52 Perfectus AC 1/2022 DRUŽBENA NORMA DAJANJA NAPITNIN: ŠTUDIJA PRIMERA HRVAŠKE Nikola Vukčević https://orcid.org/0000-0002-5971-5129 1 Andrej Raspor https://orcid.org/0000-0002-8098-9554 2 Irena Mašće https://orcid.org/0000-0003-3510-4232 3 Iva Dvornik https://orcid.org/ 0000-0002-2892-8412 4 Povzetek: Namen – Namen raziskave je bil raziskati napitninske navade anketirancev iz Republike Hrvaške ter ugotoviti razmerje med različnimi socialno-ekonomskimi in demografskimi skupinami anketirancev. Zasnova – Spletni anketni vprašalnik je bil razvit in izveden na praktičnem vzorcu 252 anketirancev z uporabo vzorčenja snežne kepe kot neverjetnostne metode. Metodologija – Podatki so bili zbrani in analizirani s programsko opremo SPSS, pri čemer so bili uporabljeni povprečna vrednost, ANOVA, t-test za neodvisni vzorec in Eta kvadrat. Pristop – Cilj raziskave je bil bolje razumeti dejavnike, ki vplivajo na pogostost in višino napitnin v Republiki Hrvaški, in raziskati, zakaj gostje najpogosteje puščajo napitnine ter ugotoviti, ali obstajajo pomembne razlike. v nasvetih med različnimi storitvami. Ugotovitve – Rezultati študije kažejo, da imajo srčnost, prijaznost in prijaznost ponudnika storitev pomembno vlogo pri višini napitnine. Zato je treba tipologijo gostinske osebnosti v kontekstu napitnine nadalje razvijati. Izvirnost raziskave – Poleg tega rezultati raziskave prispevajo k znanstveni teoriji o motivaciji zaposlenih in potrjujejo ugotovitve dosedanjih raziskav, da višina napitnine in njena pogostost nista odvisni le od hitrosti in kakovosti storitve. Ključne besede: napitnine, navade dajanja napitnin, motivacija, storitve, kupci, Hrvaška. THE SOCIAL NORM OF TIPPING: CASE STUDY OF CROATIA Abstract: Purpose – This research aimed to investigate the tipping habits of respondents from the Republic of Croatia, and to determine the relation between various socio-economic and demographic groups of respondents. Design – An online survey questionnaire was developed and conducted on a practical sample of 252 respondents, using Snowball sampling as a non-probabilistic method. Methodology – Data was collected and analyzed using SPSS software, with the mean value, ANOVA, t-test for independent sample, and Eta square being employed. Approach – The aim of the research was to gain a better understanding of the factors that affect the frequency and amount of tips in the Republic of Croatia, and to investigate why guests most often leave tips, as well as to determine if there are significant differences in tips among different services. Findings – The results of the study suggest that the cordiality, kindness, and friendliness of the service provider play an important role when it comes to the size of the tip. Therefore, the typology of the caterer's personality should be further developed in the context of tipping. Originality of the research – Additionally, the research results contribute to the scientific theory of employee motivation, and confirm the findings of previous studies that the size of the tip and its frequency do not depend solely on the speed and quality of the service. Keywords: tips, tipping habits, motivation, service, customers, Croatia. DOI: 10.5281/zenodo.8158971 1 Adriatic University Bar/Faculty for Mediterranean business studies Tivat Luke Tomanovica br.1, Tivat, Montenegro, nikolafms@gmail.com 2 Faculty of Commercial and Business Sciences Lava 7, 3000 Celje, Slovenia, andrej.raspor@t-2.si 3 University College Arca Kopilica 5, 21000 Split, Republic of Croatia, masceirena@gmail.com 4 Adriatic University Bar/Faculty for Mediterranean business studies Tivat Luke Tomanovica br.1, Tivat, Montenegro, i.dvornik007@gmail.com 53 Perfectus AC 1/2022 Introduction In most cases, a tip is a gesture of goodwill, i.e. a reward, but there are some situations when it is considered mandatory. The original meaning is a small amount of money given as a sign of reward or attention for a quality service. It is common practice in most countries to consider a tip as obligatory, while in some it has an extremely negative sign, i.e. as an insulting gesture. The main goal of the tip is to properly direct the service provider to the desired behavior or way to meet the requirements of the guest. It also has a motivating function of feeling satisfied and fulfilling both personal and business goals and opportunities. Today, the tip as a modern custom or norm of behavior is applied all over the world but is still strongly influenced by culture and lifestyle. From Turkey, where tips are richly given, through Finland where it is not mandatory, to France where it is mandatory. It is important to note that the value or size of the tip varies considerably from country to country. Somewhere, as is the case with Germany, it is only 3%, while in some European countries, it is 10% of the total bill and on the other hand, in