For platforms using gig workers, bonuses can be a double-edged sword
ITHACA, N.Y. – In the growing gig economy, where a company’s success depends on contractors whose schedules they can’t control, businesses often turn to bonuses to lure and retain these workers. But according to new Cornell-led research, bonuses can be a losing strategy for the stakeholders involved in platform operations. “Bonus Competition in the Gig Economy,” published in the journal Production and Operations Management, shows that not all bonuses are created equal, and the availability of labor dictates which type of bonus is more effective for firms. Fixed bonuses, also known as subsidies – given as part of the contract – ...
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