How to Create a Transparent Recruitment Process for your Business

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What makes a Recruitment Process Transparent?

When we think about the recruitment and selection process, we often consider the behaviors of job applicants. We believe they must be honest about their credentials, and cooperative with the employer throughout the process. This is, of course, true. But the idea of transparency extends to the employer, and in an important way. Employers also have a responsibility to run a transparent recruitment process for their potential hires. This way, the engagement is smooth and beneficial for both parties, regardless of the outcome of the hiring.

A transparent recruiting process is characterized by clarity,  integrity, and fairness from the hiring organization. Throughout the various steps of the recruitment process, the employer should treat every applicant equally, and communicate clearly and honestly. This involves everything from issuing factual job descriptions & salaries, to getting an applicant’s consent before running background checks, to communicating clear timelines for results.

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‍Why is Transparency Important?‍

If an employer expects applicants to be honest and forthcoming throughout the recruitment process, they must lead by example. A show of transparency between employer and candidate establishes mutual trust between both parties. This is important to establish as early as the application process because it will affect the company in greater ways: 

Attract Top Talent

Honesty and integrity are sure ways to attract high quality talent to the organization. Gone are the days when recruiters and companies could just keep details like salaries, work hours, and company culture to themselves. Today, young job seekers and job switchers expect to learn all the details of the company they are applying for, and the job they are considering. The more you gain the reputation of a trustworthy and high-integrity employer, the more likely better candidates will want to work with you.

Develop Positive Relationships with Potential Employees

A transparent recruitment process makes talent feel respected, fostering positive employee relations. They will be more likely to reward your transparency with cooperation, and patience in return. If you are able to work well with applicants, there will be less roadblocks and challenges to finding the right people to hire.

Increase Employee Retention

If the candidate experience starts off on the right foot with a positive selection and hiring experience, they will carry that positivity into their work life. This increases the chances that they will become loyal workers significantly reducing employee turnover rates.

Strengthen your Employer Brand

Overall, everything that you do as an organization contributes to your reputation. Your company reputation impacts employee morale and business growth. If you are viewed as a reliable and transparent employer even in standard yet critical processes like recruitment, it shows your capacity for reliability in the way you treat your employees, do business, and handle challenges. 

Attributes of a Fair Selection Process‍

  • A fair selection process judges individuals solely on objective criteria—their ability to do the job. It does not look at extraneous considerations or biases such as race, colour, sex, age, and religion.
  • A fair and transparent hiring process provides every candidate with a fair and equal opportunity to compete for the position. Background screening through reference checks and identity checks help in keeping the selection process fair. ‍
  • A fair selection process ensures compliance with all local hiring regulations.‍

Steps to Implementing a Transparent Recruitment Process‍

Conscientious employers adopt measures that ensure fairness of the selection process and guard against including any selection criteria that disadvantage or discriminate against any candidate. Here are some of the steps your organization can consider to maintain and improve the transparency of your recruitment process:

Create Clear and Honest Job Descriptions with Assessment Criteria

Don’t just write what comes to mind. Begin with a comprehensive and objective analysis of the job to identify the skills, knowledge, and behaviour needed for it. Then, identify the assessment criteria related to the requirements for the job. Finally, list the goals and growth paths for the role. Cite these details in your formal job description, so candidates have a clear and realistic understanding of the job they will apply for.

Design of a suitable assessment process

Measure and assess the skills required based on the job itself, and not “traditional” or “historical” methods or exams. It is easy for an exam used this year to become dated by next year. Additionally, the adopted assessment process should enable even the candidates to infer the skills or traits that the test intends to assess.

Train the hiring team on Psychological Safety

The hiring managers and all HR team members must be trained - not simply briefed - on building psychological safety for applicants, and in fact, employees. This includes knowledge and practices that promote equal opportunities, understanding of employment law, interview skills, diversity and inclusion, and avoiding conscious and unconscious biases.

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Interview Consistently

Conduct job interviews that are consistent across candidates, and test only the required skills and attitudes. It is important that interviewers know exactly what they are looking for, and not just “a feeling”.

Handle Rejections 

Make rejections for candidates who do not meet the specified objective criteria. Do not simply cross their names off your list - communicate the results with them and be willing to give feedback about why they were not selected.

Carry out Background Screenings

Carry out thorough background checking for potential hires.  If hiring from abroad, international background checks can be undertaken to validate candidate credentials. Make sure you inform the candidate that checks are to be carried out, and obtain their written consent.

Conduct Performance Reviews post-hiring

At the end of the selection process, validate the effectiveness of the process by checking if the selected people go on to perform well on the job. 

Document Everything

Ensure meticulous maintenance of documentation at each stage of the process; this helps resolve any legal challenge that might arise. 

Things to Remember when designing a Transparent Recruitment Process

Transparency in the hiring process helps attract the best talent, while bad hires are expensive and may disrupt workplace morale. These measures can help make the selection process transparent:

Communicate clearly, and often

Quirky job titles appear “cool” but cannot substitute a clear and honest job description. Job descriptions should include complete details of responsibilities, skills, educational requirements, and other background information required for the hiring decision. Make sure the communication of details does not stop at the job description. When conversing with candidates over email, phone, in person, or other methods, ensure that details are always laid out consistently.

Disclose salary/salary range

While this may not be common practice in all markets, aligning salary expectations can save both employer and candidate time spent on queries and clarifications. When such expectations are laid out in black and white, the ensuing process will be more efficient.

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Share actual timelines

Indicate the expected process timeline, number of rounds of interviews, reference checks, etc.; this helps reduce candidate correspondence seeking clarifications on these issues.