America, it is 15% and even 20% of the total value of the bill. When it comes to Croatia, it can be said that the tip is not required by law and that perhaps it has been neglected for a long time. It is only recently that it is becoming more and more relevant. It directly depends on the quality of the service, i.e. the guest estimates whether he/she should leave it, and usually amounts to about 10% of the value of the bill. In addition to a large number of different research on the topic of tips, there are still no studies that consider the issue of the habits of giving tips in the Republic of Croatia. The basic idea of this research is to fill this gap that refers to the factors that affect giving tips in Croatia. The most important service activities when it comes to tips are presented, as well as various factors that Croatian citizens consider when determining whether and how much tip they will leave. The empirical part of the research was realized through an online survey in the form of a structured interview. The research sample consisted of 252 respondents. The snowball sampling technique was applied as a non-probability method based on the recommendations of the initial subjects in order to obtain another subject. Comparative research with previously obtained results in Slovenia and Montenegro was also conducted in order to obtain more precise information and knowledge about the mentioned issues. The main research hypothesis is: H0: There are significant statistical differences between several groups of respondents in relation to socio-economic and demographic characteristics that are manifested in the habits of giving tips. The basic idea of the research was to expand the previously conducted research in Slovenia and Montenegro in order to find similar patterns of behavior when giving tips in Croatia because they are all neighboring countries that were once a single country. Auxiliary hypotheses are: H1: Most tips are left on activities belonging to the service sector. H2: Quality and speed of service are not the most important factors that result in leaving a tip. H3: The frequency of tipping varies among different demographic groups. H3 a: The frequency of tipping differs between men and women. H3 b: The frequency of tipping varies between age groups. H3 c: The frequency of tipping differs between status groups. H3 d: The frequency of tipping varies between employment groups. H3 e: The frequency of tipping differs between educational groups. H3 f: The frequency of tipping varies between income groups. H3 f: The frequency of tipping differs between residential groups. The paper consists of five chapters: introduction, review of the theory of tips, applied research methodologies, obtained results of empirical research, discussion of the obtained results, and conclusion. The introduction presents a theoretical overview of previous research on the topic of tips. The second chapter refers to the applied research methodology, while the next third contains an overview of the obtained research results, followed by a discussion of the obtained results and concluding remarks on the most important suggestions that can have a positive impact on the service industry in Croatia. Theory A tip as regular custom of leaving tips in most countries of the world is a voluntary act that is not legally regulated. If viewed from the perspective of the countries of the world, it can be said that the tip has an extremely interesting nature. From voluntary to mandatory, a tip can be a sign of honor, reward, gratitude, or insult in some countries of the world. Leaving a tip is common practice in countries such as Greece, Italy, Argentina, or the US while some research has shown that those in countries such as Japan, Sweden, or New Zealand are left in very few cases (Star, 1988). However, according to official statistics related to the tip, it is still a prevalent habit in most countries (World Tipping Guide, 2022; Lonely Planet 2020). In general, the issue of tips has been researched very often. Most authors belonging to American scientific circles have researched tips primarily in terms of service quality but also labor costs (Lynn et al., 1993). Other authors 54 Perfectus AC 1/2022 have researched it in the field of tourism for which it is very characteristic (Harris, 1993; Raspor, 2007a; Raspor, 2009; Raspor, 2010; Mansfield, 2016; Raspor and Divjak, 2017). The issue of tips has not been much researched in the former communist countries that once belonged to the former Yugoslavia. Research has recently been conducted in Slovenia (Raspor, 2002; Raspor, 2007; Raspor, 2010; Raspor, 2011; Raspor, 2016; Raspor et al., 2018) and Montenegro (Raspor and Lacmanović, 2018; Raspor et al., 2021). The results of the mentioned research showed that in these countries there are habits of leaving a tip and that there are no