Unpredictable income sources, due to gig economy and tip-based jobs, linked to poor health outcomes for workers
New research has indicated that there are negative health impacts associated with short-term or freelanced jobs due to the unpredictable pay through tips, commission, or bonuses. Employees with financial insecurity tend to have more stress and poor sleep habits, which can then impact their physical health. Additionally, people who are preoccupied with financial worries are more likely to neglect other aspects in their lives that are important for maintaining good health, such as exercise and balanced meals. This poses an issue for the millions of Americans working in the gig economy who they do not receive a reliable salary, as well as for those working in the service and sales industries that are largely dependent on tips and commissions. Overall, the research suggests that businesses should reevaluate performance-based pay methods and consider how reliable salaries could potentially improve employee performance.
See "Unpredictable income sources, due to gig economy and tip-based jobs, linked to poor health outcomes for workers ", Dennis Thompson, HealthDay, US News, December 12, 2022