Employers: How can you create the perfect job offer? An expert outlines 3 key elements to consider - on the TalentCulture blog

A Perfect Job Offer is Much More Than Just a Number

/, , , /by

TalentCulture Content Impact Award Winner - 2023

How would you define the perfect job offer? Some people think it’s about finding a magic number that will seal the deal with the right candidate. But smart recruiters know it involves much more than that.

Compensation negotiations have always been complex. But now they’re changing in some fundamental ways. This is largely thanks to new pay transparency laws, which mandate that employers include salary ranges in job postings. As a result, here’s what I see ahead…

How Pay Transparency Changes The Hiring Game

Pay transparency is a boon for job seekers, who will have access to much more useful information about open positions. But this doesn’t need to be a zero-sum game. No doubt, many employers will adjust their tools and processes. And that means recruiters can prosper under these new pay transparency rules. How?

For recruiters, the goal is the same as always — bring the perfect offer to the table. But now, the way to get there is likely to be different than it was in the past.

Making a perfect job offer has always required a balance of three key objectives — fairness, cost-effectiveness, and competitiveness. But these elements are dynamic. The balance is always shifting. So the more you understand how these relationships are changing, the better.

Imagine this: A knowledgeable recruiter leans more heavily on one of these three objectives when making an offer. That strategy might work in today’s hiring climate.

But what about next year? Without the right tools, the same recruiter may not have enough information to make reliable decisions. Instead, compensation will be based on guesswork. And this could jeopardize the balance that holds these offers together.

To build more solid job offers in 2023, take a closer look at the 3 factors I’ve mentioned:

The 3 Pillars of a Perfect Job Offer

1. Fairness

Candidates should be paid fairly. It may sound obvious, but with new pay transparency laws, recruiters have a more important role in making sure this is the case.

Fairness can be tricky to prove because it’s relative. Start by comparing candidates with their own abilities, with employees who do similar work, and with others in your organization.

But keep in mind that it’s not enough for you to think an offer is fair. A candidate must also believe it’s fair. That’s because candidates are much more likely to accept an offer they think is fair than those who think it’s based on guesswork or gamesmanship.

How can you convince candidates that an offer is fair? Don’t assume they’ll take a recruiter’s word for it — they want to see the data. That means your organization will gain a significant advantage if recruiters are able to show their work. This is possible to do with modern data analytics tools, even at scale.

2. Cost-Effectiveness

Your recruiters should be able to attract the best candidates to your organization at the right price. This sounds like a reasonable expectation. But what, exactly, does it mean?

Too often, organizations treat recruiting simply as a cost center. They set a budget and expect recruiters to work within those parameters. That’s important, but there’s so much more your talent acquisition team can accomplish.

Even now, as the economy experiences a downturn, recruiters aren’t just sourcing scouts who fill open positions. They’re also talent strategists who can think holistically about your business needs and goals while also providing the best candidates at the right price.

A compensation strategy involves so many complex elements: workforce planning, budgets, guaranteed vs. at-risk pay, and financial performance. The effects of compensation decisions reach far beyond any individual job applicant. In fact, deciding how many people to hire and determining what to pay them are among the most costly and important decisions any business leader must make. So, as the economy continues to sputter, cost-effective job offers are increasingly important to every organization.

3. Competitiveness

A job offer should balance the chance of a candidate saying yes with the compensation cost to the organization. Understanding what’s at stake is essential in today’s environment. This is why many employers are upgrading their compensation analysis tools. Because in a volatile labor market, good data makes the difference between successfully navigating choppy waters and crashing against the rocks.

In a way, cost-effectiveness and competitiveness are two sides of the same coin. Recruiters want to make offers that help their organization manage costs, even as they attract and retain top talent. But without the right data, finding that balance can be difficult.

This is where recruiters are most likely to make mistakes. In a white-hot talent market, landing qualified candidates can be a struggle. In a down market, it’s a challenge to stay within prescribed budgets. That’s why the perfect offer deserves as much market intelligence as possible, no matter what the hiring climate may be.

Getting Ahead of the Curve

Fair, cost-effective, and competitive. A perfect job offer must balance all three. Recruiters can get ahead of the curve now by taking tangible steps to implement this three-pronged strategy. Specifically, they can focus on using the right information, ensuring that processes are accountable, and communicating about pay throughout each step of the recruiting journey.

