The 2018 Emerging Jobs Report is Here!

LinkedIn released their 2018 Emerging Jobs Report today and as always it’s packed full of some great information that speaks to where we see the world of Recruiting today, but also what we need to keep our eye for the future! 

So, what stood out in the latest report? First and foremost it’s what jobs are hot this year to last – 

So, I think we’ve all been hearing all of this A.I. and Blockchain stuff. The reality is, we aren’t really talking about true A.I., it’s Machine Learning (ML) and we’ve seen giant increases in the needs for these skills. 

Out of the top 15 emerging jobs (those jobs growing the fastest on LinkedIn) 6 of those were related to ML, Data, and Blockchain. That’s significant in terms of the products and technology that are being built by companies for the future. 

What else did we learn? 

While the report is designed to make us believe it’s all about Tech hiring, it’s not really all about tech hiring! 

  • Sales Executives
  • Recruiters
  • Realtors 
  • Account Executives (another title for sales)
  • Administrative Assistants 

Were all super high on the list as well. What does that mean? Well, those really aren’t emerging or growing jobs, it’s more about who’s living, searching, and spending time on LinkedIn. That might not be the patronage that LI really wants long term for the health of the site, in terms of your normal mix. 

The largest skills gap is still good old fashion oral communications! 

Again, I’m not sure how much of this is truly a skills gap and how much of that coming up in the data is just a function of the types of roles people are trying to recruit for on LI. If the report shows that all of these A.I., Blockchain, and Data jobs are what’s truly hot, oral communication wouldn’t be the most critical thing in those roles. 

But, oral communication is definitely a skill that is in short supply for most professions, and much needed by most professions outside of tech, like sales type roles. 

Machine Learning is definitely a skill set that employers are begging for. I reached out to my buddy and Recruiting savant, Steve Levy, just the other day as we had a search for a client demanding 10 years of ML experience. I was like, I don’t even remember ML being used as a term ten years ago! 

Steve confirmed, it most likely wasn’t. We did find some mention from 2009, but that was about it. So, the hysteria is real. Entry level position, five years of experience! 

I was surprised not to see Autonomous vehicle knowledge on there as this is another skill set we see companies begging for and we are constantly helping our clients in these searches. It’s not just about cars. It’s about delivery vehicles, mass transit, freight hauling, garbage trucks, etc. If it moves people or things, it’s going autonomous eventually. 

Check out the report. It’s great read at the end of the year as you’re preparing for recruiting plans for 2019! 

Why Did Amazon Decide on Having 3 Corporate Headquarters?

So, the biggest news of the week is Amazon finally made a decision on where they were going to build HQ2 and come to find out instead of just one location, Amazon is splitting the job lottery into two prizes and both Washington D.C. and New York will get an Amazon Headquarters. Okay, it’s probably really about 4 Headquarters since they’re really focusing a ton of the supply chain talent in Nashville, but who’s counting!?

I never really thought Washington D.C. or New York City had a chance because I was thinking about stuff like the ability to actually move around! Turns out Amazon’s real decision point came around brain power. Now, I know what you’re thinking! There are absolutely no brains in Washington D.C.! Hello, is this mic on!? Also, have you been the urine-scented streets of New York!? Joking!

If you look at the U.S. and did a heat map around higher education institutions you would find a gigantic section of the Eastern seaboard is shaded a bright red! From Boston to New York to Philadelphia to Washington D.C. you can’t find a more concentrated area of higher education in the world! Amazon’s newest HQ2 and HQ3 will be strategically located right amongst those areas!

The largest employers in the U.S. look like this:

Walmart is stupid big, but almost all of their employees are onsite at stores.  Accenture is huge, but again their employees work in every medium to large city in the country, not a one big headquarters. FedEx is basically the US mail service. Go down the list and you’ll most of the largest employers are not headquartered centric, but location-centric.

