Tip Points Overview

Tip Points Overview

What Are Tip Points? 

Tip points are described in two ways. First, Labor Role Tip Points are points on a weighted scale applied to each Labor Role you wish to include in the tip pool. These points are measured per hour worked. This will determine how much of the tip pool each employee receives based on their Labor Role. Second, Total Tip Points are calculated per day/shift and per employee per day/shift. The tip pool is a weighted system, it varies based on the number of employees in the pool and the total Tip Points available in the pool. 

Check out the Tip Points lesson in the Arryved Academy Tips Course for video and guided learning. If it's your first time in the Arryved Academy, you may need an access code. Contact your Implementation Manager.

Prerequisites

Limitations

  • IMPORTANT! Adding or altering Tip Points will affect your tip reporting retroactively. Arryved recommends that you make sure you have copies of any past tips reports you feel you may need before adding or altering Tip Points.

  • Tip points allocate tip dollars on a weighted scale. Tip points do not allocate exact percentages of the tip pool. For example, something like 10% of tips to the Bar Back and 90% to the Bartender is difficult to replicate with Tip Points.

How It Works

If you have already enabled this feature, you can apply or modify Labor Role Tip Points in your Arryved Portal. Navigate to Employees -> Labor Roles.

Point Scale

The most common Tip Points scale is 1-10. 10 would be the highest amount of points assigned to one Labor Role. You can get creative and create your own scale if desired. 

Formula 

  1. Employee's Labor Role Tip Points * Hours Worked = Total points for that employee.

  2. Add up total points of employees = Total points in the tip pool.

  3. $ amount of tips collected / total points in the tip pool = $ amount per point.

  4. Total points for the employee * $ amount per point = Employee tip out.

Give Tip Points A Try!

Use our Tip Points Comparison Tool to practice using Tip Points. Please make a copy of the Google Sheet and edit the new one. You must have a Google Account in order to access this tool. 

To Make a Copy

  1. Click to open the Tip Points Comparison Tool.

  2. In the top left corner click File.

  3. Click Make a Copy which is the fourth option down.

  4. Rename the copy if desired.

  5. Select a Folder in your Google Drive for the Sheet to live in if desired. 

  6. Click Make a Copy.  

  7. Use the copy to practice using Tip Points. View the GIF below for a guide. 

Tip Points Ex Tab

The first tab labeled Tip Points Ex has a handful of examples of tip dollar allocation using Tip Points in different scenarios.






Try It Yourself! Tab

The second tab labeled Try It Yourself! is a tool you can use to see how Tip Points will work with your business’s Labor Roles. You can edit columns A-D, as well as input your total Tips earned in cell C25. Columns E-G will generate results so you can see how many points, dollars in tips, and % of tips each Labor Role will receive based on their assigned Tip Points and hours worked. 

Try the Tip Points Comparison Tool here!

  1. Open the Tip Points Comparison Tool spreadsheet.
  2. Click File.
  3. Click Make a Copy.
  4. You can now edit the copy and use the tool. Watch the GIF below to see how.

Tip Reporting




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