AI in Recruiting: A Handbook for Talent Acquisition Leaders

Artificial intelligence (AI) has captured attention across nearly every industry for its seemingly boundless potential to transform how work gets done—including AI in recruiting. Yet for many talent acquisition (TA) leaders, AI remains shrouded in hype, myths and even fear that “robot recruiters” are taking over. 

This handbook sets out to demystify AI tools for recruitment with facts about real-world applications across talent acquisition capabilities and provide guidance on how talent teams can start planning to use AI effectively and ethically. We’ll cut through the hype to bring AI down to earth—focusing on what works, not what’s flashy. 

The message we want to reinforce upfront is that AI should not be seen as a replacement for the talent acquisition strategy you’ve already built, but rather a set of tools to make your teams better at tasks both mundane and meaningful.

📌 Before we go any further, here’s a note from our legal team:  

The information provided in this article does not, and is not intended to, constitute legal or other professional advice; instead, all information, content, and materials available in this article are for general information purposes only. Readers of this article should contact their attorney or legal advisor to obtain advice with respect to any particular legal matter. No reader of this article should act or refrain from acting on the basis of information in this article without first seeking legal advice from counsel in the relevant jurisdiction. All liability with respect to actions taken or not taken based on the contents of this article are expressly disclaimed by PeopleScout, Inc.. The content in this article is provided “as-is”, and no representations are made by PeopleScout that the content is error-free. 

What is AI? 

The term artificial intelligence or AI was coined by Stanford Professor John McCarthy, who defined it as “the science and engineering of making intelligent machines, especially intelligent computer programs.” AI is technology with the ability to perform tasks that would otherwise require human intelligence. Data and algorithms enable AI to “learn” how to accomplish complex tasks without being explicitly programmed to do them. It also includes the sub-fields of machine learning, speech and natural language processing and robotic process automation. 

Over the last decade, AI capabilities have advanced tremendously due to increases in computing power, the abundance of digital data and improvements in machine learning algorithms. As a result, AI solutions can now match or even outperform humans in certain tasks related to object recognition, language processing, prediction modelling and more. 

The disruption delivered by generative AI in particular arrived like a bullet train. In just a few short months, AI went from an abstract concept to a tangible force radically impacting businesses—and jobs—worldwide. With Generative AI (GAI) tools like ChatGPT, Google Gemini (formerly Bard) and Microsoft Copilot, AI has gone from expensive and exclusive to an everyday tool accessible by the masses.  

The State of AI in Recruiting 

Top talent has become increasingly scarce and competitive, while recruiting resources and budgets remain strained. This situation demands that talent acquisition teams work smarter, and AI and automation could represent an opportunity for organizations to enhance human capabilities in recruitment. 

According to Gartner, a massive 81% of HR leaders have explored or implemented AI solutions to improve process efficiency within their organization. HR leaders aim to use generative AI (GAI) for improving efficiency in HR processes (63%), enhancing the employee experience (52%) and bolstering learning and development programs.  

AI recruitment software

Plus, 76% of HR leaders believe that if their organization does not adopt AI solutions in the next year or two, they will lag behind those that do.  

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What are the Advantages and Disadvantages of AI in Recruitment? 

While AI holds tremendous promise, it also comes with some real concerns which talent acquisition and HR leaders must thoughtfully address. AI is largely unregulated and has received criticism for negative impacts on things like privacy, security, bias, and transparency in its decision-making processes. However, with care and diligence, you can establish sensible guidelines at your organization, so this technology enhances your talent acquisition capabilities while respecting human values.  

Benefits of AI for Recruiting 

AI can help the humans behind your talent program work more efficiently and effectively when used correctly. Applying AI across the various recruiting stages introduces a host of benefits, including: 

  • Efficiency 
    AI-powered tools can shoulder time-consuming tasks like communications and initial screening, allowing recruiters to reach more candidates at scale. AI systems help recruiters to focus their efforts on the most promising prospects, including helping identify passive candidates. This wider reach improves quality by putting recruiters in front of more qualified candidates. 
  • Improved Candidate Experience 
    Tools like AI chatbots and self-scheduling create a seamless 24/7 candidate experience. By fielding frequently asked questions and coordinating interviews, they dramatically reduce time-to-hire. Candidates get quick responses instead of waiting for recruiters to come online, making the hiring process faster and frictionless. 
  • Improved Matching 
    Advanced AI algorithms surface qualified prospects that may have been overlooked. By analyzing candidates’ skills, experience, and other attributes and matching them to open roles, AI systems ensure better candidate-job fit. This improves quality-of-hire and unlocks hidden talent pools recruiters may have missed. 
  • Enhanced Diversity and Inclusion 
    With the right data to learn from, AI reduces unconscious bias from hiring by focusing decisions on data rather than gut instinct. By objectively evaluating candidates’ skills without prejudice, AI-assisted recruiting enhances diversity and creates a more equitable hiring process. 
  • Cost Reduction  
    AI can reduce the cost-per-applicant in some cases. Recruiters can outsource low-impact, repetitive tasks to AI, and spend more time interacting with candidates and hiring managers. This optimization of talent acquisition teams enables resources to be allocated more efficiently, reducing vacancy rates and lowering costs. 
chatgpt for recruiting

Risks of AI in Recruiting 

While there are benefits, talent leaders must thoughtfully address common concerns around AI transparency, interpretation of outputs, data privacy and ethics.  

PeopleScout POV

PeopleScout is committed to striking the right balance between next-generation technology and maintaining the trust we’ve built with candidates and clients. As our clients’ trusted talent advisors, we do our due diligence and work touphold our standards for quality and compliance when helping clients adopt new technologies like GenAI.

