Everything changed in 2020. The unemployment rate has risen from historically low levels to almost unprecedented highs. It’s back on the ground in a way, but employers face entirely different challenges to those they have done in previous years. Most recruiters probably didn’t expect that they would have to become experts in remote hiring and virtual job interviews.
However, some challenges never change. HR professionals still need to be experts in recruiting and avoiding offending recruitment regulators.
Compliance is not the coolest topic, but it is one of the most important, especially considering that 76,418 allegations of discrimination were filed with the US Employment Equality Commission in 2018 alone.
As companies are increasing hiring, especially in many US locations, they will likely consider using pre-hiring verification at some point for several reasons. First, it is a risk mitigation measure for any negligent employment claim, which is very important for any company trying to reduce risk. Second, it builds trust between organizations and their employees and between organizations and their buyers.
What is Recruiting Compliance?
Compliance with recruiting regulations is a way to attract, select, and appoint suitable applicants for an association’s job while adhering to internal policies, state, and universal laws.
Compliance is an important issue to be considered at every step of the recruitment process. Various elements fall under the scope of recruitment compliance, such as data security, integration security, privacy legislation, scoring and weightage, candidate screening, candidate evaluation, and so on.
Compliance can be a broad and complex topic, so we found it critical to arm our audience with facts and areas of interest. Here are a few requirements not to miss if you are honestly hiring the next wave of great talent for your organization.
The resignation rate of new employees
The resignation rate is the rate of new hires who left the organization within 12 months.
This is the best way to measure the candidate attraction and deployment process’s success. It also shows that the selected candidate fits well with the company for a long time. If the resignation rate is too high, the company should promote the sustainable development of employees.
Fresh employees that went through a detailed onboarding program were 58% more likely to stay with the organization after three years.
Fair Credit Reporting Act
At the federal level, there is a Fair Credit Reporting Act, known as the FCRA. The FCRA regulates the procurement process, pre-employment background checks, and other types of background checks known as consumer reporting. Federal law has detailed procedures for obtaining candidate approval for background checks and complex systems to follow if you intend to use the information to screen a candidate in the hiring decision process.
When hiring for any position, please ensure that you comply with current FCRA regulations in your jurisdiction before requesting a credit history or background check.
The proportion of applications to job interviews
It is a process of counting candidates who will pass the admission questions’ verification and proceed to the interview stage.
This indicator will help the company determine the levelof control. If very few applicants progress to the interview phase, the selection process is too tight, and if too many applicants pass the selection process, the stage must be made difficult.
Ban-the-box requirements
The ban-the-box movement is becoming critical at the state and local level and has become a vital compliance area for recruiters. Ban-the-box regulates the time for background checks or when you can ask about criminal history. It can also restrict what information can be used from the verification, how it can be used, and what types of notices or information about checks should be provided to your candidates.
Time to be fully productive
Productivity time is the total time for new employees to become productive, completing a task to a benchmark that average employees produce in a real job.
It also covers many employment factors, such as quality and employee satisfaction. A high-quality employee who feels happy in the workplace is likely to reach productivity levels faster.
Organizations with a good onboarding process experience 50% more productivity for new employees.
Credit and salary history
Credit and salary history ban prohibits employers from accessing a candidate’s credit history or credit report. A lot of states and cities have imposed these bans. It is to think that credit history is rarely directly related to the responsibilities and duties, right? This will often be more disadvantageous for some groups than for others. You see this with younger applicants affected by student loan debt, those affected by the mortgage crisis at the end of the 21st century, and women who sometimes lack the same credit history as their male counterparts. Thus, the credit history ban aims to level the playing field by removing the employer’s access to information that seldom exposes a candidate’s ability to fulfill the role.
In the same way, state and local jurisdictions also impose pay history bans. Salary history may not be inquired in some jurisdictions unless the applicant voluntarily offers it.
All these points share the common theme of fair hiring. These are candidate friendly points designed to provide applicants with a fair and transparent process that limits the information that employers can access and make hiring and compensation decisions. Remember that it’s not that bad if you follow the simple guidelines and thoroughly evaluate each business. In that case, there’s no reason you won’t find an ethical recruitment agency that will allow you to form a partnership that will help you find the best talent for your company.
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