Benefits trends of the week: algorithms, privacy, and a tough decision for CEOs

Here are my picks for three items trending this week in employee benefits and retirement. Let me know what’s trending for you.

1. Algorithms in hiring tools

I put together BenefitsPRO’s product roundups. They often include news about launches of benefits industry products that use algorithms. I find them interesting but never thought beyond that. But in his Labor of Law column, my colleague Michael Scarcella notes that a group of Senators recently asked the EEOC to look at hiring algorithms in particular.

in addition, a bill relating to algorithm use that was proposed and killed in 2019 might be re-introduced by Democrats in Congress this year. It was called the Algorithmic Accountability Act, and it would have required testing for bias when employers use such tools.

One company has anticipated such a future and is already testing — actually, auditing — its tools for bias, reports TechTarget. Will we see a new industry trending – companies that provide bias auditing of HR tools? Or perhaps the EEOC will eventually provide a framework for AI tools that might include some kind of guidelines for auditing. Something to keep an eye on.

At the least we may see a rule requiring employers to disclose to job candidates that they used an algorithm in hiring.

2. Data privacy

With the trend in benefits toward greater personalization, comes a new concern: data privacy.  BenefitsPRO’s Nick Thornton wrote on this topic back in April 2020 when he reported on California’s law then in the making.

SPARK Institute’s Tim Rouse and Groom Law Group’s Kevin Walsh also write about some of the challenges facing the benefits industry around data privacy (and, actually, algorithms):  “You cannot learn about your employees’ financial well-being without knowing their situation. But who owns the data? Who is liable for decisions made based on an analysis of data collected?”

Whether or not there are regulations soon in place regarding data privacy and benefits and retirement plans, building and keeping employee trust is crucial. At the least, Rouse and Walsh say, voluntary disclosure and the messaging an employer uses can help.

When it comes to protecting employee privacy and data, you can probably count on your legal department getting involved, if you have one. My colleague Frank Ready at Law.com’s Corporate Counsel writes about the five privacy challenges facing companies and their legal departments.

I think there are actually more than five. Probably. But you have to start somewhere.

3. To reopen the office or not to reopen?

Lately, I’ve observed two indicators of people returning to work in Colorado, where BenefitsPRO’s offices are located. First, traffic has increased on major highways. Second, the TV news images of Denver in the mornings show it sporting a brown cloud, caused by vehicle emissions.

But whether or not these are office workers sick of working from home (I saw something the other day about remote workers in Virginia driving their old commuting route just to get out of the house), or workers required to show up, the truth is that the business world has been stuck in a state of indecision about whether and when to bring workers back into the fold.

And no wonder. There are so many variables to consider — some pointing to the need to reopen while others pointing to the need to stay remote:

• Mental health declining from isolation versus physical health increasing from time to workout when home.
• Lack of productivity versus too much productivity leading to loss of work-life balance.
• Women having to leave the workforce when forced to choose between going to an office or staying home to mind their children in virtual learning environments.
• The decline of company culture and camaraderie from no longer sharing a workplace versus the fear of employees getting COVID-19, versus the massive amount of work necessary to ensure processes and procedures are put in place to keep everyone in the workplace safe.

I don’t envy decisionmakers as they take on the task of deciding what to do. Sometimes it’s better to be a lowly editor.