Human resources compliance and reporting can be difficult to navigate, with so many variables to consider. Employment law is changing constantly which makes recruitment compliance a challenging area to face for a large number of organizations. Reporting can take up many resources and doing it correctly is essential. We take a look at both HR compliance and reporting in this guide as well as some tips and tools to help the employer with both aspects of recruitment.
The recruitment industry has changed over time and so has its regulatory landscape. In light of this, 35% of respondents from our Newton Recruiting Insights* study site recruitment compliance as one of their top priorities (third to sourcing and filling open positions). Given the EEOC, OFCCP, DOL, as well as other governing bodies, new rules for employers are being put in place. The transition to online hiring activities, navigating recruitment compliance has become impossible.
For smaller and medium sized employers recruitment compliance is challenging. Ensuring compliance is addressed successfully takes an informed, disciplined team equipped with the correct tools. See an overview of the different laws and regulations that you should keep in mind when recruiting new employees.
Even though every employer is responsible for non-discriminatory hiring practices, once you hit 15 employers, this responsibility becomes enforced by law under the EEOC. The EEOC is the governing body that is responsible for enforcing the federal laws and regulations which do not allow “discrimination against a job applicant or an employee because of the person’s race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability or genetic information.”
To comply with the EEOC, you should have a solid understanding of prohibited policies and practices. Failure to comply with the EEOC may result in huge fines and penalties. Back in 2015, the EEOC reported evaluating 92,641 charges that resulted in more than $500 million in monetary damages against employers!
Stricter compliance guidelines exist beyond the EEOC, under the OFCCP. Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and VEVRAA are the three major laws enforced by the OFCCP.
For compliance with these laws, the OFCCP carries out random yearly audits on federal contractors. As reports of OFCCP evaluations are on the rise each year, government contractors should be proactive in both tracking and recording all information to remain compliant. To help with your recruitment compliance, we have put together a guide here!
EEO & OFCCP Compliance Hiring Tools
Having the right software in place is the first step when making sure you are ready for an EEO audit. Going with a software that has built-in EEO and OFCCP compliance tracking and reporting tools will save you time, money and headache when an audit comes around.
Implement a system equipped with compliance tools that provide insurance for your recruiting program. EEO, OFCCP, Section 503, reasons for non-selection, minimum requirements, VEVRAA updates plus more. An applicant tracking system (ATS) that is already built for you to utilize or create custom questions more in-line with your brand will help both yourself and your company. Find an ATS that also stores data online that allows you to control who has access to view the information. Get rid of paper files in cabinets and switch to a much easier way of managing EEO & OFCCP compliance.
A quality ATS will be consistent when it comes to storing and tracking all critical hiring compliance data that is needed to make your applicant flow logs as well as hire and offer logs. Try to find a system that backs you up if an audit should ever occur; pre-built reports based on OFCCP requirements and EEOC guidelines is a fantastic feature to have inside the system when dealing with an audit. Whether you’re a government contractor or a growing company with a large number of employees, recruitment compliance is a big topic for recruiters and human resources professionals. While OFCCP compliance regulations are specifically for employers with federal contracts, the responsibility to get rid of discrimination in hiring processes lies with every U.S.-based employer.
Benefits Throughout The Entire Recruiting Team
An ATS with compliance tools will benefit employees at every level of your organization. The list below shows the benefits on how having a quality ATS in place will bring positives throughout the entire organization. Ranging from recruiters themselves to executives, we take a look at the benefits.
Compliance tools inclusive with a quality ATS means that recruiters don’t need to bother with manual data capture. Built-in EEO and OFCCP functionality such as reason for non-selection, minimum qualifications and more keep your company safe, allowing you to focus on activities that get candidates through the door.
Access to pre-built compliance reports are immediate for HR Directors. Making sure you are prepared if an audit comes around is helpful, along with the ability to easily create applicant flow logs as well as hire and offer logs.
Take comfort in knowing that your organization’s recruiting practices adhere to EEO and OFCCP standards, which will help you avoid costly outcomes. Try to find an ATS that can track your team’s activities as well as the ability to stay ahead of any compliance issues that may arise.
Grade A Customer Support
It’s no good having all the gear and no idea. Having all the tools in the world will not help if you do not know how to access or pair them with your organization’s processes. Finding an ATS company that has second to none customer support will help ensure that you get the most out of your ATS.
What About Mobile Recruiting and EEOC & OFCCP Compliance?
When we turn our attention to mobile recruiting, we picture executive-level business professionals scanning their smartphones in search of their next role or millennials looking through job listings, searching for that exciting opportunity to kickstart their career. Our vision of mobile recruiting portrays upper-class, tech-savvy business professionals navigating top-of-the-line smartphones. This is not representative of the Americans who are most reliant on mobiles in order to engage with job opportunities.
With the increase in rapid, reliable, affordable wireless service, smartphones are being used from every socioeconomic status to access the internet. This increase has given rise to what is known as the mobile-only internet user. These individuals are those most engaged in searching for jobs on mobile.
Smartphone-Dependant Users Mainly Non-White
Recent studies have found that users who rely on their smartphones for internet access are predominatley non-white. The statistics shown below are from research conducted by the Pew Research Center and ComScore.
Their research showed that 13% of Hispanics and 12% of African-Americans are smartphone-dependent, to contrast this to just 4% of Caucasians.
A surprising 2 in 5 Hispanic millennials are mobile-only internet users.
From this research, it is apparent that there is an increasing divide in how various demographic groups access the internet. This is especially the case when we narrow down on how these different groups find and apply for jobs. Further research carried out by Pew found that just over half of both African-Americans and Hispanics used their smartphones to search for jobs in the past year, compared to just 37% of Caucasians.
As mobile search continues to be greater than traditional desktop search, companies without mobile-friendly career pages are missing out on many qualified candidates. Even more importantly, not having a user-friendly mobile apply process in place may exclude mobile-only applicants. Given the above stats, a mobile optimized careers page may be crucial for EEOC & OFCCP compliance.
What About Reporting?
Since 2009, Newton has offered customers advanced real-time recruiting analytics through its custom reporting-engine. Those that wish to build, save and share customized pages can do so with Newton’s applicant tracking software industry’s most powerful, easy-to-use custom reporting engine.
Newton allows you to report on candidate pipelines, user activity, requisitions, job postings, candidate sources, hires and even more. If you have a custom report that your company wishes to use, you can build it with Newton’s drag and drop interface which you can save and run it anytime you want.
Reporting has traditionally taken a lot of time and know-how. Newton offers a reports-specific cloud database which function is to run reports so handling large data sets will not slow you or anyone down. Recruiting metrics can be shared with any member on your team. With just a single click, you can export reports directly to Excel.
An ATS that ties in HR compliance and Reporting
Having an ATS that helps with both HR compliance and reporting will benefit the whole recruitment team. Ensuring compliance successfully takes an informed, disciplined team equipped with the correct tools. Newton gives you the tools to make sure you remain compliant and assist in helping you save time and resources when it comes to reporting. Find out more about Newton here.