Bill Overview
Title: Advancing Skills-Based Hiring Act of 2022
Description: This bill allows employers to submit to the Equal Employment Opportunity Commission (EEOC) evidence that a competency-based skills test or other employment selection process is consistent with lawful employment practices. The EEOC must review each submission and determine whether the procedure is job-related and consistent with a business necessity, or provide technical assistance to the employer about potential changes that would allow the EEOC to make such a determination. Such a determination may be used by the employer to satisfy the burden of proof under the disparate impact analysis with respect to a claim of an unlawful discrimination.
Sponsors: Rep. Stefanik, Elise M. [R-NY-21]
Target Audience
Population: People primarily involved in the workforce
Estimated Size: 200000000
- The bill affects hiring practices by allowing employers to submit competency-based skills tests for review.
- The focus is on aligning employment selection processes with lawful employment practices, impacting how employers validate their hiring criteria.
- The bill involves the EEOC, which operates in the United States, hence the impact is primarily on U.S. employers and job seekers.
- Employers may use the EEOC's determination to satisfy disparate impact analysis, which could alter who gets hired.
Reasoning
- The policy is budgeted to impact workforce practices with a focus on hiring based on skills-based assessments.
- Estimating the influence of this policy involves considering various types of workers—those in high-demand positions that currently emphasize degree requirements, those in blue-collar or technical roles, and those from minority groups disproportionately affected by current hiring biases.
- We should expect a variety of impacts across different sectors, with some individuals experiencing significant changes in job opportunities and others noticing little effect.
- Consider also people at various career stages—from those just entering the workforce, to mid-career professionals and individuals looking to switch career paths.
- Our interviews will include a representation of those directly affected (e.g., job seekers and HR professionals involved in hiring processes) and those indirectly affected or unaffected (e.g., entrepreneurs or retired individuals).
Simulated Interviews
Software Developer (Austin, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I think this policy will help open up more opportunities based on real skills rather than just having the right degree.
- In tech, skills are crucial, so I see potential gains here if employers adopt good assessment tools.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Welder (Pittsburgh, PA)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I've always been hired based on what I can do, so this policy makes sense if it means companies will focus more on practical skills.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Digital Marketing Specialist (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- If properly implemented, this could help level the playing field for those who excel in skills but lack traditional credentials.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 5 |
Recent College Graduate (Chicago, IL)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- I hope this change helps me since I'm recently out of school and want my skills to be recognized beyond just my degree.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Human Resources Director (New York, NY)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- The policy could streamline the hiring process by giving us certainty about the legality of our assessments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Retired (Rural Iowa)
Age: 61 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- These policies don't affect me now, I just hope they help those who are trying to get jobs without extra hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Data Analyst (Seattle, WA)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- This policy could finally give recognition to people like me who have the skills but not the formal education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 8 |
Small Business Owner (Atlanta, GA)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- As a small business, clearer guidance on hiring practices helps me avoid legal pitfalls and focus on who can actually do the job.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Elementary School Teacher (Boston, MA)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- While directly unaffected, I believe equitable hiring practices reflect the values I teach my students.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Project Manager (Phoenix, AZ)
Age: 36 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Aligning skills-based assessments with business needs could improve our hiring processes and team performance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $40000000 (Low: $30000000, High: $60000000)
Year 2: $42000000 (Low: $31000000, High: $63000000)
Year 3: $44000000 (Low: $32000000, High: $66000000)
Year 5: $48000000 (Low: $34000000, High: $72000000)
Year 10: $50000000 (Low: $35000000, High: $75000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The cost of implementing and maintaining the infrastructure and processes within the EEOC.
- Potential legal implications and how successfully businesses align their hiring processes.
- Monitoring the policy's impact on discriminatory practices.