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Endnotes

1. Satomi Tsuji, Nobuo Sato, Keita Shimada, Koji Ara, 10. Deloitte, “Fall 2023 Fortune/Deloitte CEO survey
and Kazuo Yano, “Happiness planet: Support system insights,” accessed December 2023.
for promoting management objectives in partnership 11. Jean Brittain Leslie and Kelly Simmons, “The paradox
with employees,” Hitachi Review 70, no. 1 (2021), of “productivity paranoia”: 6 ways to trust employees
pp. 78–79. without sacrificing results,” Quartz, April 17, 2023.
2. American Psychological Association, “Psychological 12. Alexa Lightner and Paulina Borrego, “Energy
capital: What it is and why employers need it now,” company improves culture & productivity after
August 21, 2023. strategic M&A,” Humanyze, March 21, 2023.
3. Suchit Leesa-Nguansuk, “Hitachi’s AI for employee 13. John Sprovieri, “Video analytics help auto parts
joy,” Bangkok Post, February 7, 2020. assembler improve cycle time,” Assembly Magazine,
4. Tsuji, Sato, Shimada, Ara, and Yano, “Happiness December 18, 2022.
planet.” 14. Deloitte, “Unlocking the potential of the quantified
5. Bernard Marr, “The best examples of human and organization,” 2023.
robot collaboration,” Forbes, August 10, 2022. 15. Ibid.
6. Paulina Borrego, “Multinational energy company 16. Ibid.
improves culture & retention through office redesign,” 17. Ibid.
Humanyze, January 19, 2023. 18. Ibid.
7. Greg Newman, “How organizational network 19. SLB, “Digital equipment monitoring with OneStim,”
analytics is transforming diversity and inclusion May 2, 2018.
through data,” HRZone, July 10, 2019. 20. Deloitte, “Unlocking the potential of the quantified
8. Joy Trinquet, “It’s a tall order: Digital twins deliver organization.”
modernity to out-of-date buildings,” Verdantix, 21. Deloitte, “Trustworthy AI™: Bridging the ethics gap
August 18, 2022. surrounding AI,” accessed December 2023.
9. Alejandro de la Garza, “This AI software is ‘coaching’ 22. Deloitte, “Unlocking the potential of the quantified
customer service workers. Soon it could be bossing organization.”
you around, too,” Time, July 8, 2019.

Acknowledgments
The authors would like to thank Joan Goodwin, Gary Parilis, Brad Kreit, and Steve Hatfield for sharing their expertise and insights to
support this chapter.

Special thanks to Brittany Bjornberg and Sarah Hechtman for their leadership in the development of this chapter, and Cara Traub for
her outstanding contributions.
2024 Global Human Capital Trends

37
38
The transparency paradox:
Could less be more when it
comes to trust?
Greater transparency can help organizations build trust—or erode
it. What considerations should leaders keep in mind to ensure
transparency is helping and not hindering?
Jason Flynn, Sue Cantrell, David Mallon, Lauren Kirby, and Nicole Scoble-Williams

T
rust matters: It is the unseen, ineffable But it’s not that simple. The relationship between
glue that holds relationships together trust and transparency is much more complicated
and allows organizations, workers, and and nuanced. “Trust is really important to us,” Sara
communities to flourish. Trust between Armbruster, chief executive officer of furniture company
workers and organizations has poten- Steelcase told us in a recent conversation. “In many
tially never been more important, but for ways, transparency goes hand in hand with that. But if
many organizations, how to build and sustain it has you are going to advocate and implement a high degree
remained elusive. of transparency, you need to have systems in place to
address any issues that arise.”
Transparency is commonly thought to be a key driver
of trust; the idea that more transparency equals more Some organizations are discovering that mishandling
trust has become a truism. Eighty-six percent of leaders transparency can severely undermine trust. In an orga-
surveyed in our 2024 Global Human Capital Trends nizational context, transparency is usually thought of
research say that the more transparent the organization as information flowing from a leadership team to every-
is, the greater the workforce trust. It’s not an altogether one else. But new digital advances mean that transpar-
incorrect assumption: Research shows that some forms ency also exists inside teams, and worker information
of transparency do, in fact, drive trust. Deloitte research, can be made transparent too. Today, technology can
for example, found that transparency—defined as an make almost everything and everyone in an organiza-
employer using straightforward and plain language to tion transparent to almost anyone else. As they increas-
share information, motives, and decisions that matter ingly interact with smart machines, workers leave an
to workers—is a key dimension of trust.1 Sharing infor- ever-expanding trail of data that can be analyzed using
mation about decisions, results, strategies, and prac- artificial intelligence and shared at negligible cost.
2024 Global Human Capital Trends

tices freely with workers, customers, investors, and other


stakeholders is generally thought of as a good thing.2

39
Figure 1

The knowing vs. doing gap: Respondents know that navigating the transparency paradox to
build trust is important, but few are doing enough to make meaningful progress
Percentage of respondents answering the questions, “How important is an increasing focus on trust and transparency in the
relationship between workers and the organization to your organization’s success?” and “Where is your organization in its
journey to address this issue?”

