Why 70% Employee Are Lying in Engagement Survey (And How to Fix It with HR Passive Data)

70% of employees lie on your surveys. But here’s the kicker: They’re not trying to deceive you—they’re trying to survive. Learn why traditional feedback fails and how to decode what your workforce really thinks.

Employee surveys have long been the gold standard for measuring engagement, but mounting evidence reveals they’re flawed.

The Broken Promise of Employee Surveys

Employee surveys have long been the gold standard for measuring engagement, but mounting evidence reveals they’re deeply flawed. Consider this:

  • Survey Fatigue: Employees are drowning in feedback requests. A Harvard Business Review found that 71% of workers feel fatigue due to survey overload, while Deloitte found that 62% of employees say excessive survey negatively impact their work experience, which might lead to ignoring surveys or rushing through it. 

  • Fear of Retaliation: In another Harvard Business Review study, 45% of employees admitted withholding criticism to avoid backlash from managers. Even anonymous surveys feel risky in small teams.

  • The Positivity Paradox: Employees sugarcoat responses to avoid conflict. A tech startup discovered glowing survey scores while turnover spiked—workers feared criticizing leadership during layoffs.

Example: A retail chain celebrated “record-high engagement scores” but faced a unionization drive months later. Exit interviews revealed employees lied on surveys to protect their jobs.

 

Why Employees Lie: The Psychology Behind Dishonest Feedback

Employees aren’t malicious—they’re human. Here’s what’s really happening:

1. The Hawthorne Effect

When employees know they’re being surveyed, they alter behavior to meet perceived expectations. A factory study in the 1920s proved this: Workers boosted productivity only when observed.

2. Social Desirability Bias

Employees tell managers what they want to hear. For example:

  • Survey Response: “I feel supported by my team!”

  • Reality: Quietly battling micromanagement and isolation.

3. Survival Mode

In uncertain economies, employees prioritize job security over honesty. Gartner’s research shows that layoffs erode morale and trust: after major layoff events, 53% of remaining employees reported reduced trust in leadership. With trust damaged, employees are indeed less likely to speak up or share honest feedback.

Other surveys support this pattern: even in normal times, about a third of workers stay silent out of fear

4. Distrust in Surveys

According to Gallup, a mere 8% of employees strongly agree their company takes action on survey results​. In other words, over 90% of workers lack full confidence that leadership will respond to feedback.

 

Passive Data in HR: The Unfiltered Truth Your Surveys Miss

Apart from enhancing employee trust and promoting engagement survey, Passive data in HR—like email patterns, Slack activity, or project management signals—uncovers burnout detection opportunities and reduces reliance on flawed surveys. Unlike surveys, it’s:

  • Continuous: No waiting for annual feedback cycles.

  • Unbiased: Measures actions, not curated responses.

  • Predictive: Spots trends before they escalate (e.g., burnout, attrition).

4 Alternatives to Traditional Surveys

1. Collaboration Patterns

  • What to Track: Meeting frequency, response times, cross-department interactions.

  • Tools: Microsoft Viva Insights, Slack Analytics.

  • Case Study:

    • Microsoft’s Viva Insights: PayPal (using Viva Insights for meeting habits) saw about a 10% reduction in after-hours meetings and a 10% increase in focus hours after acting on the data​

  • Sample Application: Imagine a remote team noticing engineers in APAC rarely speak in meetings. Passive data reveals meetings are scheduled during EMEA hours. Adjusting times could boost participation.

     

2. Workload Imbalance

  • What to Track: Overtime hours, after-hours emails, PTO usage.

  • Tools: Toggl Track, RescueTime.

  • Case Study:

    • Mayo Clinic: The hospital analyzed nurse schedules and found 12-hour shifts correlated with higher medical errors. Switching to 8-hour shifts would potentially lead to reduction of errors by 28% (US Centers for Disease Control and Prevention)

  • Sample Application: A retail chain could use passive data to link cashier overtime with customer complaint spikes, prompting schedule adjustments.

     

3. Sentiment Analysis

  • What to Track: Tone in Slack/Teams messages, emoji reactions.

  • Tools: Culture Amp, KeenCorp.

  • Case Study:

    • F&B Conglomerate: The company used AI sentiment analysis on employee feedback platforms to detect burnout signals during the pandemic. They launched targeted wellness programs, reducing burnout by 20%

  • Sample Application: A tech startup might flag terms like “overwhelmed” in Slack to proactively address workload issues.

     

4. Project Management Signals

  • What to Track: Missed deadlines, task reassignments.

  • Tools: Jira, Asana.

  • Case Study:

    • Global Tech Firm: The company analyzed Jira data to identify teams consistently missing deadlines. They discovered bottlenecks in QA testing and reallocated resources, cutting delays by 40%

  • Sample Application: A marketing agency could use Trello activity to spot teams drowning in low-priority tasks and streamline workflows.

Ethical Employee Monitoring: How to Implement Passive Data Responsibly:

Passive data can feel invasive. Ethical employee monitoring starts with transparency. To build trust with passive data in HR, follow these steps:

  1. Transparency: Explain what’s tracked and why. Example: “We analyze meeting times to reduce burnout, not monitor individual productivity.”

  2. Anonymize Data: Aggregate results (e.g., “Design teams average 6 overtime hours/week”).

  3. Act on Insights: If employees share data, fix issues fast. A fintech firm reduced meeting hours by 20% after employees cited calendar overload.

Lessons from Real Companies

  • Global IT Consulting Firm: When piloting passive data tools, the firm anonymized all data and held town halls to explain how insights would improve workloads—not monitor individuals. Trust in leadership increased by 35%

  • Global Tech Service Provider: After employees expressed privacy concerns, the firm limited passive data collection to aggregated metrics (e.g., “team collaboration trends”) and shared results transparently

 

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