HR now sits at the centre of one of the most important
debates in modern work: how far should organisations go with people data. From
attendance apps to AI screening tools, every click, login and performance score
can be captured, analysed and stored. That creates significant potential for
smarter decisions, yet also serious risk if ethics and privacy are ignored.
Employees are aware of these concerns. Surveys show that
around 73% of workers are concerned about their privacy at work, especially
when monitoring tools are involved (SHRM, 2022). When HR manages data and
ethics correctly, trust grows, engagement rises and the organisation gains a
reputation as a fair and responsible employer. When it fails, the opposite
occurs: fear, disengagement and sometimes legal action.
This blog examines how HR can handle data in an ethical,
compliant and human way. The focus is clear: protect people while still using
insight to improve performance and the employee experience.
Ethics, Privacy and Compliance in the Modern HR Landscape
For years, HR data meant files in cabinets and basic information systems. Today, people analytics, AI-driven recruitment and productivity tools have changed the landscape.
Gartner reports that around 88%
of organisations have implemented or plan to implement advanced analytics in HR
to support decision-making (Vorecol, 2024). At the same time, regulations such
as the EU General Data Protection Regulation (GDPR), the California Consumer
Privacy Act (CCPA) and Sri Lanka's Personal Data Protection Act (PDPA) have
raised standards on how employee data must be handled.
Ethically, HR now has to balance three priorities
simultaneously: the organisation's need for insight, employees' expectation of
privacy and fairness, and legal requirements that keep increasing in scope and
complexity. Research suggests that many HR teams are still adapting. Deloitte
found that a significant share of HR professionals believe their organisation
is not fully ready to address the ethical implications of people data, even
though analytics is already widely used (Vorecol, 2024). This gap between
technology adoption (88%) and ethical readiness (approximately 39%) highlights
a critical risk: technology has moved faster than governance.
Building Ethical and Compliant Data Practices in HR
Set Clear Principles and Governance: A practical
starting point is to define clear data ethics principles. Many international
companies use frameworks such as "lawful, transparent, minimal and
fair" (XCD, 2024). In Sri Lanka, PDPA requires organisations to appoint
data protection officers, define lawful purposes and ensure employee data is
processed with appropriate safeguards. John Keells Holdings (JKH) has
highlighted the appointment of data protection officers for each industry group
and a structured approach to privacy risk management (JKH, 2024).
Build Privacy by Design into HR Technology: Whether
implementing a new applicant tracking system or collaboration tool, privacy by
design must be part of the project from the start. This includes data
minimisation, role-based access, encryption and retention rules. Dialog Axiata
strengthened its privacy approach by achieving ISO 27701 accreditation, a
standard that extends ISO 27001 to privacy information management (Dialog,
2023).
Be Transparent About Monitoring and Analytics: Demand
for employee monitoring tools grew rapidly during the shift to remote work.
However, SHRM research shows that employees are deeply concerned about how much
of their data is being tracked and why (SHRM, 2022). HR can reduce this tension
by being explicit about what data is collected, how it is used and who can
access it. Policies should be written in plain language and discussed in
onboarding sessions, not hidden on intranet pages. Research indicates that 62%
of workers are worried about how personal information is handled, while 73%
express concern about workplace monitoring (IAPP, 2023; SHRM, 2022).
Build Skills and Awareness in HR Teams: Ethical HR
data use is a skill. Many HR professionals lack full confidence in privacy
regulations and need training on topics such as consent, retention and bias in
algorithms (XCD, 2024).
Balancing People Analytics with Privacy
This video covers key considerations and best practices for
handling HR data, including access controls, consent, secure storage and
regulatory compliance, showing how theory turns into day-to-day HR practice.
Ethics and Privacy Best Practices
Across Sri Lanka and globally, several organisations
demonstrate what good ethics, privacy and compliance can look like in practice.
Dialog Axiata has invested in ISO 27701-aligned privacy processes, board-level
codes of conduct on data privacy and specialised governance teams (Dialog,
2023). John Keells Holdings has embedded ethics into its governance framework
through policies on equal opportunity and safe working environments, appointing
data protection officers across sectors to support compliance (JKH, 2024). At
an operational level, Infomate, a John Keells company, clearly explains how it
processes personal data from job applicants and employees in its privacy
policy, reinforcing transparency as part of the candidate experience (Infomate,
2023).
Globally, the Vorecol study notes that while most companies
now use HR analytics, only about half have formal processes to assess ethical
implications (Vorecol, 2024). By 2023, 65% of the world's population was
covered by modern privacy regulation, yet only 52% of organisations had formal
ethical assessment processes for HR analytics. These cases show that strong
ethics and privacy do not hold back innovation but instead help HR use insights
more confidently and build trust with employees and regulators.
Why Ethics, Privacy and Compliance Matter for Business
Ethical and compliant HR data practices create value in
several ways. First, when employees understand how their data is collected and
protected, their trust in HR increases (XCD, 2024). Second, in a world where
candidates research company reviews before applying, privacy practices affect
employer branding. Third, analytics and AI can support better workforce
planning when backed by strong privacy controls. Finally, data breaches and
non-compliance fines are expensive, making preventive investment in governance
far more cost-effective (Vorecol, 2024).
Conclusion
Ethics, privacy and compliance are no longer optional for
HR. In data-driven workplaces, they are the foundations for everything else HR
aims to achieve. Most organisations already use sophisticated HR data, yet many
are still building the ethical and privacy capabilities needed to handle that
data safely. For HR leaders, the way forward is practical: set clear data
ethics principles, build privacy by design into every system, communicate
openly with employees about monitoring, and invest in skills. When HR leads on
ethics and privacy, it builds a culture of trust where employees feel respected
as people, not just as data points.