Amazon is the lone giant employer who has most of its employees in office buildings. Knowing they were going to have to hire 50,000+ employees, there was really no one location in the U.S. that could have handled that need for talent in such a short time. Washington D.C. and New York are probably two of the places that can handle 25,000 new jobs, each, without crippling every other employer in the market. And, this will still cause a giant disruption in those cities as people will be moving around like crazy.

An additional 5,000 white collar jobs in Nashville will be an incredible amount for that market, especially in the key skills they’re looking for which are desperately needed everywhere in the U.S. right now. Better dust off your employee engagement strategies and update your compensation models, Nashville employers! 2020 is going to be a tough year!

This decision signals one other potential massive shift for IT. Washington D.C. was already a pretty big IT hub with all the government work, but now moving this many IT related jobs to the East Coast could begin a big shift away from organizations believing you have to be in Silicon Valley to hire IT talent. Amazon will bring and grow IT talent for the entire east coast and strengthen those cities as large IT hubs worldwide.

Amazon definitely didn’t help workers out from a quality of life standpoint. Both D.C. and NYC are awful in terms of cost and commute, at least in California you get sunshine in your closet of an apartment!

The decision for me showed that Amazon truly looked at labor markets and demographics (and some giant tax breaks – which, let’s be honest, everyone was willing to give) as the major decision points in the location of the new headquarters. The U.S. demographics over the next decade should be a major concern for large employers. More workers will leave the workforce than are coming into the workforce, so you better be close to where we tend to grow white collar, educated workers.

This is a win for higher education as much as it is for Washington D.C. and New York City.

The Weekly Dose of HR Tech: Foresight – Workforce Planning Tech

Today on the Weekly Dose I review workforce planning technology, Foresight.Foresight is billed as the world’s first Recruitment Forecasting technology.It creates an accurate forecast of hiring need across a specified tactical time frame.

About once a year I’m completely shocked and surprised by a technology and this is the case with Foresight. I told the Foresight team, and I’ll tell you, this is the most impressive piece of HR Technology I’ve seen in a long time!

Foresight was built by some corporate talent acquisition professionals that got sick and tired of putting out fires. What we know if TA has very little control over workforce forecasting it comes from hiring managers, CFOs, CEOs, etc. So, they built a technology that kept that in mind, and got them out of fighting the recruiting fires of ‘we need to hire 100 engineers in thirty days’, ‘oh, wait, we need to layoff 300 now instead’, ‘check that, hire 1,000 total across all functions’!

What I like about Foresight:

– The platform sends out an internal email to each hiring manager from the executive explaining what needs to take place, and takes them into the systems and walks them through a very short forecasting process (15 min.) set of questions (executive can also speak to the team via video as well).

– The process takes them through the main areas of: headcount planning, known active recruiting, potential growth needs, and interns/apprenticeships. Calculates everything in a roll-up, and gives the organization a predicted recruitment path for the next twelve months.

– Hiring managers have to follow the system, they can’t skip steps or change. They can leave comments to explain, but they have to put in something.

– Executives get updates on hiring managers not completely their forecast.

– The platform works off live, real-time data, as a position gets filled, everything is updated, someone leaves, another update. Real current recruitment needs are at your fingertips, across your entire organization. Update forecasts can be sent out monthly, quarterly, up to the organization.

– After hiring manager puts in the forecast, there is an approval roll-up that takes place, so when it all comes back to TA, the department is ready to go with full approval.

Basically, anyone in the organization, from TA leader to hiring managers, to executives, can get a list of every single role being recruited for and when that role needs to be filled.

I’m in love with this from the simplicity of how it works to how if used consistently it becomes a cultural driver around your talent strategy. Everyone is onboard and in the know of what’s going on. Clearly, this is an enterprise level technology. You probably don’t need forecasting tech if you’re hiring 100 employees a year, but 500-100,000 hires, across multiple locations and countries, you need this.

Well worth a demo if you find yourself in a very typical TA role of constantly starting and stopping, and not really having a great idea around what the organization needs to hire on an ongoing basis. Bad TA happens when you can’t get out of firefighting mode. Great TA happens when you have a plan and can go make real long-term strategies to attract great talent.


