Racial bias exists in the job market from the moment a job-seeker hits “submit” on an application, according to new research. Some experts say companies can consider this a reminder to assess their hiring practices and make changes when they spot inequities.

New findings on racial disparities. National Bureau of Economic Research economists released a new paper detailing the results of an experiment, in which they submitted 84,000 job applications to 11,000 jobs at 108 Fortune 500 companies between 2019 and 2021. The researchers sent up to four pairs of applications to entry level jobs that didn’t require a college degree or much experience. The applications were identical, except for the associated names, which were changed to suggest the job-seeker was either Black or white.

While the experiment—the largest of its kind in the US—discovered that gender discrimination at the pre-interview level is rare, racial discrimination appeared prevalent. Assumed white applicants received 9.5% more interview offers than assumed Black applicants on average.

Taking action. Researchers found that having a diversity officer and diversity training didn’t appear to reduce the chance of discrimination in entry-level hiring. However, companies with centralized and formal HR offices had less bias, according to the New York Times.

Keep reading here.—KP

Benefits silos are out; combining health benefits and wealth benefits is in. After all, who wouldn’t want these outcomes:

1. Shifted paradigm: With the benefits landscape shifting, organizations that offer health + wealth resources can set themselves (and their employees) up for next-level success.
2. Big perks: Integrated benefits are a win-win for employers and employees. Think improved retention rates, increased productivity, and enhanced well-being.
3. Innovation: Benefits integration doesn’t have to be a logistical nightmare. Strategies like automatic enrollment and defaults will smooth out education and enrollment bumps.
4. HSA evolution: Health savings accounts are now considered crucial components of a comprehensive retirement savings strategy—and they inherently unify health + finance.
5. Improved outcomes: This benefits combo creates a workplace where employees can thrive in their personal lives and at work.

Talk about a power couple. Get more details in Marsh McLennan Agency’s new report on employee health and financial well-being.

Companies that grow at an accelerated pace run the risk of hiring too aggressively, resulting in an overgrown organization with duplicated roles.

Tesla seems to have experienced this issue. In an April 15 email to employees, CEO Elon Musk announced layoffs affecting more than 10% of Tesla’s workforce. He attributed the need for cuts, in part, to the company’s “rapid growth,” which led to “duplication of roles and job functions in certain areas.”

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk wrote.

Rapid-growth companies tend to set aggressive business goals that come with equally aggressive headcount plans, Neil Costa, CEO of recruitment marketing agency HireClix, told HR Brew. But when a headcount plan is too bold, it can result in duplicating roles. HR and finance can work together to keep the headcount plan in check, he noted.

Keep reading here.—AS

Each week, we get into the weeds with the founders of HR tech startups. Want to tell us about your company? Get in touch here.

Mahima Chawla, co-founder and CEO of Cocoon, told HR Brew that the idea for a leave-management platform began with an offhand comment from a colleague.

“Parental leave is an absolute nightmare,” Chawla recalled a coworker mentioning, adding that the coworker even brought her laptop into the hospital room after a C-section in order to file the correct state paperwork in the allotted time period.

In 2020, Chawla set out to simplify the complicated world of leave for HR, managers, and employees alike with a single platform that navigates all the different aspects of planning a leave, whether it be parental, medical, caregiver, or bereavement.

“It’s become a lot more complicated for HR teams, just given distributed workforces and also ever-changing laws…so as an HR professional, it’s challenging to keep up with the regulatory landscape,” she said.

Keep reading here.—AD

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