Having motivating incentives for your gig workers is crucial when it comes to the success of any business that employs contracted employees. When workers bring a high level of commitment, drive and energy to their jobs, it increases productivity, thus helping the company reach its desired goals.
However, when employees are unmotivated, the opposite becomes the case. As a result, the company experiences reduced productivity, output levels are lower, and it’s unable to meet fixed goals.
The question then becomes, how do you motivate your gig workforce?
Business owners and managers must bring forth strategies on how to cultivate and nurture motivated gig workers.
In this post, we’ll explore how to motivate workers when payment and incentives are fixed – especially in the gig economy. But first, we have to look at what motivation in the workplace is and why it is motivating your workforce is important to your bottom line.
Gig Worker Incentives, and Why They’re Important?
A worker’s motivation is the level of commitment, energy and innovation that a worker in a company has while carrying out their duties. This drive and commitment are essential because the level of interest and excitement a worker has for their job has a direct connection to how well they do the job.
For one, an unmotivated worker works at a slower pace. They also typically spend more time away from their tasks and often will be caught keeping themselves busy by surfing online or just wasting time on their phones.
So, in general, an unmotivated worker is unfocused and does not go to any stretch to make their work better.
The effect of this lack of motivation is that the business’ resources are wasted. But that’s not the only problem. A lack of motivation can also be contagious. Other employees can pick it up, crippling the company’s productivity levels and keeping it from meeting important targets and standards.
As such, many businesses develop various strategies to ensure that their employees are motivated. However, doing this can be a challenge in gig economy platforms.
This is because, in the gig economy, the employer-employee relationship is usually short-term. This makes it challenging to cultivate employee commitment, teach company culture, and give customers consistent experiences.
Also, because gig payments are made per task, finding a way to motivate gig workers and keep them excited can be pretty daunting.
Besides the pay being fixed per task, gig workers also do not get incentives like vacations and yearly leave. If they need one, they simply stop working. Therefore it seems like if businesses want their gig workers to stay motivated, they’ll have to pay them instantly. But is that really the case?
How Can Businesses Motivate Workers When Payment and Incentives are Fixed?
In regular jobs, employee motivation techniques typically involve giving raises, bonus schemes, overtime pay, etc. But when the payment on a contractual basis, how do you keep your gig workers happy? The following are the strategies that a business can undertake to keep its workers happy:
#1. Instant Commissions for Sales Incentives
Commissions are a way for employees to earn additional pay in addition to a fixed salary. They work by paying a worker according to the number of sales they make.
Sales commissions are a necessity, not only because they help motivate workers, but they also help them to measure their performance.
Industries such as real estate and insurance typically pay their workers based on the number of sales that the worker generates. The primary incentive in such commission-based pay is the variable pay plan.
Under a typical variable pay plan, the employee, for instance, might receive 40 percent of every dollar that they generate. But then, when they get to a specified level of revenue, the company could increase their pay to 65 percent for every dollar generated.
This technique will be beneficial for both the company and its sales force.
#2. Personalize Fixed Incentives:
So granted, your workers already know what to expect when they work harder. But when they receive extra pay, they are still dissatisfied because their stress levels are higher. What does the employer do in cases like that? Businesses have to adopt employee incentives solutions.
These solutions involve driving business results and brand loyalty with employees. The incentives should be designed to meet your business needs while building your employee’s sense of accomplishment. To do this, a business can do any of the following:
- Project milestones for workers that include training and other developmental retreats.
- Reward high-performing sales staff with their own branded prepaid cards that can be funded instantly in real-time.
- Give end-of-the-year gifts and bonuses and mark anniversary celebrations.
- Make the business personal to workers by branding gifts and rewards. For example, you can get branded cards to make your employee reward program more interesting for your workers.
#3. Offer Earned Wage Access to Employees:
Many businesses do not know why they need to offer earned wage access to their workers. However, with the rise of cashless and on-demand payments, as well as the upsurge of the gig economy, the need for modernized payments technologies cannot be overemphasized.
Workers have to be paid, and Earned Wage Access (EWA) gives them access to the wages they’ve already earned before payday arrives. With this system, employees can manage cash-flow emergencies and avoid debts.
You can learn to build an earned-wage-access solution from scratch and create your company’s on-demand payment solution.
#4. Avoid Delayed Payments:
Delayed payments, in particular, are a major source of discouragement for gig workers. It makes them unhappy, causing them to eventually switch employers. In fact, 84% of gig workers said that they would do more gig work if they were paid faster.
Instant payments provide a valuable opportunity for businesses to earn goodwill among gig workers.
If businesses are to stay productive and ahead of the competition, they need to do everything that they can to keep their workers happy and loyal. It’s irrelevant whether the employees are gig workers, contract staff, full-time employees or if they work from home or at the office.
So whether your company’s employees are gig workers or not, you can get solutions on how to keep your workers motivated on Berkeley Payment’s rewards and incentives platform. Berkeley’s GigPay enables you to give your workers the flexibility of choice on how they receive their funds and can be completely branded to fit your company’s needs.
Ready to Motivate Your Gig Workforce With The Right Incentives?
Berkeley’s banking-as-a-service platform enables all of the financial services capabilities you need to issue cards, transfer funds, and load accounts – all in real-time.