Should You Allow Your Technician to Accept Tips from MSP Clients?

“Yes. You will have a happy client and a happy tech.”
“No. We’ve accepted a large tip as a business before, and it did not go well.”
“Yes. There’s nothing bad about that!”
“No. I personally think it’s a bad idea.”

If you find that a client wants to give a tip, that’s a sign they are very satisfied with the service. Your technician did an excellent job, but business owners have different opinions whether to let technicians accept tips. This practice can have positive and negative results. It’s true that allowing tips can make your grateful clients happy. But this practice can also lead into a change of your working relationship both with your technician and clients. It can also change the way your technician provides quality service.

When your managed service client wants to tip your technician, what’s your stand?

When You say Yes

There’s no doubt that you take pride in having a very satisfied client. If you have no policy about tips yet, accepting it will not be a problem. It’s a win-win, so it seems. Your client is happy. Your technician is happy. But unlike one-time customers, you have regular contact with your managed service client. And this means that a tip, whether big or small, can have some evident effects in the long run.

Higher expectation. A tip is beyond what a customer is due. Although this is a way for your clients to show gratitude, it can change their expectations too. Your clients can expect service beyond what is normal. There is no room for mistakes. There should also be a little extra or freebies for them and this can result into a strained business relationship.

Returning the favor. There’s the tendency of your technician feeling indebted to your client. Soon, it will be a test of loyalty. Will your technician be loyal to you, or to your client? Whose interests will your technician protect? Aside from this, your client can also ask for a break on charges because of a huge tip given in the past. You lose money in this scenario.

Categorizing of clients. Your clients are now classified as those who give tips and those who do not. This kind of setup affects your service quality. It’s no longer a drive to exceed the expectations of ALL your clients with excellent service. The goal now has become “to exceed the expectation of those who give tips.” This can also translate into service priority. Those who give tips receive faster response time. While those who do not, are left to wait. This does not go well with professionalism.

Out-of-scope jobs. Tips may encourage your clients to ask your technician to do tasks that are beyond your SLA. What would happen if your clients ask some extra 15-30 minute jobs every visit? A huge tip prior will make it difficult for your technicians to refuse. Your business will be the one to suffer in this case.

Of course, these scenarios are not definite when your technicians accept tips. It can happen, or not. And you’re the one who knows your clients best. It’s not right to conclude that they will abuse you after giving tips, but the risk is there.

When You Say No

Your stand regarding tips should be included in your employee operations manual early on. But some clients could insist and saying no to a huge tip can be a big let down for your technician. Or it can be insulting to your client. Even so, you feel strongly that you must maintain your professionalism. To avoid the disappointment or the insult, here’s what you can do.

Ask for referrals. Instead of saying a flat no to a tip, you can ask for referrals. This will still give your clients a chance to show their gratitude. Yes, you do appreciate the cash offer for your technician. But referrals can have lasting benefits for your business, and this translates to better compensation for your technicians too. You can respond this way.

We are committed to provide excellent service, but we can’t accept tips to protect our business relationship. If you could provide us with referrals instead, it will be highly appreciated.

We do reward our technicians who do an outstanding job. Thanks for the feedback.

Talk to your technician. If you don’t have any policy about tips yet, it’s best to talk to your technician first. Be transparent about the cash offer from the client, and then let your technician see the reasons why it’s best to refuse. Make him realize that it’s also to protect him from compromising situations in the future. If your technician sees how this is also for his benefit, that large amount can no longer be a disappointment. Your technician may miss the money, but this enables your business to maintain a neutral ground with your client.

After this, you would want to set up a policy about not accepting tips from your MSP clients. This is to avoid conflict of interest.

Have a reward system. In this industry, a tip is rare and it’s a form of commendation. It’s proof that your technician went the extra mile with your MSP client. Even if you refuse the tip, you should celebrate the offer. You can design a reward scheme for your technicians who get a commendation or tip offer. It can be a paid time off or it can be in the form of gift certificates. Whatever system you choose, the goal is to show your own appreciation. And appreciation from you is weightier than appreciation from clients.

One-time Tips

Allowing tips from non-regular customers is a different story. It’s uncommon that they should call on a weekly basis. So a $5 or $10 tip here and there will not have the same impact as with a managed service client. Or a regular customer for that matter. Even from non-regular customers, a tip doesn’t happen often. If it does, it’s a good reflection of your business. Your technician should get commendation for doing a great job.

But if you have a no tip policy, then it’s best to make sure your clients are aware of it. If it’s a no-tip even for walk-in and residential customers, then it should be stated in your work order too. Even if your customers should insist on giving tips and you make an exception, your policy is clear and documented.

So tips from your managed service clients should be celebrated. But politely declined. You can make one time exceptions. Or you can refuse all offers. Not all clients will abuse this practice, but it’s wise to have your safeguards in place. Your technician will lose the money. But your business will maintain its neutral footing with your client. For a long-term setup, it’s easier to do work in this kind of environment.