1. Why do you use target wages instead of using percentages to distribute tips to staff in the tip pool?

We chose to use the approach of target wages for staff instead of using percentage based distribution because target wages provide more consistency when distributing tips. By using target wages, the tip pool program is able to adapt to fluctuations of hours worked and tips received during a given pay period to ensure that your paycheck is as consistent as possible. 

When designing this program, it was constructed and tested for almost four months before being rolled out as our payroll structure in the summer of 2020 at Aslan Brewing Co. We took that time to test the process, to communicate with staff about the changes that were going to happen, and to fine tune anything that was deemed problematic or unfair based off of those conversations. In the end, we reached target wages that seemed to benefit both FOH and BOH staff.

2. Who decides what the target wages should be?

Ultimately, the managers at the restaurants decide what people working at their restaurant should be making. I, Corey, do NOT set the wages. I am there to help guide the conversation with restaurant owners and to help determine what wages worked and what one’s wouldn’t.

3. Where do tips go after everyone gets to their target wages?

Given an excess of tips in the tip pool after reaching target wages, tips continue to be distributed to staff after everyone has reached their target wages at a rate such that you are still making x% more than the tier below you. The tip pool is always used up in its entirety to be given to FOH and BOH staff. Under no circumstances does the restaurant nor Public Pool keep any of the tips. This means that managers, owners and other salaried staff are not a part of the tip pool. The only people that directly benefit from the tip pool are hourly staff working in FOH or BOH positions in the restaurant.

4. Why are tips pooled over an entire pay period and not pooled daily?

By creating a tip pool based around the pay period versus daily tip outs, I aimed to create consistency among the wages, along with giving employees the freedom of availability when it comes to making the schedule. It is my belief that by pooling tips over the entirety of the pay period, it rewards employees for the hours worked versus the days in which they got their hours. In order to not “punish” someone for working slower days, utilizing the tips pooled over the whole pay period method, the tip pool is able to keep employee wages consistent for every moment they are working. The overarching goal is to always create an environment where employees can flexibly work day or night, slow days or busy days, and can depend on a consistent hourly wage each and every pay period.