A Conversation about the Cost of Transparency: People Analytics and Trust Erosion

This research explores how people analytics (PA) systems—tools that monitor and analyze employee behavior—impact the relationship between workers and their employers. While companies often market these systems as tools for wellbeing and efficiency, the study reveals that they frequently erode organizational trust and increase the likelihood that employees will want to quit. This negative reaction is primarily driven by information asymmetry, as employees feel unsettled when managers access granular data dashboards that the workers themselves cannot see or challenge. The findings suggest that algorithmic monitoring creates a power imbalance that outweighs any perceived benefits of system sophistication. To combat these issues, the research recommends bidirectional transparency, where employees gain equal access to their own data, and the establishment of ethical governance frameworks to protect worker autonomy. Consistent with these insights, the research emphasize that maintaining human trust is more vital for long-term success than any data-driven optimization.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.