As organizations prepare to capitalize on the efficiencies of AI, they must be particularly discerning about AI when it comes to supporting people decisions. Effectively deploying and scaling AI across talent acquisition functions introduces some common challenges, including: 

  • Biased Algorithms 
    Despite its ability to reduce bias, if AI models are trained on biased or incomplete data sets, they can unintentionally perpetuate inequality. In many countries there are laws prohibiting discrimination in the recruitment process, and the use of AI must align with these laws. Leaders need oversight into data inputs and must remain vigilant when considering recommendations made by AI. That being said, bias in AI can be corrected much easier than bias amongst humans. Proactively monitoring and mitigating possible areas of bias is essential for driving more inclusive, equitable hiring—regardless of whether AI is involved.  
  • Disproportionate Impact  
    Certain demographic groups face higher exposure to the potential harms of AI in recruitment. For instance, if an AI screening system relies heavily on standardized test scores that have racial biases, it could automatically filter out qualified minority candidates. Similarly, lower income communities may lack access to the digital tools and internet connectivity required for AI screening. This digital divide could automatically exclude qualified candidates from disadvantaged backgrounds. Without proactive measures to address these systemic issues, AI recruitment tools risk amplifying real-world inequality. Organizations must consider disproportionate impact with their use of AI in order to improve diversity and reinforce equity.  
  • Lack of Transparency 
    Organizations may experience resistance amongst candidates and employees when there is a lack of understanding of how AI is being used in the hiring process and how AI arrives at certain outputs or recommendations. You can nurture trust through training and effective communication to help recruiters, hiring managers and applicants understand the reasons behind AI-generated outcomes and their role in the hiring decision-making process. Use clear and understandable language to describe the factors influencing decisions and put mechanisms in place to capture feedback and reporting of potential issues. Transparency promotes ethical AI use in recruitment and also reinforces organizational values and establishes a positive reputation in the industry. 

Data from Pew Research Center shows that 61% of Americans are unaware that employers are currently using AI in the hiring process. A majority (71%) oppose AI making a final hiring decision, while 41% oppose AI being used to review applications. However, the more people understand about AI, the more they’re in favor of its use in the recruitment process. For example, 43% of those who’ve heard a lot about using AI in the hiring process support its use for reviewing applications, compared with 37% who’ve heard a little and 21% who’ve heard nothing at all.  

  • Lack of Accuracy 
    GAI is prone to making up statistics, sources and even case law—known as hallucinating. There are no safeguards in place to validate the generated content or to check the accuracy or appropriateness of the outcome. Organizations leveraging tools like ChatGPT for recruiting open themselves up to risks. Recruiters must be aware of the importance of the human touch and using their judgement when using GAI tools for creating content and communications. 
  • Over-Automation 
    Heavy reliance on AI also poses risks if the recruitment process becomes overly automated and fails to incorporate sound human judgment as a check. Too much automated communication can feel depersonalized to a candidate. AI should never replace the human touch—rather it should enhance human capabilities. Plus, companies using AI for recruitment must ensure compliance with all relevant regulations. For example, under GDPR, there are strict guidelines around automated decision-making, and individuals have the right to obtain human intervention and contest automated decisions that significantly affect them.  

👉 Learn the dos and don’ts of automating the candidate experience. 

  • Data Privacy Issues  
    Collecting and analyzing extensive candidate information required by AI systems can raise concerns around consent, data protection, and ethical usage. Any talent data feeding the AI systems must be compliant with regulations, like GDPR and CCPA, that are relevant to your locations. Organizations should create a framework around the usage of AI recruitment tools to provide transparency around what data you’re collecting, gain consent where applicable, and put access controls and encryption in place to protect sensitive candidate information. Your data security team should vet any AI usage to ensure candidate data is not being scraped for other uses.  
  • Workflow Integration 
    Implementing AI recruiting tools requires integrating them into existing systems and processes. Too often, companies adopt AI in isolation, without considering its impact on surrounding workflows. Instead, organizations should evaluate how AI technologies will interface with current infrastructure. For example, your applicant tracking system (ATS) may need API connections to import AI-screened candidates. With careful integration planning, AI can be a seamless augmentation to talent acquisition rather than an isolated add-on. 

Proactively addressing these concerns through governance, oversight and continuous improvement of AI systems and processes is key to managing the risks responsibly. Overall, the use of AI in recruitment is permitted but becoming more and more tightly regulated. Systems cannot make final hiring decisions and must be transparent, fair and accountable. Adhering to data protection laws and anti-discrimination regulations is crucial for the ethical use of AI in hiring. Undergoing regular audits to assess for unintended bias and maintaining the human touch to review, override or contest automated recommendations is crucial. 

📌 We recommend you consult your legal team before implementing any AI technologies at your organization. 

AI for recruiters

Use Cases for AI in Recruitment 

As recruiting grows more competitive, organizations are turning to smart technologies to gain an edge in attracting and engaging candidates. From chatbots to video interviews and skills assessments, AI-powered solutions are streamlining efficiencies while enabling deeper insights across the hiring funnel. Here are some examples demonstrating AI’s immense potential to boost recruiting outcomes while improving the candidate experience. 

👉 Learn how to build the ultimate recruitment tech stack

How to Use AI for Candidate Attraction and Sourcing 

Identifying, contacting and engaging prospective candidates is ripe for AI augmentation. Building a robust pipeline of talent typically involves highly manual, repetitive tasks that can divert focus away from higher-value tasks. Here are some of the ways AI can support you in filling your recruitment funnel.  

Building Candidate Personas 

AI can pull from the profiles of existing employees and historical hiring data for a given role to surface patterns and common characteristics. These patterns, combined with qualitative data gathered from interviews, can help you to define a persona profile of the ideal candidate for the role.  

A persona is a fictional character profile that represents the different types of candidates who would be successful in a role. Personas focus on individual characteristics, behaviors, interests, goals, motivators and challenges. With these in place, you can create alignment across your recruitment and sourcing strategies. Your persona profiles should provide specific guidance about how to find candidates who fit the profile, including targeted messages that will resonate. 

👉 Learn more about how to build candidate personas. 

candidate personas

Writing Job Descriptions  

Since launching in late 2022, ChatGPT and other GAI chatbots, like Bing Chat, Gemini (formerly Bard) and more, quickly permeated the workplace. These tools mimic human communication and can help with everything from content creation and market analysis to simply writing emails. They can also be used to write job descriptions.  

By feeding them with relevant prompts that detail the job tasks and required skills as well as employer brand elements like tone of voice, the GAI chatbot can produce a first draft job description in seconds. The hiring manager and recruiter can then massage this text to create the final posting. 

For existing job descriptions, AI can be used to measure sentiment and detect biased language. There are a variety of AI-powered online tools that can highlight biased language—like “ambitious” or “expert,” which are stereotypically masculine—to ensure you’re not turning off a portion of your talent audience.  

Job postings with gender-neutral wording get 42% more applications.

