Pariaman — As the gig economy continues to expand across developing regions, a recent study highlights the critical role of transactional leadership and extrinsic motivation in improving worker well-being among gig workers in Pariaman City.
The research provides new insights into how leadership practices, financial incentives, and workplace social support interact to shape psychological well-being in flexible and project-based employment environments.
Using a quantitative explanatory design, the study analyzed survey responses from 209 gig workers across multiple sectors in Pariaman City. Structural Equation Modeling with Partial Least Squares (SEM-PLS) revealed that transactional leadership significantly improves both extrinsic motivation and employee well-being.
Gig workers typically operate without long-term contracts, stable wages, or access to social protection systems. In such uncertain conditions, leadership clarity and reward consistency become essential psychological anchors that help workers maintain stability and satisfaction.
The findings show that transactional leadership—characterized by clear performance targets, structured supervision, and consistent reward systems—has a strong positive effect on employee well-being. Workers who clearly understand the link between effort and compensation tend to experience greater emotional security and job satisfaction.
Transactional leadership also significantly increases extrinsic motivation. Financial incentives, bonuses, and performance-based recognition serve as primary drivers of work behavior, especially for workers whose income depends on daily productivity.
Extrinsic motivation itself was found to directly improve employee well-being. For gig workers facing income uncertainty, external rewards function not only as economic support but also as recognition of their contribution and effort.
Importantly, extrinsic motivation plays a mediating role in the relationship between transactional leadership and employee well-being. This means leadership improves well-being both directly and indirectly through stronger reward-based motivation.
The study also confirms that social support from supervisors and coworkers has a significant positive direct effect on well-being. Emotional and practical assistance helps reduce stress and strengthens resilience among workers operating in unstable employment conditions.
However, social support does not significantly moderate the relationship between extrinsic motivation and employee well-being. This suggests that financial incentives remain the dominant determinant of well-being in gig-based employment structures.
Demographic findings indicate that most respondents were aged 21–25 years (65.1%), and the majority worked under daily employment arrangements (81%), reflecting the highly flexible yet unstable nature of gig-based labor systems in Pariaman City.
Overall, the structural model explains 65.6% of the variance in employee well-being, demonstrating the strong combined influence of leadership practices, motivation, and social support in shaping worker welfare outcomes.
The study suggests that organizations employing gig workers should prioritize transparent reward systems, consistent leadership practices, and supportive communication environments to enhance psychological well-being.
Future research is encouraged to include broader regional samples and additional variables such as job satisfaction, work engagement, and intrinsic motivation to better understand well-being dynamics in emerging gig-economy contexts.
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