Category Archives: hiring

The ‘Ban the Box’ Paradox

HRE columnist Peter Cappelli recently penned a piece suggesting that “ban the box” legislation, while certainly well-intentioned, may not be the best approach to helping ex-felons transition back into the workforce.

Such laws, which prohibit employers from making questions about criminal convictions part of the hiring process, have been adopted in 24 states and more than 100 cities and counties in the U.S.

The good news is that “more ex-felons seem to have gotten jobs,” says Cappelli, a professor of management and director of the Center for Human Resources at The Wharton School of the University of Pennsylvania in Philadelphia.

Meanwhile, the overall hiring of young black and Hispanic men has declined, he adds.

“In other words, we swapped one form of discrimination for another,” says Cappelli. “It wasn’t supposed to work that way. The problem is people don’t behave the way the legislation anticipated. We don’t wait until the law allows us to find out about criminal records. We start guessing.”

Researchers Jennifer Doleac, an assistant professor of public policy at the University of Virginia, and Benjamin Hansen, an associate professor of economics at the University of Oregon, seem to share that view.

In their recent study (which Cappelli does reference in his column), the pair of professors tested the net effects of ban-the-box policies on employment outcomes for various demographic groups, using data from the Current Population survey.

The authors found that, among men between the ages of 25 and 34 who don’t hold a college degree, BTB policies decrease the probability of being employed by 4.5 percent for black men, and by 3.5 percent for Hispanic men.

In the same age group, black men with a college degree and white women of all educational levels benefit from this policy, according to the study. This finding suggests that, when criminal history information is unavailable, “employers pursue candidates who are less likely to have been recently incarcerated based on their remaining observable characteristics,” the authors write.

The goal of BTB laws “is to improve employment outcomes for ex-offenders and thereby reduce racial disparities in employment.”

The legislation, however, “could do more harm than good,” they continue, noting that firms that don’t want to hire ex-offenders might statistically discriminate based on race and gender in order to avoid interviewing applicants who are more likely to have been recently incarcerated.

“Of particular concern, employers might avoid interviewing young, low-skilled, black and Hispanic men when [ban-the-box legislation] is in effect,” note Doleac and Hansen. “This could worsen employment outcomes for those already-disadvantaged groups, without meaningfully improving outcomes for ex-offenders.”

In a recent UVA Today article, Doleac offers a “two-fold policy plan” to help combat discrimination against those for whom “ban the box” laws were designed, “without unintentionally hurting minority men without criminal records.”

For example, “individuals with criminal records may have histories of violent or dishonest behavior, and on average might struggle with greater emotional trauma and have worse interpersonal skills,” she says.

Providing opportunities for such applicants to demonstrate that they don’t have these problems—perhaps by having a local job-training program vouch for them—could potentially “help them overcome automatic assumptions about their temperament and suitability.”

Another “broad category of policies” that might improve upon current legislation includes education and rehabilitation programs that “would actually improve the underlying job readiness of this population,” says Doleac, who is currently working on a new technology-based project aimed at improving re-entry outcomes for individuals leaving prison.

“The reason that employers discriminate against people with [criminal] records is that, on average, that group is less job-ready than people without records.”

 

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A Groundbreaking New Pay Equity Law

Beginning July 1, 2018, employers in Massachusetts will be prohibited from asking job candidates about their salary history before offering them a job or asking candidates’ former employers about their pay. The new law, the Pay Equity Act, is designed to reduce the pay disparities between men and women in the workplace.

Although other states (including California and Maryland) have also enacted recent legislation designed to reduce pay inequity, Massachusetts is the first state to ban employers from asking about candidates’ salary history. The law, signed earlier this week by Republican Gov. Charlie Baker, not only had bipartisan support in the state legislature but also from business groups such as the Greater Boston Chamber of Commerce.

Nationally, women still earn only 79 cents for every dollar earned by men, according to the U.S. Census Bureau. Because companies tend to use candidates’ pay history as a guideline in making offers, these inequities can follow candidates throughout their lifetimes, pay-equity advocates say.