Skills Matching 

Previously a manual process, AI can sift through a huge number of online profiles to find candidates with the skills you’re looking for. For example, the AI-powered Affinix CRM tool in PeopleScout’s talent acquisition suite Affinix searches millions of online profiles to find passive candidates with the skills and competencies that match the role. The AI also assesses the likelihood of a candidate being open to a new opportunity by combining the average tenure of each job listed on their profile with the average aggregate tenure of all other candidates in that same role.  

Manually identifying passive candidates who have similar titles but may not be actively searching for a job can take hours of dedicated time. AI can reduce manual efforts and massively speed up the recruitment process. Plus, it helps you concentrate on skills, rather than experience, to expand your candidate pool. 

Predictive Analytics 

Machine learning models can also provide predictive and prescriptive hiring recommendations based on a candidate’s profile. AI can assess genuine interest, candidate motivations, likelihood to accept an offer and even predicted tenure. This empowers recruiters to be more informed for interview prep and can help them personalize outreach messages to appeal specifically to what matters most for each candidate.  

Over time as engagement data is captured, AI models continue to improve, learning what messages and channels persuade candidates with various profiles and career trajectories. This creates a positive feedback loop, compounding efficiencies over each recruiting cycle. 

👉 Learn more about predictive analytics in talent acquisition 

How to Use AI for Candidate Screening & Interview Support 

Manual candidate screening based on résumés and CVs alone can be an imperfect, biased exercise. With AI lending a “second pair of eyes,” you can ensure quality candidates are not being overlooked. Here are some elements of the process that AI can enhance. 

First Sift 

Natural language processing tools can ingest thousands of résumés and CVs, and analyze the content, context, and trends across the talent pool within seconds. AI tools can be trained to recognize specific skills, experiences and competencies that are required for open roles and then score and rank applicants automatically against your ideal candidate profile. 

Look for tools with a dashboard that highlights the “cream of the crop” candidates that demonstrate the closest alignment, enabling you to reach out or pass the most promising applicants to hiring managers quickly. 

Real-Time Screening 

Intelligent chatbots, like text and SMS screening tools, create a conversational experience for candidates using natural language processing. These mobile-friendly, text interview tools automatically screen candidates using predetermined questions that gauge their interest and qualifications. Based on the responses, the chatbot can instantly determine the next step for each specific candidate.  

👉 Get the best practice guide for texting in recruitment

Skills Assessments 

AI is also leveraged for pre-employment assessments. New tech platforms can test and measure candidates for skills mastery, personality traits, and cognitive abilities to ensure qualified candidates are advancing through the recruitment process. All results should be reviewed by a human to ensure compliance with relevant regulations around automated decision-making. Leveraging AI in skills assessment helps ensure recruiters and hiring managers can focus on priority candidates most likely to succeed in the role, increasing equity along the way. 

Want to learn more about how AI can boost your recruitment processes?

How to Use AI for Candidate Engagement 

AI-powered candidate engagement tools help you create seamless, personalized experiences at scale—boosting candidate satisfaction, accelerating the hiring process and freeing up recruiters to focus on relationship building—where they add the most value. 

Personalized Candidate Communications 

For several years now, organizations have been leveraging candidate relationship management (CRM) technology to automate communications with candidates throughout the hiring journey. Automated email drip campaigns deliver the right information at the right stage in the journey to keep candidates informed of next steps and engaged with content that is relevant to them. This helps you build personalized engagement at scale. 

👉 Learn how to get the most out of your CRM

More recently, recruiters are using GAI platforms like ChatGPT to help them with drafting one-off emails to candidates. Leveraging the appropriate prompts, a recruiter can get a first draft from ChatGPT which they can then review and edit to fit for specific candidates. This has the potential to save hours’ worth of work each week for your talent acquisition team.  

Chatbots 

Chatbots leverage natural language processing to manage various high-volume, repetitive inquiries from candidates. Whether answering frequently asked questions (FAQs) about application status, the interview process, the company or the job role, chatbots provide consistent, accurate responses 24/7—especially relevant when recruiters aren’t working. This improves candidate satisfaction while enabling recruiters to focus on higher-value activities. 

Intelligent messaging platforms can initiate one-way communications at scale to nurture candidates. Using data on the prospect, role, process stage and more, AI writing assistants dynamically generate personalized, thoughtful messages. This level of personalization improves candidate engagement, advances candidates quicker through the funnel and strengthens employment brand affinity. 

👉 Learn more about using chatbots in recruiting

Self-Scheduling Tools 

Calendar management bots can take over the time-consuming back-and-forth of scheduling interviews, assessments, site visits and more. By integrating with hiring manager calendars, only convenient time slots are shown to candidates. Candidates automatically receive confirmations and reminders, eliminating this task for recruiters and increasing the likelihood of candidates attending interviews. 

AI tools for recruitment

How to Get Started with AI in Recruiting 

Your steps into AI should focus on exploration rather than big integrations. AI in recruitment is fast-moving and receiving more and more scrutiny from law makers, and an RPO (recruitment process outsourcing) partner can act as a strategic advisor on your AI recruiting journey. RPOs have experience implementing recruitment tech like AI software for clients and can advise on the best options for your needs, integration requirements, data needs, ethical usage, and workflow design.  

By leveraging RPO expertise, companies can effectively implement AI-enhanced hiring with less disruption and a faster return on investment. Look for a partner that is moving at your speed when it comes to AI in recruiting. They’ll help you identify areas for quick wins, and help you expand this success through experimentation and testing.  

👉 Learn how PeopleScout helped this manufacturing company create a tech-powered, streamlined recruitment process

Here are some ways an RPO partner can help your explore AI for recruitment: 

  • Change Management: 
    RPOs can ease the transition to automated processes and drive adoption through training and ongoing support. They can also develop training programs to upskill your in-house recruiters on using AI tools effectively and ethically in accordance with your internal AI policies. 
  • Process Design: 
    RPOs can redesign recruitment workflows to integrate AI tools. For example, PeopleScout’s Talent Diagnostic examines your talent lifecycle, evaluating your employer brand and your attraction strategy, as well as looking for ways to optimize the candidate experience through technology usage. 
  • Ongoing Optimization:  
    RPOs can continuously monitor and evaluate AI outputs and fine-tune processes. These insights will help you improve outcomes over time. 
  • Compliance Monitoring:  
    RPOs stay current on regulations affecting AI in recruiting to advise on lawful and ethical usage in conjunction with your internal legal team. 

