HR - Putting People And Data At The Forefront Of Ethical Leadership In 2022

HR leaders need to take note of trends in people analytics

HR has a central role to play in facilitating an organization's commitment to ethical leadership and corporate social responsibility (CSR), and this role is growing both in opportunity and responsibility.  

Historically, HR leaders have been in ethical discussions on an as-needed basis, when key people-related decisions had to be made; these include layoffs, hiring priorities, executive hires, dismals - that’s when you’ll typically see HR. The level of influence in such discussions has varied based on the openness of the fellow members of the leadership team or the power of the individual HR leader, or the quality of the data-based insights that the HR leader brings to the discussion. This last point is the rub.

Many HR leaders in 2022 still don’t fully understand the mountain of data on which they are sitting. They had not focused on data analytics in their own academic careers, nor have they had the necessary experience with data security, data mobility, analytics, and AI. As such, they need to rely on experts within the system for which they’re responsible. These experts will let HR leaders know what data is there, what the risks and opportunities are of using the data, as well as what will need to be done to optimize between these risks and opportunities.

HR has always been at the responsibility forefront in the minds of any organization’s shareholders/owners; HR holds an onus of responsibility to a company’s employees, and we attest also a distinct responsibility to the community at large; specifically, the customer community.

It’s a lot to juggle for sure, but navigating these complexities is what HR is all about; to help build towards the conquest in front of us while maintaining an ethical foundation applicable to all involved parties. HR loses its way when it leans too heavily in one direction.

Yes, there is a tipping point at which one outweighs the other and throws things off. That’s where and when we feel organizations begin to build a culture that may say one thing publicly and then operates in a different way internally. That’s also where data can help guide us to conclusions, both ethical and obvious, derived from the perspective of corporate social responsibility.

People Analytics professionals understand HR technologies, their associated data, research methods, analytical systems, product development, and communications. Additionally, they are capable of understanding the potential legal and ethical repercussions of gathering data, analyzing data, and in turn, taking appropriate action (or not). Today, these experts are in high demand.

People Analytics professionals, however, have often been leveled too low – often ‘titled,’ if you will, at a director-level.  As such, they’re often informed of data creation, collection, or analysis after it happens, versus authorizing it in the first place. This creates risk all around.  

A quick fix, obviously, is to level People Analytics as a direct report to the CHRO.  Such a role, most often at the VP or SVP level, particularly if HR Technologies is coupled in the role, could authorize the purchase, implementation, and modification of people-related systems. This individual, by definition, would then be responsible for data governance as well as ascertaining the analyses that are done or not done. In turn, once people-related insights are generated, they can be presented to the HRLT or the ELT with congealed recommendations. With a firm understanding of the data used and not used, such recommendations can carry ethical considerations.

Ethics are the application of values. This means that if an organization openly states that it values the people working for it, its employees, then it has to take the steps necessary to truly care for employee well-being.

And so we must ask any organization considering the application of its values and embedding company-wide ethical leadership in the modern age. How well have you aligned your social initiatives to that which your employees also value and can be a part of? The reality is, with data, we can see the answer more clearly today than could ever before. It's like we are looking at a fuzzy picture from a distance, yet now we can see it and see it in a higher degree of resolution.

We can see things that are beautiful and right. We can also see things that are wrong and unfair. Without the willingness to intervene and improve those things that are wrong and unfair, then the artist, or in this case, HR, arguably should not endeavor to do deep analysis - to look at the picture in a higher resolution.

A simple example relates to matters of diversity, equity, inclusion, and belonging (DEIB).  DEIB, when addressed appropriately, affects every HR process, from hiring practices to learning systems to promotion opportunities to compensation, right on down the line.  When analyzing these processes, inequities or unfair practices are invariably going to be discovered. When this happens, what will a leadership team do?  

Well, as Maya Angelou once said, “...Do the best you can until you know better. Then when you know better, do better.”

With this challenge in mind, if you know better and choose not to do better, then that decision is unethical. Want to argue with this? You’re not alone.

Ethics, it is commonly said, are ultimately subjective and, as such, lack accountability. Accountability for ethical decisions thus comes through social acceptance or its inverse, social discontent.  In organizational parlance, this means disengaged employees, and disengaged employees during this time of scarce talent in many job families can be the kiss of death for an organization. It’s therefore incumbent upon leaders to not only do the right thing as perceived by the employee base but to communicate openly when they do.

Building a culture of action and transparency is not only ethical but can be trust-building for customers, employees, and stakeholders alike.  

Transparency and communicating openly only for simply the sake of maintaining a brand or ‘checking the box’ on a certain hot topic of the day does more harm than good and leaves HR in the tough spot of trying to play clean-up, both internally and externally.

The term ‘greenwashing’ is an example of this.  

Greenwashing is when an organization portrays itself as being environmentally responsible for promoting environmental sustainability, yet its actions as an organization do not support that position. Similarly, many organizations have diversity equity and inclusion (DEI) initiatives that are often too fundamentally focused on diversity hiring, leaving the feeling of a zero-sum gain. In reality, a diverse and fully inclusive environment, as Heather McGhee all but proves in her fantastic book, The Sum of Us, benefits all of us.

To further elaborate on this point, the worst thing that an organization can do is force rapid diverse hires, while not taking the time to cultivate a culture of inclusion. Diversity without inclusion is a recipe for division, not progress.

Thus, HR departments also hold the ethical impetus of ensuring DEIB initiatives (and really any social initiative) are pursued in good faith.

It’s part of the reason that we are seeing so many diverse leaders jump from one organization to the next, simply gut their way through, or cover to fit in.

People analytics can give HR leaders the same tools in the boardroom that other department heads have had for decades, data directly tying their efforts to the bottom line. Good HR executives know that a robust learning and development program and dedication to DEIB initiatives do impact the bottom line. Working alongside data analysts, and providing them with strong direction, HR leaders can clearly show how their strategies are impacting their organization with the same graphs other departments deploy on a regular basis.

It must be said that while corporate governance across technologies and the management of data within these technologies has certainly improved over the years, most of the governance activities have focused on privacy, security, and transparency. Ethical use of data is rarely a strategic priority. While this is changing; it's not changing fast enough.

Data must be embraced because it is the principal defining business driver of our time. HR leaders can no longer afford to be ignorant of the collection and use of their company’s data, because of the risk inattention will bring. It is incumbent upon CPOs and HR leaders everywhere to partner with data experts to steer the ship in a way that serves shareholders, employees, customers, and the community alike.

In summary, the critical role of HR must be to form and enforce ethics to guide and uphold an organization’s social responsibility to the community. But talk is cheap. Ultimately, our transparent actions will define us.