Instead of having managers, these workers are beholden to customer reviews. The relationship is rocky
Anyone who buys goods or services online has come to rely on the guidance of the stars—that is, the five-star rating system that aggregates customer evaluations of everything from products to restaurants to nursing homes.
On digital labor platforms like Uber, TaskRabbit, and Upwork, that rating system is applied to individual workers—with tremendous consequences for those being evaluated.
“It misses a lot of the variety and texture that exists in a labor interaction,†says Hatim Rahman, assistant professor of management and organizations at Kellogg. And workers tend to grasp the downsides of an overly simplistic rating system very quickly, Rahman adds: “They start to say, ‘Hey, this doesn’t make sense; there are so many situations in which the rating someone’s leaving does not accurately capture what’s happening in the context of my work.’â€
Perhaps workers would shrug off the low ratings they perceive to be unfair if it weren’t for the financial repercussions that can flow directly from those ratings. Uber, TaskRabbit, and Upwork all integrate customer ratings into the algorithms that determine workers’ visibility to customers, eligibility for incentives, and continued employment.
What these platforms have created, in effect, is a system where the traditional role of the manager has been fully outsourced to customers and their star-based ratings. As Rahman and his colleague, Lindsey Cameron at Wharton, write in a new paper, “the rise of this algorithmically mediated customer control to monitor and evaluate individuals has effectively given many workers a new, digital ‘boss.’â€
[This article has been republished, with permission, from Kellogg Insight, the faculty research & ideas magazine of Kellogg School of Management at Northwestern University]