AI in Recruiting: Potential and Responsibility

AI has demonstrated tremendous potential to transform talent acquisition. As this handbook outlines, it’s no longer just hype, rather it’s delivering real impact across sourcing, screening, interviewing and candidate engagement. 

The results you’ll experience from AI depend heavily on factors like data quality, transparency, integration with existing systems and processes, and governance to ensure responsible usage. AI solutions are meant to augment—not replace—the human touch in recruitment. Recruiters are invaluable when it comes to relationship building, coaching and negotiation, and AI can’t replicate what makes them uniquely human. 

Looking ahead, the use of AI recruiting technology to connect people to purpose will only continue expanding. Cultivating an ethical, inclusive and values-based recruiting culture remains key when it comes to attracting employees who align with your organization’s mission. With human stewardship over AI in recruiting, the future of talent acquisition looks bright. 

6 Benefits of Modular RPO in a Challenging Economy

By Jo Taylor, Head of RPO, EMEA

Amidst a tumultuous economy, employers continue to face challenges in talent acquisition and are seeking nimble solutions that allow them to address hiring needs quickly. Despite layoffs in some sectors, job openings surpass pre-pandemic levels in nearly every industry—averaging 31% more vacancies than in 2019. This is compounded by three million people having dropped out of the labor force.  

Many organizations lack the in-house recruitment resources—in terms of personnel or technology—to respond to fluctuations in a volatile talent market. Plus, with skills gaps growing, internal talent acquisition teams are too stretched to effectively manage the candidate lifecycle. Consequently, employers experience dwindling talent pipelines and an increase in drop-offs and ghosting between offer acceptance and onboarding. 

No wonder 91% of hiring managers say they’re experiencing hiring challenges and 45% say they’re struggling to find qualified workers for open roles at their companies. Many organizations are seeking recruitment support in the form of modular RPO (recruitment process outsourcing) as a cost-effective way to augment their recruitment capabilities where they need it most.  

That’s why we’re thrilled to announce our new suite of modular solutions, Amplifiers. Amplifiers has a solution that can help augment your team to meet your short-term talent needs—while providing lasting business value.   

What is Modular RPO? 

Modular RPO, or variable RPO, is a strategic approach to managing the recruitment process in an ultra-focused manner. It involves outsourcing specific components of the recruitment process to an RPO provider, or as a supplement to an existing outsourced recruitment engagement, providing quick access to targeted and customized recruitment support. With a modular or à la carte approach, you choose from a range of services based on your requirements. 

Our Amplifiers include: 

  • Talent Mapping 
  • Talent Sourcing 
  • Recruiter On-Demand
  • Assessment Transformation 
  • Talent Diagnostic 
  • Sure Start: Retention and Onboarding Support 

Modular RPO vs Full End-to-End RPO 

Modular RPO differs from traditional enterprise RPO in that it allows businesses to select and customize the specific recruitment services they need, rather than outsourcing the entire process.  

The main differences include: 

  • Scope: Modular RPO focuses on specific parts of the recruitment process or short-term initiatives, while end-to-end RPO can cover the entire recruitment function. 
  • Duration: Modular RPO engagements are typically short-term, while end-to-end RPO is a long-term strategic partnership. However, many of our RPO partnerships at PeopleScout have started as short-term engagements.  
  • Technology Integration: End-to-end RPO often involves more extensive use of technology, including integration with other HR systems as well as customization. 

The decision between modular RPO and a full RPO engagement depends on various factors, including organization size, hiring volume, budget and strategic workforce planning. It’s essential to assess your specific needs and evaluate the benefits and trade-offs associated with each approach before making a decision. 

6 Benefits of Modular RPO

Here are six key benefits of a modular approach to RPO. 

1. Cost Optimization 

Modular RPO gives you greater control over your recruitment costs. You select specific recruitment services based on your challenges, enabling you to allocate your budget more efficiently by avoiding unnecessary expenses for unused services. In uncertain economic times, this is a more cost-effective approach that still lets you benefit from the expertise of an RPO partner. 

2. Scalability and Agility 

The business landscape is unpredictable, which can cause your hiring needs to fluctuate rapidly. Modular RPO provides the agility to scale your recruitment capabilities up or down based on demand. You can quickly adapt your recruitment efforts in response to market conditions, ensuring you have the adequate resources during high-demand periods and avoiding unnecessary expenses during slower periods. Plus, some of our clients have added Amplifiers onto their full RPO engagement—whether they’re partnered with PeopleScout or another RPO—when an extra boost is needed.  

3. Customization and Control  

Some organizations prefer to maintain a certain level of control over their recruitment process, particularly during uncertain economic times. With modular RPO, you can customize your recruitment process according to your specific requirements. Select the services you need, such as candidate sourcing, screening or onboarding support, while retaining oversight of other aspects of the recruitment process. This level of control allows companies to align the outsourced services with their internal hiring strategies and maintain greater mastery of their talent acquisition function. 

4. Strategic Focus 

By outsourcing specific recruitment functions to an RPO partner, you can free up your internal HR teams and hiring managers to focus on core business activities, such as talent development, workforce planning and organizational restructuring. By opting for a modular approach, organizations can collaborate with their RPO partner to design a solution that addresses their specific challenges and aligns with their strategic goals. 

5. Access to Technology 

RPO providers have access to advanced recruitment technologies and tools. Even with modular RPO, you can leverage these technologies for specific recruitment functions without investing in them for internal use. This is particularly beneficial in challenging economic environments where capital expenditures are carefully managed. 

6. Risk Mitigation 

In uncertain economic climates, modular recruitment solutions are a great option for organizations who are new to RPO. By opting for a more targeted and flexible approach, you can evaluate the effectiveness and value of the outsourced recruitment partner before expanding the engagement further. 

PeopleScout’s Amplifiers offer you the ability to optimize costs, maintain agility, streamline recruitment processes and focus on strategic priorities—while still benefiting from our 30 years of expertise as an RPO partner. The benefits of modular RPO align your organizational needs with our current economic realities. 

MODULAR Recruitment SOLUTIONS FROM PEOPLESCOUT

AMPLIFIERS: SCALABLE. FLEXIBLE. AGILE.

Proud at Work: LGBTQ+ Diversity & Inclusion in the Workplace

The month of June was designated LGBTQ+ Pride Month in remembrance of the Stonewall Uprising that occurred on June 28, 1969, when LGBTQ+ patrons of New York City’s Stonewall Inn clashed with police after the bar was raided. As people around the world commemorate this watershed moment for LGBTQ+ rights, it’s important for employers to have a deep understanding of the history and effect of these events in order to support employees and candidates.

