7 Key Compliance Tips to Implement in Your Hiring Process
06 24 2021
Hiring great employees gives companies an edge over their competition but can also be challenging when candidates outnumber the jobs available. The challenging part of hiring equates to time filtering candidates, interviewing, and hiring decisions on a tight schedule to fill a vacancy or bring on more talent during an uptick in new business.
Working with a PEO helps your company identify your ideal candidates, benchmark salaries for your geographic area, and build the talent pool. A PEO also ensures that you have compliant protocols in place before the hiring process. This helps ensure your company conducts a fair and equitable process and avoids lawsuits down the road by following crucial employment laws. Here are key compliance tips your company should implement before posting any job opening:
- Get written permission for background checks, including credit reporting if appropriate, and drug testing. Each state has its requirements, but Fair Credit Reporting Act must be followed for credit checks. If the candidate denies all checks, you must notify them in writing why they can’t move forward in the hiring process.
- Ensure your interview process is up to date with EEOC guidelines. Gender, race, religion, disability and age can’t factor into your hiring decision.
- You must use the same interview questions for the specific position and for each candidate. Not following the qteruestions can open your company to lawsuits if the questions are considered discriminatory by the candidate.
- Implement a hiring letter that outlines the position, the offer with salary and benefits, and the start date. The offer letter should also indicate that employment is at will.
- The new employee should complete I-9 and W-4 forms on their first day of work. I-9s must be completed in the first three days of work under Federal law to prove the employee is authorized to work in the U.S. W-4 forms are required federally, but there may be state form requirements as well.
- Develop an onboarding process to introduce the new employee to your company culture, their direct supervisor and the team they will work with. This process is a great time to outline office perks, meeting norms, and office rules.
Hiring a new employee is exciting and doesn’t need to be stressful when compliant processes are in place.
At AspenHR, we provide HR Managed Services via our PEO and ASO solutions to alternative investment funds and financial services firms. Our white-glove service model enables our clients to truly focus on their core business while becoming best-in-class employers. Our specific services include HR compliance and consulting, employee benefits (medical dental, vision, life, disability, 401(k), and payroll administration.