employers should ensure tipping remains voluntary and fair.
- Specific Businesses: 74% believe tipping should be reserved for specific businesses, with 33% strongly feeling this way.
- Demographics: Gen X (80%) and Baby Boomers (79%) agree more than Gen Z (62%).
- Frontline Workers: 71% agree, with 30% strongly feeling this way.
Implications for Employers:
Reserving tipping for specific businesses can align with employee and customer preferences. Employers should clearly define tipping policies to match expectations.
- Annoyance with Tipping: 65% are annoyed by how often they are asked to provide tips, with 30% strongly feeling this way
- Demographics: Gen X (70%) and Baby Boomers (68%) are more likely than Gen Z (56%) to say they are annoyed by how often they are asked to provide tips
- Frontline Workers: 64% are annoyed by how often they are asked to provide tips, with 26% strongly feeling this way
- Demographics: Gen X (70%) and Baby Boomers (68%) are more likely than Gen Z (56%) to say they are annoyed by how often they are asked to provide tips
Implications for Employers:
Frequent requests for tips can lead to annoyance among employees and customers. Employers should consider limiting tipping requests and ensuring they are appropriate and fair.
Appendix
S1: Which of the following best describes the field you work in? If you work more than one job, please think of the one you work the most hours at when answering.
|
Total |
Gen Z |
Millennials |
Gen Xers |
Baby Boomers |
|
|
BASE: EMPLOYED FT/PT (n=1002) |
A |
B |
C |
D |
E |
|
Professional services (e.g., accounting, law, advertising/marketing) |
14% |
12% |
14% |
16% |
13% |
|
Healthcare |
13% |
10% |
13% |
11% |
19% |
|
|
|
|
|
|
B |
|
Engineering/Construction |
9% |
10% |
10% |
10% |
5% |
|
Retail (e.g., grocery store, department store) |
9% |
13% |
10% |
5% |
9% |
|
|
|
D |
|
|
|
|
Manufacturing/Production |
9% |
6% |
8% |
10% |
7% |
|
Education/Childcare |
8% |
5% |
4% |
11% |
12% |
|
|
|
|
|
C |
C |
|
Restaurant/Foodservice |
6% |
14% |
7% |
2% |
- |
|
|
|
CDE |
DE |
|
|
|
Non-profit |
3% |
5% |
3% |
3% |
3% |
|
Hospitality (e.g., hotels, resorts, event coordinating) |
3% |
4% |
4% |
3% |
2% |
|
Public transportation (e.g., bus, subway, train, airline) |
2% |
2% |
3% |
2% |
2% |
|
Public safety (e.g., fire department, police department, ambulatory services) |
2% |
2% |
2% |
1% |
2% |
|
Other |
23% |
16% |
22% |
27% |
26% |
Capital letters below percentages in tables represent statistically significant differences at the 95% confidence level with corresponding column letters
S2: Which of the following best describes your work? If you work more than one job, please think of the one you work the most hours at when answering.
|
Total |
Gen Z |
Millennials |
Gen Xers |
Baby Boomers |
|
|
Required To Go Into Workplace (Net) |
86% |
93% |
89% |
81% |
77% |
|
|
|
DE |
DE |
|
|
|
I am required to go into a workplace, and work with the public (e.g., customers, patients, students) |
62% |
76% |
63% |
54% |
57% |
|
I am required to go into a workplace, and do not work with the public |
24% |
17% |
26% |
26% |
20% |
|
I am not required to into a workplace |
14% |
7% |
11% |
19% |
23% |
|
|
|
|
|
BC |
BC |
Capital letters below percentages in tables represent statistically significant differences at the 95% confidence level with corresponding column letters
S3: Which of the following best describes you? If you work more than one job, please think of the one you work the most hours at when answering.
|
Total |
Gen Z |
Millennials |
Gen Xers |
Baby Boomers |
|
|
BASE: EMPLOYED FT/PT (n=1002) |
A |
B |
C |
D |
E |
|
I receive a salary |
57% |
38% |
56% |
69% |
61% |
|
|
|
|
B |
BC |
B |
|
Receive Minimum Wage (Net) |
28% |
53% |
33% |
15% |
14% |
|
|
|
CDE |
DE |
|
|
|
I receive minimum wage and do not get tips |
16% |
26% |
17% |
9% |
11% |
|
|
|
CDE |
D |
|
|
|
I receive minimum wage and get tips |
13% |
27% |
16% |
6% |
2% |
|
|
|
CDE |
DE |
|
|
|
None of these |
14% |
9% |
11% |
16% |
25% |
|
|
|
|
|
|
BCD |
Capital letters below percentages in tables represent statistically significant differences at the 95% confidence level with corresponding column letters
Full Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of Paylocity between June 04-06, 2024 among 2,084 adults, among whom 1,002 are employed full-time or part-time, of which 452 are frontline workers (defined as those who are required to go into a workplace, and work with the public and work in one of the following fields: healthcare, public safety, retail, manufacturing/production, restaurant/food service, engineering/construction, public transportation, education/childcare, non-profit, or hospitality).
Data were weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and political party affiliation, to bring them in line with their actual proportions in the population.
Respondents are selected among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. The sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.
All sample surveys and polls, whether or not they use probability sampling, are subject to other multiple sources of error which are most often not possible to quantify or estimate, including, but not limited to coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments.
About The Harris Poll
The Harris Poll is a global consulting and market research firm that strives to reveal the authentic values of modern society to inspire leaders to create a better tomorrow. It works with clients in three primary areas: building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. One of the longest-running surveys in the U.S., The Harris Poll has tracked public opinion, motivations, and social sentiment since 1963, and is now part of Stagwell, the challenger holding company built to transform marketing. To learn more, please visit www.theharrispoll.com
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