Less than 1 in 4 Aussies trust data more than gut instinct in the workplace

New research has revealed that despite over half of businesses in Australia using data-based insights to assist with decision making, workers are still more likely to trust their gut instinct.

Research from Amplitude has found that nearly one in five workers claimed their company wishes it was data-driven, but the reality is far from it – highlighting the desire of Aussie businesses to operate in a more analytical way.

The study found that despite this desire, gut feelings continue to play a substantial role in decision-making processes for workers. Just 23 per cent of respondents said they trust data more than their instincts to make decisions, while well over half (54 per cent) said they balance both data and instincts equally when making tough work-related decisions.

According to the study, close to 61 per cent of respondents said they prioritise other factors over data when making decisions, with 13 per cent of respondents instead prioritising what they think their manager, team, or superiors want, while 12 per cent do what their gut tells them.

On the other hand, just 39 per cent view data as the most crucial factor pertaining to a business decision being made. Less than half (48 per cent) of the respondents stated that they rely on data to better understand their customers – whereas only 43 per cent said they use data to measure the impact of their work.

“The disconnect we’re seeing between the growing usage of data for business decision making and the continued reliance on gut feel highlights a chasm between analysis and instinct,” said Mark Drasutis, head of value, Asia-Pacific and Japan, at Amplitude.

“Creating a culture of data democratisation is essential for businesses to get the most out of their data. It involves education, implementing tools, and empowering employees to ask questions about data. This investment is well worth the effort, as teams will be able to respond to customer needs faster and more efficiently.”

The results from the respondents showed that many don’t trust the accuracy of the data their company is using (21 per cent) or were unsure about it (20 per cent), leaving just over half (59 per cent) saying that they trust their business data.

“The lack of trust in data is likely exacerbated by misalignment across teams, with marketing, data, product, and business stakeholders often working from different interpretations rather than a shared source of truth,” said Drasutis.

“Breaking down walls between teams, aligning outcomes, unifying data, and aligning around delivering value to customers at every step of their journey is the best way to converge teams, tools, and mindsets.”

The research shows that this lack of trust in the data can be directly correlated with a disconnect between workers and leadership, as 50 per cent of those surveyed believe there is a gap between how employees use data and how executives expect it to be used.

According to Amplitude, “by breaking down silos and unifying around a single source of truth, businesses can enable faster, braver, and more customer-centric decision making, helping to close the gap between intent and action”.