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Compliance Recruitment: Protect Your Business and Improve Talent Acquisition

The modern business world faces two massive challenges with employment, “the great resignation” and a widespread talent shortage. Both make it increasingly difficult for companies to retain and recruit the best and most suitable talent. But the talent shortage or great resignation aren’t products of the pandemic. These issues have built over time, and the need for improved processes is paramount.

While technological advances and shifts in industry trends are pivotal, recruitment compliance is a significant factor to be addressed. Studies show that 75% of Gen-Z applicants abandon job applications due to poor recruitment processes. That’s three-quarters of potential (and potentially incredible) candidates lost because of inadequate compliance recruitment.

Did we mention the world is in the middle of a talent crunch?

What is compliance recruitment?

Compliance recruitment means hiring employees ethically and following local labor laws and regulations. Efficient compliance processes facilitate fair and effective recruitment while preventing all forms of bias and discrimination. This means job applicants should never be discriminated against because of gender, race, ethnicity, age, religion, language, or anything else during the hiring process. When expanding into new markets for fresh talent, compliance is essential for identifying the best candidates with the most relevant skills and experience. Falling short with compliance recruitment can impact your company’s reputation by offending candidates and also hinder retention and quality of work due to recruiting underqualified employees.

Furthermore, diligent and compliant recruitment helps employers identify the best talent and ensure the recruitment process is efficient and manageable. 54% of candidates won’t apply for jobs with outdated recruitment processes, such as paper-based systems or those with lengthy timelines.

If organizations hope to avoid the pitfalls of the talent shortage while maintaining legal and ethical standards, compliance recruitment is non-negotiable. Finding and recruiting the best talent requires fair, transparent, and efficient processes. Anything less risks complications and poor engagement.

How Compliance recruitment becomes even more crucial while going global

In a fast-paced and rapidly evolving landscape, many businesses are moving towards global employment. Of course, every country has unique labor laws and regulations, and you must comply with the laws of the country you intend to hire in or expand into. Global HR laws and regulations can be frustrating, but they aren’t something you can ignore.

The US Justice Department recently sued SpaceX for discriminating against asylees and refugees when hiring. This shows how important it is for companies to conduct audits and implement recruiting compliance checklists to avoid such problems. It also shows how harsh the consequences are for companies neglecting the crucial nature of compliance in recruitment.

Why recruitment compliance is essential in 2023

Specialized skills are desperately needed in the current business landscape, and diversity and inclusion are top priorities. Compliance recruitment ensures all candidates, regardless of their background or any other defining factor, are treated fairly during the hiring process and have equal opportunity to succeed.

In 2023, compliance in recruitment is more important than ever before. Here are a few reasons why:

1. Laws and regulations

As we mentioned, failing to comply with the labor laws and regulations of the countries you recruit in can lead to legal action. Employment laws and regulations are constantly evolving to suit varying personal and professional needs. Effective compliance recruitment solutions ensure businesses avoid fines, liability, and other sanctions when hiring.

2. Ethical considerations

Compliance in recruitment prevents discriminatory factors such as race, age, gender, and religion. Job opportunities should be accessible and attainable for all candidates with the appropriate qualifications. Companies that fail to comply with the ethical considerations of recruitment also fail to recognize diversity and inclusion, which can greatly impact reputation, retention, and revenue.

3. Hiring the most skilled and qualified people

Recruitment compliance is critical for talent acquisition, as it provides an equal opportunity for all qualified candidates. Bias and discrimination are unfair and immoral in hiring, but it’s also bad for business — as the candidates being discriminated against could be the best fit for the role and the talent to drive your business forward.

Effective compliance recruitment practices convey a message of equality and allow businesses to establish skilled and productive workforces. In a time where skills are shorter than ever, hiring the right people with the best skills has never been a more crucial objective.

4. Retention and company reputation

Ethical hiring practices and compliant recruitment processes help businesses establish themselves as an employer of choice, which goes a long way in 2023. It’s not just about hiring warm bodies to fill roles. You need skilled experts who evolve with industry demands. Employers who hire the best talent not only improve their current business but continually future-proof against advances in technology and industry trends.

