PDF handout from my 2/9/10 webinar on using social media for recruiting and the potential for disparate impact

1. 10/28/2010
Overview
• Conventional methods of job search & recruiting
Using Social Media for Recruiting? • Why recruiters are using social media
Beware Disparate Impact Claims • How recruiters are using social media
Stephanie R. Thomas, Ph.D., Director • Kinds of information available via social media
Statistical and Economic Expert Testimony • Legal concerns of recruiting via social media
MCG
sthomas@mcg-site.com • Demographic differences
(401) 331-6360 • Implications for recruiting strategy
• Recommendations
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Conventional methods of job search Conventional methods of job search
• According to information from the Current • According to information from the Current
Population Survey (U.S. Department of Labor, Bureau Population Survey (U.S. Department of Labor, Bureau
of Labor Statistics): of Labor Statistics):
– Contacting an employer directly; – Contacting an employer directly;
– Contacting a public employment agency; – Contacting a public employment agency;
– Contacting a private employment agency; – Contacting a private employment agency;
– Contacting friends or relatives; – Contacting friends or relatives;
– Contacting a school or university employment center; – Contacting a school or university employment center;
– Sending out resumes or filling out applications; – Sending out resumes or filling out applications;
– Placing or answering advertisements; – Placing or answering advertisements;
– Checking union or other professional registers. – Checking union or other professional registers.
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Conventional methods of recruiting Recruiting via Social Media
• Conventional methods of recruiting include:
– Word of mouth;
– Advertising in newspapers and trade journals;
– Posting with local employment agencies;
– Hiring a search firm / headhunter;
– Contacting temp agency;
– Hosting or participating in job fairs;
– Posting vacancies on company website.
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2. 10/28/2010
Enthusiasm for Recruiting Via Social Why are Recruiters Using
Networking Sites Social Networking
• Maureen Crawford-Hentz (recruiter for Osram • ROI – the dollar value of the benefits may far
Sylvania) exceed its cost, and the resulting ROI may be
– “Social Networking technology is absolutely the significantly higher than other recruiting
best thing to happen to recruiting – ever.” programs;
• In June of 2009, LinkedIn launched “Recruiting • Reduced vacancy days – because of high usage
with LinkedIn Blog” rates and short response time, positions may
– Matt Warburton: blog is for “recruiters and folks be filled faster than with other recruiting
who rely on LinkedIn for their hiring needs” programs;
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Why are Recruiters Using How are Recruiters
Social Networking Using Social Networking?
• Communication responsiveness – because • CareerBuilder.com: a survey of 3,169 hiring
there is less spam, using social networks to managers
communicate may result in higher response – 22% screened job seekers using social networking
rates and/or in more immediate responses sites
when you send messages to prospects and
– 34% used this information to decide NOT to hire
candidates;
someone
• “Hidden” candidates – may identify qualified
– 24% used this information to confirm their
candidates who cannot be found or decision to hire someone
successfully contacted using other sources.
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What Kinds of Information are What Kinds of Information are
Available from Social Media? Available via Social Networking?
• Contact information
• Education
• Employment history
• Licenses and certifications
• Awards and honors
• Technical skills and abilities
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3. 10/28/2010
What Kinds of Information are What Kinds of Information are
Available via Social Networking? Available via Social Networking?
• Contact information • Photos
• Education • Gender
• Employment History • Race
• Licenses and certifications • Birthday
• Awards and honors • Family members and relationship status
• Technical skills and abilities • Sexual orientation
• Religious views
• Political views
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What Kinds of Information are Legal Concerns of Recruiting
Available via Social Networking? Via Social Media
• Photos • Using Social Media for recruiting raises a
• Gender variety of legal issues:
• Race – Having access to information that discloses an
• Birthday applicant’s protected group status;
• Family members and relationship status – Creates the potential for disparate treatment
claims;
• Sexual orientation
– Creates the potential for disparate impact claims.
• Religious views
• Political views
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Legal Concerns of Recruiting Legal Concerns of Recruiting
Via Social Media Via Social Media
• Disparate Treatment - intentionally treating • Disparate Treatment - intentionally treating
members of a protected class differently than others members of a protected class differently than others
– Checking social media for some applicants and not others – Checking social media for some applicants and not others
– Evaluating information found on these sites in a different
– Evaluating information found on these sites in a different
way for different applicants
way for different applicants
• This risk can be mitigated with a formal policy
regarding the use of social media for recruiting (i.e., all
applicants are researched via social media, information
found is evaluated in a consistent manner for all
applicants)
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4. 10/28/2010
Legal Concerns of Recruiting Legal Concerns of Recruiting
Via Social Media Via Social Media
• Disparate Impact - application of a facially- • Disparate Impact - application of a facially-
neutral employment practice that adversely neutral employment practice that adversely
affects members of a protected class affects members of a protected class
– Giving preferences to applicants with largest – Giving preferences to applicants with largest
number of recommendations, friends, contacts, number of recommendations, friends, contacts,
etc. etc.
– Only considering applicants with a social media – Only considering applicants with a social media
profile profile
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Legal Concerns of Recruiting
Why Does It Matter?