drastic differences when it comes to the frequency and amount of tips, as well as that they are most pronounced in service activities that are directly or indirectly related to tourism and catering. The concept of a tip can be explained as a gift or reward for the quality of service provided to those who provide a particular service. Such a simple concept is very difficult to explain when it comes to the factors that influence such a decision. Drinking is usually given after the service has been provided, but there are various factors that affect such activity directly or indirectly. Some of these analyzed factors are racial differences on the supply and demand side of services (Lynn, 2006), physical appearance and posture of employees providing services (Lynn and Mynier, 1993), and even the impact of alcohol on tips (Lynn, 1988). Certainly, there are different practices when it comes to giving tips. The tip in some countries of the world depends on the type of work being done (Cho, 2014). However, despite the multitude of research related to the relationship between employee motivation, service quality, and higher tips (Raspor, 2002a; Raspor, 2002b; Raspor, 2007; Raspor, 2009; Zain et al., 2017), no general conclusion can be drawn. What the research indicates the most is that tipping is caused by different social or psychological motives of the guest as a reward for the excellence of the service provided (Star, 1988; Coakley, 2011; Mandal, 2014). Motives are organic and psychological factors that trigger or direct a person's behavior, both his actions and his perception, learning, and thinking. The source of motivation is a need. Usually, the need is meant to lack something. Some authors state that innate organic needs cause the initiation of certain physiological processes but not always the direct achievement of goals (Azar, 2010; Robinson, 2014). That is, some authors state, in practice no distinction is made between innate needs and urges (Sarwar and Abugre, 2013). Most psychologists agree that the need should be considered a certain deficiency in the body and the urge to activate the body due to that particular deficiency. It can be said that the process itself when it comes to motivation occurs primarily due to the emergence of need, followed by activation of the organism, then the experience of need itself, and finally imagining the goal by which this need can be met (Arnold, Randall & Patterson, 2010). It is important to note that there is a difference between motives and needs, but also between motives and incentives. The aforementioned authors agree that incentives represent objects or situations that can cause motives to appear, i.e. they encourage those motives to become relevant. So incentives can be different rewards or praises. Precisely, all of the above indicates how strong the motivating effect of the tip that the employee received is. In the continuation of the paper, the problem of tips was previously theoretically analyzed and tested through empirical research on the example of the Republic of Croatia. Giving tips in the Republic of Croatia Croatia is characterized by the fact that, unlike some other European countries, the invoices received for the services provided do not contain the stated tip. That is, a tip is not provided by law and is not considered mandatory. On the other hand, there is a custom of leaving a tip, especially in catering. In most cases, this amounts to about 10% of the total amount of the bill. Employees working in the service industry in the Republic of Croatia will be grateful and kind when they receive a tip because the average salaries in the service sector are low and far lower than salaries in other western countries of the European Union. There is a wide range of different service activities in which the custom of giving tips is applied, such as waiters, bartenders, tourist guides, skippers, taxi drivers, cleaners, cleaners, beauticians, hairdressers, and others. The following Table 1 shows the most common service professions and the usual tips that are left in practice. Tables 1: The amount of tips in service professions in the Republic of Croatia Location % of tips HRK EUR Coffee & Bars 5% 15-20 HRK 1-3 euros Tavern 5% 15-20 HRK 1-3 euros Pizzeria 5% 15-20 HRK 1-3 euros Restaurants 5-10% 30-50 HRK 3-4 euros Hotels 5% 15-20 HRK 1-3 euros Travel Guides 10% – 15% 50-60 HRK 5-6 euros Taxi 0% – 10% 7-10 HRK 1-1.5 euros Drivers Yacht Skippers 5 -15% 500-1500 HRK 60-200 euros Hairdressers 5% – 10% 8 - 40 HRK 1 - 5 euros Beauticians 5% – 10% 8 - 40 HRK 1 - 5 euros Masseurs 10-15% 15-40 HRK 2-5 euros Tattoo Artists 15% – 20% 45 - 150 HRK 5 -20 euros 55 Perfectus AC 1/2022 Source: Tipping in Croatia - How to Tip While in Croatia, 2019. It is important to note that in the Republic of Croatia, it is not expected to give large amounts when it comes