International Journal of Economics (IJEC)
Vol. 5 No. 1 (2026): January-June

Algorithmic Nudging and Employee Well-being: A Mixed-Methods Study on the Double-Edged Sword of AI-Driven Management in the Hybrid Work Era

Rahman, H Abd (Unknown)
Sulfiani Sulfiani (Unknown)
A Syafir Rahman (Unknown)
Kamaruddin (Unknown)
Andi (Unknown)



Article Info

Publish Date
17 Feb 2026

Abstract

Algorithmic nudging through artificial intelligence-driven management has emerged as a transformative force in contemporary hybrid workplaces, offering unprecedented opportunities for personalized performance optimization while simultaneously raising critical concerns about employee autonomy and psychological well-being. This mixed-methods study examined 87 white-collar professionals from Indonesian technology, financial services, and consulting firms to elucidate the complex relationship between algorithmic nudging, job burnout, perceived threat, and workforce well-being. Drawing upon self-determination theory and conservation of resources theory, the study integrated in-depth qualitative interviews (n=32) with quantitative burnout assessments employing the Maslach Burnout Inventory. Results revealed a curvilinear relationship whereby moderate algorithmic nudging implementations demonstrated positive effects on competence satisfaction and task clarity, whereas intensive surveillance and real-time algorithmic interventions paradoxically increased emotional exhaustion and cynicism by undermining autonomy and relatedness. Person-job fit emerged as a critical moderator, with individuals in roles aligned with algorithmic management exhibiting 34% lower burnout compared to misaligned counterparts. The study identified three primary mechanisms through which algorithmic nudging influences well-being: resource depletion (through psychological pressure), autonomy suppression (through constrained decision-making), and relatedness erosion (through surveillance-induced isolation). Contextual factors including organizational transparency, employee agency in system design, and hybrid work flexibility substantially buffered negative effects. These findings suggest that algorithmic nudging represents a double-edged sword requiring calibrated implementation, genuine employee participation in system governance, and human-centric safeguards to maximize productivity gains while protecting psychological well-being in the hybrid work erav

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Journal Info

Abbrev

ijec

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal of Economics (IJEC) E-ISSN. 2961-712X is a refereed publication that comes to address the Economic and Administration challenges that economic units of various nature face in today’s rapidly changing international economic environment. It is designed to publish original and ...