Volatile pay is linked to health issues
Photo by Karolina Grabowska
The changing nature of pay for gig workers is linked to health problems as found in recent research by the American Psychological Association (APA). Freelancers are not the only people facing this conundrum. Any employees subject to pay fluctuations (including waiters and sales professionals) can also face worse physical health symptoms—such as headaches, stomach issues, back pain, and poor sleep quality. The findings apply both to lower-paid tipped workers and to higher-paid professionals working in jobs such as sales and finance, since commissions are common in these lines of work.
Greater fluctuations exacerbate health problems
The APA found that people who face large fluctuations over a two-week pay period have worse health issues. The case is even stronger among those for whom volatile pay made up a larger percentage of their total salary. Meanwhile, those who depend less on bonuses and commissions have better outcomes. The APA’s findings are various surveys, participated in by gig workers and salaried employees alike.
Disabled gig workers facing higher pressure
The year 2020 kickstarted a period of record employment for disabled people. An overall labor shortage, coupled with the widespread popularity of remote work, gave rise to an array of opportunities for some of the US’s most skilled yet underutilized professionals. Of course, disabled workers continue to face many challenges, one of which is job insecurity in the face of the upcoming, predicted recession. Moreover, disabled workers with SSDI claims may be rejected from claiming their rights if they earn more than a stated limit. The cap currently stands at around $1,470 per month. They may also have their claims rejected if their disability is not deemed “severe enough,” or if their disability is caused by substance abuse. The Americans with Disabilities Act, which requires employers to offer reasonable accommodation for disabled employees, could be a solution. The latter could be relied upon to press for law reform that will enable workers to retain their jobs even as more companies ask employees to return to the office or begin laying off remote workers.
Mindfulness, law reform, and the role of unions
The APA has found that mindfulness—learning to keep the mind “in the present moment”—can be a key buffer for both gig workers and employees during stressful times. They also recommended that businesses step back and consider whether retaining volatile pay structures is actually necessary to ensure optimal work performance. More stable compensation may actually result in a more desirable effect. Law reform is also required to battle the current minimum wage ($2.13 per hour) and to protect freelance workers. Unions can also play a key role in raising the percentage of a worker’s base pay and reducing employees’ dependence on volatile pay.
Volatile or fluctuating pay is linked to a host of negative health symptoms. These include headaches and poor sleep. To improve the health of workers, companies should consider reviewing pay structures and considering if volatile pay is actually fruitful—both for the worker and the company. Law reform and hard work on the part of unions can also help increase workers’ base pay percentages.
