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Andrej Raspor , Gozdana Miglič , Goran Vukovič , Blaž Rodič

Abstract
The purpose of this paper was to determine whether tipping could reduce labour costs in the petroleum products retail sector. The research we present was designed on the basis of survey results gathered from Slovenian petrol stations in 2009 and 2010. We have identified the following factors in the tipping process: job satisfaction, flexibility, service quality, satisfaction, motivation and the factor of receiving tips. The analysis showed correlation between methods used to increase the value of tips and better service quality, increased financial and numerical flexibility, motivation, satisfaction upon receipt of tips and the method used to increase the value of tips. In order to decrease labour costs we propose that the management take control of tipping and integrates tips into the reward system. Also, the employees should be made aware about how tipping improves service and increases their income.

Keywords: tipping, flexibility, motivation, reward system, sales

Andrej Raspor is an assistant professor on School of Advanced Social Studies and DOBA Faculty (andrej.raspor (at) siol.net)

Dr. Gozdana Miglič University of Maribor, Faculty of Organizational Sciences (gozdana.miglic (at) fov.uni-mb.si)

Goran Vukovič University of Maribor, Faculty of Organizational Sciences (goran.vukovic (at) fov.uni-mb.si)

Blaž Rodič School of Advanced Social Studies (blaz.rodic (at) fis.unm.si

Cite this article:
Raspor Andrej , Miglič Gozdana, Vukovič Goran and  Rodič, Blaž. THE ROLE OF TIPPING IN REDUCING LABOUR COSTS: CASE OF SECTOR RETAIL PETROLEUM PRODUCTS. Innovative Issues and Approaches in Social Sciences, vol.7, no.2:8-29, DOI:http://dx.doi.org/10.12959/issn.1855-0541.IIASS-2014-no2-art01

Digital Object Identifier(DOI): http://dx.doi.org/10.12959/issn.1855-0541.IIASS-2014-no2-art01

View full text in pdf: http://www.iiass.com/pdf/IIASS-2014-no2-art01.pdf