5. Data protection and privacy

During recruitment, candidates provide personal and sensitive information via resumes, applications, and through other processes such as background checks. This information must be private and protected for you to be compliant. We live in a world where data is a vital tool and resource, but it can also be an opportunity for third parties to utilize personal information. If candidates cannot trust you with their data, becoming a full-time employee isn’t appealing without trust and confidence.

How compliance impacts global employment

  • Being confident with your compliance capabilities for global employment is essential, allowing you to navigate the complexities while avoiding associated fines and other risks.
  • When you cross borders to recruit talent, you must consider local labor laws and regulations, taxes, visa requirements, and competitive employee benefits and insurance.
  • Compliance ensures you accurately manage salaries and taxes, create compliant contracts, and provide the appropriate benefits to your staff. Efficiency and productivity in recruitment are critical for avoiding the risks of global employment while enhancing your company’s reputation.

Enhance global employment with improved onboarding

Onboarding is a crucial yet often undervalued aspect of the recruitment process. But how does compliance help with onboarding? In absolutely every way you can think of. Compliance recruitment tools take care of all complex hiring tasks while covering all legal, ethical, and financial considerations. But that’s just the tip of the iceberg.

According to an employee survey by Glassdoor, of those who experienced effective onboarding  — 91% felt a strong “connectedness” at work, and 89% felt strongly integrated into the company. Compliance isn’t just about protecting data and avoiding fines; it’s about improving your company from top to bottom with effective and diligent processes.

We know onboarding is vital for employee experience and productivity. So, why do 76% of HR leaders feel that onboarding is still underutilized? Especially when you consider that 93% of employers believe that onboarding plays a vital role in employee retention. The truth is that despite being so valuable for finding the best talent and integrating them effectively, businesses either need more tools or insight to maximize their onboarding.

Multiplier’s Global Compliance platform has proved to be a vital tool for businesses navigating the complex landscape of global employment. With a unified platform to handle all the headaches and time-consuming legal compliance tasks, you have more free time and bandwidth to focus on onboarding new hires. As stats show, poor onboarding affects your business now and in the future, especially regarding employee engagement and retention.

Just remember, replacing an employee costs as much as 33% of an annual salary, whereas investing in better compliance recruitment processes saves you time and money. Continually looking for ways to improve your compliance practices and onboarding processes won’t just save you money. It’ll increase your revenue.

Frequently Asked Questions on Compliance Recruitment

Q. Are there specific compliance challenges when recruiting in different countries, and how do you address them?

The specific challenges of global employment include staying up to date with local labor laws and regulations, prioritizing diversity and inclusion, conducting thorough background checks, and implementing appropriate data protection protocols.

Q. What role do data privacy and protection play in compliance during global recruitment?

All local labor laws and regulations must be considered and adhered to throughout global recruitment and employment, including data privacy and protection. Around 70% of the world’s countries have implemented data protection laws to govern the use, storage, and collection of personal data. Failure to comply can result in fines, legal action, and damage to reputation.

Q. Can global recruiters collaborate with EOR experts to ensure global recruitment compliance?

Working with an Employer of Record expert ensures compliance and efficiency while relieving recruiters of tasks that consume time, resources, and budget. EOR experts have swiftly evolved from a helpful resource to a must-have for many modern companies.

Are you familiar with the complexities of compliance when recruiting new talent? It’s tough, right? Multiplier’s Global Compliance and EOR tools offer simple yet effective solutions to complex problems. To find out more, talk to our experts!

Binita Gajjar
Binita Gajjar

Content Marketing Lead

Binita is an experienced Content Manager with demonstrated expertise in advertising, editing, journalism, publications, and copy editing. With a strong media and communication background, supported by a Masters in Art, Design and Communication focused in Design and Visual Communications, General from the Center for Environmental Planning and Technology University (CEPT) University, Binita is the epitome of reliable and talented.

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