Claire Alexander, Group Vice President, Brand Portfolio & Marketing at Capterra.
getty
With the recent surge in remote work, the employee monitoring software market is booming—currently forecasted to grow to $4.5 billion by 2026. As many leaders turn to employee monitoring software and new data collection methods to better inform workplace productivity, DEI efforts and employee health, the need to establish clear guidelines has become paramount.
Despite the popularity of gathering certain types of employee data, business leaders, HR managers and operations professionals must delicately balance their company’s genuine need for employee data with the privacy rights of their workforce. Whether you’re a growing business or large enterprise, employee monitoring software can help track and monitor everything from diversity to health and growth for your company. At my own company, Capterra, half the business leaders we work with have increased the amount of employee data they collect over the last year.
With this new wave of employee monitoring software adoption arises a need for full transparency in the form of an “employee data bill of rights.” Let’s dive into what that looks like.
What is an employee data bill of rights?
An employee data bill of rights is a formalized set of guidelines that establishes a standard of privacy protections for employees, including the how and why their data is being used. For example, some employee monitoring software allows organizations to track their DEI efforts by gathering data on the race, gender and sexual orientation makeup of their workforce.
These privacy guidelines should be added to current policies and procedures related to employee data collection. Here are four key reasons why your business needs an employee data bill of rights.
1. Collection of employee data is necessary with the shift to remote work.
In the fall of 2019, just prior to the outbreak of the pandemic, over half of the employees we work with were remote at least some of the time. Two years later, that figure had jumped to more than three-quarters.
With the surge in remote work, employers want to ensure their workers are being productive, whether that be accomplished through project management software, timekeeping or employee monitoring. But to do that, you have to give employees guidelines to which they can adhere. That way, they know what to expect.
2. Employees deserve transparency.
Employees deserve to know how and why they are being monitored in order to build a culture of trust and collaboration. This leads to better performance for your growing business. Transparency can also help employers improve the acceptance of monitoring software significantly.
3. Some jurisdictions have laws covering employee data collection.
As data collection and privacy practices in the workforce gain traction, many states have implemented laws protecting employees. For example, the California Consumer Privacy Act was expanded to include personal information that “identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, to a particular employee.”
Other states are following suit, including Colorado and Virginia. This is why getting ahead of the law by implementing your own guidelines as well as taking your employees’ own sentiments into account are of the utmost importance.
4. An employee data bill of rights supports business growth and employee trust.
It’s no surprise that enterprise companies have much larger budgets that allow them to invest in more sophisticated monitoring software. For smaller businesses, it can be daunting to weigh the cost of software with the return on investment.
Low productivity, however, can mean the difference between your business growing or shutting down. By deploying transparent employee data collection practices, you can gain the trust of your workers while also optimizing your business operations.
How can you establish an employee digital bill of rights?
To create an employee data bill of rights, you should keep in mind four practices that lead to success.
• Limit the amount of data collected, focusing on only the most necessary information.
• Justify why specific data is being collected and for what initiatives or purposes.
• Eliminate any biases employee data could face and offer voluntary options.
• Provide full transparency on all data being collected.
Struggling to keep up with the ever-changing work landscape?
It’s important to note that technology is more critical than ever to keep up with the changing work landscape, especially for smaller organizations looking to grow their footprint. When implemented thoughtfully and ethically, technology can build company morale and support high performance—both key tenets for business growth. And when looking for software, be sure to carefully evaluate potential systems to make sure they fit your needs. Get everyone involved—your employees might be vital to the assurance that your search process will result in purchasing software that works for everyone.
Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