to tips, i.e. it is not seen as in some other European countries. In some countries, leaving a tip can be considered an insult or seen as an act of bragging. On the other hand, when it comes to tips in the Republic of Croatia, it should be noted that the income from tips is in most cases not presented properly as official salaries, i.e. the lack of institutional framework related to tips leads to the possibility of basic fiscal criminal offenses, i.e. criminal offense of tax evasion. In general, income tax laws vary from state to state but are essentially an obligation of economic entities to the state. In the Republic of Croatia, such offenses are punishable by imprisonment from six months to five years, or in a stricter version from three to ten years (Criminal Code of the Republic of Croatia (Official Gazette No. 110/97, 27/98, 129/00, 51 / 01, 105/04, 71/06). Methods The empirical part of the research was realized through an online survey which took the form of a structured interview through which the intensity and amount of tips in the Republic of Croatia were investigated. The snowball sampling technique was used to form the sample as a method without probability, which is characteristic of referring initial subjects in order to obtain another subject (Goodman, 1961; Johnson, 2014). The electronic survey questionnaire was created through the 1KA program (EnClickSurvey OneClickSurvey) which is an open-source application that enables online survey services. A tested questionnaire designed by Raspor (2010) and used in Slovenia (Raspor and Divjak, 2017), Poland (Raspor, 2020) and Montenegro (Raspor et al., 2021) was used. At the beginning of 2021, the survey was distributed via social networks as well as via e-mail. After that, the collected responses were analyzed and processed. The obtained sample of respondents is 252 with different socio-demographic information, their habits related to the frequency and amount of tips in service activities as well as factors that are important to them when making decisions related to tips. The online questionnaire consisted of questions related to the tip itself or how often respondents leave a tip, then questions related to employees who provide services and factors that affect the intensity and amount of the tip such as kindness, mood, professionalism, appearance, quality of service, speed of service, resolving complaints, etc. The questions further referred to the different methods of payment, how much tips participate in the total amount of the bill to be paid, but also the questions that referred to the average amount of tips left in general. These questions contained a Likert scale of assessment (Brown, 2010; Sullivan and Artino, 2013) of 1-5 points, 1 (always giving tips), and 5 (never giving tips) to rank the intensity of tips. Finally, during the processing of the obtained data, statistical analysis of data was performed using the IBM Statistical Package for Social Science (SPSS) version 20 software. During the statistical analysis, the chi-square test, ANOVA, and t-test for the independent sample have used the determination of the mean value. The demographic and socioeconomic profile of the sample is shown in Table 2 below. Tables 2: Demographic and socioeconomic profile of the research sample in the Republic of Croatia Frequency Valid Percent Gender Male 196 77,8 Female 56 22,2 Total 252 100,0 Age 18-25 years 150 59,5 26-39 years 80 31,7 40-55 years 14 5,6 more than 56 years 8 3,2 Total 252 100,0 Status Single 210 84,0 Married 32 12,8 Separated 8 3,2 Total 250 100 Occupation Student 164 164 Unemployed 12 12 Employed 66 66 Self-employed 6 6 Retiree/pensioner 2 2 Total 250 100 Education Vocational 16 6,3 Middle 80 31,7 56 Perfectus AC 1/2022 High or Higher 106 42,1 Specialization, Master's, Doctorate 50 19,8 Total 252 100,0 Monthly income before tax (€) Less than 500 EUR 50 23,6 Less than 700 EUR 80 37,7 Less than 2.000 EUR 32 15,1 Less than 3.000 EUR 22 10,4 less then 4.000 EUR 10 4,7 more then 4.000 EUR 18 8,5 No income, supported by family 0 0 Total 212 100,0 Location of residence In rural areas 48 19,0 In the city 134 53,2 In the suburbs 70 27,8 Total 252 100,0 Source: Research results A total of 252 people participated in the study. The majority of respondents were men (196) or 77.8%, and 22.2% (56) of women. The largest number of respondents, 59.5% of men and women were young, between 18 and 25 years old, while only 3.2% were older than 56 years. Of the total number of respondents, 84% were students. Most of the respondents, 42.1% of them, had higher or higher education with a monthly income below 700 euros. Regarding the monthly income of the respondents, 37.7% of them stated that they receive less than 700 euros per month, 23.6% of them are under 500 euros per month, 15.1% of them are below 2000 euros per month, while 10.4% stated that they receive less than 3,000 euros per month and only 4.7% of them receive less than 4,000 euros per month. About 8.5% of respondents said they receive over 4,000 euros a month. It is also important to note that the average salary in the Republic of Croatia in January 2022 amounted to HRK 7,378 or EUR 975.12 (Državni zavod za statistiku Republike Hrvatske, 2022). 