Customer wants to give my tech a cash bonus (gift)

[lsi]

Apparently I have a customer that is so happy with one of my techs that they have asked me if it would be ok for them to gift them some sort of cash gift. They are a law firm and wanted to run it by me first to make sure I was ok with it and honestly I have no idea why it wouldn't be a good idea but somehow I feel like I check first. My main concern would be that it somehow changes the working relationship and my tech would feel more indebted or beholden to this one customer. I suppose I could politefully decline and let them know I'll give the tech a bonus myself. The amount is $250. What would you do? Am I over-thinking this?

 

[dgoglio]

It is kind of odd for a business client to want to "tip" a tech. Personally I wouldn't allow it. Like you said it would change the relationship with you and your client and you and your tech. To me it would almost be like they are bypassing you and dealing with your tech.

 

[TurricanII]

It is very odd. I wonder why the client attributes good service only to your tech and not your business... But then in the UK we rarely tip! In the UK employees have to pay income tax on tips - check with your accountant if there is something you need to do accounting-wise.

Of course if you refuse the tip your tech may be massively turned against YOU/your firm..

I would add a section to your employment contract that offers of tips are rare in the IT field but that it is a company policy that technicians must politely decline tips to avoid conflicts of interest.

 

[jfm]

My tech and I gets tips alot, not that amount tough !
Maybe between 5$ to 40$ here and there.

Always told my techs if they tip you, it's yours, yes it's the company, but they represent the company.
Here in (Quebec) it's very common to tip for services, so it's mostly a mark of appreciation.
If my techs can make a few more bucks then good !

 

[Larry Sabo]

I suppose I could politefully decline and let them know I'll give the tech a bonus myself.

+1

I would add a section to your employment contract that offers of tips are rare in the IT field but that it is a company policy that technicians must politely decline tips to avoid conflicts of interest.

+1

 

[lsi]

Some good food for thought all. I'll add a few more details - this is a large law firm and the tech scrambled to fix a very critical VOIP installation issue that the ISP screwed up so they are very grateful. I do have contracts in place with both the employee (non-compete) and my clients (agreement to not recruit clause) so I don't worry too much about that side of things. I just want to make sure I'm missing some obvious reason I shouldn't let them reward him. I will highly suggest he claim it on his taxes in case the client issues some sort of tax claim to write it off (but for $250 I don't think it's that big of a deal tax-wise)

 

[nlinecomputers]

Are you charging emergency rates for such events?

 

[GTP]

somehow changes the working relationship and my tech

Personally I think it's a bad idea.

 

[ChrisTech]

Perhaps suggest to the client that they donate it to a charity of choice?

The Tech may miss the money but it would keep the business relationship as it is now. Just a thought if you don't want to offend them.

 

[fastremotehelp.com]

Gosh, let the tech keep the money. And then, give him something extra (not money) from you. The guy clearly did a great job, he exceeded the client's expectations, it's a win! A tip from a client is to be celebrated!

 

[FixOn3]

This sort of thing doesn't happen often and the client wants to do this. It's a reflection on your company and your tech. I suggest accepting the offer and it's a 5 minute sit down with your tech explaining your thoughts, the whys, the positive spins and to keep it to himself and continue doing a great job. You will have a happy client and a tech for a long time

 

[calldrdave]

We have in our employment agreement we can't accept tips. There are a few reasons for this: 1) We don't want to create an artificial tier of clients (this client tips so they get top priority) 2) We want to maintain the relationship with the client, not the tech. A tip could cause an expectation by the client they can contract with the tech directly (since we gave you that tip, would you mind if we bypass your employer) 3) We don't want the tech to risk the tax implications of a tip. Food is the exception since that is a very personal gift and not subject to IRS rules.

In the past, when we've accepted a large tip as a business, it did not go well. The client expects a higher level of service, because, well, we gave you that huge tip. Or they expect a discount based on the tip. This may not be the situation in your case, and it doesn't happen all th time, but for some reason with attorneys it is more likely than not.

Here's what we offer:

"Thanks for that tip. We can't accept tips...

1) but here is a list of charities you can donate to in our honor"
2) but if you really want to thank us for service, could you give us a list of names we could contact at other firms"
3) but we'd love a great review of us on Yelp/Google/etc"
4) but if you could introduce us to 3 firms that could use our services that would be great.

 

[lcoughey]

Personally, I'd say let them give him the tip, while mentioning that it is not necessary. As I see it, tips are supposed to be a reward for exceptional service, not obligation like that which has taken over our food service industry. If your techs are doing such an excellent job that they are getting offered a $250 tip, they are making your company look really good.

As this amount is a significant amount, you may want to suggest that they pay it to your company and you can pay it out to the tech as a taxable bonus.

 

[Your PCMD]

It depends on the demographic I would assume. Here in my small rural city, tips are common and I have no issue with it. $5 here, $10 there is of no problem. Any higher and my technicians know not to accept them as it then becomes taxable income. That and you stand a chance of the client calling again, only expecting a break on charges because they gave a big tip previously. And if that happens, then its the company that's the one out of pocket.

 

[FixOn3]

Let us know what position you take on it. At the end of the day it's about relationships, trust and customer service. If your client is doing it out of their good heart and you know they wouldn't abuse it, then beside the logistics (more work for you) there is not much to do than make sure everyone understand the reasons behind it and you build rapport with your employees and clients that you care

 

[nlinecomputers]

I would accept it for now because turning it down would insult the client, and setup policies prohibiting it in the future. @calldrdave sums it up nicely IMO.and you should make that policy.

 

[GTP]

Maybe put the tip (and any others that come in) into a "Christmas fund" to be enjoyed by all the staff at Christmas?

 

[Altster]

It is kind of odd for a business client to want to "tip" a tech. Personally I wouldn't allow it. Like you said it would change the relationship with you and your client and you and your tech. To me it would almost be like they are bypassing you and dealing with your tech.

*** Ditto ***

 

[calldrdave]

I would accept it for now because turning it down would insult the client, and setup policies prohibiting it in the future. @calldrdave sums it up nicely IMO.and you should make that policy.

I think the fact they asked gives an out. A middle ground I've used sometimes is a gift certificate to a nice restaurant. It meets the need to give out a reward but isn't quite a tip. IRS says you have to declare anything like that, but gift certificates don't always show up on a bank statement. I often do that with my techs as a reward. I'll usually buy them something like that when we get a compliment even when the client doesn't give us money. It's a great way of saying "I appreciate the fact you keep the clients happy, please enjoy some time with your family on me." I know cash is king ,but I think in our busy lives knowing that someone is taking care of your meal some evening just feels better.

 

[ZenTree]

Personally I'd let the tech have it. You have non compete clauses in etc so no risk there and you stand to turn a good situation into a disgruntled tech who might feel that they got "punished" for doing a good job.