The year after the uprising, marches were organized in New York City, Los Angeles and Chicago to commemorate the events of Stonewall and advance LGBTQ+ civil rights. Today, across the globe, numerous memorials, events and pride parades happen all month long to recognize the influence, struggle and triumphs of the LGBTQ+ community.

The events of Stonewall and the activism it inspired in its wake have helped spread the importance of LGBTQ+ equality and inclusion and the dangers of LGBTQ+ discrimination. This is evidenced by the increasing acceptance of the LGBTQ+ community across all age groups, but especially among younger generations — including Millennials and Generation Z — who are taking up larger parts of the workforce each year. In fact, according to a Gallup survey, the number of U.S. adults who identify as LGBTQ has more than double in a decade, from 3.5% in 2012 to 7.1% in 2022 — largely driven by people aged 25 and under.

Consequently, organizations looking to recruit the next generation of top talent need to be inclusive of LGBTQ+ employees and job-seekers in their policies, workplace culture, and talent acquisition strategy. That’s because, not only are LGBTQ+ people more likely to work for inclusive organizations, but so are their allies, 72% of whom said they were more likely to accept a job at an inclusive employer.

So, whether your organization is just beginning its diversity and inclusion journey or you’re looking for additional strategies to improve your diversity program, it’s always a good idea to brush up on the history, needs, and concerns of historically marginalized groups to better understand, engage and recruit in an increasingly diverse talent landscape.

Here, we provide a historical look at LGBTQ+ activism and its victories in the fight for workplace equity.

Dig Deeper

Diversity & the Candidate Experience: Identifying Recruitment Pitfalls to Improve DE&I Outcome

Heartbreaks & Triumphs: Milestones in the Fight for LGBTQ+ Equality in the Workplace

After the passage of the Civil Rights Act of 1964 in the United States, brave activists participated in a series of demonstrations for employment protections. At the same time, activists worldwide were also fighting for change, creating a global movement for LGBTQ+ rights. This timeline represents the struggles endured – and triumphs won – in the fight for LGBTQ+ rights in the workplace.

  • 1924: Henry Gerber founded the first gay rights organization, The Society for Human Rights. It aimed “to promote and protect the rights of LGBTQ+ people, including the right to work.”
  • 1969: Patrons of the Stonewall Inn in New York City clashed with police, who attempted to raid the establishment. The event is credited with igniting the modern LGBTQ+ rights movement.
  • 1974: Rep. Bella Abzug (D-NY), along with Rep. Ed Koch (D-NY), introduced the Equality Act, which would have amended the Civil Rights Act of 1964 to include sexual orientation under the protected classes for employment.
  • 1982: Wisconsin became the first U.S. state to outlaw discrimination based on sexual orientation.
  • 1996: The United States Supreme Court decided that Colorado’s second amendment – which denied gay and lesbian people protections against discrimination – was unconstitutional, calling them “special rights.”
  • 2009: President Obama signed a Presidential Memorandum allowing same-sex partners of federal employees to receive certain benefits.
  • 2010: The U.S. Senate voted to repeal the “Don’t Ask, Don’t Tell” policy, allowing gay and lesbian people to serve openly in the U.S. military.
  • 2015: The U.S. Supreme Court declared same-sex marriage legal in all 50 states.
  • June 2020: The Supreme Court of the United States (SCOTUS) affirmed that LGBTQ+ workers were protected from discrimination under the Civil Rights Act of 1964 – a landmark decision.

To engage a new generation of workers and clients – many of whom choose careers, products, and services based on businesses’ diversity and inclusion practices – organizations must reexamine their workplace culture and policies. In the next section, we provide guidance and strategies to make your recruiting and talent management programs as inclusive as possible and how to address LGBTQ+ issues in the workplace, as well as what steps you can take now to make your organization more inclusive for LGBTQ+ employees and candidates.


Strategies to Promote and Support LGBTQ+ Inclusion in the Workplace

While the June 2020 SCOTUS ruling represented major progress for LGBTQ+ civil rights in the U.S., there is still much work to be done to ensure every workplace has inclusive policies and practices in place. Specifically, the Human Rights Campaign’s report, A Workplace Divided: Understanding the Climate for LGBTQ Workers Nationwide, found the following LGBTQ+ discrimination facts:

  • 1in 5 LGBTQ+ workers reported having been told, or had coworkers imply, that they should dress in a more feminine or masculine manner
  • 53% of LGBTQ+ workers reported hearing jokes about lesbian or gay people at least once in a while
  • 31% of LGBTQ+ workers said they had felt unhappy or depressed at work
  • The top reason LGBTQ+ workers didn’t report negative comments they heard about LGBTQ+ people to a supervisor or human resources was because they didn’t think anything would be done about it – and they didn’t want to hurt their relationships with coworkers.

Therefore, strong policies against LGBTQ+ discrimination in the workplace, benefits and other practices that include LGBTQ+ workers are essential for organizations as they compete for talent – now and in the future. Below are suggestions for how your organization can improve LGBTQ+ inclusion, as well as how to attract and engage candidates from the community.

Create a Formal Policy to Reduce LGBTQ+ Discrimination

If you want to display your commitment to LGBTQ+ workers, setting formal policies outlining your expected behaviors organization-wide is a good place to start. Not only is this important in terms of communicating your organization’s support of LGBTQ+ employees and the community, but it also helps reduce compliance risks and costly discrimination litigation.

Specifically, the policies you put in place should support all employees’ understanding of what type of behavior is inappropriate, while also clearly communicating that harassment and homophobia in the workplace will not be tolerated. In particular, your anti-discrimination and harassment policies should address sexual orientation, gender identity and gender expression as prohibited grounds of discrimination. You may also want to provide examples of what discrimination and harassment look like to further educate employees. Finally, be sure to check with your legal department before enacting formal policies to ensure you are in compliance.

Support LGBTQ+ Workers by Using Gender-Neutral Language

Likewise, using gender-neutral language when writing and speaking to employees and job candidates can go a long way in making members of the LGBTQ+ community feel visible and included. First, examine the language on your career site, in recruiting messaging, during interviews and in other internal policies to make sure the copy is not exclusionary. Furthermore, while reviewing your career site, consider all the ways that gendered language enforces stereotypes and erases the existence of genderqueer and gender non-binary people within organizations. For example, instead of using “he” or “he/she,” it is acceptable – and, in some cases, preferred – to use “they” as a singular, gender-neutral pronoun. In fact, this is the practice of many major news and media outlets, such as The Washington Post.

