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A recent class action lawsuit against an HR technology company is raising questions about recruiting compliance — and underscoring the importance of hiring transparency.
The lawsuit alleges that the company aggregated data from outside sources to inform hiring decisions, acting as a Consumer Reporting Agency without proper Fair Credit Reporting Act (FCRA) compliance. According to the complaint, job applicants don’t have the opportunity to consent to, review, or dispute third party reports that help determine whether they’re considered for a given role. In short, there’s a serious lack of transparency in the evaluation process, and it may be leading to unfair hiring decisions.
While the case is still active, it highlights a growing expectation for employers to be open and honest about their recruitment practices. This isn’t just about legal compliance. Hiring transparency has become a competitive advantage that can help you attract, engage, and retain talent.
What hiring transparency means in practice
Hiring transparency means giving candidates clear, accurate information about the role, compensation, hiring process, and how you’ll evaluate them.
Transparency exists on a spectrum. At the basic level, it may mean posting salary ranges and outlining your hiring process. At the high end, it could also mean sharing interview questions in advance, explaining exactly how you score candidates, and providing detailed feedback to everyone who interviews.
Best practices for building a transparent hiring process
Providing a basic level of transparency is fairly straightforward and you can build toward more comprehensive openness as your team gets comfortable.
1
Share detailed job descriptions with salary ranges
Your job description serves a very important purpose: to engage the right candidates in your recruitment process.
A well-written job description:
More transparent organizations might share things like company financials and pay philosophies to help candidates get a better understanding of whether the role is the right fit for them.
2
Outline your hiring process and timeline upfront
Half of all job seekers want to know what happens after they submit their application.
Plan your hiring process and ideal timeline before you start actively recruiting for the role so you can share it with candidates. You can provide information about your process on your careers site, job descriptions, or during your first interview so candidates know what to expect.
For example, communicate:
If anything in your process or timeline changes, communicate it immediately rather than leaving candidates wondering if they’re still in consideration.
3
Communicate clearly and consistently
Transparency in hiring is largely about communication. Make sure candidates have the information they need, when they need it.
For example:
4
Use standardized evaluations
A transparent hiring process ensures candidates know how they’re being evaluated.
Create standardized evaluations by:
5
Use compliant HR technology
Not all HR technology handles candidate data with the same level of transparency and compliance.
Choose technology partners carefully. Your applicant tracking system should allow you to easily include privacy policy links and obtain proper consent. Background check vendors should be FCRA compliant and provide candidates with the required disclosures, the opportunity to review reports, and a mechanism to dispute inaccuracies.
Stay informed with lawsuit rulings and new legislation that affects the processes and tools you use to hire. You may need proper disclosures and explicit consent to be in compliance.
How JobScore enables transparent hiring
JobScore is designed to support transparent, compliant hiring practices.
For example:
Final thoughts on hiring transparency
Lawsuits and legislation may reshape how recruitment technology handles candidate data. Mitigate your risk by focusing on transparency and consent.
The safest approach is to base hiring decisions primarily on information candidates provide directly through applications, resumes, interviews, and assessments. When you do use additional data sources or tools, disclose them clearly in your privacy policy and obtain consent. Hiring transparency helps candidates understand how they’re being evaluated so they can feel confident that your process is fair.



