Compliance in the Talent Acquisition Process

By Jennifer Cook

Things are getting busy…the workload is picking up…too much overtime is happening costing your business more than you budgeted and straining your workforce.

Sound familiar?  It is time to hire!  Sounds simple enough, right? Or is it?

You have established the need to hire additional talent, posted a vacant position and now resumes and applications are coming in faster than you expected.  Are they qualified?  Should I interview them?  What does your hiring process look like?  Is it consistent, unbiased, efficient, effective?  Do you have job descriptions, a compliant offer letter, is the position classified as FLSA exempt or non-exempt?  If the answer to any of these questions is “No” or “I don’t know” you could be exposing yourself to unnecessary risk and liability.

Having a documented process will not only establish the guidelines to keep the process fair and consistent, it will also serve to defend a hiring decision should a problem from an applicant arise, such as a failure to hire discrimination claim.  Also keep in mind that a bad hire typically costs the company $7,000 to $10,000 and some research indicates an employer can estimate the cost of a bad hire to be 30% of the annual compensation if it is a management position.  This cost goes well beyond just the cost of staffing fees, you need to consider the lost productivity, cost of the time screening, interviewing, hiring, onboarding, and training a new hire.  Then consider the negative impact of morale and the burnout that can happen to the other employees when you make poor hiring decisions.  Establishing a compliant process and talent acquisition plan may seem cumbersome, however it could very well save the company time and money going forward while mitigating exposure and risk.