Two Key Elements for Ethical People Analytics
Would you share with your employees all your people analytics project proposals? Would you publish on your intranet the purpose, proposed data and methodology, and hypotheses to be tested?
To most companies this level of transparency seems far-fetched, even radical. But that is the approach of a leading European online retailer. Each proposed project is shared internally and open to comment by all employees. And the results have been stunningly successful. The head of people analytics proudly shared that their team’s projects have received up to 1,000 comments and suggestions from employees, which have made projects stronger by allowing the company to avoid missteps by cancelling some projects before they could inflict damage on employee trust in people analytics.
Communicate and Transparency are two imperative elements required for ethical people analytics, in this blog we discuss how to create a practical approach to each. It adds a critical component to the people analytics leader’s and practitioner’s approach to ethics. This topic builds on our prior data ethics charter and governance articles.
We believe the key principle for effective and ethically sound communication is ‘the more transparency the better’. Sunlight is the best disinfectant. As stated in our article on governance: if you can’t comfortably say that you’d be ok with your project showing up in the Financial Times, then you probably should rethink it. And if it does clear that hurdle, then why should it not be actively communicated?
Let’s explore transparent communication in more detail.
Which of these projects should or should not be communicated to employees?
An analysis that provides data and information for redundancy decisions
A project that provides insights on changes to the organisational structure of the HR operations centre
Information that is used to change the incentive structure for the sales team
The instinctive answer to the above questions for many leaders is to communicate as little as possible about any of these projects. The reality is: for all of these it is a legal requirement to inform employees. But – and this is a major caveat – it’s the level of specificity that makes the difference. And you must know how to be as specific as possible and as proactive as possible.
Because of the ever-increasing sophistication of insights on employees, you should define clear policies and approaches for transparent internal communications in your company. Otherwise, People Analytics (and HR) risks being defined by the (un-)intentional and unexpected actions of leaders or employees.
Here’s three rules for communicating ethically, and effectively:
The first rule of communication is to start with the needs of your audience. Think from their (differentiated) roles and perspectives.
Closely following that is the second rule: define the narrative. That begins by assuring that employees find out from the people analytics team about the proposed (or ongoing) project and not from an article in the newspaper. And it means communicating across as many channels as possible to assure the message is heard.
The third rule is to match the level of transparency and style to the project phase.
Specifically:
Adapted from Reorg: How to Get it Right, by Stephen Heidari-Robinson and Suzanne Heywood
When a project idea comes up and its feasibility is investigated, keep communication simple and focused on the facts: the broad business reasons, the areas that are considered, and the people who are involved. This is not the time to try and create excitement about the project or to convey the fact that decisions have been made.
When a significant analytics project begins, data is gathered and analysis is carried out, you should assume that employees will hear about it. Therefore, proactively communicate the focus of the project, areas of the business, and how the project is being conducted (including the data gathered and methods used). At the end of this phase, share the findings – not necessarily the recommendations, but the findings. The communication should focus on those who are potentially impacted (positive or negative) by the analysis.
Once the analysis is completed and recommendations are made you may be required to communicate these formally (and in some countries engage in consultation) if it affects employee positions. If, like many analytics projects, the recommendations are going to create opportunities and benefits for employees, this is the time to excite them and broadly share the positive potential of the recommendations. Town halls,
Finally, and often forgotten, is the opportunity to drive actual change and impact through post-project communication. It can take up to two years for organisations to implement a change and it is imperative for people analytics leaders, who want to be effective, to own a project through implementation. Success is only achieved once a change has been made, not once data or insights are delivered. As Piyush Mathur of Johnson & Johnson put it: Insights without action are overhead.
Two years ago, HarrisPoll found that 70% of employees would consider quitting if they discovered that monitoring was performed without their prior knowledge. With the future of work becoming hybrid and the expansion of tools available to collect employee data and conduct analyses, there is a real risk that a lack of transparency and a missing communication strategy do significant and lasting damage to employee trust, engagement, and retention. The rules outlined in this article are practical considerations and steps to ensure your projects benefit from appropriate transparency and communication.
Click here to learn more about how your organisation can lead with ethical people analytics and how to ensure you’re delivering value through people analytics.
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.
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