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  • In October 2023, Representatives Raja Krishnamoorthi, D-Illinois, and John James, R-Michigan, introduced the bipartisan Opportunity to Compete Act, a groundbreaking legislation designed to address the challenges faced by job seekers without bachelor’s degrees. The act aims to ensure fair consideration for these individuals in the hiring process, emphasizing skills-based evaluation over traditional educational qualifications.

    The Need For Change

    The current hiring landscape is heavily influenced by automated recruitment systems, which often utilize degree requirements as a primary filtering mechanism. A 2021 study revealed that over 90% of employers rely on such systems, with half using education level as a decisive filter. This approach inadvertently excludes a significant portion of the workforce, as approximately two-thirds of U.S. workers do not hold a bachelor’s degree.

    Addressing Bias And Promoting Diversity

    The Opportunity to Compete Act seeks to rectify this imbalance by mandating that large employers using automated degree requirement settings disclose the expected years of experience applicants need. In addition, it allows for the substitution of relevant work experience for a four-year degree. This shift in evaluation criteria would amend the Fair Labor Standards Act (FLSA) to eliminate bias against individuals who have acquired valuable skills through alternative routes such as military service, community college, or training programs.

    Advocacy And Support For The Act

    Industry experts and advocates have strongly supported the Opportunity to Compete Act, emphasizing its potential to foster diversity and inclusion while expanding access to job opportunities. Chief Executive Officer (CEO) of YUPRO Placement Michelle Sims highlighted the legislation’s role in diversifying the evaluation criteria during the initial stages of hiring, thereby promoting fairer consideration for all candidates.

    In addition, this bill emphasizes the significance of the millions of workers who have honed their skills through alternative educational paths such as community college, apprenticeships, and on-the-job experience. The act is positioned as a critical enabler for these individuals to showcase their capabilities and contribute meaningfully to the workforce.

    Empowering Alternative Educational Routes

    The proposed legislation acknowledges the value of alternative educational pathways, which provide accessible and affordable means for individuals outside traditional talent pools to develop skills relevant to various early and mid-career roles. By recognizing the value of these non-traditional routes, the act supports a more inclusive and equitable approach to evaluating job candidates.

    Hiring And Recruiting With A PEO

    Should this bill go into effect, small business owners will need to remain compliant. However, you didn’t start your business to stay on top of laws and regulations or spend countless hours hiring and recruiting top talent that will help your business grow. That’s why small and medium-sized companies turn to a professional employer organization (PEO) like GMS for help. A PEO provides comprehensive HR services to its clients, including payroll, benefits, compliance, and more. This partnership allows businesses to outsource the administrative and legal aspects of hiring and recruiting. In addition, at GMS, our HR experts can access a larger pool of qualified candidates, offer competitive compensation and benefits packages, and reduce your turnover and hiring costs. If you want to learn more about how GMS can help your business grow, contact us today. We’re here to help you and your business thrive.

  • In a momentous decision for higher education, the U.S. Supreme Court, in a 6-3 vote, recently curbed the practice of affirmative action in college admissions. This ruling marks the end of a four-decade precedent that permitted institutions to consider an applicant’s race as a factor in their admissions processes. Let’s explore the Supreme Court’s decision and its implications for diversity, equal opportunity, and pursuing higher education.

    The Background Of This Decision

    For over 40 years, affirmative action has played a pivotal role in higher education admissions, aimed at fostering diversity and addressing historical inequalities. Affirmative action is defined as the obligation on the part of the contractor to take action to ensure that applicants are employed, and employees are treated during employment, without regard to the following:

    • Race
    • Color
    • Religion
    • Sex
    • Sexual orientation
    • Gender identity
    • National origin
    • Disability
    • Status as a protected veteran

    By considering an applicant’s race as one among several factors, colleges and universities sought to create a more inclusive environment that reflected the broader diversity of society. This approach aimed to level the playing field for historically marginalized communities and, ultimately, bridge the gaps in educational opportunities.

    The Supreme Court’s Ruling

    On June 29th, 2023, the Supreme Court’s decision marked a significant shift in the trajectory of affirmative action. With a 6-3 majority, the Court determined that the consideration of race as a broad factor in admissions violates the Equal Protection Clause of the Constitution. This ruling strikes at the heart of a longstanding precedent that allowed educational institutions to implement race-conscious admissions policies.

    Implications For Diversity

    The Supreme Court’s decision has raised concerns about the potential consequences of diversity on college campuses. Supporters of affirmative action argue that diversity enriches the educational experience, fostering cross-cultural understanding and preparing students for an increasingly diverse society. They contend that race-conscious admissions policies have been crucial in addressing historical disparities and promoting social progress.