At its core, a perfect job offer is based on the best available compensation insights. For successful employers, that means real-time data that indicates what job seekers expect to be paid, what candidates are offered and are willing to accept, as well as what internal data says about existing compensation standards.

The era of pay transparency is here. It may be new, different, and perhaps even a bit intimidating. But it’s also an exciting time to be a recruiting professional. Because, if you’re willing to adapt, a perfect job offer is always within your reach.

 

Screening Job Candidates Online - What recruiters should know 1-9-23Alexey Boldin Shutterstock.com

Screening Job Candidates Online: Risky Business?

/, , , , , /by

Sponsored by: Fama.io

It’s no secret. On a daily basis, recruiters and hiring managers are screening job candidates online by simply entering their names in search boxes at Google, Facebook, LinkedIn, Twitter and beyond. Experienced professionals know they shouldn’t be doing this, but many do it anyway. Why?

The Slippery Slope of DIY Candidate Screening

Publicly available online information can reveal a lot about potential employees. It gives employers insight into an individual’s hobbies, interests and personality traits. It also shines a light on controversial opinions, political affiliations and protected class information. 

Gaining unrestricted access to a candidate’s public social media profiles may be easy. But instant access isn’t a free pass to engage in unethical or potentially illegal hiring practices.

That’s why it needs to stop. Screening job candidates without permission is an invasion of their privacy rights — especially the right to consent to the search.

Catching Up With the Rules

To be fair, most recruiters and hiring managers don’t fully understand laws involving online background screening. That’s partially due to the relative novelty of this practice, as well as a lack of updated guidance.

But now that online screening has become so widespread, employers need to know how to protect their organization as well as job candidates. That’s why it’s important to understand the Federal Fair Credit Reporting Act (FCRA).

Learning how to comply with these regulations is worth an employer’s effort. Online screening can be a powerful tool to determine an individual’s hireability. And when performed correctly, an online background check is an effective and perfectly legal hiring practice. 

How can you make this process work better for your organization? Let’s look closer at key legal aspects of screening job candidates online. First, I’ll explain how problems tend to arise. Then, I’ll suggest steps for a fully compliant, worry-free screening process. 

Understanding the Controversy

Why exactly is social media screening so controversial? Calling it an invasion of privacy is hard to defend, since many social media profiles are publicly available. Furthermore, applicants freely choose what, when and how they share on their social media profiles.

Much of this information may reflect positively or negatively on a candidate’s ability to perform in a work-related capacity. For example, education, work history, extracurricular activities and hobbies are often prominently featured on social media profiles. And employers typically evaluate this kind of information during the interviewing process, anyway.

However, the issue isn’t about employers using information that would otherwise be discussed during a standard interview. Instead, it’s about access to information that organizations are legally and ethically obligated not to consider.

We’re talking about legally protected categories such as race, ethnicity, gender identity, sexual orientation, disability status or religion. This is where issues arise, because the moment anyone views a social media profile, it may inherently reveal details about protected categories.

How Widespread is This Practice?

In a 2018 CareerBuilder survey, 70% of employers said they regularly review social media profiles as part of the hiring process. Furthermore, 54% acknowledged that they’ve rejected applicants based on a social media review.

However, the survey does not indicate how often social media reviews were being conducted by hiring managers who are legally obligated not to consider protected information. 

When used correctly, online screening can highlight positive work traits like compassion or open-mindedness. But it can also reveal negative traits. For example, what if a candidate threatens others in a post or shares a video while committing a violent act? This kind of behavior isn’t welcome in the workplace and would likely hinder the candidate from performing effectively in any role.

Steps to Achieve Better Outcomes

For a fully compliant screening process, consider these best practices:

1. Clarify the Rules

Defining a clear set of guidelines is essential for all background check methods — including online screening processes. According to leading U.S. employment attorney, Pam Devata, “In general, the same rules apply, whether you are using social media or more traditional methods for conducting background checks.”

In a recent interview, Devata explained, “The keys are consistency, accurate record keeping, ensuring that any data accessed is not legally protected information prohibited from being used in employment decisions, and that any decisions are rooted in business necessity.”

2. Focus on Documentation

Before attempting to navigate the nuances of social media screening, it’s important to establish consistent, generalized hiring practices across the organization. This includes putting a process in place to record and track all pre-employment decisions and FCRA-required disclosures.