Similarly, your organization should also review the language in your employee dress codes. For instance, instead of outlining appropriate workplace attire for men and women, you could simply state that all employees must dress to meet professional standards.

Reevaluate Your Benefits 

Additionally, to ensure your benefits package meets the needs of LGBTQ+ employees, it’s also important to understand their specific needs related to medical coverage, parental leave, bereavement and any other benefits you may offer. To that end, benefits that appeal to the needs of LGBTQ+ candidates are likely to attract more qualified candidates and help your employer brand stand out.

As an example, some organizations have progressive benefits packages that include coverage for drugs related to HIV/AIDs (including PrEP) and coverage for transition-related costs (including gender affirmation surgery.) Again, ensure you’re using inclusive language and perform regular reviews to ensure your benefits package remains relevant to your LGBTQ+ employees.

Provide Training for Managers

Meanwhile, managers should also be invested in the care and wellbeing of those who work for them and are also responsible for ensuring their teams interact professionally and respectfully. Plus, managers are often the first point of contact for questions around health benefits, dress code, use of restrooms, etc. As such, it’s important that they’re able to answer questions confidently and respectfully – or know where to direct an employee if further support is needed.

Granted, some managers will defer any uncomfortable questions to HR for fear of saying the wrong thing. But, a manager who understands the organization’s stance on these issues and is comfortable discussing it also sets the tone for inclusion in their department; training leads to confidence.

Support LGBTQ+ Employee Resource Groups

Employee Resource Groups (ERGs) are voluntary, employee-led groups made up of individuals who come together based on common interests, backgrounds, or demographic factors, such as gender, race or sexual orientation. ERGs provide safe places for people to meet, support each other and talk about issues related to the LGBTQ+ community in the workplace.

By supporting ERGs, you communicate to your workforce – and potential job candidates – that your organization supports the LGBTQ+ community. In turn, this can help boost retention and also improve your employer brand for job candidates researching your organization.

Support Gender Identity: Gender Neutral Policies for Talent Acquisition & Talent Management

lgbtq in the workplace

Gender transition refers to the process that some trans people undergo to affirm their gender identity. For some people, their transition may include changing their name and how they dress. As outlined by both the Human Rights Campaign and The 519’s Creating Authentic Spaces, gender transition guidelines ensure that there is an institutional protocol on how to support an employee who transitions.

However, there is no singular way for a person to transition; this is a personal process that is defined by the individual and, as such, it’s integral that these guidelines and any formal documents communicate that. Therefore, transition guidelines should delineate the responsibilities and expectations of supervisors, colleagues and other staff, as well as clearly state that any employee who wishes to transition will be supported.

Combating LGBTQ+ Discrimination in the Workplace: How to Support LGBTQ in the Workplace

If your organization is looking to have more of an influence in the LGBTQ+ community, you’re not alone. Many organizations have played an important role in the progress of LGBTQ+ rights by displaying public acts of support and becoming regular sponsors of annual pride events around the world. As a matter of fact, a record 206 major corporations signed an amicus brief in the spring advocating for the Supreme Court’s June 2020 decision protecting LGBTQ+ individuals from workplace discrimination.

At the same time, many organizations are also increasingly making business-critical decisions about recruitment practices, employee resource groups, and employer branding that embrace and welcome the LGBTQ+ community. Next, we’ll outline how your organization can better support LBGTQ+ employees and the communities they represent.

LGBTQ+ Diversity and Your Supplier Network

While many organizations have a formal code of conduct for employees, fewer extend this code to their suppliers. Ensuring suppliers align with your organizational values around LGBTQ+ inclusion goes a long way toward supporting LGBTQ+ workers. For instance, consider where your organization orders office supplies, goes to for catering, hires for cleaning, etc. These are all examples of opportunities to support organizations that are committed to LGBTQ+ inclusion and diversity.

One of the best ways to get your organization in front of many diverse suppliers is through non-profit LGBTQ+ organizations that work to connect diverse suppliers with the corporations looking to do business with them. The following organizations are a good place to begin:  

Updating Recruiting & Hiring Practices for the Future

Building an inclusive organization starts with recruiting and hiring a diverse set of employees. Unfortunately, conscious or unconscious bias against LGBTQ+ applicants can prevent them from getting hired, and prior studies found evidence of bias against LGBTQ+ job applicants. 

Many LGBTQ+ workplace issues begin before a person is hired. The selection process can also be full of challenges for an LGBTQ+ person. For example, studies using résumés indicating that they belong to gay menqueer women and transgender applicants received fewer callbacks compared with résumés without any indication that the applicant was gay, queer or transgender, respectively. A similar study compared matched pairs of women – in which one woman in the pair was transgender – finding a net rate of discrimination of 42% against transgender applicants, illustrating LGBTQ+ employment discrimination is still a persistent issue.

Clearly, qualified applicants should not have to hide their identity to get a job. Yet, one in 10 LGBTQ+ people reported removing items from their résumé to hide their sexual orientation or gender identity (SOGI) from employers. Alternatively, strategies like blind résumé screening – removing names, gender signifiers and affinity-group affiliations – can help reduce unconscious bias in hiring decisions.

In the meantime, start training recruiters and hiring managers on the many forms of unconscious bias that play out in the hiring process to ensure they’re selecting the best person for the job – regardless of perceived differences. For instance, consider whether your recruiters know how to interact with references who might not be aware of a previous employee’s gender transition (for example, a candidate’s previous employer may have known them by a different name and as a different gender).

Along the same lines, also consider where your job postings are advertised and how they’re written: Do they use gendered language? Are they reaching a diverse range of communities and people? Also, consider posting to job boards and relevant publications that are geared toward LGBTQ+ communities.

Intersectionality & Inclusion  

Many LGBTQ+ employees and job candidates are subject to discrimination based on their sexual orientation and other aspects of their identity. Furthermore, traits such as race, gender, religion and immigration status can also intersect, which may lead to the individual experiencing discrimination on multiple fronts. 