88% recognize the importance,

with 52% doing something,

and 13% doing great things

Note: The knowing-doing gap was introduced in The Knowing-Doing Gap: How Smart Companies Turn Knowledge into Action by Jeffrey Pfeffer and
Robert I. Sutton, and it has continued to be a relevant concept in business performance.
*Business outcomes are defined as meeting or exceeding financial targets. Human outcomes are defined as providing meaningful work for workers.
Source: 2024 Global Human Capital Trends research.

deloitte.com/insights

40
The data may encompass virtually anything that happens on some of the positive possibilities these tools can bring;
in an organization: both agree that a variety of newly transparent data can If transparency
help to improve everything from worker performance used to mean
• Workers’ time at their keyboards, actions taken, and job satisfaction, to worker safety and career devel- that leaders
and effectiveness opment, to improved innovation and organizational could shine
agility.3 lights on
• Worker motivations and sentiment
particular
But using this new data effectively requires a sophisti-
aspects of an
• A worker’s emotional tone while interacting with a cated understanding of the relationship between trans-
customer or colleague parency and trust. Understanding this relationship is organization,
becoming more important; 86% of workers surveyed now it means
• Movements and interactions on a factory floor and 74% of leaders surveyed in our research say an the organization
increasing focus on trust and transparency in the rela- can be
• The distance and route covered by a driver tionship between workers and the organization is very or
illuminated in
critically important. In fact, this trend is ranked highest
every corner—
• Worker behaviors related to organizational culture, in terms of importance of the seven trends studied in our
belonging, and inclusion survey and was identified as the trend that would have for any audience.
the greatest impact on an organization’s success, both
• The physical safety of workers in the field this year and in the next three years.

• What topics are being discussed, by whom, on what Leaders—in collaboration with workers—should
channels and when consider important questions around what information
to make transparent, why, whose information should be
If transparency used to mean that leaders could shine revealed, and to whom and how.
lights on particular aspects of an organization, now
it means the organization can be illuminated in every
corner—for any audience. The essential role of trust

Leaders may find this degree of transparency alluring. Like transparency, trust is a two-way street4—there is
It offers microscopic visibility into the workings of their worker trust in leadership, and there is leadership trust
organizations and their people. But this newly available in workers.
transparency can be both a gold mine and a land mine.
On the one hand, if responsibly managed, the ability to In psychology and sociology, trust is often defined as a
use this kind of transparency can create new opportuni- belief that the other party won’t cause harm, and that
ties to measure and unlock human performance, creating one can rely on another to act in a way that is beneficial,
shared value for both individual workers and organiza- honest, fair, and reliable. At its heart, trust involves a
tions. On the other hand, there is significant potential willingness to be vulnerable and to depend on others
for misuse—for example, privacy breaches, AI-driven for mutual cooperation and benefit—a belief that people
surveillance, and efforts to control workers’ every move. will act in each other’s best interest.5 But to be mutually
vulnerable, people typically need to feel empathy and
New transparency-enabling technologies can give lead- psychological safety. While there are many components
ers a set of enormously powerful tools (figure 2). And that drive trust, Deloitte defines trust as the outcome
according to Deloitte’s Quantified Organization research, of high competence and positive intent, underpinned
many workers and organizations are surprisingly aligned by capability, reliability, humanity, and transparency.6
2024 Global Human Capital Trends

41
Figure 2

Advancing technologies are making work and workforce data more transparent
Which of the following technologies and sources has your organization used to collect workforce data in the past three years?
Today? In the next three years?
Used in the past three years Currently uses Expects in the next three years

Employee calendars 46% 71% 84%

Employee surveys 57% 77% 86%

Employee emails 70% 81% 88%

Biometrics 45% 70% 76%

Keystroke/mouse tracking 26% 53% 64%

Internal social collaboration sites 15% 47% 62%

Wearables 22% 38% 64%

External sites 9% 31% 59%

Location-tracking technology 9% 28% 64%

XR headsets 17% 23% 55%

Neurotechnology 1% 2% 35%

Source: 2023 Deloitte Quantified Organization research.