The Weekly Dose – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market.  None of the companies who I highlight are paying me for this promotion.  There are so many really cool things going on in the tech space and I wanted to educate myself and share what I find.  If you want to be on The Weekly Dose – just send me a note – timsackett@comcast.net

Quality of Hire is NOT a Talent Acquisition Measure of Success!

I was looking at LinkedIn’s annual Global Recruiting Trends 2017 report and it had some great information.  I have to give LI credit, this report, each year, has some really great information that always makes me think!  This year’s report was no different, and one stat struck me as really telling:

When Talent Leaders were asked: “What is the way you measure your recruiting team’s performance today?

They said:

  1. Quality of Hire metrics (hiring manager measure not a TA measure – my opinion)
  2. Time to Hire (the single worse measure of all time – my opinion)
  3. Hiring Manager Satisfaction (has no correlation to whether or not TA is actually good or not – my opinion)

I hate all of these answers!!!  In fact, these answers are so bad it makes me question the viability of the future of Talent Acquisition!

You know what?  Quality of Hire is an Illusion for about 99% of organizations!  Most of us have no freaking idea how to actually measure the quality of hire, or that what we are actually measuring doesn’t haven’t the faintest correlation to actual quality of hire.

So, why is this interesting to me?

It shows me that TA Leaders still don’t have the guts to use real metrics and analytics to measure the performance of their teams!  Using a subjective, at best, measure, like Quality of Hire, allows them to continue to just make up what they ‘feel’ performance is, and one that doesn’t truly hold themselves or their teams accountable.

If you think this isn’t you, tell me how you actually measure quality of hire of your employees?  It’s very complex to even come up with something I could argue is an actual quality of hire metric!  Most organizations will do things like measure 90-day retention as a quality of hire. “Oh, look, they stayed 90 days! Way to go, recruiters, you’re hiring quality!” No, they’re not! They’re just hiring bodies that decided to stay around 90 days!

Quality of hire metrics only works if you are actually measuring the performance of your new hires to the performance of those employees you already have.  This measure, then, becomes one that you can’t even measure until you have a true measure of performance (which is a whole other issue!) of both the new hire and your current employees. Also, you have to give that new hire, probably a year, to truly see what kind of performer they are in your environment.

How many organizations are waiting a year to measure the quality of hire of the employees they hired a year ago?  Almost none!

The other issue here is why is Quality of Hire a recruiting measure, to begin with? Are the recruiters ultimately choosing who gets hired and who doesn’t?  No? That’s what I thought.

So, the recruiter can give the best candidate in the world to a hiring manager, but she instead hires a gal from her sorority who bombs out, and the recruiter gets killed on the quality of hire metric? That sounds fair.

Quality of hire metrics only became something because TA Leaders didn’t have the guts to tell the executives in their organizations that this isn’t really something that matters to the effectiveness of the TA function.  Quality of hire is a hiring manager metric.  You know how it’s measured? By looking at their operational measures and seeing if they actually met them.  If they didn’t it one of three things: they don’t know how to hire, or they don’t know how to manage, or both.

Regardless, check out the LinkedIn report. It has some good data points that are fun to discuss!

What is the right diversity mix of employees for your organization?

This is a question I think many executives and HR and TA leaders struggle with. SHRM hasn’t come out and given guidance. ATAP has not told us at what levels we should be at with our diversity mix. So, how do we come up with this answer?

Seems like we should probably be roughly 50/50 when it comes to male and female employees. Again, that’s a broad figure, because your customer base probably makes a difference. If you’re selling products and services mostly women buy, you probably want more women on your team.

The more difficult mix to figure is when it comes to race. Should we be 50/50 when it comes to race in our hiring? Apple has taken it on the chin the last few years because of their demographic employee mix, and even as of this week, are still catching criticism for having only 1/3 of their leadership team is female, and only 17% of their entire team being black and Hispanic. 55% of Apple’s tech employees are white, 77% are male.

