Beyond compliance: Building trust in pre-employment practices.
Most businesses meet the legal standard. But trust is built by what candidates experience, not what policies say.
Trust is the foundation of any successful employment relationship, and the hiring process is an important stage in building it. While much attention is given to compliance with legal requirements, ethical hiring practices that prioritise transparency can elevate the process, setting the tone for a positive and enduring employer-employee relationship.
During pre-employment, candidates are not just evaluating the role, they’re assessing the organisation’s values, culture, and leadership. By demonstrating fairness, honesty, and respect, employers create an environment where candidates feel valued, even before their first day. A transparent hiring process builds credibility, increases candidate engagement, and strengthens the employer’s brand reputation in competitive talent markets.
Gallup’s 2024 article, “The Lasting Impact of Exceptional Candidate Experiences” (29 October 2024), revealed that interviews have the greatest influence on candidate decision-making, more so than salary or hiring speed. In fact, 44% of candidates said the interview experience mattered most, compared to only 25% who prioritised how quickly they were hired. These findings underscore the importance of delivering engaging, respectful, and well-structured interviews to attract and secure top talent.
When Compliance Isn’t Enough: The Hidden Cost of Mistrust
While compliance with laws such as the Australian Consumer Law and the Privacy Act 1988 (Cth) is non-negotiable, deceptive practices in pre-employment come with costs that extend beyond legal penalties.
Take the example of Moss v Lowe Hunt & Partners, where a consultant was lured into a full-time role based on misleading assurances about a company’s financial stability. The court’s ruling awarded the consultant $306,740 in damages, but the real cost went deeper. It damaged trust, reduced morale, and harmed the employer’s reputation.
Deceptive conduct, even if unintentional, erodes trust and increases turnover. Candidates misled about job expectations or company culture may feel betrayed, disengaged, and more likely to seek other opportunities. In an era of online reviews and social media, this can also deter future talent, tarnishing the brand in the long term.
What Ethical Hiring Looks Like in Practice
Clarity in Job Descriptions—Job advertisements should accurately represent the role’s availability, nature, terms and conditions of the employment. Avoid exaggerated claims about growth opportunities or workplace culture. Instead, provide specifics about day-to-day responsibilities and team dynamics.
Informed Consent for Pre-Employment Checks—When conducting screenings, such as medical or criminal background checks, inform candidates upfront. Explain why the checks are necessary, obtain their consent, and ensure the information collected is relevant to the job. For example, a drink driving conviction might be relevant for a delivery driver but not for an analyst role, as highlighted in CG v RailCorp NSW.
Respecting Candidate Privacy—Organisations collecting candidate information are obligated to comply with the Australian Privacy Principles (APP) to safeguard confidentiality. Even if a business is not legally obligated to adopt a privacy policy—such as small businesses exempt under the Privacy Act 1988 (Cth)—it is best practice to establish trust by clearly communicating how a candidate’s information will be used. This extends to pre-employment checks. Be transparent about how records are stored and utilised, and limit data collection to what is essential for the role.
Setting Clear Expectations—Communicate with candidates about the hiring timeline, next steps, and feedback expectations. Even unsuccessful candidates should leave with a positive impression, knowing their time and effort was respected.
Training for Hiring Teams—Equip recruiters and managers with training to recognise and avoid unconscious biases, ensuring decisions are based on merit. An inclusive hiring process signals fairness and commitment to equity. Provide training to hiring panel members on the types of questions that are legally prohibited to avoid discrimination and legal risks.
The Strategic Advantage of Trust-First Hiring
By prioritising ethical transparency in hiring, organisations can transform their recruitment processes into trust-building opportunities. Not only does this foster stronger employee relationships, but it also elevates the company’s standing as an employer of choice. Beyond avoiding legal pitfalls, focusing on trust creates a ripple effect, from candidate experience to engagement, retention, and overall business performance.
Are you relying on compliance alone to guide your hiring decisions? Discover how ethical, transparent practices can elevate your brand, reduce turnover, and attract top talent.
Book a consultation and let’s explore how we can support your hiring strategy.