Today, most diversity and inclusion efforts include equity as a dimension, which gives everyone equal opportunities to develop and considers their background and the unique challenges they face. But, because the LGBTQ+ workforce is not a monolithic group with a single set of experiences and needs, avoid categorizing LGBTQ+ employees as a siloed group when crafting your diversity and inclusion strategies. Instead, if you want to build a truly effective diversity and inclusion strategy, start with a foundation grounded in intersectionality, which provides a lens to create and refine innovative and meaningful solutions that truly include everyone.

Moreover, to combat LGBTQ+ discrimination in the workplace, analyze data on pay and employee engagement – separating out variables of race, gender, sexual orientation or physical ability – to get a better picture of intersectional challenges within your organization. While this approach may seem complex, it’s necessary to improve inclusion. Also, note that intersectionality doesn’t require creating countless subgroups for each possible intersection. Instead, diversity and inclusion leaders, as well as ERGs, should educate employees on intersectionality to help everyone understand all of the possible contextual life factors of their LGBTQ+ colleagues and the experiences that these unique identities create.

LGBTQ+ inclusion in the workplace is fundamentally the right thing to do, and making the business case can sway those on the fence about the importance of LGBTQ+ inclusion. But, ultimately, as talent professionals, providing a space for all employees to thrive and bring their authentic self to work is what’s most important in the fight against LGBTQ+ discrimination in the workplace. As the march for equality continues, it’s beneficial to use multiple strategies to achieve a world in which LGBTQ+ people are celebrated for their diversity and unique experiences.

Only 5% of organizations say they’re succeeding with their DE&I initiatives. Download our free research report, Diversity & the Candidate Experience: Identifying Recruitment Pitfalls to Improve DE&I Outcomes, for insights into how to improve diversity recruitment outcomes.

PeopleScout Compliance Alert: Vaccine Mandate Update

In January, the U.S. Supreme Court granted a temporary stay on the implementation of the Occupational Health and Safety Administration (OSHA) Emergency Temporary Standard (ETS) requiring employers with 100 or more employees to require proof of vaccination or weekly COVID-19 testing.

This means that the ETS is on hold for further review by the U.S. Court of Appeals for the Sixth Circuit and a potential return to the Supreme Court. For employers, this ruling is not a final decision on the issue, but it does give them more time to prepare if the ETS does ultimately take effect. However, it also indicates for employers that the current Supreme Court is unlikely to approve the requirement.

The ruling also does not apply to any state or local requirements. Littler maintains a chart of vaccine-related legislation by jurisdiction. In some states, lawmakers have taken steps to limit or prevent vaccine mandates, while other states, cities and counties already have vaccine mandates in place for certain workers. Employers should work with legal counsel to determine if they are impacted by any existing legislation.

Employers that are not impacted by any federal, state or local legislation, can choose policies and practices best suited to their business as long as those policies do not violate the law, according to law firm Jackson Lewis. According to U.S. Equal Employment Opportunity Commission (EEOC) guidance, employers are able to mandate vaccines in most cases, but they must provide reasonable accommodations for employees who cannot receive the vaccine because of certain medical conditions or sincerely held religious beliefs.

Employers who are asking about vaccination status should take care in their approach. Tracking employee vaccination status can help employers determine whether workers need to wear masks, how quickly they can return to the workplace after an exposure to COVID-19 or if they can increase capacity in offices, but employers should be cautious in asking follow-up questions about why a person has not gotten the vaccine. According to SHRM, questions about why an employee is not vaccinated could be subject to the Americans with Disabilities Act (ADA).

As for workers, surveys show they are split on vaccine mandates, with a small majority (53%) saying they want to see their workplace introduce the proper technology that could record proof of COVID-19 vaccination.

Helping a Healthcare Company Adjust Their Recruitment Program Following a New COVID-19 Vaccine Policy

After administering more than 30 million vaccines across the U.S., a healthcare company announced a company-wide vaccination policy requiring employees in clinical and corporate positions to be fully vaccinated against COVID-19 by the end of October 2021. The move was driven by health and safety concerns for employees, patients and customers, but the client knew it wouldn’t come to fruition without impact to their workforce.

Flexing our Process for the New Policy

Because the new policy stipulated that all new hires in impacted roles be vaccinated, the PeopleScout client engaged with us prior to the announcement to discuss their plans and get ahead of any impact to recruitment efforts. As their long-term RPO partner, we were uniquely positioned to help the healthcare company create a multi-faceted plan to communicate the vaccine mandate to candidates and adjust recruitment activities to ensure new hires are in compliance with the mandate.

Leveraging copy and communications from the company’s HR and legal teams, we updated all relevant job descriptions with a section on the vaccine mandate and deadlines. To provide an additional screening step, we added vaccine status questions to application forms for the relevant positions. If candidates indicated that they were not vaccinated or not willing to be vaccinated, they were automatically disqualified in most states.

Taking a Hands-on Approach to Reduce Candidate Drop Off

To mitigate the impact on the dropout rate at the top of the funnel, we followed up with every candidate who said “no” to ensure they had understood the questions and hadn’t answered in error. As a result of this extra effort, several candidates were requalified and put back into the running for employment with the healthcare company. Disposition codes were also used to indicate when candidates left the funnel due reasons related to the vaccine requirements. This helped the company gather data on how the policy was impacting recruitment outcomes.

Supporting the Accommodation Process

COVID-19 vaccine mandate information was added to the candidate communication sequence in the organization’s CRM, directing them to a website complete with FAQs. Throughout the screening and interview process, the PeopleScout team also fielded questions from candidates. Common queries were about how to apply for a reasonable accommodation for those who are unable to be vaccinated due to medical or religious reasons. While the internal legal team handled the review of all accommodation applications, the PeopleScout team did field questions about the accommodation process, freeing up the organization’s internal teams to focus on more strategic initiatives while boosting the candidate experience.

For successful candidates, we ensured all offer letters contained language about the vaccination requirement and followed up with candidates to address any final questions.  

PeopleScout Compliance Alert: Marijuana Testing

While marijuana is still illegal at the federal level, states continue to legalize the substance for both medical and recreational uses. Medical use is legal in 36 states, while 18 states now have legalized recreational cannabis. Now, some states and local governments have passed laws implementing restrictions or limitations on drug testing for marijuana.

