With more employee data comes opportunity — but also legal risk
Consumer demand, innovation, and the pandemic are changing the way we work and igniting employers’ desire to collect, analyze, and share employee personal data. In fact, workforce analytics is one of the fastest growing segments of the human capital management market; CAGR estimates of nearly 16% mean it will approach nearly $1 billion by 2023.
With data comes opportunity — but without the right safeguards, it becomes a trap. We predict that in 2021, regulatory and legal activity regarding employee privacy will double. While European regulators are already enforcing privacy rules to protect employees’ personal data, countries such as Brazil, India, and Thailand will soon do the same. And in the US, given the corporate practices and policies that often limit or deny employees a right to privacy, the battle to determine what is a reasonable expectation of workplace privacy will be fought in the courts.
Expect employee privacy lawsuits to multiply in the next 12 months. Companies must take a “privacy by design” approach when handling employee personal data. Doing this entails identifying and following all relevant requirements, including and beyond privacy; assessing specific privacy and ethical risks; and communicating transparently with employees.
See why proper management of digital information is a cornerstone of good corporate governance: Māris Vainovskis - growth, efficiency, risk reduction via corporate governance - digital information
Article based on Forrester Predictions 2021