Although it can be challenging to document online screening activity, consistent, accurate record-keeping will put your organization in a better position to address any issues that may arise. 

3. Partner with a Specialized Service Provider

One of the easiest ways to address the complexities surrounding online candidate research is to rely on a trusted online background screening partner like Fama.

With a proven, independent team managing the screening process, employers can gather only the information needed to assess an applicant’s job potential, without the risk of revealing protected categories. In fact, the strongest digital screening solutions include compliance filters. This ensures that reports shared with hiring teams focus solely on job-relevant information.

At Fama, we go beyond bare-minimum compliance protections by applying ethical AI and machine-learning technology. Also, a team of skilled humans reviews our screenings to ensure their legitimacy and accuracy. This helps us continuously improve our screening capabilities and our results.

Final Thoughts

No doubt, social media screening is bound to remain a controversial topic. But when you’re not sure about the legal implications, it’s important to avoid the false assumption that it’s safe to assess a candidate’s online presence on your own.

Guaranteed compliance is always possible by working with an objective, third-party screening solution. This means your team will benefit from a fully compliant screening process. And ultimately, it means your organization can focus on finding the best candidate for every job.

Are You Cultivating a Culture-Add Talent Strategy? Take a closer look with our Managing Partner Cyndy Trivella

Are You Cultivating a “Culture-Add” Talent Strategy?

/, , , , , /by

In recent years, I’ve been encouraged by a groundswell of employers that are choosing to embrace “culture-add” people practices. In fact, several months ago, I wrote about it in a Sage Masterclass article.

Because this concept is central to the future of work, I’ve continued to ponder, read and discuss culture-add issues with others. Now I’m convinced this topic deserves much more than just one blog post. So let’s explore it further here. I hope this underscores the need for a shift to a culture-add recruitment and retention mindset. But more importantly, I hope it inspires constructive change.

What Does “Culture-Add” Mean?

The term “culture-add” speaks to a paradigm shift beyond traditional “culture-fit” talent strategies. On the surface, the culture-fit approach seems appealing. However, it ultimately leads to one-dimensional groups, teams, and organizations. And history tells us homogeneity can have dangerous consequences:  blind spots, groupthink, and poor decision-making.

In contrast, a “culture-add” approach actively seeks people with diverse perspectives that enhance teams and organizations. As we learn more about the significant benefits of a diverse workforce, culture-add hiring is emerging as an important way to strive for differences that make a positive impact.

As I noted in my previous article:

Most of us know that employees who align with a company’s values and fit into the culture generally have higher job satisfaction, improved job performance, and frankly, stick around longer. However, we are resting on our laurels if we use this as our rationale for continuing to use the culture-fit model.”

Embracing Organizational Change

We all know humans tend to resist change. In fact, the old adage, “If it ain’t broke, don’t fix it,” was suitable for a long time. It still holds some merit, so let’s not dismiss it completely. Tried-and-true processes can potentially save us from all kinds of turmoil — emotional, logistical, financial, and more.

However, if we want to innovate and grow, we must also be able to adapt. No doubt, changing an organization’s cultural fabric can be daunting. But it is necessary for long-term viability.

As Stephanie Burns says in a 2021 Forbes column, Why Evolving Your Business Right Now Is Critical:

Anyone who has wanted to cling to how things were will be in for a surprise this year, as COVID-19 entirely shifted the original paradigm. However, it’s also presented an opportunity for businesses and individuals to evolve into new ways of being.

COVID hasn’t just turned the world on its head, it’s accelerated trends that were already happening, such as the shift to remote work and the collective desire for more convenience…

Still, some founders don’t want much change. This could be due to fear of the unknown or fear that leaving their old business model, which had worked so well for so long, could be catastrophic. However, we’re reaching a critical impasse where businesses that don’t evolve may very well fade out of the picture. Evolution is a natural part of all of our lives, and our businesses are no exception.”

Leaders would be wise to heed this important advice, even if it seems overwhelming. It’s time to change. Our work cultures are constantly shifting. We, too, should remain prepared to embrace new ideas, processes, and people who can make us better.

Culture-add hiring can support this process by inviting more diverse minds and voices to the table as we dream up fresh ideas and orchestrate change. This reminds me of a related term — new blood. We need new blood to thrive.