deloitte.com/insights
A confluence of trends today is putting trust at risk. • Increasing uncertainty for organizations and
Information and misinformation are omnipresent, workers: The less people know what to expect, the
perceptions often supersede facts, and digital security more they rely on trust to feel safe.
and data privacy are commonly at risk. These trends
expose people to the possibility that private or inaccurate • Disappearance of traditional boundaries: As many
information may be exposed in ways that harm them, traditional boundaries of work and the workplace
making many cautious about extending trust to organi- continue to erode, trust, perhaps even more than
zations. Meanwhile, turbulence related to outsourcing, culture, is emerging as a tie that binds—a means to
mergers, downsizing, shifting business models, digital keep the organization cohesive and mission-aligned.
transformation, return to office, and other changes, can Especially as organizations grapple with questions
create a breeding ground for distrust among workers. around what defines a job and how a workforce
Other factors that tend to impact trust include: should operate in a boundaryless world, trust can
create a common foundation for decision-making.

42
THE FOUR FACTORS OF TRUST

Based on over 400,000 survey responses with • Reliability: Consistently delivering on • Shares of companies graded trustworthy
customers and workers across nearly 500 brands, promises and experiences by Trust Across America and the Initiative
in-depth focus groups, conversations with leaders on Quality Shareholders have outperformed
committed to building trust, and case studies • Transparency: Openly sharing information, the S&P 500 by 30% to 50% over recent
exploring situations when trust was won or lost, motives, and actions in straightforward and five-year periods.9
Deloitte distills trust down to four factors:7 plain language
• Workers in high-trust companies are 50%
• Humanity: Demonstrating empathy and Trust has always been important to organizational less likely to leave, 180% more likely to be
kindness and treating everyone fairly success, and it seems to grow more so by the year. motivated, are 140% more likely to take on
extra responsibilities, and are generally more
• Capability: Creating quality experiences, • Deloitte research shows that companies productive, more satisfied with their jobs, and
products, and/or services deemed “trustworthy” tend to outperform healthier.10
their competitors by up to four times,
measured by market value.8

• Generative AI and other forms of automation: laws in eight states in the United States,12 where pay
An increasing
As technology automates rote tasks, human transparency in job postings has more than doubled since
capabilities such as empathy and curiosity can 2020,13 and globally, where pay transparency also focus on
increasingly differentiate leading organizations from continues to increase over time.14 Meanwhile, employ- trust and
the rest—and to express these capabilities, work- ers are increasingly sharing other information they once transparency
ers will need to trust the organization to use their kept private. For example, Patagonia revealed its exter- was identified
work for mutually beneficial purposes. It’s worth nal supply chain to show consumers its commitment to
as the trend
noting that AI itself faces a trust deficit: Deloitte climate change,15 and Asana publishes the minutes from
research reveals that workers can perceive employ- its board meetings for workers so they’ll have clarity on that would have
ers as much as 2.3 times less empathetic and human the organization’s strategic priorities.16 Some organiza- the greatest
when AI tools are offered.11 tions even allow anyone at the organization to access impact on an
things like financial records to the minutes or recordings organization’s
Amid these challenges, workforce trust may be even of meetings among executives so they can weigh in on success, both
more important than employee engagement when it organizational direction and decision-making.
this year and in
comes to navigating relationships. Many organizations
use employee engagement as a proxy to measure the Indeed, the “why” behind transparency can vary. the next three
worker-organization relationship. Trust, however, may Patagonia and Asana are examples of what we call years.
be a better measure for this relationship. Engagement proactive transparency, where leaders or workers
simply measures workers’ willingness to extend them- intentionally choose to share information to improve
selves on their organization’s behalf, not the degree to trust, accountability, decision-making, or to achieve
which they trust an organization to support their inter- mutually beneficial outcomes. Reactive transparency,
ests. Trust, on the other hand, may be a better metric on the other hand, is the result of legislative or regula-
to evaluate whether workers are getting what they need tory changes forcing leaders to disclose information that
from their relationship with the organization. was previously closely held. Finally, forced transparency
typically involves collecting and analyzing information
about workers or executives as a blanket organizational
2024 Global Human Capital Trends

What we mean when we talk policy or without their knowledge or voluntary consent.
about transparency Workers can also force transparency on the organization,
when they publicly share information about an orga-
Transparency is in vogue. Demands for visibility into nization or its leaders through social media or other
pay, for example, have led to pay-range transparency channels, for example.

