Working in retail during the holiday season can be tough. Fortunately, employees can expect lots of tips this year, according to a new report.

Commerce platform Lightspeed released a study that found that despite tight budgets, Canadians are still feeling generous and are eager to tip retail workers when they do their holiday shopping.

The company surveyed over 2,500 consumers in Canada and the US throughout July about their holiday shopping habits.

With the ongoing cost of living crisis, the survey revealed that 38 per cent of Canadians have been more cautious with their spending in the lead-up to the holidays.

"This cautiousness intensifies competition among retailers for the coveted holiday dollars, with 69 per cent of respondents deeming discounts 'very important' or 'extremely important' in their shopping decisions," reads the report.

The survey found that many Canadians are looking to take advantage of Black Friday and Cyber Monday deals with 42 per cent seeing those days as "important" or "very important" for holiday gifting.

Even though shoppers are watching their wallets, Lightspeed found a heartwarming trend emerge from the survey.

It found that 53 per cent of Canadians are willing to tip retail staff who provide memorable shopping experiences. That number jumps to 83 per cent among Gen Z (ages 18 to 24).

"This demonstrates a significant willingness to show appreciation, despite economic pressures," reads the report.

So, if you're working retail this year, the amount of tips you might get from generous shoppers may make up for the busy hours.

Additionally, 37 per cent of customers are open to tipping 10 per cent or more for exceptional service, which Lightspeed says is a refreshing contrast to tipping fatigue seen in other industries.

In fact, a recent survey found that Canadians are torn on tips, being quite selective about where they want to spend extra dollars for good service.

The debate surrounding tips continues. In the meantime, if you're unsure of when and where you should tip, read our guide to gratuity here.