How Algorithms Are Quietly Taking Charge of Everyday Work
Trends | New Stardom
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Algorithmic management uses software to assign shifts, set targets, monitor productivity, and evaluate staff. These tools, found in systems like Kronos, Jira, and Microsoft Power Automate, are now standard across industries, not just in gig work or logistics.
According to a 2025 OECD survey of more than 6,000 firms in the US, France, Germany, Italy, Spain, and Japan, 90 percent of US companies and 79 percent of European companies now use some form of algorithmic management. In the US, three-quarters of companies report using ten or more such tools.
These systems operate in logistics, retail, healthcare, finance, and manufacturing, in both large and mid-sized firms. They can allocate work, track attendance and output, and deliver performance scores that shape pay or promotion.
Managers report several benefits, including greater efficiency, faster decision-making, and fewer disputes over performance data. Sixty percent say decision quality has improved, and more than half report higher job satisfaction with digital management tools. In the United States, managers are more likely to believe that algorithms reduce bias, while in Europe and Japan, most see no change.
However, two-thirds of managers identify major risks related to algorithmic management, such as unclear accountability, difficulty explaining automated decisions, and increased pressure on worker health. In the United States, 57 percent of managers report health risks linked to intensive monitoring; in Europe, transparency and explainability are the primary issues. Consultation with workers remains rare, and few employees have access to or control over the data used to evaluate them.
Data collection is ongoing, as US firms frequently monitor employee communications, while European firms focus more on tracking time and tasks. Although European data privacy laws set some limits, digital monitoring is still widespread.
Both the OECD and the European Union emphasize the need for updated regulations and practical safeguards to ensure that digital management tools are deployed fairly and responsibly. The European Union is working on minimum standards for algorithmic management, including transparency, consultation, and human oversight, while the OECD recommends new rules for accountability and worker data rights.
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