Pay It Backward: Why Paying in Bulk Beats Piecework in Crowdsourcing

Pay It Backward: Per-Task Payments on Crowdsourcing Platforms Reduce Productivity

2016-05-05
Kazushi Ikeda, Michael S. Bernstein, Michael S. Bernstein
Summary
Problem
Method
Results
Takeaways
Abstract

This paper introduces "Pay It Backward," a behavioral economic approach to crowdsourcing incentives. By comparing traditional piecework payment (Per-Task) with alternative schemes like bulk payments, coupons, and material goods, the authors demonstrate that paying in 10-task increments significantly boosts worker participation.

TL;DR

The dominant "pay-per-task" model in crowdsourcing platforms like Amazon Mechanical Turk might actually be hindering productivity. This CHI'16 paper reveals that by simply shifting to Bulk Payments (rewards every 10 tasks) and utilizing Material Goods, platforms can increase task completion rates by 16% and significantly improve long-term worker retention.

The Piecework Problem

Since the inception of platforms like MTurk, the industry has operated on a simple piecework logic: do one task, get one payment. However, this model ignores a fundamental human trait: the need for milestones. Without specific goals, workers are prone to fatigue and rapid drop-off. Current research has mostly explored "how much" to pay, but this paper explores the "how" and "what" of payment.

The Behavioral Insight: Goals and Sunk Costs

The researchers drew on two powerful concepts from behavioral economics:

  1. Goal-Setting Theory: Specific, ambitious goals (like completing a set of 10) lead to higher performance than "do your best" prompts.
  2. Sunk Cost Effect: Once a worker has invested effort into a partial set of tasks, the psychological "cost" of quitting before the reward milestone becomes too high, driving them to finish.

Methodology: The Field Experiment

The study utilized a mobile app that sent notifications for "Quality of Service" surveys. 300 participants were split into five incentive conditions:

  • PT (Pay Per Task): Control group.
  • PB (Pay in Bulk): Rewards unlocked every 10 tasks.
  • CT/CB (Coupon per task/bulk): Reducing monthly phone bills.
  • MG (Material Goods): Unlocking items from a gift catalog.

Experimental Interface Samples Incentive visualizations: (a) Per-task vs (b) Bulk progress bars/stamps.

Key Findings: The Bulk Advantage

The results were clear: Bulk payment is a productivity powerhouse.

  • Efficiency: Bulk payment increased the odds of a task being completed by 1.4x.
  • The Retention Miracle: While task completion usually drops as novelty fades, the Material Goods (MG) group showed incredible resilience. The rate of decline for material goods was significantly slower than cash-based methods.
  • The Subjective Paradox: Interestingly, workers said they preferred Pay-per-task, yet they performed better under Bulk and Material Good conditions.

Task Completion Rates Comparison Quantitative proof: Bulk payments consistently outperformed the industry-standard per-task model.

Critical Analysis & Future Outlook

While Bulk Payment drives productivity, it introduces a "Risk of Loss" for workers who might complete 9 out of 10 tasks and receive nothing. This suggests that future platforms should balance psychological milestones with "safety nets" (e.g., partial payouts).

The takeaway for platform designers is profound: Stop thinking only about the dollar amount. By framing work as a journey toward a milestone or a tangible gift, you can build a more engaged and persistent workforce.

Conclusion: This study proves that "paying it backward"—forcing a longer look at a goal rather than immediate gratification—is the key to scaling human computation.

Find Similar Papers

Try Our Examples

  • Search for recent studies that apply goal-setting theory or gamification principles to improve worker retention on platforms like Amazon Mechanical Turk or Prolific.
  • Which original behavioral economics papers established the "sunk cost effect" and "goal-setting theory," and how have these theories been adapted for digital labor markets since 2016?
  • Are there any investigations into how material/non-monetary incentives impact work quality and participation rates in remote or gig-economy tasks across different cultural demographics?
Contents
Pay It Backward: Why Paying in Bulk Beats Piecework in Crowdsourcing
1. TL;DR
2. The Piecework Problem
3. The Behavioral Insight: Goals and Sunk Costs
4. Methodology: The Field Experiment
5. Key Findings: The Bulk Advantage
6. Critical Analysis & Future Outlook