53.2% of respondents mentioned the city as their place of residence, while 27.8% of respondents live in the suburbs and only 19.0% of them live in rural areas. When it comes to the place of residence, it is necessary to state the specifics of territorial organization in the Republic of Croatia when it comes to regional and local co-government, i.e., there is a large number of small municipalities and there are no real differences between rural and urban local units. It is also important to note that all municipalities and cities except the city of Zagreb are part of counties that represent units of local government and self-government, which are managed by prefects who are state officials. There are currently 555 local self-government units in the Republic of Croatia, 428 municipalities, and 127 cities, i.e. 20 counties (Ministarstvo pravde i uprave Republike Hrvatske). Results Tipping habits and determinant factors for tipping The results (Table 3), related to tips and factors that determine the size and intensity of tips, indicate that most tips are given, according to respondents, to waiters (80%) followed by taxi drivers (32%) followed by employees in hair salons (28%), and hotel maids (24%) followed by postmen (19%), tourist guides (18%), receptionists (16%), servants (11%) employed at gas stations (10%). It is also interesting to note that all employees who work in bookmakers and casinos receive the least tips, i.e. it can be said that the culture of giving tips is not developed in these jobs and is almost non-existent. 57 Perfectus AC 1/2022 Tables 3: Tipping habits in various service jobs No Various service jobs Frequency Valid Percent 1 Service staff (waiters) 206 80% 6 Taxi driver 82 32% 9 Hairdresser employees (hairdressers) 72 28% 3 Hotel maids 62 24% 7 Postmen 48 19% 5 Tourist guides 46 18% 2 Receptionists 40 16% 4 Delivery Services 28 11% 8 Employees at petrol stations 26 10% 10 Employees in beauty salons 26 10% 15 Employees in lottery casinos 24 9% 12 Cashier at the casino 20 8% 16 Other 20 8% 13 Employees at the casino slot machines 18 7% 11 Croupiers at the casino 14 5% 14 Vale at the casino 14 5% Source: Research results Based on the above results shown in Table 4, it is evident that the deciding factors when giving a tip in the Republic of Croatia are the pleasantness and kindness of employees (M = 4.36) and only then the quality of the service (M = 4.19) while in the third place Based on the above results shown in Table 4, it is evident that the deciding factors when giving a tip in the Republic of Croatia are the "Friendliness of employees" (M = 4.36) and "Quality of service"only (M = 4.19) while in the third place (M = 4.17) is "Staff professionalism", and only then the "Satisfaction with resolving a complaint" (M = 4.14). It is interesting that the "Service speed" itself is only in fifth place (M = 4.06), while the "Knowledge of the guest's language" is in the penultimate place (M = 3.45) and in the last place is the "Personal arrangement of staff" (M = 3.41). Tables 4: Determinant factors for tipping in Croatia Frequency Valid Percent Factors for tipping 4,36 1 ,799 Friendliness of employees 4,19 2 ,966 Quality of service 4,17 3 ,969 Staff professionalism 4,14 4 1,098 Satisfaction with resolving a complaint 4,06 5 ,929 Service speed 3,45 6 1,234 Knowledge of the guest's language 3,41 7 1,290 Personal arrangement of staff Source: Research results In addition to the above, the degree of correlation between the "frequency of the tip" and the various components of the service was analyzed. This was realized using Pearson's correlation coefficient (r), which tried to establish whether the relationship between the two variables is significant (less than 0.05) or not (Michael, 2001, 34). The relationship between the “frequency of tipping” and “service quality” was negative significantly (Pearson Correlation -,190**; Correlation is significant at the 0.01 level (2-tailed) - insignificant. However, we found a medium positive correlation between “service quality” and “Staff professionalism” (493**); “Friendliness of employees” (,332**); “Service speed” (,485**); Also, the P value of the association was 0.000, thus indicating a highly significant result. We also found a weak positive correlation between “service quality” and “Personal arrangement of staff” (,210**); “Knowledge of the guest's language (,154*). Correlation is significant at the 0.05 level (2- tailed). Frequency of tipping The next part of the paper