To keep gig economy workers engaged on apps like DoorDash and Uber, giving them either money or recognition works—but combining the two doesn’t, according to research from the University at Buffalo.

The study found that monetary rewards and non-monetary incentives (like digital badges or “good job” messages) both boost worker participation when used alone. But when offered together, the appeal of cash rewards actually drops instead of rising with the addition of praise.

“Pairing recognition with bonuses to motivate workers sounds like a good idea, but in the gig economy it can backfire,” the researchers explain. Gig workers, who often earn low wages, may feel undervalued if a virtual pat on the back takes the place of extra cash.

To the test

To test these strategies, the researchers ran 12 randomized field trials with a major on-demand platform. They also found that how incentives are framed matters: unlike in traditional jobs, presenting rewards as a potential loss (a “clawback” approach, where workers are told they could miss out if they don’t perform) makes recognition-based rewards more effective. But it doesn’t affect cash rewards.

Understanding how different incentives feel to gig workers can help platforms design better motivation strategies. “Since gig workers interact with apps rather than managers, their relationship with work can feel purely transactional,” the authors conclude. “As the gig economy keeps growing, fine-tuning incentives will be essential to keeping workers engaged.”