So, what should you diversity mix be?

The most recent demographics of race in America show this:

  • 61.3% are white
  • 17.8% are Hispanic/Latino
  • 13.3 are black
  • 4.8% Asian

Some other interesting facts about American race demographics:

  • 55% of black Americans live in the south
  • White Americans are the majority in every region
  • 79% of the Midwest is white Americans
  • The West is the most overall diverse part of America (where 46% of the American Asian population live, 42% of Hispanic/Latino, 48% of American Indian, 37% of multi-race)

So, what does this all mean when it comes to hiring a more diverse workforce? 

If 61.3% of the American population is white, is it realistic for Apple to hire a 50/50 mix of diversity across its workforce? I go back to my master’s research project when looking at female hiring in leadership. What you find in most service-oriented, retail, restaurants, etc. organizations are more male leaders than female leaders, but more female employees than male employees.

What I found was as organizations with a higher population of female employees hired a higher density of male employees as leaders, they were actually pulling from a smaller and smaller pool of talent. Meaning, organizations that don’t match the overall demographics of their employee base have the tendency to hire weaker leadership talent when they hire from a minority of their employee base, once those ratios are met.

In this case, if you have 70% female employees and 30% male, but you have 70% male leaders and only 30% female leaders, every single additional male you hire is statistically more likely to be a weaker leader than hiring from your female employee population for that position.

Makes sense, right!

If this example of females in leadership is true, it gives you a guide for your entire organization in what your mixes should be across your organization. If you have 60% white employees and 50% female. Your leadership team should be 60% female leaders.

But!

What about special skill sets and demographics?

This throws are demographics off. What if your employee population is 18% black, but you can’t find 18% of the black employees you need in a certain skill set? This happened in a large health system I worked for when it came to nurse hiring. Within our market, we only had 7% of the nursing population that was black, and we struggled to get above that percentage in our overall population.

Apple runs into this same concept when it comes to hiring technical employees because more of the Asian and Indian population have the skill sets they need, so they can’t meet the overall demographics of their employee population, without incurring great cost in attracting the population they would need from other parts of the country to California.

Also, many organization’s leaders will say instead of looking at the employee base we have, let’s match the demographic makeup of the markets where are organizations work. At that point, you are looking at market demographics to match your employee demographics. Again, this can be difficult based on the skill sets you need to hire.

If I’m Apple, I think the one demographic that is way out of whack for them is female hiring. 50% of their customers are female. 77% of their employees are male, but only 33% of their leadership is female. It would seem to make demographic sense that 50% of Apple’s leadership team should be female.

Thoughts? This is a really difficult problem for so many organizations, and I see organizations attempting to get more ‘diverse’ in skin color without really knowing what that means in terms of raw numbers and percentages.

What are you using in your own shops?

LinkedIn and Microsoft launch “Resume Assistant” and it’s a big deal!

Big announcement today coming out Microsoft/LinkedIn. The two companies are figuring out more and more how to integrate LinkedIn into the Microsoft office ecosystem and their new Resume Assistant is the first major feature announcement.

What’s Resume Assistant?

Microsoft’s Resume Assistant is a Word product integration that brings the power of LinkedIn directly into Word when you’re crafting or updating your resume.

How does Resume Assistant work?

It’s pretty easy. You upload or open an existing resume, made an old resume you have, and Word will automatically recognize that document is a resume and open up the LinkedIn integration. The integration pops up as a right-side window in Word so that your resume is on one side of Word and the LinkedIn Resume Assitant is on the other.

From here, Resume Assistant will do a lot of things but mostly use artificial intelligence to help you craft a better resume that will more likely be selected for jobs by recruiters. Resume Assistant does this through analyzing LinkedIn data of those profiles, work experiences, titles, etc. that are getting hired and moving into new roles via profile changes.