Make employee reviews available

The best talent values employers who are transparent about their strengths and weaknesses. Be willing to share real employee experiences at your company, to show candidates that you are forthcoming and open as an organization.

Be willing to provide feedback 

In the same way, if requested, provide candidates with feedback about how their application is proceeding.

Acknowledge relevant challenges

Share possible roadblocks to manage candidate expectations. For example, if you are hiring foreign workers into your market, there are typically many more documents and background checks needed compared to local hires. Make sure applicants are not kept in the dark about how long or complex the hiring process can possibly get.

Never leave potential candidates hanging

For candidates who do not make the cut—while appraising them of their strengths, also provide them with constructive feedback on their weaknesses and areas of improvement. This is demonstrative of the firm’s genuine interest in its growth and success. 

A fair and transparent selection process speaks for what the organisation stands for. Together with the positive performance from your hires & employees, it brightens the organisation’s brand value.

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Watch-outs for Financially-Regulated businesses

Hiring is particularly important in financially-regulated businesses. There are organizations that are governed by financial regulators or agencies that oversee financial markets and companies. Examples of such businesses are:

  • Banks
  • Insurance companies
  • Financial brokers and asset managers
  • FinTech companies

The financial services industry tends to be subject to far greater scrutiny and accountability than others because it is an industry with high vulnerabilities. Financial organizations are entrusted with individuals' financial information as well as highly sensitive personal data. They can be a primary target for data theft, financial fraud, and other financial crimes. They are therefore governed by extremely stringent regulations across different markets.

In this industry, a transparent and comprehensive recruitment process is even more critical because bad hires brought in  by a lack of due diligence can result in major consequences for organizations, perhaps even entire markets.

From Singapore to Australia, financial industry employers often include credit history or adverse financial history background checks to their recruitment procedures. This services as an added layer of protection in ensuring they make sound, well-informed  hiring decisions in key roles. This is also something that candidates must be informed of, as their consent is needed.

In the UK, there is a specific type of background check called the CIFAS check or CIFAS Fraud Prevention Database check that aims to prevent financial fraud and protect individuals and businesses from becoming victims of fraudulent activities. A CIFAS check is specifically related to combating identity fraud and financial crime. It is typically included in the recruitment process when there are concerns about such potential risk.

Below are examples of the types of checks that can be included in the recruitment process of financially regulated organizations:

Remember however, that in selecting the background checks to be included in your recruitment process, you must ensure that you are always compliant with local laws in carrying them out.

Partnering with an experienced background check organization like Veremark can greatly help your organization to carry out not just a transparent recruitment program, but more importantly, a comprehensive and efficient one.

Conclusion

The recruitment process is an applicant’s first interaction with an organisation on their road to becoming an employee - possibly a long-term employee, and maybe even a future leader. Maintaining transparency throughout the recruitment process will allow your company to reap more benefits in the long-term, from hiring better quality talents, to having a more positive reputation as a desirable employer.

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FAQs

What is Transaprency in the recruitment process?

A transparent recruiting process is characterized by clarity,  integrity, and fairness from the hiring organization. Throughout the recruitment process, the employer should treat every applicant equally, and communicate clearly and honestly. This involves everything from issuing factual job descriptions & salaries, to getting an applicant’s consent before running background checks, to communicating clear timelines for results.

Why is it important to have a transparent and unbiased recruitment and selection process?

A show of transparency between employer and candidate establishes mutual trust between both parties. This will affect the company in greater ways, including: Attracting more top talent; Developing positive relationships with employees; Increase employee retention; and Strengthening your Employer Brand.

How do you make transparent and unbiased recruitment decisions?

(1) A fair selection process judges individuals solely on objective criteria—their ability to do the job. It does not look at extraneous considerations or biases such as race, colour, sex, age, and religion. (2) A fair and transparent hiring process provides every candidate with a fair and equal opportunity to compete for the position. Background screening through reference and identity checks help keep selection open and fair. (3) A fair selection process ensures compliance with all local hiring regulations.

FAQs

What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.

Transform your hiring process

Request a discovery session with one of our background screening experts today.

Creating an Efficient Recruiting Process

The beginning of the human resource field can be traced to the industrial revolution in the 19th century that transformed economies from ones based on agriculture into economies based on mechanised manufacturing, large-scale industry, and factory systems. The dawn of the industrial age led to the creation of industrial centres and factories characterised by large numbers of people coming to a place of work.

The idea of the human resource function was built on a simple idea by Robert Owen and Charles Babbage, who believed that people were crucial for the success of an organisation. As the organised business grew and the importance of people’s contribution to its success became evident, the organisation started focussing on their recruitment process to get the best people employed.

The emergence of the information age further amplified the importance of people in the success of businesses. The competition to recruit the best people intensifies as demand for talent continues, given the accelerated pace of digital transformation and business automation. The great resignation wave has altered the talent landscape, with companies taking longer to fill the open positions. Companies must become increasingly creative to overcome the challenge of scarce talent due to this new dangerous current.

In this context, an effective recruitment process becomes crucial for the companies in order to sustain the pipeline of specialised, qualified, skilled, and motivated employees for the organisation.

In this report, we discuss:

- What are the core elements of an efficient recruitment process?

- Recruitment marketing

- Expand the scope of candidate search

- Create exceptional candidate experience

- Effective employee referral programme

- Effective candidate evaluation

- Data security, compliance, and reporting

- Maximise automation

- Hiring team collaboration

- How to leverage an efficient recruitment process

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