The Massachusetts law, which amends and expands upon the state’s pre-existing pay equity law, also makes it illegal for employers to ban employees from discussing their pay with others and will require equal pay employees whose work is “of comparable character or work in comparable operations.” The law also bars employers from reducing the pay of any employee in order to come into compliance with the Pay Equity Act.

The law also increases the penalties for violations, according to an analysis by law firm Holland & Knight:

The law expands the remedies available to plaintiffs by extending the statute of limitations from one year to three years, and creating a continuing violation provision under which a new violation of the law occurs each time an employee is paid an unequal amount. This provision may permit employees to recover years of back pay discrepancies as well as liquidated damages. Fines are increased from $100 to $1,000 per violation. There is no requirement that an employee file first with the Massachusetts Commission Against Discrimination (MCAD). Lawsuits may be filed directly in court.

Notably, however, the law features a safe harbor provision for employers that have been accused of pay discrimination, writes attorney Victoria Fuller of White and Williams:

Employers may avoid liability for pay discrimination under the Act if they can show within the last three years and before the commencement of the action, they have completed a good-faith self-evaluation of their pay practices and can demonstrate that reasonable progress has been made towards eliminating compensation differentials based on gender for comparable work in accordance with the evaluation.

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Hope Reigns Supreme in the HR Suite

As a good HR leader, you probably have a handle on hiring trends within your organization’s industry.

But what about your profession? What’s the employment forecast for HR?

At the moment, the prognosis is pretty good. And the younger the HR practitioner, the brighter the outlook, according to the 2016 HR Jobs Pulse Survey, recently released by the Alexandria, Va.-based Society for Human Resource Management.

The SHRM poll asked 365 U.S.-based HR professionals to gauge their faith in their own job security and ability to find work if they were to leave their current employer.

Overall, 75 percent of all respondents reported confidence in their job security, with that number climbing to 85 percent among early-career HR professionals.

Those at the earliest stages of their careers were found to be “particularly confident” in the stability of the profession, “which suggests that new entrants to the profession are feeling optimistic about their future as HR practitioners,” says Alex Alonso, SHRM senior vice president of knowledge development, in a statement.

Some of these younger professionals, however, are a bit unsure about their chances outside their current organization, at least in comparison to their more experienced colleagues. Sixty-three percent of early-career respondents said they were “somewhat” or “very” confident that they could find a new job. Overall, 88 percent of respondents described their prospects the same way.

Regardless of age, most of these HR practitioners intend to stay put anyway, as just 19 percent of those polled said they were looking for a new job.

The roughly one-fifth of those pursuing other opportunities have their reasons for doing so, of course. Not surprisingly, money tops the list, with 42 percent citing “more compensation/pay” as their primary motivation for seeking new employment. Thirty-seven percent said they were in search of “better career advancement opportunities.”

Just 27 percent of those surveyed said their companies were hiring for HR positions, however. That percentage remains unchanged from 2015, according to SHRM.

What kind of talented HR practitioners are organizations looking to find? According to the SHRM survey, HR generalists continue to be in the highest demand (49 percent), followed by HR professionals with employment and recruitment skills (31 percent).

Ultimately, while hiring remains fairly flat for HR positions relative to last year, the findings suggest an air of optimism in the HR suite, says Alonso.

“Confidence in the stability of the profession has increased slightly,” he says. “The vast majority of HR professionals … had some level of confidence that they could land a new job if necessary.”

 

 

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Changing of the Guard at Google

By now, many of you may have read that Laszlo Bock is stepping down as head of Google’s people operations, passing the baton to Eileen Naughton, who currently is vice president of sales and operations in the United Kingdom and Ireland.

The news was first reported last week by Fortune.

Some of you may recall Bock was HRE’s 2010 HR Executive of the Year—and for good reason. Though only four years at the helm of Google’s HR organization at the time, it was already quite clear that he brought a fresh new way of thinking to the HR world.

As then Google CEO Eric Schmidt pointed out in our October 2010 cover story, “Building a New Breed,” “Innovation and data are at the core of who we are at Google, and Laszlo applies those same principles to HR. He drives cutting-edge people programs and uses rigorous analytics to guide decision-making—all in the name of finding, growing and keeping great Googlers.”

