Psychological Motivators to Manage a Workforce

It’s not uncommon for companies to use rewards programs and assorted incentives to motivate employees. Companies have even taken advantage of psychological methods to persuade consumers to purchase products or services. But what about extending those psychological efforts to a workforce? A recent NY Times article by Noam Scheiber discusses how one company is doing just that.

Because a company tends to hold more control over its employees than its customers, customs and law exist to provide some protection for employees. But for a company like Uber, whose drivers are independent contractors, these protections associated with employment are lacking. This allows Uber to minimize labor costs but because their drivers are not employees with set schedules they cannot compel them to show up at a specified location at a predetermined time. To address this dilemma, Uber utilizes “psychological inducements” (video game techniques, graphics and noncash rewards of little value) too encourage the work habits of its drivers.

It is suggested that as these digital platforms expand and if workers’ skills do not align with traditional jobs, using data-driven psychological inducements may become more common when managing the labor force.

Read the full article HERE