The dark sides of people analytics: reviewing the perils for organisations and employees

Abstract

Technological advances in the field of artificial intelligence (AI) are heralding a new era of analytics and data-driven decision-making. Organisations increasingly rely on people analytics to optimise human resource management practices in areas such as recruitment, performance evaluation, personnel development, health and retention management. Recent progress in the field of AI and ever-increasing volumes of digital data have raised expectations and contributed to a very positive image of people analytics. However, transferring and applying the efficiency-driven logic of analytics to manage humans carries numerous risks, challenges, and ethical implications. Based on a theorising review our paper analyses perils that can emerge from the use of people analytics. By disclosing the underlying assumptions of people analytics and offering a perspective on current and future technological advancements, we identify six perils and discuss their implications for organisations and employees. Then, we illustrate how these perils may aggravate with increasing analytical power of people analytics, and we suggest directions for future research. Our theorising review contributes to information system research at the intersection of analytics, artificial intelligence, and human-algorithmic management.