43
SIGNALS YOUR ORGANIZATION SHOULD THINK MORE CAREFULLY ABOUT TRANSPARENCY

• Your organization is rapidly adopting • You worry that workers are hiding, posturing, • Your workers are withholding data because
transparency technologies (for example, or otherwise reacting to the feeling that they they are not confident their data is being used
sensors and connected devices; analytics are being surveilled. in responsible ways or for their benefit.
based on worker email, calendar, and
collaboration-site data; or AI and machine • Workers are resistant to performance • Your workers are experiencing information
learning). management decisions being made based overload, contributing to burnout and slowed
on newly available data. decision-making.

Although there has been a growing trend toward turnover is almost twice as high at companies that use
Workforce proactive transparency, much of the recent movement monitoring software as surveillance than at organizations
turnover is toward transparency has been either reactive or forced that do not.21
almost twice transparency.17 And until recently, the direction of trans-
as high at parency—who shares the information with whom—has Many use cases, however, can be beneficial, such as
companies that primarily been one-way: organizations and leaders shar- using workforce data and AI as a coach to help work-
ing information with workers. But today, transparency ers grow or using wearables and smart sensors to track
use monitoring can work the other way, too. With the advent of new and improve worker safety practices. For example, a
software as technologies, workers are increasingly sharing their infor- British multinational retail distribution center integrated
surveillance mation transparently—proactively or by force. Figure 3 AI with their CCTV systems, enabling them to identify
than at presents a simplified view of bidirectional transparency. unsafe events that resulted in an 80% reduction in safety
organizations incidents in the first three months.22
that do not. As technologies have enabled leaders to gain greater
transparency into work and workers, many organiza- It’s worth noting that transparency shouldn’t be imple-
tions have rushed to capitalize. One study reveals that mented just for the sake of being transparent, assuming
organizations surveyed are collecting data from an aver- that transparency will automatically create trust. The flip
age of 400 different sources including computers, smart- side of transparency is privacy; greater openness is risky
phones, websites, social media networks, and more,18 as developments in technology and society, particularly
and Deloitte’s Quantified Organization research reveals the rise of social media, have made it easier to share
that the vast majority of organizations are collecting potentially harmful information far, fast, and perma-
email and calendar data already and are likely to begin nently. Privacy can sometimes be a better path to trust
collecting data from other sources in the near future, than transparency. And when greater openness is the
such as wearables, biometrics, and location-tracking chosen path, it requires more earned belief in collective
tools (given transparent data practices and respect for safety and common interest. Getting it right is critical,
potential worker privacy concerns).19 as trust earned with difficulty can be lost with ease.
The measures that can help boost transparency from
Whether the use of this newfound transparency is helpful workers, for example, typically require sacrifices of
or harmful will depend on how it is used; forced trans- privacy, whether that means sharing data about people’s
parency that is used as surveillance, with punitive conse- well-being or monitoring workers’ time at their
quences, can damage trust. Already, 78% of employers keyboards—so those measures have the potential to
surveyed say they are currently using remote tools to erode trust rather than build it.
monitor their workers;20 studies show that workforce

44
Figure 3

Transparency is no longer a one-way street


DIMENSION OF TRANSPARENCY PROVIDES TRANSPARENCY INTO TYPE OF TRANSPARENCY

Organizational information such as


financials, policy drafts, and board minutes

Leadership

Transparency
from the Leadership priorities and decisions
Reactive transparency
organization
Information revealed as a result of
legislative or regulatory changes that
Disclosure
require disclosure of information that
was previously closely held
New or previously undisclosed information
such as pay, ESG, or DEI metrics

THEN How and where people are working, based


NOW on physical observations in open spaces,
location data collected by smart sensors or
badges, video analytics, and more
Proactive transparency
Workplace Leaders or workers intentionally
choose to share information to
improve trust, accountability, and
decision-making, or to achieve
mutually beneficial outcomes
Workers’ salary information, organizational
Social and experiences and more, conveyed through
media voluntary posts on social or media channels

Transparency
from workers
Business operations, processes, or
Forced transparency
Process or workflows, made visible through Collecting and analyzing information
operational technologies such as recorded video calls, about workers or executives as a
project dashboards, and process mining blanket organizational policy or
without their knowledge or voluntary
consent

