In late July 2017, a Who’s Who of Silicon Valley people analytics leaders came together at Intel. No one foresaw that Cambridge Analytica would soon raise the profile of data ethics to a new level of urgency. In fact, the leaders that day confirmed what similar groups had found at meetings earlier that month in London (hosted by Cisco), Amsterdam (ABN AMRO), and New York (Pfizer): people data ethics is important, but it’s not urgent.

At that Intel meeting, the people analytics leaders from 55 companies came to the realisation that people data ethics is important, because of its foundational impact on people analytics success. No organisation can build a sustainable, successful people analytics function without clear understanding of what it should and shouldn’t do. Data ethics, participants realised, is the compass for all analytics work.

Now, however, we have added complexity to the ethical data train: Artificial Intelligence (AI). With discussions dominating every podcast interview, thought leadership article, and conference presentation, AI's ethical concerns are only growing. 

The technology hype isn't going to calm down anytime soon. Insight222's 2023 People Analytics Trends report found that 70% of the 270 companies surveyed admitted to having increased investment in people analytics tools in the last 12 months. 58% also predicted that investments in new technologies will likely increase in the next 18-24 months.

With new technologies such as AI and machine learning being adopted in people analytics, not only must we consider privacy and security; we also need to address concerns around reliability, fairness, transparency and accountability. Integrating AI into our people analytics practices needs to be done with precision and care.

Talks of synthetic data being a possible ethical game-changer are coming to light. Upskilling end users in data and algorithmic literacy is becoming a main focus for organisations. In addition to this, recent Deloitte research found that more than more than half of business leaders plan to bring on talent to fill AI-related roles, such as ethics researchers, compliance specialists and technology policy analysts.

All this supports Inisght222 People Analytics Trends research depiction that one of the eight characteristics of leading companies in people is, in fact, ethics. The ethical use of data in people analytics work in Leading Companies is composed of three key practices:

1. Strong Ethical Principles: Leading companies have clearly defined ethical principles that are communicated and understood throughout the organisation. These principles guide decision-making when it comes to handling people's data and ensure that all actions align with ethical standards.

2. Open Communication: Leading companies have a culture of open communication when it comes to people, data and analytics. Employees are encouraged to ask questions, express concerns and provide feedback on the use of their data. This promotes transparency and trust between the organisation and its employees.

3. Ethics Oversight: Leading companies have a dedicated team or individual responsible for overseeing the ethical use of data in people analytics. This ensures that all practices and decisions align with company principles, regulatory guidelines and ethical standards.

No Data Ethics, No Sustainable Analytics Value

If we want to continue demonstrating the value of people analytics, we need to prove that it is being practised ethically.

What is the solution? We believe that every company needs clear guidance and alignment around the employee data it should collect, especially how it should collect, analyse, store, use, and distribute it. Typically, such alignment takes the shape of a data ethics charter.

The People Analytics Data Ethics Charter

The data ethics charter developed by the Insight222 co-creation, and the tools to help users go from insight to action, are described below. They encompass six recommendations:

1. Define what’s important to you

If you can not define the value that collecting data has on the people you are collecting it from, you shouldn't be collecting it at all. So, before you start any analysis, first define what is important to you and your stakeholders.

The tenets of your approach to collecting, analysing, and sharing people data need to be clearly defined and the people analytics team is the right team to take the lead. Other stakeholders in the organisation, such as data privacy officers and the legal team, have a risk-focus when it comes to data. The people analytics team also understands the benefits that both management and the employees can derive from the proposed data analytics project and weigh risk and benefit.

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2. Align key stakeholders

One of the more surprising findings of the Insight222’s co-creation work is the sheer number of stakeholder groups: 27! Each of the 27 stakeholders has legitimate interests in the analytics work. One of the values of the co-creation is the creation of an intelligent grouping methodology to make alignment practically feasible.

Once you know your key stakeholders, engage with each to assure your principles address their key concerns. If not, iterate on your principles or iterate on your messaging.

