The
Grey Area
The benefits of HR analytics are endless.
But, when company policies are silent and legislations don't yet exist,
how do you know if you're crossing a line?
"We take the views of our employees very seriously.
Just because we're legally allowed to analyze certain types of employee data doesn't mean we always will."
Alan Wild,
Vice President Human Resources, IBM
It seems the limit to what professionals could do with analytics in HR is set only by our analytical creativity. But what we could do and what we should do are altogether different questions.
Public and corporate policies often lag behind technological advances, leaving many HR professionals with unanswered questions as well as ethical dilemmas. So, what can organizations do to keep their decisions and actions in check? To find out, our research team at IBM Smarter Workforce Institute surveyed more than 20,000 workers in 44 countries on data usage in workforce analytics. Their responses were then categorized into four dominant ethical ideologies (first proposed by Donelson R. Forsyth).
The results show that context and culture matter most. Read on to learn more, and download the full report to discover how you can approach data policy in the "grey areas" where legal precedent does not exist, or data ownership is unclear.
HOW WOULD YOU RESPOND?
Every day we confront moral and ethical dilemmas. For example, we can now detect potential employee health risks through wearables and sleep monitors. Would you use that information to make a decision about an employee? What if the potential health risk could be dangerous for customers?
Choose an option:
ETHICAL IDEOLOGIES
ABSOLUTIST
Assumes the best possible outcomes occur when universal moral rules are followed.
“I believe the rules are the rules.”
73%
Absolutism is the dominant ideology in 73% of countries surveyed.
SITUATIONALIST
Reject moral rules, advocate individualistic analysis of each situation.
“The rules are made for the guidance of the wise. If a new policy means better results and benefits for everyone involved, it should be enforced.”
18%
18% of countries surveyed are dominated by Situationalist ideology.
SUBJECTIVIST
Want evaluations based on personal values rather than universal moral principles.
“It’s my way or the highway. I personally can’t get behind a policy that ignores potential risks, so I can’t see why anybody else would be comfortable with that.”
0%
There were no countries where Subjectivists were in the majority. Only four countries had Subjectivist as their secondary outlook: Argentina, Brazil, Chile, and Portugal.
EXCEPTIONALIST
Want moral rules to guide judgements but recognize the need for exceptions.
“The exception that proves the rule. I don’t personally love this idea, but I can see how others might benefit from it.”
9%
4 of 44
countries surveyed are dominant in Exceptionalist ideology.
THE REGION MAKES ALL THE DIFFERENCE
Through our research, we discovered most countries have dominant ethical ideologies. This means you can look to the region (or regions) where your business operates to gain a better understanding how your employees might react to a policy change.
Explore the map to see the ethical outlooks for your country and dive deeper into the stats.
ABSOLUTIST
Assume the best possible outcomes occur when universal moral rules are followed
USA
34%
ABSOLUTIST
28%
SITUATIONALIST
28%
SUBJECTIVIST
10%
EXCEPTIONALIST
GERMANY
33%
ABSOLUTIST
27%
SITUATIONALIST
14%
SUBJECTIVIST
27%
EXCEPTIONALIST
ABSOLUTIST
Assume the best possible outcomes occur when universal moral rules are followed
USA
28%
ABSOLUTIST
29%
SITUATIONALIST
13%
SUBJECTIVIST
30%
EXCEPTIONALIST
GERMANY
33%
ABSOLUTIST
27%
SITUATIONALIST
14%
SUBJECTIVIST
27%
EXCEPTIONALIST
USA
28%
ABSOLUTIST
29%
SITUATIONALIST
13%
SUBJECTIVIST
30%
EXCEPTIONALIST
GERMANY
33%
ABSOLUTIST
27%
SITUATIONALIST
14%
SUBJECTIVIST
27%
EXCEPTIONALIST
SITUATIONALIST
Reject moral rules, advocate individualistic analysis of each situation
BRAZIL
21%
ABSOLUTIST
43%
SITUATIONALIST
22%
SUBJECTIVIST
15%
EXCEPTIONALIST
SITUATIONALIST
Reject moral rules, advocate individualistic analysis of each situation
BRAZIL
21%
ABSOLUTIST
43%
SITUATIONALIST
22%
SUBJECTIVIST
15%
EXCEPTIONALIST
BRAZIL
21%
ABSOLUTIST
43%
SITUATIONALIST
22%
SUBJECTIVIST
15%
EXCEPTIONALIST
SUBJECTIVIST
Want evaluations based on personal values rather than universal moral principles
The country with the highest proportion of workers in the Subjectivist category was Portugal, where 27% of workers were Subjectivists. However, this group was considerably smaller than the largest ideological group in Portugal, which was Situationalist, at 38%. Arbitrary or unregulated decisions about data use in HR analytics are unlikely to be perceived favorably by the working population in any country.
