Balancing paradoxical outcomes of metricized employee performance systems (MEPS): avoiding de-prioritization of important (non-metricized) job tasks

With digital HR systems increasing the use of metricized employee performance systems (MEPS) it is important to identify the consequences of these systems. The current study offers an evidence-based examination of the impact that such systems have on employee prioritization of effort at work, and the potential positive and negative consequences that follow. We use a time-separated T1 (IV), T2 (Mediator) and T3 (DV) design to test a theorized moderated mediation model with monitoring and metric use intensity as drivers of employee responses to MEPS. Using latent variable moderated mediation testing, we examine how metricized employee performance systems can engage both a positive response of Metricized Behavior Prioritization (MBP) and a potentially problematic response of Non-Metricized Behavior De-prioritization (NMBD). Results illustrate that monitoring and metric use intensity produced an increase in NMBD but not MBP. When employees report higher levels of MBP, this is associated with higher engagement and lower intent to quit; NMBD however was associated with lower engagement and higher intent to quit. Importantly, we also find evidence that the relationship between monitoring and metric use intensity and NMBD, along with negative associated outcomes, can be mitigated by high procedural justice contexts.