Similarly, when it comes to the use of AI in people analytics, researchers Bar-Gil, Ron, and Czerniak found that successful AI ethics strategies align the technology with its company culture – from design to development to deployment. 

3. Demonstrate/communicate the specific individual benefit

The power of the charter is that it enables organisations to drive analytic projects with greater speed. However, this only works if the charter is well-known and accepted.

A proactive and sustained communication approach is key to socialising your charter internally. You should include case examples of how the charter was used to protect the stakeholders and create value for the employees. 

As yourself: What is in it for the employee? If no specific benefit can be derived for employees, be careful. If you cannot demonstrate how the data collected will create value for both the organisation and its employees, then do not go ahead.

4. Create a process to get to your goal

The charter creation is not a one-time conversation, a single day-long meeting, or an off-site. A truly effective charter creation is also a change management process (i.e. a multi-round conversation). 

This is another reason why the co-created charter is so valuable. The ongoing process of bringing the 27 stakeholder groups together creates a long-lasting alignment. This alignment makes it easier to engage stakeholders in a timely manner when new analytics efforts are needed. 

5. Develop an implementation plan

Your implementation plan is adjacent to the multi-round creation process. This plan must contain clear action steps for each phase of your people analytics project. Adopting a three-step decision model with go/no-go stage gates at each phase is recommended. These gates ensure that your project stays within the boundaries of your ethical guidelines.  

6. Translate your charter into action questions

A charter and decision model becomes actionable when it can be tested. Create specific questions for each stage of the analytics project to test whether the project conforms to your agreed ethical norms. These questions could include:

• Does the project address a key priority for stakeholders?

• Does the data collection and analysis comply with legal regulations and company policies?

• Is there a clear benefit for both the organisation and its employees? 

By translating your charter into action questions, you can continuously audit your people analytics projects to ensure ethical standards are being met. This also allows for adjustments to be made if any red flags are raised during the project.

Call to Arms

By now, you will notice that these six steps don't tackle one key problem: urgency. Today's People Analytics teams are continuously pressured to provide answers. They also need to be commercially successful and prove they add value.

So, how do you get management to take people data ethics seriously before your organisation has, for lack of a better term, "a Cambridge Analytica" moment? 

The answer is to showcase the value of a data ethics charter through success stories. When an organisation can demonstrate how ethical guidelines were followed and how it positively impacted both the company and its employees, it becomes easier for other organisations to follow suit.

Set up a data governance council and include representatives from all key stakeholder groups. This council can regularly review and update the data ethics charter to ensure it remains relevant and effective.

It is also important to educate and train employees and management on the importance of ethical data practices and how they can play a role in upholding these principles. By involving employees and management in the conversation, they become invested in the success of the charter and are more likely to adhere to its guidelines.

People analytics will only grow in importance over the coming years. Tackling data ethics now will ensure that your house of data ethics is built on a rock-solid foundation and has a lasting positive impact.

Learn how you can leverage better data ethics practices with the Insight222 People Analytics Program®

At Insight222, our mission is to make organisations better by putting people analytics at the centre of business and upskilling the HR profession The Insight222 People Analytics Program® is your gateway to a world of knowledge, networking, and growth. Developed exclusively for people analytics leaders and their teams, the program equips you with the frameworks, guidance, learnings, and connections you need to create greater impact.

Insight222 Peer Meetings, like the event in London, are a core component of the Insight222 People Analytics Program®. They allow participants to learn, network and co-create solutions together with the purpose of ultimately growing the business value that people analytics can deliver to their organisations. If you would like to learn more, contact us today.

ABOUT THE AUTHOR

Dirk Petersen is a renowned expert in HR strategy, organisational change, digital transformation, and how analytics affect HR communities and those they serve. After his MBA at Harvard Business School, Dirk spent many years serving leading organisations at the Corporate Executive Board (CEB). From there he served as a HR Business Partner with the World Bank. Since then he's helped leaders better understand and strategise around how workforce analytics impacts careers, innovation, operational effectiveness, and executive decision-making.