Don’t know how to phrase your work experience? The Resume Assistant will pull in specific examples, similar to you, of people who got hired and show you phrases, skills, and words that will help you get hired. RA will also easily allow you to go directly to other profiles on LinkedIn from Word to see how others have structured their profile.

Why is this a big deal? 

So, Microsoft and LinkedIn shared a bunch of data that led to this product creation:

  • LinkedIn data shows ‘job hopping’ has doubled in the past twenty years
  • LinkedIn is seeing 40% growth in job applies through LI
  • On average 100 candidates are applying for each position on LinkedIn
  • 80% of resume updates in the U.S. happen in Microsoft Word

Okay, and, so?!

Connect the dots! One part of the Resume Assistant is to also show each Word user updating their resume the jobs that most match the resume being created. So, 80% of job seekers will have LinkedIn’s 11 million jobs showing up in Word, right next to their resume while they’re updating and thinking about looking for a new job!!!

I would not want to be a job board today and be reading this. In fact, for how much Google has been swinging its weight around recently, this is also a pretty big punch back from LinkedIn and Microsoft to let them know they are not giving job search away!

Game changer!

Think about how many people use Microsoft Word. 100% of those people will now have a direct link to LinkedIn and the LI jobs when they are doing anything with their resume – Resume Assistant opens automatically when a resume is detected. It’s really a genius move by LI and MS.

If this is the first integration that the two sides have figured out, I can’t wait to see future integrations as well, and from the sound of things, both sides are moving quickly to make these a realities.

One note of importance. Resume Assistant will launch today for Microsoft 365 Insiders, at the beginning of 2018 for all Microsoft 365 users, and soon after for all other Word platforms.

@LinkedIn Announces LinkedIn Talent Insights at #TalentConnect

LinkedIn made a pretty major product announcement today at their annual Talent Connect conference. By the way, no one talks about this, but quietly Talent Connect has become the single largest Talent Acquisition Conference on the planet! SHRM National (HR) has 15,000+, HR Technology Conference will go 6,000+, Talent Connect I heard was around 3,000+!

That’s a ton of TA pros and leaders in one location!

This morning in Nashville, LinkedIn let everyone get a peek behind the curtain on a new product that is just being released to beta with a select group of customers, with the goal to have this available to the entire market in the first quarter of 2018.

The new product is called Talent Insights.

For years LI users have been begging for more access to data and LinkedIn has responded in a major way with their Talent Insights product. Talent Insights is basically two major reporting tools that allow those using Talent Insights to pull in data like never before.

The first report is called Talent Pool. This report is a multi-filter report with a very familiar Recruiter-like interface. This tool is used by organizations to examine the available pool of candidates based on the filters you put in. Need to hire 50 Developers in Ann Arbor? This tool gives you all the information you need to make to launch the strategy to make that happen.

Talent pool gives your team the ability to be able to prioritize their efforts and sourcing strategy by seeing out of the entire available pool of talent, based on your search criteria, which ones are already engaged with your brand on LI, then if you’re using Recruiter you can quickly see that list and decide how do you reach out from there.

Let’s say that available pool of Developers in Ann Arbor is 10,000, but 1,500 of those developers have actually connected with you, looked at your LinkedIn company page, etc. This allows you to know who already is engaging with you, but also who hasn’t.

Within Talent Pool, you can also see where there are other available talent pools via a map function which allows you to click the locations on a map to see where these other pools are, and along with tons of data on active those pools of talent are.

The second reporting tool is the “Corporate” report. This is very cool in that you can now pull information on your competition in real time. Want to see who your competitors are hiring and in what roles? Done. Want to see where your competitors are hiring their talent from? Done. Want to see who your competition is losing talent to? Done.

By the way, it’s not only competition. The Corporate report will pull this data on any company, including your own.

The Corporate reporting tool also shows trends over time. Maybe your competition hired a ton of engineers from one company over the last twelve months, but in the last two months, they’ve hired no one from some others. Again, this gives your team insight to competitive behavior and skill sets like you’ve never had before.

