Why should your people trust you with their data?
Data is an infinitely valuable resource and the right people data can reveal a world of deep insights and eureka moments. Three of our recent case studies come to mind:
Supporting a utilities company in identifying the cultural traits linked to a 37% reduction in safety incidents,
Partnering with a media company, linking EX, sales and editorial to uncover a $4M opportunity in their sales team; and
Challenging a call centre to understand how improving their employee experience would drive a +13 point increase in net promoter score.
But generating insights doesn’t happen automatically and it isn’t always easy. In many organisations, people data is untidy, non-existent and in some cases just wrong. Not surprisingly, a study that we ran in partnership with Macquarie Business School found that only 12% of executive leaders utilise predictive analytics to inform their people decisions. This datapoint uncovers an uncomfortable truth: organisations do not truly understand the commercial value of people data.
So, if people data is as valuable as we know it to be, what is holding organisations back from leveraging it? In this article, we want to focus on a key issue at the core of the success or failure of any people analytics strategies: Trust.
As we become more sophisticated in the data we can access, we need to understand the shadow this may cast. As progressive organisations, we need to think about the ethical risks, brand risks and impacts on trust that can arise when data collection begins to feel invasive. A large part of the problem is the perception that sharing data is a one way street, when in fact it is all about ‘value exchange’.
A concept adapted from marketing, value exchange refers to the basic transaction of swapping data for better experiences, as a means of improving connection and engagement. The most obvious example of this can be seen in a product like Facebook. Billions of us give Facebook our data every day – our preferences, friendship network, likes fears and desires. In return, they provide us with a platform that is more focussed on our interests, exchanging our data for a more enjoyable, tailored experience. In a more transactionary example, Medibank trades users’ bio data (health information, exercise and sleep patterns, health history, etc.) for discounts, reduced premiums, and unique experiences. The idea here is to reduce liability and risk by incentivising your customers to give more information.
The formula is simple: I give data, and I get an improved experience.
Applying this formula to people data is easy – “We use your people data to create better experiences, improve team member performance and facilitate connection.” But communicating that message to your people in a way that resonates and sticks is another story.
To get you started, here are three ways to shift perceptions around sharing data:
Communicate the value
Be transparent
Build confidence through the narrative
1. Communicate the value
We have all heard the challenge: What’s in it for me?
When your team members give you access to their data (whether they’re responding to a survey or passively producing data through an apple watch, email exchanges or utilising different office spaces) we need to clarify what we will use it for, and why that’s good for them.
Some examples of the give and the get:
Employee surveys: You give us your opinions, experiences and perceptions, we’ll give you actions that will enable you to perform better.
Organisational network analysis: You give us metadata, we’ll give you insights that will enable you to build stronger relationships and networks across the business.
Real estate data: You give us access to your movement around the office, and we’ll give you better spaces that support collaboration and intellectual property transfer.
When we articulate the specific value to the employee that the data exercise will offer, we will drive buy-in and participation in the process (and even enthusiasm when that value is clearly defined).
2. Be transparent
When people aren’t given the whole story they have a tendency to fill in the blanks and those imagined details are often fueled by suspicion or cynicism. Being transparent about your intentions, hypotheses, methods and results reinforces psychological safety and builds trust in the value exchange in which you are asking your team members to participate.
Some examples to help support transparency:
Give them a choice to opt-out, not in: Giving your employees the choice to have their data collected is important to maintain trust in the value exchange occurring, but often your people will take the path of least resistance. A large Australian organisation asked employees to opt-in to a new facial recognition pilot to facilitate contactless entry to their offices, with 16% of employees opting-in. When they applied an opt-out methodology on a similar project only 30% opted-out, with 70% participating. Make it clear that employees are free to keep their data private if they wish, but asking them to opt-out instead will keep those who don’t feel strongly involved.
Share a data governance charter: Most ASX organisations have a risk statement that articulates their risk appetite. We need to develop the same approach for using data. Not only does this support transparency, it signifies intent and delivers accountability.
3. Build confidence through the narrative
People analytics has long struggled to gain traction in organisations because its practitioners have focused too much on technology that reports data (e.g. cloud platforms, dashboards, real-time reports), and not enough on the narrative (e.g. the story, emotional connection, the value exchange and the burning platform for change).
To build a greater narrative out of your data:
Articulate the problem statement: Clearly outline the problem that you are trying to solve and always focus on tangible business benefits of a solution (in other words: think like your CFO)
Model the opportunity for the business: Communicate the opportunity and value to the business. By addressing the problem statement how will this impact sales, efficiency, productivity, customer experience etc.
Keep it focused: Avoid too much detail. Focus on the things that will help shift the dial and quick wins will bring you support and funding.
It’s not the data. It’s what you do with it.
Ultimately, communicating the value exchange at play will drive your people to fulfill the ‘I give data’ side of the deal. But the only way to maintain their trust is to hold up your end. Share what your data uncovered and let your people know how you’re going to use it to give them that ‘improved experience’. Then make sure they see - and feel – the results.
Want to learn more?
If you’d like to use a data-driven approach to uncover opportunities to achieve your own commercial aspirations, get in touch with our team for advice today.
