"The cost of decoding organizational DNA irresponsibly is high, as are the rewards of getting it right: the difference in growth rates between losing and earning employee trust through the use of workforce data is as much as 12.5 percent, or U.S. $3.1 trillion globally."
An Accenture survey of 1,400 global executives showed while nearly two-thirds of businesses are using new technologies (such as wearables, workplace applications, and online activity monitoring) to gather workforce information, only 30% say they are certain they are using it responsibly.
Other insights from the report include:
- 31% are holding back on investments in technologies due to employee concerns
- 49% say in the absence of legislation, they are charging forward without taking measures toward responsibility
- 70% of employees would give permission to employers to collect data if they were given more control over its use
The article offers a risk/reward analysis by industry and examples of businesses acting responsibly.
"Companies that rank in the top 10% in engaging their employees...posted profit gains of 26% through the last recession, compared with a 14% decline at comparable employers..."
Since the 50's we have known employee engagement flourishes when people feel a sense of purpose, belonging, and autonomy.
I'm always skeptical of which is cause and which is effect in claims like those in this WSJ article, but the connection between employee retention and company culture is hard to question.
At WD-40, where over 90% of employees are engaged (compared to the U.S. average of 34%) and shareholder returns have grown at a compound annual rate of over 20%, the CEO insists "It's because of our people." From the decorations on the wall to the shared vocabulary they use, the company emphasizes "positive lasting memories."
"When you don’t feel psychology safe within your workplace, a team’s success rate drastically diminishes. Individuals are afraid to ask questions or challenge dominant group-think."
The article cites a study by Google showing the most successful teams were the ones with a sense of psychological safety. This factor trumped high collective IQ by a large margin.
Workplace civility spiraling down and with it goes productivity, trust, and loyalty. Here’s what to do about it.
Research shows that hurtful workplace behavior can depress performance, increase employee turnover, and even mar customer relationships.
A full 62% of employees say they've been treated rudely at work (up 27% since 1998). Three quarters of victims say the incident reduced their commitment to the organization. A quarter admit to taking their frustration out on customers.