Connecting Culture-Add and Diversity

This conversation leads us directly to the benefits of diversity. There’s an excellent article on the NeuroLeadership Institute blog, Your Brain at Work: Why Diverse Teams Outperform Homogeneous Teams. The entire piece is worth reading, but here’s a noteworthy excerpt:

Diverse teams are particularly good at exposing and correcting faulty thinking, generating fresh and novel ideas, and accounting for a wider array of variables in planning.

Part of the reason this happens is due to what scientists call cognitive elaboration — the process of sharing, challenging, and expanding our thinking. In essence, diverse teams compel each other to think more deeply about their reasoning and interrogate the facts more objectively.

They share counterfactuals as they go, they don’t take things for granted, and there is minimal ‘social loafing’ — or just accepting things at face value. In short, diverse teams tend to come to better conclusions because those conclusions have been road-tested more thoroughly.”

The science of diversity in teams is truly fascinating. It tells us that recruiting and hiring leaders can help by feeding teams with talented people who can accentuate the benefits of diversity.

Of course, diversity and inclusion don’t end with hiring. The next step is fostering a workplace that makes a wide variety of people feel valued. This is not an easy task. However, it is essential. So let’s look closer at what to consider…

Tips For Building a Culture-Add Mentality

1. Actively weave a sense of belonging into your workforce

As you build a more diverse organization through culture-add hiring, don’t be surprised if cliques and segmentation develop based on geographical, cultural, and other distinctions. That’s natural! But challenge your people to also learn and share what they have in common with others. Allow space for these common interests and goals to surface.

The Why Diverse Teams Outperform Homogeneous Teams article offers a compelling reason to make this a priority:

The benefits of diversity aren’t likely to accrue if we simply put together a team of diverse individuals and assign them a task. The environment in which they’re working should be inclusive — one in which all members feel valued and as if they have a voice.

In that inclusive environment, the benefits of diversity are far more likely to materialize. If not, employees will leave the organization, or worse, stay but not contribute. Diversity without inclusion only creates a revolving door of talent.”

Vigorously work on building a sense of belonging so people of different ages, backgrounds, and lifestyles feel celebrated for their differences. After all, you’ve brought them in to add to your culture, so allow them to shine.

2. Prepare to fully retrain your recruiting and hiring staff

This tip could stand alone as an article, white paper, or college thesis. But to be brief, let’s use an example to illustrate how deeply culture-add hiring upends the traditional approach:

Previously, when Bob hired someone at XYZ insurance company, he considered a candidate like Stan an excellent fit. That’s because Stan lived in a similar neighborhood, was married to a well-liked woman, and had kids who were high achievers. If Stan also golfed on the weekends and enjoyed a steak dinner, even better! He’d fit right into XYZ Insurance and would have a fulfilling career.

As mentioned previously, this model once made a lot of sense. Cultural similarities and a genuine “he’s one of us” mentality created a comfortable atmosphere where longevity was often the result. Unfortunately, homogeneous organizations were also the result.

Today’s businesses face new challenges that require a different approach. Your talent acquisition team can start by taking the initiative to reassess the criteria they use to find people (where, how). Then you can reframe the recruitment conversation from end to end.

Instead of looking for people to fit a standard outdated profile, allow questions and conversations to emphasize and embrace differences in candidates. What can they add versus how do they fit?

Begin by asking yourself and others in your organization to talk openly about how hiring is being handled, and what kind of outcomes this approach is creating — for better or worse.

If a culture-fit model still drives your talent decisions, don’t be ashamed to admit it. But if that’s the case, you’ll want to start making changes soon. Because I assure you, your competitors are already moving toward culture-add for the win.

Hiring Bias

Hiring Bias – Create a Fairer Hiring Process

/, , , , /by

Bias can be a powerful factor in the recruitment process. In 2019, researchers from the University of Chicago and the University of California, Berkeley, began secretly auditing some of the top companies for implicit bias in the hiring processes. Their results showed a significant bias against resumes that included candidate names likely to be associated with Black applicants. In other words, even at top-tier employers, bias appeared to be repeatedly popping up in the hiring process.

This may surprise some people who believe that the U.S. Equal Employment Opportunity Act wiped out bias in hiring. After all, it’s illegal for employers to discriminate against potential employees based on gender, race, religion, age, national origin, or disability. Nevertheless, bias in hiring is still an issue.

