62% of businesses are using new technologies and sources of workforce data extensively. However, just 30% of C-level executives are confident that their organisation is using workforce data in a highly responsible way.
This is according to a recent Accenture report, titled Decoding Organisational DNA. Researchers interviewed 1,400 C-level executives and 10,000 workers across 13 industries in order to determine how companies are obtaining employee data.
The cost of decoding organisational DNA
As the report outlines, the cost of decoding organisational DNA is incredibly high – but so are the rewards. However, the difference in growth rates between losing and earning employee trust is 12.5% – or $3.1 trillion globally.
Ellyn Shook, Chief Leadership and Human Resources Officer at Accenture emphasised the importance of trust. “At a time when companies are using newly available workforce data to drive greater value, responsible leadership is the key to building employee trust.”
“Trust is the ultimate currency—it’s the path to innovation and fuels growth by unlocking people’s potential,” Shook added. Although 92% of employees are open to the collection of their data, it comes at a cost.
The risks involved
Overall, 50% of workers said that the use of new sources of workforce data risks damaging trust. Moreover, 61% said that recent scandals over the misuse of data heightened their concerns regarding their own data.
As a result, 31% of businesses are hesitant to investing in technologies that collect workplace data. On the other hand, some companies are risking financial losses by pursuing data strategies without implementing critical safeguards.
Overall, business leaders said that there was an absence of sufficient legislation to guide them. Despite this, 49% said that they would continue to use new data collection technology without taking additional measures for responsibility.
The benefits of data collection
However, 57% of employees said that they would exchange their work-related data for customised compensation, rewards and benefits. 53% also said that they would do so in return for customised learning and development opportunities.
89% of employees were open to the collection of their data, but only if it improved their performance or well-being. If collected responsibly, enterprises could also benefit from a revenue growth of up to 12.5%.
Accenture recommends that companies install a framework for responsible employee data collection. In order to unlock value, leaders must empower employees by granting them greater control of their own data.
In addition to this, the report urges companies to use technology in responsible new ways in order to “elevate” people. Finally, involving employees in designing systems and implementing accountable executives is crucial to sharing the responsibilities and benefits associated with internal data collection.
How can companies leverage the power of their data? Listen to our podcast with Cloudera and Deutsche Telekom to find out