    Equal Opportunity And Access

    Critics of affirmative action view the Court’s decision as a victory for equal opportunity and a step towards a color-blind society. They argue that race-conscious policies perpetuate reverse discrimination, hindering the admission of qualified candidates solely based on their race or ethnicity. Critics of affirmative action suggest that merit should be the sole determining factor in college admissions, ensuring a fair evaluation for all applicants.

    What Employers Should Know

    To foster diversity, equity, and inclusion (DE&I) in the workplace, organizations have implemented various initiatives and programs to ensure equal opportunity for job applicants and employees. However, the recent Supreme Court ruling on affirmative action in college admissions has the potential to impact these efforts. If fewer individuals of color are admitted to colleges, it could lead to fewer employment opportunities for them. As a result, this could impact recruiting and hiring efforts.

    However, the U.S. Equal Employment Opportunity Commission (EEOC) Chair Charlotte A. Burrows states that this ruling does not address employer efforts to foster diverse and inclusive workforces or engage all qualified workers’ talents, regardless of their background. The Title VII of the Civil Rights Act of 1964 already prevents companies from considering race when making recruiting, hiring, promotion, or termination decisions.

    The Assistance Of A PEO

    In the wake of the Supreme Court’s affirmative action ruling, businesses face the challenge of maintaining diversity and inclusion in their workforce. Partnering with a professional employer organization (PEO) can be a strategic move to navigate this new landscape. A PEO like GMS can provide valuable guidance on adapting recruitment and hiring practices, ensuring compliance with employment laws, and fostering an inclusive work environment. By leveraging the expertise and resources of GMS, businesses can navigate the implications of the ruling while upholding their commitment to diversity, equity, and inclusion. Together, we can work hand in hand to shape a workplace that celebrates diversity and offers equal opportunities for all. Contact us today to learn more about the services that GMS can offer your small business.

  • The success of a workplace stems from an inclusive and equitable experience for your employees. Research shows that 80% of workers want to work for a company that values diversity, equity, inclusion, and belonging (DEIB). If your employees want to work in an environment where they feel valued and heard, what can you do as a business owner to help? Continue reading to learn how you can develop a more inclusive and diverse work environment and the benefits it has on your business.

    What Is Equity In The Workplace?

    Let’s start with the basics – understanding what equity is and what it means in the workplace. Equity is the quality of being fair and impartial. Equity in the workplace is the idea that all employees are provided with fair and equal opportunities based on their individual needs. Equity often involves issues related to fairness in pay, opportunities for advancement, and fairness in daily work experiences.

    Equity can be challenging to demonstrate in the workplace. Critics say this is because what constitutes fair and equitable treatment is often subjective and unique to the experiences of every individual employee. So, you can start by showing equity within your business by recognizing this. Then, you can foster an equitable workplace by cultivating a safe environment that allows for open discussion and understanding.

    The Benefits Of Workplace Equity

    While prioritizing equity within your business takes hard work, research shows businesses benefit from creating an equitable workplace. Businesses with gender, ethnic, and culturally diverse leadership are more likely to financially outperform companies that are not. Equity within your workplace creates a positive environment for employees and the employer’s contributions to success. The following are the benefits of equity within the workplace:

    • Encourages achievement 
    • Increases employee retention
    • Attracts top talent
    • Broadens perspectives
    • Enables targeted upskilling for a diverse workforce
    • Encourages cognitive diversity in decision-making
    • Drives engagement for specific employee demographics
    • Prevents dissatisfaction and employee attrition
    • Enhances your bottom line
    • Equips the entire company to contribute to a shared mission

    A study showed that individuals who feel they belong in a workplace have a 34% higher intent to stay at their organization and are 167% more likely to recommend their company as a place for others to work. Ultimately, equitable work environments are about leveling the playing field and providing your employees with opportunities within your organization.

    The Future Of Equity Within Your Business

    As a business owner, you must identify and acknowledge the needs of your employees regarding their gender, identity, race, disabilities, and more. While you can certainly take proactive measures to ensure your employees feel valued, you can also partner with a professional employer organization (PEO) such as Group Management Services. Our HR experts work with you to create a handbook to reflect the changes you’d like to make within your business around creating a diverse and inclusive work environment. In addition, GMS provides access to our learning management system (LMS), where you can utilize learning modules to educate your employees on important topics such as equity within your business. Let’s create a workplace your employees want together. Get a quote today.