June 2022 Summaries

The United States faces a record labor shortage, but previously incarcerated individuals struggle to find work due to various challenges such as lack of stability or economic mobility in their jobs, pay inequity, and limited access to fair chance hiring practices. The country's current labor crisis should provide opportunities for this vulnerable population, yet they face significant obstacles to securing employment and sustaining it. Fair chance hiring practices can help tap into the untapped source of labor suitable for numerous industries, allowing previously incarcerated people to gain meaningful employment and contribute to building a stronger national and global economy.

The COVID-19 pandemic has led to significant changes in the workplace, including remote and hybrid work models that have transformed the way employees live and work. As a result, employees now expect more from their employers than ever before, with 68% living paycheck to paycheck and 64% stressed about their finances. To address this, companies are adopting evolving compensation trends such as geo-based pay, value-based pay, and daily pay for gig or contract workers. Location-based pay allows companies to be competitive while giving employees the freedom to live in communities of their choice, but requires a firm understanding of market rates and cost-of-living indices. Value-based pay models provide remote employees with autonomy and offer employers a simpler compensation method, but may make it challenging to recruit top talent in competitive job markets. Gig work has become increasingly popular, offering flexibility, quick compensation, and stability for millions of people worldwide. As companies navigate these trends, they must consider non-cash rewards such as annual incentives and bonuses to retain talent. Ultimately, workers will continue to search for ideal professional situations that suit their specific needs, and companies must weigh the factors of geo-based pay and value-based pay to decide on a compensation method that works for both employer and employee.

Background checks are a crucial tool in the hiring process, but they should not include social media checks. These checks can have complicated legal consequences, potentially compromise fair hiring, and introduce bias into the process. Running a social media background check can lead to false identity issues due to fake accounts, inaccurate information spread across the internet, restricted hiring criteria such as protected characteristics like age and disability, and potential liability if using third-party screening services that fail to follow FCRA rules. Additionally, many states have their own hiring laws relating to cyber-vetting, and performing social media background checks can open up organizations to two potential problems: candidates claiming they were influenced by a protected characteristic or contesting the accuracy of the data. Furthermore, running a social media background check is impossible not to be biased in some way, as it's based on publicly available information that can be misinterpreted. Therefore, companies should avoid social media background checks and instead use comprehensive background checks with artificial intelligence and machine learning, such as those offered by Checkr.

A credit report provides detailed information on a person's financial history, including identifying information, credit accounts, inquiries, public records, and delinquencies, whereas a credit score is just one number representing an individual's creditworthiness. Credit scores are derived from credit reports, with FICO and VantageScore being the main scoring companies that calculate these scores. The relationship between credit report and credit score is close, but they differ in representation, process, use, availability, and hiring practices. Understanding the differences between a credit report and credit score is essential for both employers and candidates to ensure fair hiring practices and personal financial literacy.

Tacombi is a hospitality group that connects people to Mexico through hospitality at their neighborhood taquerias across New York, Washington, DC, and Miami. The company produces its own traditional flour and corn tortillas and sells them at grocery stores around the country under the brand, Vista Hermosa, runs a nonprofit, The Tacombi Foundation and The Tacombi Community Kitchen, established to fight food insecurity and provide food relief to those in need. Jacqui Maguire is the VP of People at Tacombi, who has taken an interesting path to arrive at her current role, starting with a hospitality background, then moving into talent in tech startups like Greenhouse, where she worked for over five years. She joined Tacombi and aims to create real positive shifts in the way employees are treated in the hospitality industry. At Tacombi, they're working on attracting and retaining candidates in a competitive labor market and particularly strained hospitality industry by building a talent brand, finding what will make them stand out, and telling the world about it. They also focus on hiring based on attributes that will lead someone to success, rather than just looking at experience alone, and creating unique candidate experiences for their three different businesses. Jacqui Maguire believes that structure is necessary for good data, and that data is crucial to improving DEI in the hiring process. She implements structured processes to reduce bias and enhance DEI, such as training sessions on unconscious bias, using scorecards to assess candidates on the same set of values and attributes, and applying those principles to employment practices like promotion decisions and transfer decisions.

Checking references is an essential part of the hiring process that helps determine whether a candidate is a good fit for the job. However, it's crucial to know how to check references correctly to avoid bypassing the process or rushing through it, which can lead to inaccurate information and potential legal issues. A reference check involves multiple steps, including verifying basic information, asking why the candidate is a good fit, using ranking questions to gauge performance, assessing strengths and weaknesses, and learning more about the candidate's culture fit. It's essential to inform the candidate during the interview stage, avoid delegating the job, and make checking references an interactive part of the hiring process. Additionally, companies should have clear guidelines on how and when reference checks are carried out, partner with a background check company like Checkr that uses artificial intelligence and machine learning for easier and more compliant background checks, and pay attention to the answers and ask follow-up questions to get a better understanding of the candidate's qualifications and potential fit.

Defining clear expectations during the hiring process is crucial to avoid misalignment of expectations, which can lead to friction in employee-employer relationships. By stating expectations in two primary locations - job descriptions and interviews - businesses can set the stage for long-term retention. Additionally, making a compelling offer that includes transparent details about benefits, pay, and opportunities for advancement can attract top candidates. Leverage existing relationships by promoting from within and offering referral bonuses to employees who recommend successful candidates. Getting to know candidates through open-ended questions, skills testing, and background checks can provide valuable insights into their work experience, personality, and fit for the role. Finally, taking time to find the right candidate is essential to avoid hiring the wrong person, which can cost employers 30% of a candidate's first-year salary.