Not only can you see what skill sets your competition is hiring, but the Corporate report will also show you how your own team stacks up in those skill sets against your competition from a hiring standpoint.

Like I said, great first step out of the gate on giving LI users more access to the data they’ve been asking for, and it’s easy to see where this could lead to down the road with some very robust, real-time business intelligence. We’ve known forever that LinkedIn was sitting on maybe the world’s largest data set, next to Facebook. We are now seeing the power of how that data can help your organization attract and recruit talent.

We’re Like the Venmo of Recruiting

So, for the Gen-X and older folks reading this I first probably need to explain what Venmo is. Venmo is a digital payment system, like PayPal (Venmo is actually owned by PayPal) but different. It’s a mobile app that allows you to make payments between friends and socialize the exchange. Out to dinner, want to easily split the check, one person pays, the others “Venmo” them their share and you get this cool friend feed to see what everyone is doing.

I’ve got three GenZ sons and they Venmo. They don’t carry cash anymore, so when they need to exchange funds with friends, it’s all done on their smartphones.

So, we constantly see talent acquisition and HR technology call themselves the “Tinder” of recruitment, or the “Uber of HR”, or some other stupid comparison to make themselves sound way cooler than they really are. I figured no one is saying they’re the “Venmo” of Recruitment, so what the hell, I’m stealing it before anyone else can!

Here’s my Venmo for Recruiting product. It’s a mobile, crowd-sourced app that shows your network where everyone is interviewing and allows you to share information, contacts, questions, reactions, etc. of your interview experience. Candidates can crowd source positions with each other, ask for help in making connections with companies they’re interviewing with, and share how a certain hiring manager might be to work for.

I’m going to start there. Only candidates, no employers, to build traction. Completely free, I’ll live off my angel funding for the first three years on our way to 50 million users. Then, we turn on the employer portion, ala Glassdoor but better, that will allow employers to see what networks are saying about them and their jobs, but not allow any responses or interactions.

You get to see this new voyeuristic kind of experience that is hidden camera in nature to know what candidates truly think about your organization, your hiring managers, your interview experience, your jobs, etc. Then, it’s up to you to make some decisions on how to change what you don’t like, highlight what’s going well, and basically find ways to use the data from our “Venmo of Recruiting” (it’s trademarked!).

If I know anything, I know TA leaders will pay for inside information to what candidates truly think about them. They’ll pay a lot! Also, they’ll continue to pay to see how that data changes with the changes they make. How cool would it be to have this kind of lab environment and be able to test out pieces of your candidate experience and see real-time feedback?

Also, how cool would it be to have a network sharing real information about interviewing, jobs, organizations, etc., on a mobile platform within your trusted network if you’re a candidate? Venmo for Recruiting. I’m calling it “FeedMo.us” – Feedback and More.

Feedmo.us is now taking meetings with angel investors. Just send me a note if you’re interested in being a part of Venmo for Recruiting!

The Top 7 Sources of Hire for 2017!

Silkroad released their annual Sources of Hire 2017 report and I always love looking at big sets of data around the source of hire because I think the vast majority of organizations are misallocating their talent acquisition resources in a big way, and this data just gives me more evidence to point to!

Check out this chart:

So, it looks like Employee Referrals remain king! That doesn’t surprise anyone, what should be surprising are two items from this list:

1. Organizations are wasting more time on Indeed than any other place. 2nd place of a waste of time is LinkedIn. What? If the vast majority of your interviews are coming from Indeed, but a much smaller percentage of your hires are coming from Indeed, you have a misallocation of resources. LinkedIn has the same thing happening but from a much smaller overall number.

2. CareerBuilder is exponentially a better overall value than LinkedIn, but when I ask most companies to give me their #1 spend LinkedIn is almost always their largest single purchase when it comes to the source of hire, even though it’s #7 overall.

So, what does this data tell us?