If you’re looking for a single place to go to get at what some of the “cutting-edge people programs” are, I suggest you pick up Bock’s 2015 book: Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead. It’s all there.

Last year, the National Academy of Human Resouces also acknowledged Bock’s extraordinary contribution to the HR profession by naming him a Fellow in the Academy.

Unlike Bock, who held HR posts at General Electric before joining Google, Naughton is the latest example of an “outsider” taking the HR reins of a high-profile business.

Before joining Google, Naughton served as president of the Time Group and vice president of investor relations for Time Warner. She also served as president of Time Inc.

The Fortune story points out that she is one of the highest-rated managers at Google by employees and is “a founding member of Google’s women’s organization, Women@Google, along with former Google exec and current Facebook COO Sheryl Sandberg.”

Like Bock (who is staying on as an adviser to CEO Sundar Pichai), she will report to Alphabet (Google parent company) CFO Ruth Porat and will oversee HR in its entirety, including diversity and inclusion (which, like at many Silicon Valley companies, continues to be a weak spot for the firm, though one it’s making great strides to address).

Only time will tell, of course, how Naughton will build on Bock’s legacy at Google. Will she be able to view HR through a very different lens, much like Bock? Who knows—maybe her lack of HR experience will be an asset in that regard(?) But this much is certain: She has a tough act to follow.

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Are You Giving Job Seekers What They Want?

The gender gap. The generation gap. The wage gap. The skills gap …

Disparities abound in the workplace, unfortunately. And, according to Randstad U.S., we can go ahead and add “attributes gap” to the lengthy list.

The HR services provider’s recent survey of more than 200,000 respondents—designed to measure “the market perception of employers with the largest workforces” in 25 countries, according to Randstad—found salary and employee benefits, long-term job security and a pleasant working atmosphere to be the top three employer characteristics that job seekers value most.

These same attributes, however, scored fifth, sixth and eighth, respectively, on the list of attributes that would-be employees feel companies actually offer.

The same poll finds employers excelling in other ways, of course. The problem is that job seekers don’t seem to care that much about the things that organizations are good at delivering.

For example, the attributes that job seekers feel U.S. employers score highest on—financial health, strong management and quality training, in that order—rank fifth, ninth and seventh on jobseekers’ list of most-desired employee attributes.

“These findings reveal an ‘attributes gap’ between what U.S. job seekers want and what they perceive potential employers to be best at providing,” says Jim Link, chief human resource officer at Randstad North America, in a statement.

“What this should signify to employers is a growing disconnect that can be detrimental from an employee engagement, retention and, ultimately, cost perspective.”

Naturally, Randstad offers employers and HR executives suggestions on bridging this gap, such as “evaluat[ing] where you stand versus companies with which you compete for talent and determin[ing] the best steps to take to improve upon performance and/or perception.”

In addition, the firm recommends developing a three-year plan to “anticipate the future needs of your employees and what employer attributes talent will view as most important,” advising HR leaders to “arm yourself with insight leveraging talent analytics and predictive workforce intelligence to stay ahead of changing workplace dynamics.”

While organizational and HR leaders “may not be able to influence every workplace desire, managing workers’ wants and needs should not only be done from a macro-level by the organization,” says Link, “but also much more frequently from a micro-level by managers to ensure alignment.”

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It’s the Eve of Digital Disruption

As its name suggested, HireVue’s Digital Disruption 2016 in Park City, Utah was, for the most part, all about distrupting HR through technology. More precisely, the vast majority of the content surrounded hiring, HireVue’s roots. But as CEO Mark Newman made quite clear during an opening general session titled “New Wave of Disruption,” the South Jordan, Utah-based firm is no longer just about talent acquisition. It’s now about coaching and developing talent, too.

Rusty Rueff

Rusty Rueff

Though still a small portion of its business, with around 30 clients, Newman noted that HireVue Coach, a recent addition to the firm’s Team Acceleration Software Platform, is already growing at a fairly fast clip. He predicted that it soon will become a substantial piece of HireVue’s overall business. To date, he noted, training has been ineffective; it doesn’t stick. But by leveraging the power of video, he said, employers can now change employee behavior (primarily for those in customer-facing positions) in a fundamental way.

