Algorithmic management practices in regular workplaces are already a reality

The world of work is rapidly transforming due to the digital revolution and increased connectivity. A new report, Algorithmic management practices in regular workplaces: case studies in logistics and healthcare, compiled by the JRC and the International Labour Organization (ILO) sheds light on the expansion and adoption of algorithmic management tools for work coordination beyond digital labour platforms.

Digitalisation, digital monitoring of work and algorithmic management - understood as the use of computer-programmed procedures for the coordination of labour input in an organisation – open up new business opportunities, foster efficiency gains and streamline work processes. However, this transformation also presents challenges in terms of working conditions, potential deterioration of job quality, and a significant risk of worker surveillance.

The report, based on case studies conducted in two highly developed European countries – Italy and France – and two non-European developing countries – India and South Africa – explores the impact of algorithmic management practices on work organisation, job quality and industrial relations in regular workplaces in the logistics and healthcare sectors.

What’s in it for employers and employees?

The evidence from the case studies show that algorithmic management is already a reality, in all the four countries studied, but it is far from being uniformed, as similar technologies yield very different effects. In many instances, algorithmic tools are implemented for managing aspects and processes beyond work coordination, yet they have direct and important effects on the organisation of work, task allocation, job quality and industrial relations.

The global nature of this phenomenon, coupled with sectoral and geographical differences, adds complexity to understanding its full implications.

Algorithmic management can enhance productivity and service quality, but it also poses risks related to worker surveillance and job quality, particularly in the absence of robust legal safeguards. A common element among these tools is that their implementation is driven by the objective to maximise profit and foster efficiency gains.

In terms of challenges, there are differences between the impact of these technologies on job quality and working conditions in the European and the non-European cases. The case studies conducted in Italy and France show a generally positive impact of the introduction of digital tools on job quality and no immediate evidence of higher level of workers’ monitoring and surveillance.

The negative impact on job quality is far more evident in South Africa than in India and, importantly, there is clear evidence of increased worker monitoring and surveillance. These differences show that the impact of algorithmic management in regular workplaces appears to be at least partly mediated by the institutional and the regulatory frameworks in place.

To facilitate future policy discussions on algorithmic management and inform policy decisions, further research becomes imperative to provide robust evidence on the evolving nature of algorithmic management, its expansion and the increasingly apparent consequences it entails.

The report is part of the JRC research agenda on the changing nature of work, which analyses how the digital and green transitions, along with demographic trends and globalisation, are changing the nature of work in Europe.

Previous JRC research on algorithmic management showed that the use of digital platforms and algorithms for coordinating work processes - known as the platformisation of work - is an emerging phenomenon affecting a small but not marginal proportion of workers and it is likely to grow in the future.

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