SUBJECTIVIST
Want evaluations based on personal values rather than universal moral principles
The country with the highest proportion of workers in the Subjectivist category was Portugal, where 27% of workers were Subjectivists. However, this group was considerably smaller than the largest ideological group in Portugal, which was Situationalist, at 38%. Arbitrary or unregulated decisions about data use in HR analytics are unlikely to be perceived favorably by the working population in any country.
READ MORE
The country with the highest proportion of workers in the Subjectivist category was Portugal, where 27% of workers were Subjectivists. However, this group was considerably smaller than the largest ideological group in Portugal, which was Situationalist, at 38%. Arbitrary or unregulated decisions about data use in HR analytics are unlikely to be perceived favorably by the working population in any country.
EXCEPTIONALIST
Want moral rules to guide judgments butrecognize the need for exceptions
JAPAN
28%
ABSOLUTIST
29%
SITUATIONALIST
13%
SUBJECTIVIST
30%
EXCEPTIONALIST
EXCEPTIONALIST
Want moral rules to guide judgments butrecognize the need for exceptions
JAPAN
28%
ABSOLUTIST
29%
SITUATIONALIST
13%
SUBJECTIVIST
30%
EXCEPTIONALIST
JAPAN
28%
ABSOLUTIST
29%
SITUATIONALIST
13%
SUBJECTIVIST
30%
EXCEPTIONALIST
CULTURAL PREFERENCE CAN GUIDE YOUR ETHICAL POLICY CHANGES
Now that you’ve uncovered your country’s ethical outlook, explore below to see how a policy change might be approached.
ABSOLUTIST
Employees expect that rules will be established first that govern how data dilemmas will be resolved, and that these rules will be adhered to regardless of the situation.
In an Absolutist culture, an approach for keeping up with fast moving technological change might simply be that when a new data dilemma arises, a group of representatives meets to address what steps need to follow. This group would include people from HR and legal functions of the business, as well as employee representative bodies such as unions and works councils. An example of how this approach may work is:
MEET TO CHECK FOR
RELEVANT LEGISLATION
EXAMINE HOW SIMILAR ORGANIZATIONS
ARE APPROACHING THE SITUATION
DECIDE THE WAY FORWARD
-
WHERE'S SUBJECTIVIST?
Across all countries surveyed, there were no countries in which the majority of workers expressed a Subjectivist ideology.
SITUATIONALIST / EXCEPTIONALIST
Given the preference of Situationalists (and tolerance of Exceptionalists) for flexibility, it is possible to be more fluid about the rules.
In countries with a Situationalist or Exceptionalist culture, organizations may have more latitude in what they can do in workforce analytics and can consider proceeding on more of a case-by-case basis. While it might not be possible for legislation to cover unforeseeable technological developments, it will still be important to:
COMMUNICATE UPDATES CLEARLY
TO STAKEHOLDERS
ENSURE TRANSPARENCY
WHERE POSSIBLE
INFORM EMPLOYEES HOW POTENTIAL
CHALLENGES WILL BE MET
-
WHERE'S SUBJECTIVIST?
Across all countries surveyed, there were no countries in which the majority of workers expressed a Subjectivist ideology.
SMARTER
WORKFORCE INSTITUTE
The IBM Smarter Workforce Institute produces rigorous, global, innovative research spanning a wide range of workforce topics. The Institute’s team of experienced researchers applies depth and breadth of content and analytical expertise to generate reports, white papers and insights that advance the collective understanding of work and organizations. This white paper is part of IBM’s on-going commitment to provide highly credible, leading edge research findings that help organizations realize value through their people.
Learn more about IBM Smarter Workforce Institute.
ABOUT THE AUTHORS OF THE REPORT
NIGEL GUENOLE PH.D.
NIGEL GUENOLE PH.D.
Nigel is an executive consultant with the IBM Smarter Workforce Institute and a Senior Lecturer in Management at Goldsmiths, University of London.
DAVID GREEN >
DAVID GREEN
DAVID GREEN
David is a globally recognized and respected influencer, speaker, and writer on people analytics, data-driven HR, and the future of work.
SHERI FEINZIG PH.D. >
SHERI FEINZIG PH.D.
SHERI FEINZIG PH.D.
Sheri is the director of IBM Talent Management Consulting and the IBM Smarter Workforce Institute and has over 20 years' experience in human resources research, organizational change management, and business transformation.
NIGEL GUENOLE PH.D. >