presents the results related to the intensity of tips in general as well as certain differences when it comes to the intensity of tips in relation to certain socio-economic and demographic characteristics as shown in Table 7. Using t-test for 58 Perfectus AC 1/2022 independent samples, the ANOVA test sought to identify statistically significant differences between respondents in terms of demographic and socio-economic characteristics as shown in Table 5 and Table 6. Tables 5: Frequency of tipping regarding gender: Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means F Sig. t Df Sig. (2- tailed) Mean Difference Std. Error Difference 95% Confidence Interval of the Difference Lower Upper Equal variances assumed 7,090 ,008 1,422 248 ,156 ,271 ,191 -,104 ,646 Equal variances not assumed 1,650 115,331 ,102 ,271 ,164 -,054 ,596 Source: Research results According to the data shown in Table 5 and Table 6, it can be concluded that there are no significant differences between male and female respondents when it comes to the intensity of tipping (Sig. 0.008) Sig. (2-tailed), 102. If it is p≤ 0,05, there is a statistically significant difference between the observed groups. On the other hand, according to the data shown in Table 6, it is evident that there is no significant statistical difference when it comes to categories such as: "Age", "Status", "Occupation", "Education", “Aerea od live” and "Place of residence". On the other hand, there is a significant statistical difference when it comes to categories such as: “Status” (,001) and , "Monthly Income" (,002), Tables 6: Frequency of tipping regarding different categories: Independent Samples Test Sum of Squares df Mean Square F Sig. Age Between Groups ,497 5 ,099 ,176 ,971 Within Groups 137,903 244 ,565 Total 138,400 249 What is your status? (Status) Between Groups 7,214 5 1,443 4,149 ,001 Within Groups 84,141 242 ,348 Total 91,355 247 What is your employment status? (Occupation) Between Groups 10,824 5 2,165 2,233 ,052 Within Groups 234,643 242 ,970 Total 245,468 247 What education do you have? (Education) Between Groups 7,806 5 1,561 2,270 ,048 Within Groups 167,810 244 ,688 Total 175,616 249 What is your gross monthly income? Between Groups 40,714 5 8,143 3,970 ,002 Within Groups 418,410 204 2,051 Total 459,124 209 What area do you live in? Between Groups 13,815 5 2,763 ,500 ,776 Within Groups 1303,210 236 5,522 Total 1317,025 241 Where is your place of residence? Between Groups 4,463 5 ,893 1,951 ,087 Within Groups 111,601 244 ,457 Total 116,064 249 Source: Research results According to previous research conducted in Slovenia (Raspor, 2007; Raspor & Divjak, 2017), Montenegro (Raspor et al., 2018) and Poland (Raspor, 2020), a comparison was made shown in Table 7 where differences can be seen when it comes to the height of the tip that is left. 59 Perfectus AC 1/2022 Tables 7: Amount of tipping What is the share in the value of the bill of your average tip that you give? Poland Slovenia Montenegro Croatia Frequency Valid Percent Frequency Valid Percent Frequency Valid Percent Frequency Valid Percent 3 % 82 67,2 147 34,2 16 19,8 52 20,8 3-5 % 10 8,2 144 33,5 22 27,2 50 20,0 5-10 % 28 23,0 96 22,3 36 44,4 84 33,6 10-15 % 2 1,6 39 9,1 5 6,2 44 17,6 Above 15 % 4 0,9 2 2,5 20 8,0 Total 122 100,0 430 100,0 81 100,0 250 100,0 What is the average amount of tip you give? Poland Slovenia Montenegro Croatia Frequency Valid Percent Frequency Valid Percent Frequency Valid Percent Frequency Valid Percent Up to 1€ 40 32,8 187 43,4 37 46,3 78 31,5 Up to 2€ 58 47,5 146 33,9 29 36,3 58 23,4 Up to4€ 22 18,0 70 16,2 10 12,5 34 13,7 Up to 8€ 2 1,6 19 4,4 3 3,8 30 12,1 Up to 20€ 8 1,9 30 12,1 Above 20€ 1 0,2 1 1,3 18 7,3 Total 122 100,0 431 100,0 80 100,0 248 100,0 Source: Research results When it comes to the size of the tip that is left, it is analysed in relation to the amount of the total bill and in terms of the average amount that the service user leaves. When it comes to the average level of the tip that is realized, based on the results shown in Table 8, it can be concluded that it amounts to 1 € (31.5%) and 2 € (23.4%) in the Republic of Croatia. A similar result is shown by the data obtained in Poland (32.8%) compared to Slovenia (43.4%) and Montenegro (46.3%), where this percentage is higher. Tips for up to € 4 are left by a small number of respondents (13.7%) as well as tips from € 8 to € 20 (12.1%). Based on the presented results, it is concluded that almost 70% of respondents leave a tip of up to € 4, or 74.4% of respondents usually leave a tip that varies from 3 to 10% of the total amount of the account in the Republic of Croatia. It is interesting to note that a very small number of respondents (7.3%) leave a tip over € 20, but still much more than in Slovenia (0.2%) and Montenegro (1.3%). In Poland, none of the respondents has a habit of leaving a