First, if you are not investing in automating and increasing your employee referral program, you should probably not hold a TA leadership position at any company in the world. I find most organizations spend the least amount of money ‘marketing’ and ‘automating’ their referral program than any other single source they have. Yet, it’s their number one source and their number one quality of hire source.

Second, Indeed does drive a ton of traffic, and for many companies that’s organic (free) traffic, so you can’t beat that. It’ll be nice to see if Google Jobs changes all of this when it’s fully live. You should see a traffic shift from Indeed to Google as a source of hire. But, this doesn’t mean Indeed will go away. Just like the job boards, people will find value and talent at Indeed.

Third, if you’re single biggest spend is on LinkedIn, yet, it’s not your single biggest source of hire, you’re being taken. By whom? Most likely your recruiting team who claims LinkedIn is awesome when it’s really not that awesome, for you. If your hires per source and cost per hire per source work out that LinkedIn is number one for you, great! Spend more! This data shows it probably won’t.

Lastly, you should be striving to make your sources and interviews be fairly equal if possible. If you’re interviewing a ton from a source because you get great traffic, but you don’t make many hires, it’s a greater waste of time than those sources where you get a high interview to hire ratio.

One final cool stat:

3:1  

14 Million applicants, 655,000 interviews. This data tells us what the magic number is that we already all know, it takes three interviews to make one hire.

Feels right, doesn’t it?

Scared Straight – OFCCP Style!

Being a parent of three boys I’ve always been a fan of the theory behind “Scared Straight”! Your kids don’t listen to you, they’re getting in trouble, just send them down to the local prison and have them meet with some inmates! I mean what could go wrong?

In adult life, we don’t have many ‘scared straight’ opportunities. Maybe you painted the front door of your house the wrong color and the subdivision council sent you a strongly worded letter of compliance. Maybe your dog dug up your neighbor’s flowers and she left a handwritten note in your mail box looking for reimbursement, and to be taken off your holiday cookie list. Or, maybe it’s a cease and desist letter from a big HR Tech company’s lawyer telling you to stop saying ‘they suck’ on your blog.

For the most part, it’s hard to get scared straight as adults!

The OFCCP is probably the biggest scared straight organization for HR. Worse then employment attornies for sure! I get threatened to get sued by employees daily, that’s no longer a fear, but DO NOT tell me the OFCCP is on the phone!

It used to be the OFCCP only followed up on complaints and such. You have an extremely low chance of a ‘random’ OFCCP audit. That’s all been changing because of big data. Turns out, someone at OFCCP shows them how to run a basic statistical analysis of the data you send them on your applicants and who you hired.

Check out this chart from ERE and Nicole Greenberg, Esq. (go read the article Nicole does a fantastic job and is the first person in history to make an OFCCP  article that is interesting!) 

So, this data is from a company that had to pay $1.7 Million because they discriminated in not hiring Asian candidates. No one complained that they were discriminated against. OFCCP just looked at the data and said, “Hey, if 77% of applicants are Asian and you only hire 14% of those, you’re being discriminatory in your hiring practices!”

This should scare you straight, like immediately! Especially if you work in a company that has government contracts!

Of course, how the OFCCP is doing this is fraught with bad data interpretation. Just because 77% of my applicant pool is Asian doesn’t mean I’m being discriminatory in hiring. What if, for 77% of those Asian applicants who applied for Front End QA Engineer actually had a degree in accounting and no IT background!?

Doesn’t matter, you are now in an audit that is going to uncover some stuff! Most likely with numbers that far apart, you’re going to have a hard time arguing you’re not at least a little discriminatory in your hiring!

Nicole smartly points out that the government’s own contracting language forces many companies to be discriminatory in hiring in some aspects. Most government contracts require those working on the contract to be U.S. citizens. So, you could have the numbers above in the chart, being following the requirements on the contract and not hiring foreign nationals, and the OFCCP would still find you discriminatory in hiring! Welcome to the American Dream!

So, consider this a heads up. Go run your numbers. Find your hot spots in your organization and address them.