Work and Work, activity, or workers, using existing


worker data and emerging technologies such as
wearables, analysis of email, calendar,
and collaboration data, audio analytics,
and AI to collect data related to well-being,
sentiment, emotions, performance, work
activities, decisions, and other factors
2024 Global Human Capital Trends

Source: Deloitte analysis.

deloitte.com/insights

45
There are also other potential downsides to transparency, between themselves and workers, only 13% of respon-
Only 37% such as: dents said they are leading in this space. The biggest chal-
of workers lenges they identified were internal constraints, such as
surveyed say • Gaming the system. Social scientists have identi- culture, and lack of leadership alignment or commitment.
they are very fied various behaviors people undertake in response
confident their to demands for transparency, typically to protect How then do organizations navigate the tricky territory
themselves or manipulate a situation in their favor. of using transparency in a way that builds trust, rather
organization These include dishonesty, hiding, cheating, postur- than undermining it?
is using work ing, productivity theater, window-dressing, and
and workforce impression management—for example, using a First, organizations will need to put transparency in
data in a highly mouse-moving machine to trick productivity-track- conversation with privacy. Typically, they are not in
responsible way. ing software.23 But it’s not just workers that can conversation, with transparency largely under the
avoid transparency. Organizations can play at this, purview of executives and information technology, and
too. For example, some companies will comply with privacy often handled by legal and human resources.
pay-transparency laws in job postings by including a Cross-functional governance conversations will be
wide salary range for a job—for example, “between important to striking the right balance for each organi-
US$50,000 and US$250,000”—rendering the infor- zation, based on an organization’s own culture, values,
mation essentially useless to job seekers.24 and decision-making practices that can vary based on
geography, industry, or life cycle stage of the organiza-
• Negative impacts on decision-making. Providing tion. Think in terms of best fit rather than best practice.
more data and visibility into decision-making
processes may lead to information overload, endless Second, organizations should bring workers together in
debate, second-guessing, and accountability gaps— conversation with leaders about what and why infor-
situations in which people have important infor- mation should be made transparent, to whom, and
mation but are not accountable for using it wisely. how. As discussed in “Negotiating worker data” in our
Beyond slowing decision-making, without sharing 2023 Global Human Capital Trends report,27 cocreating
the rationale behind the decisions, workers may also transparency practices—and enabling transparency to be
misinterpret the information being shared.25 proactive rather than forced—can help create a mutual
relationship of trust and provide a window into what work-
• Hindering creativity. People who think their ideas ers’ needs and desires are when it comes to transparency.
and experiments could be made public may expe-
rience a phenomenon called “the spotlight effect.” In particular, workers and leaders can cocreate respon-
They may avoid risk-taking and experimentation, sible transparency practices, ones that create mutual
and innovation can suffer. Ethan Bernstein, a profes- benefits for workers and organizations alike, allow
sor of leadership and organizational behavior at workers to opt in to data collection for specified time
Harvard Business School, has reported these impacts periods and purposes, and enable workers to challenge
among creative workers. In addition to the spotlight potentially incorrect data or raise concerns about how
effect, Bernstein found that many workers will also it is being used.
conceal their most creative thinking from manage-
ment because they don’t want to be punished for When workers see personal benefits to transparently
straying outside of organizational norms.26 sharing their data, they are more likely to embrace it;
a study by Gartner found that 96% of digital workers
would accept more data-monitoring in exchange for
Using transparency in ways that build trust benefits like training and increased career development
opportunities.28 Likewise, our Quantified Organization
Most organizations are in the early stages of coming to research showed that workers who are given the choice
grips with the new transparency landscape and its impli- to opt in to transparent data collection have more trust
cations for privacy and trust. When we asked whether in their organizations, are more likely to report that data
organizations were addressing trust and transparency collection efforts improve business outcomes, and are

