The Power of Precision: How Algorithmic Monitoring and Performance Management Enhances Employee Workplace Well‐Being

ABSTRACT Can algorithmic control positively impact employee well‐being in the workplace? This study examines the potential benefits of algorithmic control, particularly through monitoring work activities and assessing performance, in enhancing employees' workplace well‐being within conventional employment settings. Grounded in labour process theory, our analysis of a multi‐wave data set reveals that both algorithmic monitoring and performance management can foster employees' perceptions of organizational fairness, which subsequently supports workplace well‐being. Additionally, the study finds that algorithmic transparency further strengthens these positive effects, emphasizing the value of clear and accessible communication around algorithmic processes. These insights offer a practical framework for leveraging algorithmic tools to harness the power of precision, enhancing perceptions of fairness and promoting employee well‐being.