AI Insight
This study examined how 223 employees aged 45 and older in Chinese financial-services firms respond to algorithm-based performance evaluation systems. Researchers found that when older workers perceive they are being evaluated by algorithms, they experience greater feelings of organizational dehumanization, which in turn reduces their job satisfaction. However, employees with proactive personalities were less negatively affected by algorithmic evaluation, suggesting individual differences moderate this relationship.
Why it matters
As workplaces increasingly adopt AI-driven performance management tools, this research highlights potential downsides for older workers who may feel depersonalized by algorithmic systems. Organizations implementing such technologies should ensure transparent communication and maintain human elements in evaluation processes, particularly for late-career employees who may be less adaptable.
Understand the Science
BackgroundAlgorithmic systems are increasingly used to evaluate employees, yet little is known about how older workers in traditional organizations experience algorithmic performance evaluation.ObjectiveTo examine whether perceived algorithmic evaluation relates to lower job satisfaction through organizational dehumanization, and whether proactive personality weakens this pathway.MethodsThree-wave time-lagged survey data from 223 employees aged 45+ in 12 financial-services firms across five regions in China. Moderated mediation model (PROCESS Model 7) tested.ResultsPAE positively associated with dehumanization, which predicted lower job satisfaction. Proactive personality buffered the PAE-dehumanization link. Moderated mediation indicated a less harmful indirect effect when proactive personality was higher.ConclusionOrganizations should pair algorithmic evaluation with transparent, humanizing management practices, especially for less proactive late-career employees.