46
less likely to report negative outcomes such as presen- • How compensation and other workforce decisions
teeism or privacy concerns.29 Other research shows that are made
giving workers input and agency reduces the risk of them
engaging in these negative behaviors.30 For example, one • Skills needed today and in the future, given the
global health care provider conducted an organizational disruption of work by generative AI and other
network analysis based on worker communications and emerging technologies
collaboration data to optimize cross-functional teaming.
Workers could opt out of data collection, and the final Caution (think twice) with information such as:
data was aggregated and anonymized to protect worker
privacy.31 • Recorded leadership meetings and other sensitive
discussions
Organizations that build workers’ trust in transparent
data practices stand to benefit: When workers are confi- • Details about the creative process
dent in their organization’s approach to responsible use
of newly transparent data, they are 35% more likely to • Personal information about individual workers,
trust their organization. But there is still a long way to including pay, health and well-being data, and
go: Only 37% of workers surveyed say they are very information about emotions. For example, if an
confident their organization is using work and workforce organization’s bonus policy is perceived as inequi-
data in a highly responsible way.32 table, bonus transparency may lead to envy among
workers and encourage them to think about their
To strike the right balance between transparency and relationship with the organization in transactional
privacy in a way that elevates trust, it may be helpful to terms.
consider the following questions. Each question includes
examples of transparency that are likely beneficial WHY is it important to make this information transparent?
(Go) and others that may pose trust issues (Caution).
For workers to trust an organization with their data, they
need to understand why they are being asked to share
WHAT information or whose actions will be made it and be offered benefits in return; we call this “give
transparent? to get.” Using transparency in ways that foster human
performance rather than punitive or compliance-oriented
When making decisions about what to make transpar- ends can help promote trust.
ent, consider the potential impact of that information.
For example, publicly sharing organizational informa- Go (proceed thoughtfully) with transparency for the
tion may increase trust among stakeholders, but sharing purpose of:
highly personal worker information about an individu-
al’s emotions in the organization may introduce compli- • Creating better outcomes for workers: For example,
cations and have unintended consequences. using AI video analytics in a factory environment
to drive improvements in ergonomics, safety, and
Go (proceed thoughtfully) with information such as: other matters that benefit workers.34

• Leadership priorities and goals. Finnish software • Holding leadership accountable for social metrics,
consultant Reaktor, for example, maintains an such as by publishing equity, diversity, or well-being
online forum where workers can openly discuss metrics
organizational policy and business decisions.33
2024 Global Human Capital Trends

• Helping workers make better decisions by aligning


• Business information like financials or operational their actions with business goals
data
• Elevating trust and confidence in leadership and in
• Leadership’s decision-making process the vision and strategy they are seeking to advance

47
Caution (think twice) before implementing transparency • Operational or process information within workers’
for the purpose of: own teams, in forums such as scrum teams or daily
standups.
• Involving more people in decision-making. Unless
there are clear expectations, criteria, and deci- • Worker information and data to coaches who can
sion-makers identified, including too many people help workers grow or support human sustain-
in decision-making can create information overload, ability. For example, AI tools can analyze sales
reduce accountability, and bog down decisions.35 representative videos and provide personal coach-
ing on emotions, topic coverage, and personality.
• Performance management decisions. For example, The videos can be made available to managers to
making people’s individual performance reviews personalize further coaching and mentoring work.37
transparent to others may cause strife, as will making Or organizations can help managers coach work-
performance decisions based on an individual’s ers on well-being by revealing, for example, how
unique data (for example, docking pay or limiting often workers have taken time off or are working
eligibility for promotions by using location tracking on weekends.
to determine adherence to return-to-office policies).
Caution (think twice) before implementing transparency
• Surveilling or punishing workers. In contrast, that provides:
Metlife employs AI to coach call center workers—
not to punish them, but to help them learn and • Individual data about workers beyond themselves
improve at their jobs.36 or their immediate teams, unless it is aggregated
or anonymized. For example, if an organization
WHO will provide the information, and who will requires all intra-organization communication
receive it? to happen on an open platform that exposes all
communications in the name of visibility, workers
Decisions around who has control over transparency of may feel surveilled or intimidated.
information can be affected by the reach of that transpar-
ency—whether the information will be shared internally HOW will the information be made transparent?
or externally, with just the individual, their manager
or team, or organizational leadership. Giving workers Enact guidelines that give workers reason to believe data
agency over their information can help provide trans- about them will be assessed and used fairly. Pursue lead-
parency while also fostering trust. In addition, making ing practices for consent and preference management—
determinations about who has access to information for example, making transparency initiatives temporary
should be based on the recipient’s commitment to listen- and storing data for limited periods of time, so workers
ing deeply to worker voices and ability to act on the don’t have to worry about how their information might
information (for example, making policy adjustments be used in the future.
based on aggregated feedback from workers).
Go (proceed thoughtfully) with transparency plans that:
Go (proceed thoughtfully) with transparency that provides:
• Clearly explain how information will be disclosed
• Information about a worker to that worker. This and used.
practice, called auto-analytics, can be a valuable
learning tool. For example, some organizations use • Are opt-in and seek permission from workers to
AI tools to analyze conversational and emotional make their data transparent.
tone in customer meetings, using the information
to help workers work more effectively. • Have fair guidelines about how the information will
be assessed and used.

