Welcome back to JobWiz’s July roundup where we bring you the latest news and insights from the world of employment and workplace regulations. In the past month, we saw a huge shift in the employment law landscape and beyond as a result of changes in technology and societal expectations. Let’s dive right in!
The beginning of curbing Artificial Intelligence misuse
As the use of AI tools becomes prevalent even in hiring and firing, many have voiced concerns over the harmful practices that come along with the ease they promise: AI bias.
New York City took a groundbreaking step by enforcing an anti-bias AI hiring law NYC 144, effective July 5, 2023. The first-of-its-kind law makes it mandatory for employers to undergo annual bias audits if they use algorithms in recruitment, hiring, or promotions.
Automated employment decision tools (AEDTs) that are growing in popularity would be scrutinized, including the likes of resume screeners, video interview software, and candidate scoring systems.
More jurisdictions are expected to follow, calling into question the urgent need for companies to understand the tools they are using, be it in-house or from vendors.
With as many as four out of five employers using AEDTs in every step of the hiring process, this move reflects a growing awareness of the potential risks posed by such tools and calls for greater accountability in their use.
A bias-checker like JobWiz’s Job Description Tool can come in handy to flag any potential discrimination or bias that might have seeped in unknowingly either by humans or algorithms and get missed. Check it out here!
Transparency continues to be on the agenda
While NYC’s AI law is set to give some transparency on employment decisions, transparency around compensation remains top of mind.
In our May roundup, we reported Hawaii and Illinois being the two latest states in the US to take a significant step forward in passing pay transparency bills.
In July, we saw Hawaii officially enacted laws, requiring employers to disclose pay in job listings, and expanding equal pay protections beyond sex.
Meanwhile, Illinois was poised to follow suit, preparing to mandate pay and benefit disclosure in job postings.
These measures signal a commitment to promoting fair hiring practices and empowering job seekers with essential information.
Post-pandemic calls for transparency
Beyond legal requirements, transparency is proving to be good for business, especially as a crucial aspect for successful recruitment and retention strategies post-pandemic.
Candidates and employees today seek clarity in pay, job expectations, and work culture, particularly emphasizing diversity and inclusion, according to HR Dive.
Employers who provide transparent and realistic job descriptions, fair compensation, and clear expectations are more likely to attract and retain top talent in the competitive talent market.
That wraps up our July 2023 blog roundup. Stay tuned for more insightful content from JobWiz to keep you informed and empowered in the ever-changing world of work!