Of course, as you might expect, Digital Disruption (now in its third year), like most user events, was chock full of client success stories. Hilton. United Airlines. Vodafone. Netflix. But it also featured a number of speakers who looked at bigger-picture issues impacting HR.

One who personally stood out for me was Rusty Rueff, a former recruiting executive at PepsiCo and Electronic Arts who now sits on a number of boards and is an investor in several Silicon Valley start-ups. (I personally had an opportunity to meet Rusty a number of years ago at a much smaller gathering of CHROs.)

Rueff, in a general session titled “Craft(ing) of the Future,” suggested that those in recruiting need to stop thinking of recruitment as a profession and begin to think of it as a craft.

“A profession is defined as an occupation requiring prolonged training and a formal qualification,” he said. “Doctors and lawyers are a profession. But a crafts person [exercises a skill] in making something. We make something of people. We make something of organizations. We make something of cultures.”

To illustrate his point, Rueff recounted his days running recruiting at Frito Lay, where he was charged with interviewing candidates all day long, week in and week out.

“One day, I said to myself, ‘I’m the most powerful guy in the company?’ he recalled. “My other voice said, ‘What are you talking about?’ And I said, ‘No, I’m the most powerful guy in the company! because if I wanted everyone to have green eyes, I could do that. I could screen out everyone who didn’t have green eyes.’ That’s pretty scary, because I’m out there deciding what the organization’s culture is going to be by who I let in and who I screen out.”

Rueff recalled that he believed at the time that the HR function at Frito Lay needed change leaders—so that’s who he brought into the organization.

“I was a lowly little guy [at Frito Lay],” he said, “but I got to change the culture.”

Rueff told those attending that a crafts person needs to be, among other things, agile—someone who is able to adopt new ways of thinking. He added that such a person is like “an actor who can play many different kinds of roles on many different kinds of stages.”

To be successful, Rueff said, those in HR and recruiting are going to need to begin thinking like data scientists. “You don’t have to have a degree [as] a data scientist,” he said. “If you’re good with numbers, you can be one.” In other words, it’s a skill people can learn.

In addition, he said, they have to “think like the software-design architects of today, not yesterday. [People] who are fast and nimble.”

And they need to think like personal trainers, he said. “One size fits one when it comes to talent in the future.”

Speaking to this notion of one size fits one, another presenter, Molly Weaver, offered up a great example during a session titled “Stop Screening Out Great Talent.”

As director of talent acquisition at Children’s Mercy, Weaver said she was saddled by a hiring process that was way “too long” and “cumbersome” for applicants. So about a year ago, Weaver and her team unveiled a unique program called “Interview First.”

Instead of encouraging job candidates to apply for a specific job, “Interview First” enables them to submit a video via the company’s website in which they share something about their background and what they would like to do at Children’s Mercy. (Yes, you guessed it: Children’s Mercy, headquartered in Kansas City, uses the HireVue platform.)

Each day, two recruiters are assigned to review the videos that come in and parse them out to the appropriate recruiters (Children’s Mercy currently has 10 recruiters and jobs are divided into clinical and nonclinical). The idea behind the initiative, Weaver said, was to just give people a chance to tell their stories. By putting these videos at the front end of the process, she said, Children’s Mercy is able to quickly capture a lot of great talent, people who otherwise might have left the process.

Just because they aren’t the right candidate for one particular job, she said, doesn’t mean they aren’t right for something else at the company or an opening down the road.

Once the videos are evaluated, potential candidates are told they should consider applying for a particular position right away, there may be something for them down the pike or they’re not really a good fit.

Weaver pointed out that affirmative-action laws aren’t a concern for Children’s Mercy (a government contractor) here, since these individuals aren’t applying for a specific job.

So how is it working out for Children’s Mercy? To date, 120 positions have filled through “Interview First,” including nine individuals who were rehires. Interestingly, the new hires, on average, had applied seven times before.