tip over € 20. Discussion The conducted empirical research tried to investigate whether there are significant statistical differences between several different categories of respondents when it comes to socio-economic and demographic characteristics, that are manifested in the habits of giving tips. The obtained results of the conducted research require a comprehensive approach to both psychological and sociological factors that affect employees in the service industries, that were analyzed in the research. The obtained results can be used as a solid basis for future research on this very current topic, which is still insufficiently researched. Similar research states that managers and owners of catering and other service activities strive to find original and creative ways to motivate their employees in order to provide better service and mutual satisfaction. On the other hand, in the service sector in the Republic of Croatia, there are significant differences between jobs when it comes to the intensity or frequency of receiving a tip. This indicates that further research on the issue of tips in these specific service activities, such as casinos, body care salons or playrooms and bookmakers, should be carried out to obtain results that indicate which factors are responsible for intensifying tips. Also, there would be a knowledge related to the working conditions of employees in these jobs, i.e. the impact of the working environment on employee satisfaction and the quality of service provided. It can be said that a tip is a basic stimulus when it comes to employee motivation. Most sources in the available literature confirm this statement. However, the results confirm that the quality and speed of service do not have to be the most important factors that have a direct impact on the amount and frequency of tips, but that in certain countries such as the Republic of Croatia there may be some variations. By analyzing the obtained research results in relation to the set research hypotheses, the following findings can be stated that relate to the issue of tips in the Republic of Croatia: The first auxiliary hypothesis (H1: Most tips are left in activities belonging to the service sector) can be fully accepted because most tips are really left in activities belonging to the service sector, primarily in catering and tourism. Employees in industries belonging to this sector receive the most tips. Primarily waiters (80%) and then taxi drivers (32%) with hairdresser workers (28%). An interesting fact is 60 Perfectus AC 1/2022 that the results obtained are complementary to the results obtained in similar studies conducted in Slovenia and Montenegro (Raspor, Divjak, 2017; Raspor et al., 2018). However, it is important to note that certain activities still retain a relatively low frequency when it comes to tips such as lottery employees, casino cashiers, as well as business croupiers in casinos (below 10%). The second auxiliary hypothesis (H2: Quality and speed of service are not the most important factors that result in leaving a tip) can be partially accepted because the most important thing for respondents is the pleasantness and kindness of employees providing services (4.36 according to Likert scale)., 19) and the professional attitude and behavior of the staff (4.17). These are very interesting results that indicate that there are certain variations in the part personal characteristics of employees and leaves room for further research on how much these characteristics can be adopted, learned and how they are arranged. It is interesting to note that similar research in Slovenia has shown that staff satisfaction is also more important in the quality of service, while in Montenegro in the first place recognized services provided before all other characteristics (Raspor et al., 2018). The third auxiliary hypothesis (H3: The frequency of tipping varies among different demographic groups) which considered certain categories such as "Status" and "Income" and their impact on the frequency of tipping can be partially accepted because the data presented in Tables 7 and Tables 8 indicate that there are statistically significant differences between the above categories when it comes to tipping. Similar studies conducted in Slovenia (Raspor and Divjak, 2017) found a statistically significant difference in terms of monthly income, gender, employment and place of residence, while in Montenegro there were no statistically significant differences in this regard (Raspor et al., 2018). The fourth auxiliary hypothesis (H4: The average tip in the Republic of Croatia is higher than in the surrounding countries but does not exceed 10% of the total bill) which referred to the average tip in the Republic of Croatia may be partially accepted because most respondents confirmed that the tip varies from 5% to 10% of the total