Time-Based Stress and Procedural Justice: Can Transparency Mitigate the Effects of Algorithmic Compensation in Gig...

Area of Science:

• Management Science
• Organizational Behavior
• Occupational Health Psychology

Background:

• The gig economy increasingly utilizes algorithmic management, automating decisions and impacting worker conditions.
• While precarious work and health issues in gig work are studied, algorithmic compensation's effects are less explored.
• Procedural justice and time-based stress are key factors in gig worker health, influenced by pay mechanisms.

Purpose of the Study:

• To investigate the impact of algorithmic compensation on gig workers' procedural justice perceptions and time-based stress.
• To examine the moderating role of algorithmic transparency in these relationships.
• To understand how algorithmic pay structures influence worker well-being and fairness perceptions.

Main Methods:

• Survey data collected from 962 gig workers through a research panel.
• Hierarchical multiple regression analysis used to analyze the relationships.
• Investigated direct effects of algorithmic compensation and the moderating effect of algorithmic transparency.

Main Results:

• Exposure to algorithmic compensation positively correlates with time-based stress.
• Algorithmic compensation is positively associated with procedural justice perceptions.
• The positive relationship between algorithmic compensation and procedural justice is strengthened by higher perceived algorithmic transparency.

Conclusions:

• Algorithmic compensation can enhance perceptions of fairness and procedural justice, particularly when transparency is high.
• Algorithmic compensation is linked to increased time-based stress, and transparency does not mitigate this effect.
• Findings suggest algorithmic transparency improves perceived fairness of compensation but not its stress-inducing aspects for gig workers.