3 Reasons Why Compliant Hiring Software is the Future
Is your hiring software compliant? Keep reading to learn more about the hiring software of the future.
If there’s one thing that HR professionals know, compliance rules the day when it comes to employees and employers. From Occupational Safety and Health Act (OHSA) workplace safety regulations to Health Insurance Portability and Accountability Act (HIPAA) privacy regulations to Employee Retirement Income Security Act (ERISA) retirement and health plan regulations, HR professionals are right in the middle of all these “alphabet soup” regulations.
Recruiting and hiring don’t escape the litany of federal, state, and local legislation, regulations, and guidance focusing on equity, fairness, transparency, and privacy in recruitment. And, violations of these regulations can cause business disruption in addition to high fees, excise taxes, and penalties.
Enter compliant hiring software.
Compliant hiring software ensures that your recruiting process follows all applicable laws, regulations, and guidance, promoting fairness, equity, and transparency, including, for example, those related to non-discrimination or pay equity.
This software also tracks and implements any needed compliance updates, ensuring that you’re compliant at all times, saving you time (and money) spent on unintentional hiring compliance issues, including any lawsuits that could damage your business’s reputation.
Keep reading to learn about why compliant hiring software is the future.
1. Anti-Discrimination Compliance
In the United States, anti-discrimination and equal employment opportunity laws are enforced by the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) for employers doing business with the federal government.
These laws ensure that companies don’t discriminate against protected classes when recruiting and hiring employees. Some protected classes include race, color, national, origin, religion, gender, and age, among others.
However, companies doing business across international borders may need to comply with foreign equal employment laws as well.
One type of compliant hiring software that directly confronts bias and discrimination in hiring is ethical AI recruiting software. This software, such as Cangrade’s patented AI hiring software, uniquely predicts candidate success without bias against any gender, race, ethnicity, age, or other protected categories, covering more groups than the U.S. Equal Employment Opportunity Commission (EEOC) requires.
However, as you may expect, with a still-evolving technology like AI, new regulations are always on the horizon, making compliance feel like a full-time job. This is where compliant hiring software can help – taking into account the EEOC’s new initiative to ensure that AI hiring tools comply with federal civil rights laws to California’s new draft regulations regarding automated-decision systems, among others.
Having compliant hiring software can help you keep up with these new laws, ensuring your compliance while you worry about tasks dependent on the human connection.
2. Ban-the-Box Compliance
A significant number of states (and some cities) now restrict employers from asking about criminal history. This is called “ban-the-box,” meaning that job candidates no longer have to check the box on a job application indicating that they have a criminal history.
Ban-the-box legislation levels the playing field for ex-offenders to obtain gainful employment, helping them not to re-offend while contributing to society.
However, like other HR-related legislation, ban-the-box laws differ from state to state and city to city, making compliance difficult. Again, this is where compliant hiring software comes into play, ensuring that your job applications are up-to-date and compliant.
3. Pay Equity Compliance
Another “hot” compliance area is that of pay equity. To help curb any pay disparity between employees (such as between men and women or between white and black employees), many states and municipalities have passed “pay equity” laws preventing employers from asking about previous salary information. This encourages (and requires) employers to pay the same wage for the same work, no matter the protected employee status or previous salaries earned.
Further, a handful of states and cities now require employers to disclose salary ranges for open jobs. And, many of these laws permit employees to openly discuss their pay, without fear of employer retaliation.
With states and cities passing new pay equity laws on a seemingly monthly basis, it’s critical that employers understand which laws apply to them as well as how to comply with these new laws. Having compliance hiring software track these laws opens up more in your day while keeping your hiring practices in line with current state and local laws.
If you mention compliance to HR professionals, there’s no doubt you’ll hear a groan. However, as these professionals know, compliance is critical to your company’s brand and reputation as well as maintaining your operations.
How Can Cangrade Help Future-Proof Your Compliant Hiring Software?
Cangrade’s hiring software is created, developed, and updated with compliance in mind. For example, Cangrade was recently granted patent 11429859 for its revolutionary process for mitigating and removing bias from AI.
With Cangrade, organizations can confidently remove bias from their talent screening decisions and accurately predict candidate success and retention with their unique AI-powered pre-hire assessment, with zero percent chance of introducing bias.
However, Cangrade’s compliant hiring software goes beyond ethical AI. For more information on the science behind our hiring solutions, visit us today.