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: Sen. Braun, Mike [R-IN]
Target Audience
Population: Working-age individuals who are part of or will be part of the workforce
Estimated Size: 165000000
- The primary group affected is the working-age population, both those seeking employment and currently employed individuals.
- This bill focuses on employment practices, affecting individuals involved in hiring processes.
- Workforce demographics and employment rates inform estimations; there are approximately 3.5 billion workers worldwide.
- Skills-based hiring is a trend growing globally, affecting employers and employees across industries.
- It is reasonable to assume that a significant portion of these workers will encounter skills-based hiring practices over time.
Reasoning
- The policy impacts both employers and employees who are involved in the hiring process, with a focus on shifting towards a skills-based approach rather than traditional requirements like degrees.
- People directly impacted will be those looking for jobs and those involved in hiring within companies, including HR professionals and managers.
- Given the budget constraints, the policy is likely to focus on sectors and areas where skills-based hiring can rapidly demonstrate positive outcomes, such as technology or other skills-intensive industries.
- Considering the U.S. workforce estimate of 165 million, a significant portion of the population may indirectly experience changes but the direct impact will initially affect specific industries and companies that adopt skills-based hiring methods first.
- The policy might not drastically change existing high well-being levels, but it could significantly improve perspectives for those who felt limited by traditional credential requirements.
Simulated Interviews
Software Developer (Austin, TX)
Age: 24 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I think skills-based hiring will benefit people like me who gained skills through alternative education.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
HR Manager (New York, NY)
Age: 37 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- This policy will help us defend our hiring practices and prevent discrimination claims.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Freelance Graphic Designer (San Francisco, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Skills-based hiring could open up more opportunities where my portfolio can stand out.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Operations Manager (Chicago, IL)
Age: 52 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I'm worried that a focus on skills could devalue long-term experience.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 5 |
Automotive Engineer (Detroit, MI)
Age: 44 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- While skills matter, in my field, educational credentials are crucial for innovation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Barista (Miami, FL)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I see this policy as my chance to be evaluated on what I can do, not just my formal education background.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Entrepreneur (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- This validates what we've been doing—focusing on skills is the future of hiring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Retired (Phoenix, AZ)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I'm not directly affected by job changes, but I can see how this helps younger generations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 3 | 3 |
IT Consultant (Seattle, WA)
Age: 48 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Policies like this are crucial as they push for the constant reskilling necessary in IT.
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 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
University Professor (Boston, MA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- I worry this trend diminishes the value of broad-based education that develops critical thinking.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 6 |
Cost Estimates
Year 1: $25000000 (Low: $20000000, High: $30000000)
Year 2: $26000000 (Low: $21000000, High: $31000000)
Year 3: $27000000 (Low: $22000000, High: $32000000)
Year 5: $29000000 (Low: $24000000, High: $34000000)
Year 10: $32000000 (Low: $27000000, High: $37000000)
Year 100: $50000000 (Low: $45000000, High: $55000000)
Key Considerations
- The number of employers and employees subject to review under this policy could increase over time, requiring scalable administrative resources.
- Understanding long-term savings versus immediate costs is crucial in evaluating the overall economic impact.
- Consideration of how disparate impact policy harmonization across sectors might influence different industries.
- Monitoring potential legal challenges as benchmarks for policy success and adjustment opportunities.