Research from data science company Profusion found 61% of employees were comfortable with their output being monitored by data, but 81% said the data must be made available to employees to allow them to challenge any interpretations.
Employees felt businesses could be making more use of data, with 72% saying that applying data to HR decisions would be more beneficial for the workforce.
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Lesley Holmes, data protection officer at HR, payroll, and finance experts MHR International, said workers and employers could make the best use of data by communicating more.
She told HR magazine: "Data is a rich source of insight that is increasingly key to building a stronger, more resilient and successful business. Increasingly businesses are becoming more aware of the power of employee data – especially with the rise of hybrid and remote working making measuring productivity and activity a larger challenge.
"No activity happens in a vacuum, so it’s important that there is a dialogue between employees and HR teams on their data. On top of making sure GDPR is closely adhered to, there should be a level of transparency on what the data is being used for. If there is a lack of trust between employee and employer, this could prevent employees sharing their data, and thus drying up a strong source of insights.
Of those surveyed, 30% said their company monitors their output while 20% said that monitoring has increased since the pandemic.
Holmes said: "Our research shows that many businesses are putting a keen focus on improving access to data and driving more informed planning and analysis, but there is still plenty of room to improve through stronger collaboration with other departments, and upskilling employees on data management and analysis.
"If HR is able to tap into the data it collects, and work with other departments, a whole new picture of the organisation could be developed and new opportunities for greater efficiencies and opportunities could be found."
Profusion surveyed 1,000 workers across the UK.