Certainly, a pretty good start in disrupting a process that is clearly in need of some serious disruption, I think.

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A Lasting Reminder to Hire Veterans

I’m putting it out there that today’s 72nd anniversary of D-day and Memorial Day a week behind us should serve as reminders of the need for 474510772 -- saluteemployers to keep veterans in mind when hiring time comes along — including all the reminders we’ve posted and published on this subject over the years.

As much attention as the subject has gotten, the numbers are still not where they should be — though a phone call to Kyle Kensing, online editor for CareerCast Veterans in Carlsbad, Calif., a group devoted to helping veterans into new careers, revealed a little good news. They’ve gotten better.

According to him, the unemployment rate among all veterans has been comparable, and even slightly better than, that of the general population for the last two years (5.3 for vets versus 6 for the general population in 2014). However, for the veteran class identified as “Gulf War era-II” (e.g., Iraq and Afghanistan), the 2014 unemployment rate was 7.2 and fell to 5.8 in 2015, showing “the positive impact of hiring initiatives,” he told me.

Also, since the launch of the 100,000 Jobs initiative in 2011 (which we’ve written about on this site), Military Times reports 1.2 million veteran hires since its launch. “So yea,” says Kensing, “that goal was met.”

Still, despite these improvements, “and the fact that more companies are making more of an effort to reach veterans,” he says, “there’s still work to be done. The numbers aren’t really where we want them and there are specific things employers could be doing that many still are not.”

For one, he says, businesses could be reaching out more to new hires from the military to defuse the isolation they feel when they enter corporate America.

“A lot of vets say one of the biggest challenges,” Kensing tells me, “is that, when you’re in the military, you’re in a cohesive family environment, but in business, especially when you start out, you can feel isolated and alone.” So employers could be doing more through managers and HR departments to set up mentoring, coaching and buddy programs for these hires.

Secondly, companies could be making even more of an effort to place veterans in human resource roles. The research is out there underscoring the importance of this. This story appearing on the Society for Human Resource Management site pinpoints the HR manager as one of top eight jobs for military veterans, according to a CareerCast Veterans Network report (here is the specific piece of the report citing HR manager as a top job).

So why is that, I asked Kensing? First, he says, the skills developed in the military translate well into HR: responsibility for others, opening up lines of communication, being able to understand what skills people have and what skills people need, and where they need help and where they can shine.

But beyond that, having someone in HR with military experience, someone who can relate to and understand these job candidates, can make all the difference for their success. There again, Kensing says, “more and more employers, from large corporations to smaller and mid-sized ones, are starting to understand this,” but those numbers could be much better as well.

For the sake of stoking this fire as much as possible, here’s a Fox News piece by veteran Rich Eich, a captain in the U.S. Naval Reserve, on “The Real Reason[s] to Hire a Veteran,” like how they hit the ground running, are used to dealing with multiple challenges, move quickly and are used to learning something new every day.

And here’s our HR Leadership Columnist Susan Meisinger’s piece last year, also detailing the merits of veterans in the workplace and the ongoing efforts to get them there.

And here also is Mark McGraw’s piece three years ago on helping veterans in the workplace as they struggle with post-traumatic-stress syndrome, a problem that persists today.

I guess it all comes down to doing your service for their service. Are you doing enough?

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Job Candidates’ Rising Expectations

If you’ve become accustomed to having job candidates jump through hoops in order to land positions at your organization, then you might want to brace yourself for change: Candidates are simply less willing to put up with lengthy application procedures and cumbersome hiring processes than in years past.

466488753That’s one of the major findings from CareerBuilder’s 2016 Candidate Behavior study, which is based on surveys of more than 4,500 workers and 1,500 hiring managers. The study shows that employers are continuing to struggle: Although 76 percent of full-time, employed workers are either looking for a new position or are open to new opportunities, nearly half of employers (48 percent) say they’re unable to fill job vacancies.

