Recruitment compliance is a set of processes that requires companies to abide by the government laws, rules, and regulations as well as the internal code of conduct while hiring people. The internal code of conduct includes, but is not limited to company values, policies, ethics, legal obligations, employee handbook, etc. It is crucial for companies to adhere to government regulations regarding leave policies, workplace safety, health insurance, anti-discrimination, anti-harassment policies, and fair pay. Non-compliance can expose companies to the risk of litigation and impact the employer brand.
There are several elements that play a part in recruitment compliance. Companies need to ensure that the candidate has a right to work in the region, such as possessing a work visa or a work permit. Job descriptions, briefs, and advertisements should satisfy any mandated Diversity, Equity and Inclusion (DEI) policies. Likewise, questions during interviews should not be of a discriminatory nature. Employers may also need to conduct a criminal background check (or a police verification) for potential hires. Employment contracts must satisfy minimum wage requirements, and follow the law of the land. Companies must ensure that the processes adhere to data privacy regulations. Companies often turn to recruitment process outsourcing (RPO) providers to fulfil their requirements for recruitment compliance. RPOs have the expertise and are fully aware of the latest rules and regulations when it comes to staffing.
Why is compliance a top priority for RPOs?
Recruitment compliance is of strategic importance to RPOs. Any non-compliance can result in fines for clients, loss of business, and impact the image of the company. Acting as the sentinels for recruitment compliance, RPOs need to ensure that they are fully cognisant of compliance requirements.
RPOs encounter several compliance risks. Regulatory risks are at the top of the pile. Global businesses have to adhere to different sets of rules and regulations based on the geographic location. RPOs need to be aware of the local employment laws while recruiting for such businesses. With the gig economy thriving, and the remote/hybrid work model pretty much set to stay, candidates are located in far-flung corners, which can make recruitment compliance quite a nightmare for a novice firm. Data breaches are a common risk. Losing data can result in loss of trust and faith, and eventually even the client. Data security and regulatory compliance are amongst the top agenda items for any RPO, as they can impact the professional reputation of the firm. Non-compliance in recruitment can erode the employer brand of the client. Poor adherence to compliance can also result in bad hires, again an expensive proposition for the client and the RPO provider. Being non-compliant can result in huge costs for the RPO provider and the client.
Compliance audits are expensive and can have an impact on the bottom line. As companies scale up, they need to ensure that the compliance costs are under control. RPO providers need to work closely with clients to ensure that service level agreements (SLAs) can be met. Likewise, systems need to scale up to meet performance standards.
How RPOs can ensure recruitment compliance
RPO providers need to adopt a multi-faceted approach for recruitment compliance. Understanding the law of the land, and the applicable Acts and regulations is key to ensure that all legal obligations are satisfied. Revisit all job briefs and descriptions, and ensure that they are inclusive and non-discriminatory. For instance, advertising for a native Hindi-speaking individual rather than for a North Indian would avoid regional discrimination. Guidelines for interviewers on how to frame questions, and which questions to avoid are necessary. Checking documentation of candidates, ensuring they have the right to work, conducting background checks, maintaining records and audit trails, and periodic audits are all ways to ensure that the client’s compliance requirements are addressed. Last, but not the least, technology is a key enabler for recruitment compliance. Using automation for relevant processes ensures that data is captured and integrated with systems down the line as required.
With employment laws and regulations being frequently revised, and compliance at the top of every business agenda, RPO providers need to drive a convincing case for recruitment compliance. Careernet has a deep understanding of the RPO space to help you formulate a compliant hiring strategy with well-defined SLAs and key performance indicators (KPIs) to measure recruitment performance. Recruitment compliance is a necessary piece of the puzzle for successful hiring.
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