48
• Are temporary and store data for limited periods believe the other is looking out for its best interests.
of time. This dialogue should focus on what kinds of transpar-
ency organizations and workers will provide; why it is
• Explain clearly to workers how decisions based on valuable for them to provide it; who will provide the
worker data are made, such as performance, hiring, information and who will receive it; and how that infor-
and assessments. If AI is used to inform these deci- mation will be delivered, evaluated, and used.
sions, ensure that workers understand how it uses
their data to make recommendations. Regulations can help guide organizations, but they typi-
cally lag the pace of technological innovation and are
Caution (think twice) with transparency plans that: constantly evolving. Organizations thus should develop
their own frameworks of responsibility when it comes
• Are vague about how information will be disclosed, to transparency.
evaluated, and used. When one well-known news
outlet installed body heat detectors at desks, it Organizations should expect the dialogue around trust
intended to use the information gathered to lower and transparency to continue, as evolutions in society
costs for space and energy. But the intent wasn’t and technology present new possibilities and challenges.
communicated to workers, who interpreted the For example, advanced sensing and tracking technologies
detectors as surveillance, inundated managers with can already make behavior highly visible in real time,
complaints and leaked negative stories to other and the depth and breadth of those kinds of insights will
media outlets.38 likely only increase.

• Could be used to identify specific individuals. And although it may sound like science fiction, the day
Instead, individual data should be anonymized and when technology can interpret and convey the contents
aggregated. of individuals’ brains could arrive sooner than most
people think possible.39 How will organizations and
• Are enacted without context, since data in isolation workers collaborate to navigate these kinds of devel-
may be misinterpreted or misunderstood. opments? They have enormous ethical implications for
organizations’ practices and relationships with workers,
• Leadership doesn’t intend to act on. Workers need and they will further complicate the critical job of earn-
to know that their data is being collected with the ings workers’ trust. Asking the right questions now can
intention to create mutual benefit. help organizations develop frameworks around transpar-
ency—positioning them to navigate this future in ways
that build workers’ trust and help empower all parties
The trust and transparency conversation to build a better future together.

To build trust, organizations and workers should have


an ongoing dialogue that gives each party reason to

RESEARCH METHODOLOGY

Deloitte’s 2024 Global Human Capital Trends survey supplemented its research this year with worker- 1,000 global executives and board leaders in order to
polled 14,000 business and human resources and executive-specific surveys to represent the understand their perspectives on emerging human
leaders across many industries and sectors in workforce perspective and uncover where there capital issues. The survey data is complemented
2024 Global Human Capital Trends

95 countries. In addition to the broad, global may be gaps between leader perception and by over a dozen interviews with executives from
survey that provides the foundational data for worker realities. The executive survey was done some of today’s leading organizations. These
the Global Human Capital Trends report, Deloitte in collaboration with Oxford Economics to survey insights helped shape the trends in this report.

