Before You Are Thirsty

 There is an old expression that you need to dig the well before you are thirsty. This isn't talking about water, but I'm sure you already know that. This old adage is all about building relationships. It informs or reminds us that we need to build relationships before we need relationships.

It is getting easier and easier to be a distrustful person these days. With the unrestricted ability for nearly anyone to publish information for the entire world to consume, editorial standards are a phenomenon from a bygone era. Yes, there are still some organizations that follow the long accepted standards for disseminating information but in this day and age, you don't have to. 

Within the profession of journalism, there was always a desire to be first. Reporters wanted to get a scoop. They wanted to be the first to report something. Within that community it carries a certain cache be the first. However, for the mass public consuming your product I'm not sure it was as important. Now, fast forward to current day and you don't have to follow any standards to have your information published, so you can always be first, if you don't care about the truth.

But what does this have to do about building relationships?

We are hurtling towards a world of complete distrust. There will be a day that comes sooner than later where if you don't know someone, there is no way you will be able to get them to do anything for you. So, to overcome that, you need to get to know people before you need something from them. We can't operate in isolation. Humans have built great systems, but systems bring about the rise of specialists. As such, you can't do it all yourself and at some point you will need help.

Since we are not very good at predicting the future and most people can't accurately predict where they will be in even three years, you don't know who is going to be around you or in a position to help you. So, at worst you need to not be burning bridges and at best you need to be cultivating relationships with people who you need nothing from. Some day someone from your past will be holding the keys to what you need. You don't want tot fail before you start because they don't know you or, even worse, don't like you. 

So start digging. Spend time with people and get to know them. Have a beer with them. Laugh at their jokes. Move into their trusted circle. When they ask for help, do more than you have to and as much as you can. You don't know when you may have to ask for some help. 

Everyone has competing priorities, so be the person others like to help so yours moves up the list.

More Tipping

We need more tipping. Yes, read that again, we need more tipping. You are probably confused right now and think this is a bit of a hot take. Hear me out.

Tipping in efficient.

There has been a significant backlash against tipping since the COVID-19 pandemic. It is expected. Asking for tips looks like passing the company responsibilities to the customer. This may be the case but it results in more money in the pocket of the consumer and more money in the pocket of the worker.

Consider the alternative. If tipping were banned, then industries where tipping is customary will need to increase wages. On the surface this looks like a good outcome. People get paid more for their work and you get happy workers. However, you need to fund these wage increases with price increases. So far it looks good. Consumers pay more for the product, the additional cost is passed along to the worker. That would be great if you lived in a place without a functioning government that did not collect taxes. It isn’t just the income tax on the wages, and yes the tips should be declared. There are other taxes eating away at the transfer of resources from the consumer to the worker.

First you will have to deal with sales taxes. Most goods and services are taxed on their retail value. So, for argument’s sake you went out for dinner and the appropriate tip was $10. If tipping was banned, then the total bill value should go up $10 so what you would have paid in tip to the worker is collected and passed onto the worker in the form of greater wages. If you live where I do in Ontario, Canada you then have to pay 13% in Goods and Services Tax which would be an additional $1.30 out of your pocket to pass the same amount to the worker.

Secondly, you have to consider payroll taxes in your jurisdiction. I’m not talking about income tax, I’m talking about deductions from the paycheque or amounts employers must pay to employ people. This money will erode the amount of cash that reaches the employee.

Tipping is more efficient. Even if the worker declares all their tips, they will get more money and the consumer will pay less money than if the employer charged a higher amount for the good or service and passed the equivalent of today’s tip on to the employee. Governments need money and they will find any way to get it.

So, tip your servers and anyone else who deserves it and be grateful that they are getting more and you are giving less.