Do New Hires Really Understand Your Policies?

New research reveals that employers overestimate how informed employees feel when agreeing to rules, contracts and even additional tasks at work. This misjudgment can have direct costs to organizations in terms of employee disengagement and turnover. The researchers argue that obtaining true informed consent requires more than simply signing a form or verbal agreement, and that organizations willing to prioritize transparency and clarity over mere compliance will foster a workforce that feels respected, trusted and engaged.

Imagine eagerly arriving on your first day at a new job, only to find out that you’re immediately required to install location-tracking software, sign a mandatory arbitration agreement, or close your social media accounts. You may even be required to allow the collection and analysis of your routine business communications—emails, chats, and shared documents—to train new generative AI tools. Eager to get started and make a good impression, you agree – despite not fully understanding these terms. Over time, however, you begin to feel that you were not fully informed about the terms you agreed to. Your trust and commitment to the organization begins to waver. You may even consider walking out or taking legal action over what now appears to be an unfairly negotiated agreement.