Via Social Media
• Disparate Impact - application of a facially- • Recruiting exclusively from social media may
neutral employment practice that adversely create an applicant pool that is not open to
affects members of a protected class some individuals
– Giving preferences to applicants with largest • The demographic characteristics of the typical
number of recommendations, friends, contacts, social networking user differ from that of the
etc.
typical person in the Civilian Labor Force
– Only considering applicants with a social media
profile
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Demographic Differences:
LinkedIn, Facebook and Civilian Labor
Gender Characteristics
Force
Female
• These demographic differences can be seen when
LinkedIn users* and Facebook users** are visually
CLF
compared against the Civilian Labor Force***:
Facebook
LinkedIn
Male
*Data on LinkedIn courtesy of Quαntcast
** Data on Facebook courtesy of Quαntcast (Facebook data is estimated)
***Data on Civilian Labor Force (CLF) taken from the Statistical Abstract of the United States
0 10 20 30 40 50 60
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5. 10/28/2010
Gender Characteristics Race Characteristics
Gender CLF Facebook LinkedIn Other
Male 54% 45% 54%
Female 46% 55% 46% Asian
Hispanic CLF
There are no differences in gender representation between the Civilian Facebook
Labor Force and LinkedIn. LinkedIn
A.A.
Women are overrepresented on Facebook relative to the Civilian Labor
White
Force. Similarly, men are underrepresented on Facebook relative to the
Civilian Labor Force.
0 20 40 60 80 100
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Race Characteristics Educational Characteristics
Race CLF Facebook LinkedIn
White 73% 78% 86% No College Degree
A.A. 10% 11% 3%
Hispanic 13% 5% 2%
Asian 4% 5% 9% CLF
College Degree
Whites and Asians are overrepresented on both Facebook and LinkedIn relative Facebook
to the Civilian Labor Force. LinkedIn
African Americans are underrepresented on LinkedIn relative to the Civilian
Labor Force. Graduate Degree
Hispanics are underrepresented on both Facebook and LinkedIn relative to the
Civilian Labor Force. 0 20 40 60 80
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Educational Characteristics Age Characteristics
Education CLF Facebook LinkedIn
No College 71% 44% 20% 50+
College 19% 42% 50%
Graduate 10% 13% 30%
35 to 49 CLF
Individuals with no college degree are significantly underrepresented on Facebook
both Facebook and LinkedIn relative to the Civilian Labor Force. LinkedIn
18 to 34
Individuals with college degrees and graduate degrees are overrepresented
on both Facebook and LinkedIn relative to the Civilian Labor Force.
0 10 20 30 40 50
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6. 10/28/2010
Age Characteristics Income Characteristics
Age CLF Facebook LinkedIn
18 to 34 36% 45% 20% $0 to $30K
35 to 49 35% 21% 46%
50+ 29% 13% 33%
$30K to $100K CLF
Individuals aged 18 to 34 are overrepresented on Facebook and Facebook
underrepresented on LinkedIn relative to the Civilian Labor Force. LinkedIn
Individuals aged 35 to 49 are underrepresented on Facebook and
overrepresented on LinkedIn relative to the Civilian Labor Force. $100K +
Individuals aged 50+ are underrepresented on Facebook and
overrepresented on both LinkedIn relative to the Civilian Labor Force.
0 10 20 30 40 50 60
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Income Characteristics Demographic Differences
Income CLF Facebook LinkedIn • The previous demographics consider each
$0 - $30K 23% 16% 12% characteristic in isolation (e.g., gender only,
$30 - $100K 53% 54% 50%
$100K + 24% 29% 33%
race only, etc.)
• Demographic differences may be exacerbated
Individuals earning $30K or less are underrepresented on both Facebook when characteristics are considered jointly
and LinkedIn relative to the Civilian Labor Force.
Individuals earning $100K or more are overrepresented on both Facebook (e.g., Hispanic females with a graduate
and LinkedIn relative to the Civilian Labor Force. degree, African American males over the age
of 50, etc.)
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What Does This Mean for Your What Does This Mean For Your
Recruiting Strategy? Recruiting Strategy?
• Using social media may provide you with
information that discloses protected status.
This may violate anti-discrimination laws;
• If social media is used differently for different
applicants (e.g., checking social media for
some and not for others) may create the
potential for disparate treatment claims;
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7. 10/28/2010
What Does This Mean For Your
Recommendations
Recruiting Strategy?
• Relying exclusively on social media for recruiting
may create the potential for disparate impact
claims:
– Eliminates from the applicant pool all individuals who
may be qualified for the position but do not have
access to or do not participate in social media;
– May skew the applicant pool because of demographic
differences between the pool generated from social
media and the pool generated from conventional
methods.
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Recommendations Recommendations
• Be aware of the potential risks involved in • Consider the specific requirements of the
recruiting via social media position for which you are recruiting:
• Understand what information is permitted – If the position requires an advanced degree, using
and what information is prohibited under social media for recruiting may not skew applicant
federal and state anti-discrimination laws pool
• Work with corporate counsel and/or outside – If the position has minimal educational
counsel to develop a set of policies and requirements, using social media for recruiting is
procedures governing the use of social media likely to skew applicant pool
for recruiting purposes
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Recommendations Recommendations
• Consider the characteristics of the applicant • A balanced recruiting program, utilizing a
pools for similar positions you have filled in combination of conventional techniques and
the past: social media, is preferred
– Does the voluntarily provided demographic • Consult corporate counsel and/or outside
characteristics of applicant pools for previous counsel prior to changing your recruiting
vacancies look similar to the demographics of the
strategy
typical social media user?
– If not, exclusive use of social media for recruiting
may skew the applicant pool
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8. 10/28/2010
Using Social Media for Recruiting?
Beware Disparate Impact Claims
Stephanie R. Thomas, Ph.D., Director
Statistical and Economic Expert Testimony
MCG
sthomas@mcg-site.com
(401) 331-6360
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