A Collective Call for Transparency: Part 4 in a Series of Transparency in TA

Welcome to the final post in our series tackling the need for transparency and disclosure within the talent acquisition industry. Over the course of this series, we’ve explored insights from dozens of industry leaders and experts alongside hundreds of our CareerXroads community members. 

The issues around conflict of interest (COI) have become a pressing concern. The stakes are high as organizations must ensure that their recruitment processes are transparent, fair, and free from bias. During our final research panel discussion, industry leaders discussed practical recommendations and strategies to address COI within the industry.

Practical Recommendations for Minimizing COI

Implementing these and the additional recommendations that will be shared in our final report requires a concerted effort and collective action. Gerry Crispin , co-founder of CareerXroads , underscored the importance of collective action in driving change within the TA industry, “Setting baseline standards and promoting a collective response is essential.” Individuals can also play a key role by being engaged, committed, and leading by example to create a transparent and trustworthy talent acquisition process.

Top recommendations for minimizing conflicts of interest include:

• Conference organizers can drive change by requiring conflict of interest slides in presentations to promote transparency - particularly those involving financial relationships
• Agencies need to fully disclose financial relationships beyond basic commissions
• Analysts should clearly identify conflicts of interest in briefings 
• TA leaders should include COI disclosures in their RFPs

Joanna Clark , Head of International Talent Acquisition & Global TA Transformation at Wells Fargo , emphasized the importance of asking about relationships early, “My recommendation is to bring up the topic early in the process to prevent complications later on. Analysts and solution partners should also make an effort to discuss and disclose any potential conflicts of interest upfront. Taking these proactive steps not only helps to eliminate conflicts of interest, but also sets a high standard for professionalism in the industry.”

Measuring Success  

Recommendations alone aren’t likely enough to cause change. The panel emphasized the importance of defining standard practices with measurement factors to ensure stakeholders comply. Alex Murphy , CEO JobSync , drew parallels with industry standards like SOC2 and ISO27001, suggesting that reducing conflicts of interest requires similar levels of transparency. 

Research panelist, Kara Yarnot , Vice President Strategic Consulting at HireClix weighed in saying, “Once we establish baseline standards, it's important for organizations and individuals in our industry to actively adopt them. We need stakeholders - industry organizations, employers, vendors, and consultants - to commit to upholding these standards and publicly sharing their relationships. By working together to promote transparency and accountability, we can create a more ethical and trustworthy talent acquisition industry.”

Key metrics could include

In general:

• See an increase in disclosure slides in analyst briefings
• Managing COI becomes a topic at general events

As a service provider:

• See customers ask for known conflicts
• See customers demand transparency

As a sponsor:

• See conferences insist on disclosures
• See movement towards "standards" be insisted upon by major buyers

Breaking Through Industry Resistance

Addressing COI in talent acquisition is not without its challenges. As Mark Stelzner , Founder & Managing Partner at ia, pointed out “Transparency is often hindered by perception. Demonstrable examples can show transparency as a reward, not a restriction, breaking through industry resistance.”

In Conclusion 

Clearly, addressing conflict of interest in talent acquisition requires a multifaceted approach, involving practical recommendations, robust policies, and collective action. Transparency must be at the forefront, with leaders setting the tone and driving change. By implementing these strategies, organizations can create a fair and trustworthy talent acquisition process, ultimately benefiting all stakeholders involved. As Alex Murphy aptly put it, “Increased focus on managing conflicts of interest and demanding transparency is the way forward for the TA industry.” The final report with recommendations is expected to be released in July of 2024.

It is worth noting that the full CXR Community - nearly 5,000 leaders, practitioners, and experts in the recruiting industry are also weighing in on these topics during the course of the research panel. It is just one example of the conversations happening regularly in our Community. Follow along, and express your interest in future panels, at https://cxr.works/research 

Our Own Disclosure: As co-facilitators of this panel, I, along with Alex Murphy of JobSync, guide discussions, shape questions, construct polls, and offer feedback on responses and the resulting publications. Please note that Alex has sponsored this role and we aim to provide an open and transparent environment for all participants.