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Endnotes
1. Ashley Reichheld and Amelia Dunlop, “How to build a high- 19. Deloitte, “The time for the quantified organization is now.”
trust workplace,” MIT Sloan Management Review, January 24, 20. Mark Banfield, “78% of employers are using remote work tools
2023. to spy on you. Here’s a more effective (and ethical) approach to
2. Deloitte’s TrustID research and data platform, 2023; Slack, tracking employee productivity,” Entrepreneur, December 23,
“Trust, tools, and teamwork: What workers want,” 2022.
October 3, 2018. 21. Matthew Finnegan, “Rise in employee monitoring prompts calls
3. Deloitte, “The time for the quantified organization is now,” for new rules to protect workers,” Computerworld, November
accessed December 19, 2023. 30, 2021.
4. Deloitte defines organizational trust as a bilateral relationship 22. Charlotte Healy and Charles Russell Speechlys, “UK: AI’s
between businesses and their customers, workforce, partners, impact on workplace safety,” SHRM, June 2, 2023.
and governments; Deloitte Insights, 2020 Global Marketing 23. Ethan S. Bernstein, The transparency paradox: A role for
Trends, collection, accessed December 19, 2023; Roy J. privacy in organizational learning and operational control,
Lewicki, Daniel J. McAllister, and Robert J. Bies, “Trust and Harvard Business School, June 2012.
distrust: New relationships and realities,” The Academy of 24. Rosemary Scott, “Pay transparency backlash: The harm of
Management Review 23, no. 3 (1998): pp. 438–458. reluctant compliance,” BioSpace, February 27, 2023.
5. Roger C. Mayer, James H. Davis, and F. David Schoorman, 25. Deloitte Insights2Action, “Decision intelligence: The time is
“An integrative model of organizational trust,” The Academy now,” accessed December 19, 2023.
of Management Review 20, no. 3 (1995): pp. 709–734; Julian 26. Ethan S. Bernstein, “Why we hide some of our best work,”
B. Rotter, “A new scale for the measurement of interpersonal Harvard Business Review, September 24, 2023.
trust,” Journal of Personality 35, no. 4 (1967): pp. 651– 27. Steve Hatfield, Tara Mahoutchian, Nate Paynter, Nic Scoble-
665; Lewicki, McAllister, and Bies, “Trust and distrust: New Williams, David Mallon, Martin Kamen, John Forsythe, Lauren
relationships and realities,” pp. 438–458; Oliver Schilke, Martin Kirby, Michael Griffiths, and Kraig Eaton, Negotiating worker
Reimann, and Karen S. Cook, “Trust in social relations,” data, Deloitte Insights, January 9, 2023.
Annual Review of Sociology 47, no. 1 (2021): pp. 239–259. 28. Gartner, “Gartner survey reveals 47% of digital workers
6. Ashley Reichheld and Amelia Dunlop, The Four Factors of struggle to find the information needed to effectively perform
Trust: How organizations can earn lifelong loyalty (John Wiley their jobs,” press release, May 10, 2023.
& Sons, 2022). 29. Deloitte, Unlocking the potential of the Quantified
7. Deloitte’s TrustID research and data platform, 2023. Organization, accessed December 19, 2023.
8. Ibid. 30. Chase Thiel, Julena M. Bonner, John Bush, David Welsh, and
9. Barbara Kimmel, “Trustworthy companies offer superior Niharika Garud, “Monitoring employees makes the more likely
investment returns with less risk,” Medium, July 22, 2022; to break rules,” Harvard Business Review, June 27, 2022.
Lawrence A. Cunningham, Initiative on quality shareholders 31. David Green, “The role of network analytics (Organizational
highlights, Center for Law, Economics and Finance occasional Network Analysis) in ensuring team collaboration and
paper series (2020)—George Washington University, October well-being,”myHRfuture, April 27, 2020.
29, 2020; Lawrence A. Cunningham, “Opinion: Why high- 32. Deloitte, Unlocking the potential of the Quantified
quality, trustworthy companies have beaten the S&P 500 by Organization.
30%–50%,” MarketWatch, July 3, 2021. 33. Kate Morgan, “How much ‘radical transparency’ in a
10. Deloitte’s TrustID research and platform, 2023. workplace is too much?,” BBC, November 17, 2021.
11. Ibid. 34. John Sprovieri, “Video analytics help auto parts assembler
12. Becca Damante, Lauren Hoffman, and Rose Khattar, “Quick improve cycle time,” Assembly Magazine, December 18, 2022.
facts about state salary range transparency laws,” Center for 35. Deloitte Insights2Action, “Decision intelligence.”
American Progress, March 9, 2023. 36. Alejandro de la Garza, “This AI software is ‘coaching’ customer
13. Cory Stahle, “Pay transparency in job postings has more than service workers. Soon it could be bossing you around, too,”
doubled since 2020,” Indeed Hiring Lab, March 14, 2023. Time, July 8, 2019.
14. Indeed, “Pay transparency: The 2023 Indeed discussion guide,” 37. Business Insider, “Brainshark’s new AI-powered engine elevates
accessed December 19, 2023. sales coaching and readiness,” press release, June 5, 2018.
15. David Linich, The path to supply chain transparency, Deloitte 38. Ben Quinn and Jasper Jackson, “Daily Telegraph to withdraw
Insights, July 19, 2014. devices monitoring time at desk after criticism,” Guardian,
16. Allie Joel, “5 years in a row: Asana named a Fortune Best Place January 11, 2016.
to Work,” Asana Blog, August 9, 2021. 39. Nita A. Farahany, The Battle for Your Brain: Defending the
17. Deloitte analysis, 2023. Right to Think Freely in the Age of Neurotechnology (St.
18. Matillion, “Matillion and International Data Group survey: Data Martin’s Press, 2023).
growth is real, and 3 other key findings,” January 26, 2022.

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