References
- Deloitte (2023) Global Human Capital Trends 2023: People Data and Trust. Available at: https://www2.deloitte.com/global/en/pages/human-capital/articles/human-capital-trends.html (Accessed: 23 November 2025).
- Dialog Axiata PLC (2023) Dialog Strengthens Its Commitment to Data Security and Privacy with ISO 27701. Available at: https://www.dialog.lk/news/dialog-axiata-strengthens-its-commitment-to-data-security-and-privacy (Accessed: 23 November 2025).
- Infomate (Pvt) Ltd (2023) Privacy Policy: How We Protect Your Information. Available at: https://infomateworld.com/privacy-policy/ (Accessed: 23 November 2025).
- International Association of Privacy Professionals (IAPP) (2023) Employee Attitudes About Workplace Privacy. Cited in XCD (2024).
- John Keells Holdings PLC (2024) Corporate Governance Commentary, Annual Report 2023/24. Available at: https://www.keells.com/resource/reports/governance/John-Keells-Holdings-PLC-AR-2023_24-Corporate-Governance.pdf (Accessed: 23 November 2025).
- Learning City/AIHR (2024) Managing HR Data Privacy and Security [YouTube video]. Available at: https://www.youtube.com/watch?v=OLcAzEhOGMo (Accessed: 23 November 2025).
- Society for Human Resource Management (SHRM) (2022) Workers Worry Workplace Monitoring Is Eroding Their Privacy. Available at: https://www.shrm.org/topics-tools/news/technology/workers-worry-workplace-monitoring-eroding-privacy (Accessed: 23 November 2025).
- Vorecol (2024) Data Ethics and Privacy Concerns in HR Analytics. Available at: https://blogs.vorecol.com/blog-data-ethics-and-privacy-concerns-in-hr-analytics-7478 (Accessed: 23 November 2025).
- XCD (2024) People Data Ethics: Balancing Privacy and Productivity in HR. Available at: https://www.peoplexcd.com/insights/people-data-ethics-balancing-privacy-and-productivity-in-hr/ (Accessed: 23 November 2025).
Ethics, Privacy and Compliance in HR: Navigating People Data in a Watchful World under the Motivated Edge
ReplyDeleteHR has become the centre of one of the critical discussions of the contemporary labour: to what extent shall organisations go with people data? Since attendance applications and AI screening systems are available, each click, log-in and grades can be viewed, analysed and stored. That gives a great possibility of making smarter decisions but also great danger in the event ethics and privacy are overlooked.
ReplyDeleteThese concerns are known to the employees. Polls indicate that approximately 73 percent of employees worry about their workplace privacy particularly in cases of monitoring devices (SHRM, 2022). When data and ethics are handled appropriately by HR, trust increases, involvement increases and organisation also acquires a reputation of a fair and responsible employer. The reverse happens when it collapses; fear, lack of engagement and even legal prosecution.
The blog explores the fact that HR can manage data in an ethical, complying and human manner. The priority is obvious: ensure protection of people but at the same time employ intuition to enhance performance and experience of workers.
Ethics, Privacy and Compliance of the Contemporary HR.
Over the years, HR data referred to the cabinets and simple information systems. The world has evolved today with people analytics and artificial intelligence-based recruitment and productivity tools.
According to Gartner, approximately 88 percent of organisations have deployed or intend to deploy sophisticated analytics in HR to facilitate decision-making (Vorecol, 2024). Meanwhile, the regulations, including the EU General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA) and the Personal Data Protection Act (PDPA) in Sri Lanka have increased the requirements on how data about employees are to be processed.
The HR is now faced with the ethically challenging decision of having to balance out 3 things at the same time, namely the need of an organisation to have an insight, the expectation of the employees to have privacy and fairness and the legal demands that continuously grow in quantity and complexity. The studies indicate that most of the HR departments are yet to adapt. According to the findings of a survey conducted by Deloitte, a considerable proportion of HR specialists believe that their organisation would not be sufficiently prepared to manage the ethical impacts of people data, despite the extensive use of analytics (Vorecol, 2024). Such a discrepancy between technology adoption (88%) and ethical preparedness (somewhere at 39) brings about an important danger: technology has evolved quicker than rule.
Thank you for your detailed and well-framed comment. You bring strong attention to the balance HR must maintain between data use, employee privacy and legal compliance. Your use of statistics adds good credibility.
DeleteA very relevant and well-framed analysis. From an organisational perspective, I see that the rapid expansion of HR technologies has outpaced the ethical frameworks needed to manage people data responsibly. Employees are increasingly sensitive to monitoring and data usage, and without clear transparency and PDPA-aligned practices, trust erodes quickly. In my view, ethical data governance is no longer just a compliance requirement but a strategic necessity. Organisations must prioritise minimal data collection, clear communication and robust privacy controls to maintain credibility and protect the employee experience.
ReplyDeleteThank you for your thoughtful comment. You clearly show how fast-growing HR technologies can create gaps when ethical practices don’t keep pace, and I agree with your point on transparency and PDPA alignment.
DeleteGreat article. You captured the essential connection between ethics, privacy, and compliance in HR. In today’s data-driven environment, handling employee information responsibly is more important than ever. Very insightful.
ReplyDeleteThank you for your kind comment. I’m glad you connected with the link between ethics, privacy and compliance in HR.
DeleteA thoughtful and timely discussion on the growing responsibilities HR faces in managing people data. Balancing insight with ethics and privacy is no longer optional—it's essential for building trust and protecting both employees and the organisation
ReplyDelete