amount that the guest receives on the bill, or on average between 1 and 2 euros. That is, one third of respondents, more precisely 33.6%, give a tip from 5% to 10% of the total amount of the invoice, compared to Slovenia where it is 22.3% of respondents, Montenegro where it is 44.4% or almost half of the respondents or Poland where it is 23.0% of respondents. Also, as it can be seen in Table 8, almost a quarter of respondents or 23.4% in the Republic of Croatia leave a tip of 2 euros, compared to a third of respondents in Slovenia or 33.9% and 36.3% of respondents in Montenegro or almost half 47.5% of respondents in Poland. Conclusion The obtained results of the empirical research indicate that the service professions which most often receive tips from the Republic of Croatia are waiters and taxi drivers, after which there are hairdressing services as well as delivery services. Those who are engaged in service activities such as porters and tourist guides receive the least tips. The results also point to the fact that in addition to the good mood of those who provide services and the quality of the service provided, high professionalism of staff in terms of appearance, behavior and communication skills is also important. In addition to the above, the efficiency of the service is of great importance for guests in the Republic of Croatia, as well as resolving any complaints that may arise. It is interesting that the obtained results still indicate that there is no significant relationship between the frequency of tipping and the quality of service, but on the other hand that there is a medium relationship between the frequency of tipping and the pleasure of the service provider. There is also a significant relationship between the frequency of tipping and the level of professionalism of staff. The research is original in the sense that it presents empirical evidence of factors that affect the intensity and level of tips in service activities in the Republic of Croatia. Several different factors that influence guests to leave a tip have been analyzed, i.e. the issue of tips has been analyzed from the point of view of factors on the side of service providers. It can be concluded that the results of this research shed light on some areas of the issue of tips, which is the main variable part of the income of employees in the hospitality industry in the world and in the Republic of Croatia. It is indisputable that the guest is the core of the hospitality industry. Regardless of the type of service provided, the focus must be on the satisfaction of the client himself. The overall attention of the owners and managers of service activities should be on the quality of the service provided, as well as on the quality of the employees who provide it. We are of the opinion that it is necessary to acquaint the general catering public with the obtained research results in order to be better acquainted with the very complex issue of obtaining a tip, i.e. the possibilities of maximizing it. The obtained results indicate that there is a certain space when it comes to the quality of the staff that provides catering services, i.e. that it is necessary to further educate employees in some specific areas such as communication and animation. Since the research was conducted within the Republic of Croatia as a member state of the European Union, we are of the opinion that future research could be moderate compared to other, similar European Union countries but also countries in the region that do not yet belong to the European Union. We believe that the aforementioned issue related to the tip phenomenon requires further research in the direction of the personality traits of service providers, i.e. the possibilities of their education, which directly affects the amount and frequency of tips in the specific case of the Republic of Croatia. The research is interesting also because it provides employers with the opportunity to improve the service through continuous training and education of employees. That would 61 Perfectus AC 1/2022 have two benefits. Employees would receive higher tips and owners would make higher profits. Such conclusions are confirmed by similar research by the author. It would be interesting to investigate whether this is the exception or the rule when other countries are concerned. In general, the presented results can be used as a good basis for further research on this very interesting issue. Future studies could focus on determining the levels between innate and adopted soft skills of employees in the hospitality industry. The specifics of the hospitality sector suggest that there are certain differences between jobs, when it comes to the level and intensity of the tip, but that it is also influenced by certain demographic characteristics. 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