Research by the High Pay Centre has shown that limited corporate workforce data can prevent a true understanding of how employees are treated. So it’s unsurprising that Lloyds faced criticism for using data from the personal bank accounts of over 30,000 staff to assess financial resilience and justify pay awards relative to the wider UK workforce.
Unsurprisingly, union officials have raised privacy concerns, especially given reports that the data was used to justify lower pay. Using employee data in this way sets a worrying precedent, showing how consent can sometimes be treated as a minor concern. Such practices also risk eroding employee trust, which has serious consequences for productivity and organisational performance – particularly as trust in UK employers to “do the right thing” has plummeted from 80% in 2022 to just 9% in 2024.
This case underscores the importance of viewing workforce data as a collaborative tool to understand employee needs, particularly in the context of the cost-of-living crisis. High-quality workforce analytics can reveal pressures affecting productivity and engagement, and help companies provide meaningful support to staff.
The High Pay Centre recommends the following principles for good workforce reporting:
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Link reporting to company strategy and performance
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Include a balanced mix of data and narrative
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Be self-critical and transparent
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Focus on measurable targets
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Use consistent data points over time
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Cover both directly employed and contingent workers
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Disaggregate data where appropriate
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Ensure reporting has external, independent assurance
By following these principles, companies can turn workforce data into a tool for trust and engagement – rather than a source of controversy and mistrust.