Those jurisdictions include:

  1. Boulder, Colorado
  2. Connecticut
  3. District of Columbia
  4. Nevada
  5. New Jersey
  6. New York
  7. Philadelphia, Pennsylvania
  8. San Francisco, California
  9. Rhode Island
  10. Vermont

Employers that operate in any of these areas should consult with an attorney about the specifics of each local requirement. For example, in New York, the law prohibits employment discrimination against people who lawfully use recreational marijuana off duty, and in New Jersey, employers cannot take adverse employment actions based “solely” on a positive marijuana test. Depending on the specific jurisdiction, there may be financial penalties for failing to comply.

Additionally, you may trigger other employment when evaluating workplace marijuana issues, such as discrimination and disability accommodation laws.

However, as marijuana remains illegal federally, state laws generally contain exceptions for employers regulated by federal law. There are also generally protections for “safety-sensitive” jobs like truck drivers or forklift operators. On-the-job use or possession of marijuana is not allowed in any jurisdiction, nor is impairment or working under the influence of marijuana.

Because of the growing popularity of these laws and a tight labor market, many employers have stopped testing for marijuana, according to Bloomberg Law. In one high profile case, Amazon announced that the company would stop testing workers for marijuana, citing the complex patchwork of state and local laws. Business Insider also reports that company officials have also tied the decision to the labor shortage, with Amazon senior VP of human resources Beth Galetti saying, “Eliminating pre-employment testing for cannabis allows us to expand our applicant pool.”

Progress in Action: Moving Toward A Globally Diverse and Inclusive Workplace

Progress in Action: Moving Toward A Globally Diverse and Inclusive Workplace

Improving organizational diversity is a honorable pursuit for employers across all industries and should be a consistent point of focus for forward-thinking talent teams. Building productive teams from a pool of qualified job seekers irrespective of nationality, gender-identity, ethnicity, religious background and sexual orientation is essential to creating a workplace that reflects the communities that it serves.

So, how can you help your organization better connect with, source, engage and recruit a more diverse and inclusive workforce? In this ebook, we examine how your organization can update your DE&I program with modern diversity strategies.

In this ebook you will learn:

  • How to accurately measure your DE&I program’s progress and goals
  • How to source candidates from underrepresented groups
  • Real-world DE&I success stories and more

[On-Demand Webinar]: Data and Diversity: Using Technology to Achieve Your DE&I Goals

[On-Demand Webinar]: Data and Diversity: Using Technology to Achieve Your DE&I Goals

Leading talent professionals understand that creating an inclusive, equitable and diverse workplace is more than just the “right” thing to do. In fact, implementing an effective diversity and inclusion program can change the game by challenging the status quo and creating a vibrant and more productive workplace culture. Positioning DE&I at the heart of your talent acquisition and management program now will equip your organization for long-term success.

But how do you know if you’re making progress against your goals? Do you have the data to fine-tune and optimize your recruitment process?

Join PeopleScout’s Elizabeth Karkula, associate product manager, and Jason Kaplan, business intelligence manager, for our on-demand webinar Data and Diversity: Using Technology to Achieve Your DE&I Goals.

Elizabeth and Jason will discuss practical and immediately applicable strategies that have the potential to transform your organization’s DE&I program.

This webinar will cover:

  • Three smart ways to leverage data for DE&I success
  • How to accurately measure your DE&I program’s progress and goals
  • How to optimize your sourcing channels for candidates from diverse groups
  • Real-world DE&I success stories and more

PeopleScout Compliance Alert – Office Reopening

As U.S. employers navigate pandemic-related changes to the workforce, leaders face new challenges brought on by the surging Delta variant.

For many employers, rising caseloads across the country have pushed them to delay a return to the office. As the New York Times reports, many companies have pushed their return to the office target into 2022. Additionally, employers face a shifting landscape of requirements and best practices to keep employees and customers safe and healthy.

Vaccine Requirements

In early September, President Joe Biden announced that he was directing the Department of Labor’s Occupational Safety and Health Administration (OSHA) to develop an Emergency Temporary Standard that will require all employers with 100 or more employees to ensure all employees are vaccinated or receive weekly tests for COVID-19. Employers will also be required to provide paid time off for employees to get the vaccine.

Additionally, President Biden signed executive orders requiring vaccines for all executive branch employees and some employees of federal contractors. 

Despite the announcement, it is still not clear how or when the new requirement will take effect. Employers should work with their legal counsel to monitor any new developments.

There is also a patchwork of local laws, and employers should consult an attorney to see if any apply in their jurisdiction. For example, Santa Clara County in California, requires employers to verify vaccination status with repeated follow-up for those who are unvaccinated. Others, like in Oregon, require employees to sign an attestation saying that they have been vaccinated.

Mask Mandates

With the Delta variant, the CDC has revised its guidance on masks, recommending that everyone, including vaccinated people, should wear masks indoors in areas of substantial transmission. The CDC has a website where people can track the transmission status of their county.

At the same time, some areas across the U.S. are reinstating maskmandates, and employers should pay close attention to local requirements as they may change in response to caseloads.

OSHA recommends that employers provide all workers with face coverings at no cost to workers. Employers must discuss reasonable accommodations for any workers who are unable to wear or have difficulty wearing certain types of face coverings due to a disability.

Some special types of employers such as healthcare and congregate care employers will have different and more stringent masking requirements and guidelines.

PeopleScout Compliance Alert: Mask Mandates

With the Delta variant driving increased cases of COVID-19 across the country, the CDC has revised its guidance on masks, recommending that everyone, including vaccinated people, should wear masks indoors in areas of substantial transmission. The CDC has a website where people can track the transmission status of their county.

At the same time, some areas across the U.S. are reinstating mask mandates, and employers should pay close attention to local requirements.

Los Angeles County, California, St. Louis, Missouri and Jackson, Mississippi have reinstated mask mandates for both vaccinated and unvaccinated people. Many other jurisdictions require or recommend masks for unvaccinated individuals. Masks are also required for all people who are in federal buildings or on federal lands. This includes federal contractors working on site.

Additionally, officials in other locations, including Oregon and Washington state are once again recommending but not yet mandating state-wide mask usage. Employers should watch their local guidelines closely as they may change as coronavirus cases continue to increase.

OSHA recommends that employers provide all workers with face coverings at no cost to workers. Employers must discuss reasonable accommodations for any workers who are unable to wear or have difficulty wearing certain types of face coverings due to a disability.

Some special types of employers such as healthcare and congregate care employers will have different and more stringent masking requirements and guidelines.