Recruiting the right talent is a top priority for businesses wanting to edge ahead of competitors, especially in increasingly crowded markets. However, responsible recruiters need to know what they can and can’t do to ensure they keep themselves and their companies legal.
From anti-discrimination laws to data privacy and security, there are so many aspects of state, national, and even international law that recruiting professionals need to consider. Adhering to these laws helps companies create fairer and more inclusive hiring practices that could attract more qualified and discerning job seekers.
Equal Employment Opportunity (EEO) Compliance
EEO compliance means ensuring that everyone has an equitable opportunity to apply for a role that they’re qualified for. The Civil Rights Act of 1964 states that employers cannot discriminate against an employee or applicant based on any protected characteristics. These include:
- Sex and gender identity
- Sexuality
- Race and skin color
- Religion
- Age
- Disabilities
It might seem like it’s obvious that you shouldn’t discriminate for these reasons. However, cases of discrimination in employment do still occur. Advertising a job description as “ideal for a young, motivated team player” is immediately ageist. You’re stating that this role wouldn’t be suitable for an older person — which is illegal unless there were specific reasons for this that you could justify.
On the other side of the coin, there are many benefits to encouraging a more diverse workforce. Multiple points of view help increase innovation and ensure that products and services appeal to a wider market. Also, when you have a diverse workforce, you’re more likely to attract highly qualified workers. In fact, many job seekers say that they look at a company’s diversity and inclusion (D&I) statement before applying for any role.
Fair Credit Reporting Act (FCRA) Requirements
It’s normal to want to know a bit more about the people applying to work at your firm. Background checks can highlight if an applicant actually has the experience they claim they have. However, they can also highlight legal concerns such as identity concerns or a criminal record.
Because employers may use these background checks to decide whether to hire or not, there are strict rules around using them. The Fair Credit Reporting Act (FCRA) requires employers to:
- Get written consent from the applicant before running any background check
- Check that any information they get is accurate
- Be transparent with applicants about what data they’re checking
- Explain clearly why a background check causes an employer to not hire an applicant (or fire an existing employee)
Employers that fail to follow these requirements face hefty fines but will also struggle to attract more applicants if those penalties are publicized.
GDPR Implications for International Hires
Another aspect of managing employee/applicant data is understanding the various data protection laws involved. The European data protection standard is the General Data Protection Regulation (GDPR). If your firm has international employees or processes any information in the EU including selling to EU customers or clients, every aspect of your business must be GDPR compliant.
International hiring is a fantastic way to increase the diversity of your workforce and create a global presence for your business. If you fail to consider GDPR requirements surrounding personal privacy when processing the data of European employees, though, your company could face fines of up to €20 million (around $22 million) or 4% of the firm’s annual turnover.
Ban the Box Legislation
Treating applicants fairly also means considering that past actions should remain in the past. That’s the ethos behind the Ban the Box campaign which aims to remove the question from job applications asking if applicants have ever had any convictions. This campaign has led to 45 cities and counties implementing legislation that drives fairer hiring practices.
Recruiters might not be aware that 25% of US citizens have at least one conviction on their file. Refusing to consider applicants who tick the box stating they have previous convictions drastically reduces the talent pool you have to pick from.
Ensuring Data Security and Confidentiality
Finally, no matter where you source your applicants and how inclusive you are, you must ensure that you treat all their personal and professional information according to current data security laws. These include:
- Ensuring personal information is stored in secure locations, e.g., digital storage solutions with enhanced cybersecurity
- Only keeping data that is relevant to the purpose of recruitment
- Allowing employees or applicants access to the data you hold about them
- Deleting data that’s no longer relevant, e.g., the personal information of an applicant who turned down a job offer
Regular audits of your data security processes and policies can reassure employees and applicants that you take their confidentiality seriously.
Maintaining Compliance While Sourcing Top Talent
Staying informed about legal compliance pertaining to recruiting and hiring practices helps businesses stay on the right side of the law. But beyond that, it helps integrate ethical recruitment processes that could encourage more people to apply for roles at your firm. Your company’s reputation is an essential aspect of why people will want to come and work for you. Transparency and openness about your hiring practices will show that you’re a good place to be — and avoid potentially expensive lawsuits.
If you need support from an experienced recruitment partner, connect with MRINetwork today.