In today’s market, companies need to present their best faces to candidates. “It’s important to remember that the candidate experience starts from the very first click and can impact how effectively a company is able to recruit quality candidates, the popularity of its employer brand, the strength and quality of its referrals, and even the bottom line,” says Rosemary Haefner, CareerBuilder’s VP of HR.

Candidates are more quicker to walk away from applications that are too cumbersome, with one in five telling CareerBuilder they are not willing to complete an application that takes them 20 minutes or more, while 76 percent want to know how long it will take them to finish an application before it starts. However, the majority say they’d be willing to endure a lengthy application process if the company is offering a higher base salary.

Candidates are also less willing to wait around: 66 percent said they’re willing to wait less than two weeks to hear back from an employer before considering the opportunity a “lost cause” and moving on to another. HR must also ensure that information on the company is easy to find, with 37 percent of candidates saying they’ll move on to the next opportunity if they can’t find the information they need on the company.

Candidates also want to see more information in the job description: 74 percent want to know the salary, 61 percent want to see the total benefits package, 46 percent want to see employee ratings, 40 percent want contact information for the hiring manager and 39 percent want information on work-from-home options. They also want to see how the company provides work/life balance (35 percent), photos/video of the work environment (31 percent), team structure and hierarchy of the role (27 percent) and how many people applied for the job (25 percent).

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Getting Caught in the Drug Screen

There’s an interesting new story in the New York Times today about how employers are struggling to find a key demographic of the workforce: those who are able to pass a drug test.

From the NYT story:

All over the country, employers say they see a disturbing downside of tighter labor markets as they try to rebuild from the worst recession since the Depression: They are struggling to find workers who can pass a pre-employment drug test.

The hurdle, according to the story, “partly stems from the growing ubiquity of drug testing, at corporations with big human resources departments, in industries like trucking where testing is mandated by federal law for safety reasons, and increasingly at smaller companies.”

Data suggest employers’ difficulties “also reflect an increase in the use of drugs, especially marijuana — employers’ main gripe — and also heroin and other opioid drugs much in the news.”

Indeed, Quest Diagnostics, a national drug-testing service, documented an increase for a second consecutive year in the percentage of Americans who tested positive for illicit drugs — to 4.7 percent in 2014 from 4.3 percent in 2013. And 2013 was the first year in a decade to show an increase, the story notes.

But data on the scope of the problem is “sketchy,” the NYT notes, “because figures on job applicants who test positive for drugs miss the many people who simply skip tests they cannot pass.”

The story gets at an interesting question, but one that doesn’t necessarily get enough attention these days, likely due to all the other debates raging in the workplace: When does drug testing become more onerous than advantageous for an organization?

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Temp Jobs: 3 Million and Counting

New research from CareerBuilder and Emsi (Economic Modeling Specialist Intl.) shows more companies will be tapping into the temporary labor segment of the labor pool, with temporary employment expected to add 173,478 jobs from 2016 to 2018 – an increase of 5.9 percent.

The analysis was reportedly based on data pulled from more 100 national and state employment resources.

“Today, nearly 3 million people are employed in temporary jobs, and that number will continue to grow at a healthy pace over the next few years as companies strive to keep agile in the midst of changing market needs,” said Kyle Braun, President of CareerBuilder’s Staffing and Recruiting Group:

“Opportunities are opening up in a variety of occupations and pay levels, and this is a trend we’re seeing in a wide range of industries and company sizes.”

Click here to see CareerBuilder’s list of fast-growing occupations for temporary employment from 2016 to 2018.

To further bolster the claim that temp jobs are here to stay, in a Harris Poll study commissioned by CareerBuilder and completed in December 2015, 47 percent of employers reported that they plan to hire temporary or contract workers in 2016, up slightly from 46 percent last year. Of these employers, more than half (58 percent) plan to transition some temporary or contract workers into full-time, permanent roles.

“Temporary employment benefits both sides of the labor market. Hiring temporary and contract workers helps companies stay flexible and adapt quickly to changing market demands,” Braun said. “For workers, it opens doors for those who want to utilize various skills, build relationships with different organizations and explore career options.”

More proof that temporary jobs are now a permanent fixture in the labor landscape. Is your organization ready to embrace the temp trend?

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