The Root of Bias in Hiring and Recruitment

When it comes to recruiting, bias is the brain’s subconscious way of labeling a candidate as a “yes,” “no,” or “maybe” according to the recruiter’s subjective feelings about a candidate’s observable characteristics. This means that the recruiter can be biased toward or against a candidate (for example, a male recruiter preferring a male candidate), which can lead to unfair assessments. Given this understanding, it’s clear that bias can show up in almost every step of the hiring process.

Consider a recruiter reviewing dozens of applications for a job opening. The recruiter can show bias when judging candidates. Anything from gender and personal pronouns to alma maters and home addresses can spark common hiring biases. Many recruiters aren’t even aware they’re being biased because many of these judgments happen subconsciously.

Even after the resume review stage, hiring teams can again display bias during interviews. A number of studies over the years, including some from Princeton and New York University, have concluded that it takes less than a minute to form a first impression of someone. That first impression could be based on an unfair preconceived notion — related to anything from previous personal experience to common stereotypes.

For instance, a recruiter may expect candidates to be energetic and cheerful during the initial screening. Under those circumstances, a more thoughtful, serious, or reserved applicant could be removed from consideration before getting a chance to warm up to the discussion. While this immediate impression may have some truth to it, the candidate may need time to truly show what they have to offer, which may be far more beneficial to the organization in the long run.

The good news is that it’s possible to mitigate the effects bias can have on the hiring process. And it all starts with having conversations to acknowledge, understand, and address this issue.

Common Types of Hiring Bias

According to ThriveMap

  1. Affinity bias
  2. Confirmation bias
  3. Halo effect
  4. Horn effect
  5. Illusory correlation
  6. Beauty bias
  7. Conformity bias
  8. Contrast bias
  9. Non-verbal
  10. First impression

Reducing Implicit Bias in the Hiring Process

In my years in the recruitment industry, I’ve encountered some excellent, reliable ways to temper bias. Below are a few recommendations.

1. Implement an applicant tracking system.

An applicant tracking system, or ATS, is a centralized platform used to streamline recruitment and consolidate candidates. A robust ATS can collect, analyze, and review hiring and recruitment data objectively, and can provide an overview of all touchpoints and data collected along the candidate’s journey. At any time, a recruiter can retrieve key information about an applicant from the system.

Not surprisingly, one of the biggest benefits of an applicant tracking system is the ability to reduce bias. Certainly, recruiters can tailor candidate searches by inputting keywords such as “developer” or “Harvard.” Nevertheless, an ATS has the potential to be more impartial than most humans.

Another advantage of an automated applicant tracking system is time savings. An ATS can match up candidates with remarkable speed. At the same time, most applicant tracking systems are customizable and can integrate with other platforms such as marketing tools.

2. Remove identifiers.

Applicant tracking systems remove a lot of unconscious bias from recruiting. But, they can’t conduct interviews for you. Instead, get creative in implementing different methods to decrease the chance of discrimination before and during interviews.

One method I learned that proved successful was to scrub identifiers (such as applicant name, education, address, gender, and related fields) from every resume. As a result, your hiring committee can compare candidates on the basis of their experience — nothing else.

For example, in a previous role, I was tasked with building out the DevOps team. I presented candidates of diverse ethnicities and genders, but the hiring manager kept rejecting them no matter how technically adept they were. When I brought up the high rate of rejection, the hiring manager explained that they were only interested in bringing on male applicants of a certain ethnicity.

Though that explanation was genuinely upsetting, I suggested the method of removing identifiers from applications, and we agreed to try it. From that point forward, I presented only candidates’ qualifications, and the acceptance rate went from near zero to over 95%.

3. Involve a hiring panel.

It’s common in recruiting to conduct a final panel-style interview. This is the opportunity for the candidate to meet their potential teammates and vice versa. Someone on the call may have reservations or be impressed just based on their initial perception of the candidate. Rather than letting this bias influence the interview, let the candidate’s qualifications and cultural fit come into play.

One way to mitigate bias with panel members is to ask them to listen in on calls with candidates rather than join by video. Just listening helps panelists focus on the substance of candidates’ answers rather than their appearance.

Final Thoughts

Everyone has biases, whether they realize it or not. Rather than allowing those biases to unfairly affect the hiring process, set up guardrails to guide the process toward more equitable outcomes. You’ll end up making more appropriate hiring decisions and, ideally, improving the candidate and employee experience.