Employee loyalty in the platform economy: Does it exist?

Abstract

Research Question (RQ): In this paper, we answer the research question of whether platform workers harbour a sense of loyalty towards the platform they work for, despite the transient nature of this work form, the absence of traditional employment benefits and the often-impersonal relationship between the platform and its workers. Purpose: The purpose of this paper is to expand the discussion on employee loyalty to the context of platform work, due to the crucial role employee loyalty plays for both organisations and their workers – employee loyalty helps organisations retain their workforce and avoid the harms of employee turnover, while also fostering a sense of belonging and fulfilment among employees. Method: 20 in-depth semi-structured interviews were performed with food delivery couriers (working for Wolt and Glovo) from Slovenia. Results: Our findings show that while this group of workers does display some behaviours which indicate their loyalty to their platform, such as the fact they mostly speak of the platform positively, they actively recommend it to their peers and they display relatively high levels of trust towards it, they do not feel loyal to the extent where they would intent to stay working for the platform indefinitely. Organization: These findings are important for the sustainability of the platform economy model, as they can help reduce employee turnover and consequently improve the consistency and profitability of digital labour platforms. Society: Findings on employee loyalty within the platform economy have the potential to decrease employee turnover, which is currently one of the biggest limitations to collective action in this sector. Originality: This is one of the first papers to discuss the phenomenon of employee loyalty in the context of platform work, as the concept is typically explored in traditional employment relationships. It contributes to our understanding of whether individuals, platform, or non-platform economy participants, can develop a sense of loyalty even towards employers who offer suboptimal working conditions. Limitations / further research: The current body of knowledge would greatly benefit from a longitudinal study which could explain how platform workers’ sentiments towards their platform change over time.

Keywords

• employee loyalty
• platform work
• gig economy
• job quality
• delivery
• precarity