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Elements of an Affirmative Action Plan Presented by: Allen Oyler, President Onsite HR Services, Inc © 2006 All rights reserved March 2006 503.680.7444 www.onsite-hr.com firstname.lastname@example.org
© All rights reserved Objectives Overview of: –AAP Laws –Who is Covered Who is an Applicant? Elements of an AAP –Organizational Chart –Job Groups –Availability Analysis Elements of an AAP (cont’d) –Placement Goals –Discrimination Analysis –Action Plans –Ongoing Analysis Discrimination Pyramid
© All rights reserved Sources of AAP Requirement Federal Government Regulating Federal Contractors. Executive Order, Statute, Department of Labor Regulations. - Executive Order 11246. 41 CFR 60. 1 et seq: (Race, Color, Religion, Sex, National Origin) - Rehabilitation Act, 29 USC 793 et seq, 41 CFR 60-741 et seq. – Disability - Vietnam Era Veterans Readjustment Assistance Act 38 USC 4211, 41 CFR 60- 250 et seq: (Veterans of Vietnam Era, Disabled Veterans, Veterans of War) –CFR 60.2 Non-construction (Supply & Service) Contractors –CFR 60.4 Construction Contractors Local Government (City, County, State) Regulating Their Contractors – Ordinance, Statute (Sexual Preference, Political Affiliation, Etc) Governmental Entities Regulating Their Own Employment Practices – Ordinance, Statute, Policy Private Entities Regulating Their Own Employment Practices – Voluntary
© All rights reserved Who is a “Contractor”? Entity with 50+ employees + Contract with federal agency + Providing government with supplies or services + Contract is worth 50K or more (or certain financial institutions)
© All rights reserved Federal Agency Acme Corp 150 employees & $50,000 contract Division “A” Cheese 100 Emp Division “B” Cigarettes 50 Emp Warehouse Establishment 50 Emp Manufacturing Establishment 50 Emp Who Must have an AAP & how many AAPs?
© All rights reserved Supplier 1 (Milk) $100,000 49 Emp Supplier 2 (Containers) $25,000 – Acme $25,000 - Beta 125 Emp Supplier 3 (Computer SW) $75,000 100 Emp Acme Corp (Contractor) Cheese Federal Agency Must Contractor Involve Others? Beta Corp (Contractor) Bread
© All rights reserved “Subcontractors” Must Have AAPs Entity that has subcontract with federal contractor For goods or services That is in whole or in part “necessary to the performance of” a federal contract Or that calls for the entity to perform any portion of the federal contractor’s obligation. 50 employees and $50,000
© All rights reserved Federal Government Contractor Division “A” Cheese Wholly-owned subsidiary Cigarettes
© All rights reserved Contractor’s Affiliated Entities May Need AAP 1.common ownership 2.common officers/directors 3.parent has de-facto control of sub 4.common source for personnel policies 5.operations are co-dependent
© All rights reserved APPLICANT ISSUES AAP examines whether the number of women and minorities working for a contractor is in proportion to the number of women and minorities in the applicant pool (and labor pool).
© All rights reserved Why Applicant Definition is Significant Applicant definition determines the group for whom employer must track race and sex. 41 CFR 60-1.12(c). –Employers argued for narrow definition, OFCCP/EEOC wanted broader definition. –EEOC has a broad definition – OFCCP created 2-track definition
© All rights reserved “Traditional Applicant” (EEOC) “Applicant”: someone who “expresses an interest in employment” For traditional hiring methods (paper resumes, paper applications, expression of interest orally), this means: –You cannot limit “applicants” to just those who are selected for interview. –You cannot limit “applicants” to just those who fill out an application or follow employer’s other requirements. –You cannot limit “applicants” to just those who are minimally qualified for the position. –Can you exclude unsolicited resumes?
© All rights reserved “Internet Applicant” (OFCCP) “Internet Applicant” (OFCCP) Four Elements of New Definition: –The job seeker has submitted an expression of interest in employment through the Internet or related electronic technologies. –The employer considers the job seeker for employment in a particular open position –Job seeker appears to have the advertised, basic qualifications for the position and –Job seeker has not withdrawn from consideration.
© All rights reserved Practical Application of Internet Definition Can toss internet submissions for “any open position.” Employer expected to post position qualifications on the Web. Can toss applications that don’t meet basic (minimum) qualifications. Can’t limit internet Applicants to those who are interviewed. Can’t limit internet Applicants to those who follow procedure if you consider them anyway.
© All rights reserved “Advertised Basic Qualifications” Qualifications the employer advertises (e.g. posts a description of the job and qualifications on the Web site). Non-comparative (“3 years experience” versus “one of the top five in the pool of job seekers”) Objective (“batchelors degree” not “top tier school”) Job Related
© All rights reserved Elements of AAP
© All rights reserved Data & Dates Transactions Hires Terminations Promotions / Demotions Transfers Salary Changes Beginning Plan Year 1/1/04 @00:00:00 End Plan Year 12/31/04 @24:00:00 Administrative Changes
© All rights reserved AAP Components Organizational profile--Sec. 60-2.11 Job group analysis--Sec. 60-2.12 Placement of incumbents in job groups--Sec. 60- 2.13 Determining availability--Sec. 60-2.14 Comparing incumbency to availability--Sec. 60- 2.15 Placement goals--Sec. 60-2.16 Additional components specified in the Sec. 60- 2.17: Designation of responsibility for implementation Identification of problem areas Action-oriented programs Periodic internal audits
© All rights reserved Organizational Profile Name of unit Total Number of Incumbents By Race & Gender Show Relationship Between Units Supervisor Information
© All rights reserved Job Group Defined Jobs with similar –content, wage rates, opportunities Similarity of content –duties and responsibilities of the job titles which make up the job group. Similarity of opportunities –training, transfers, promotions, pay, mobility, and other career enhancement opportunities offered by the jobs within the job group.
© All rights reserved Job Group Example (Professional Jobs) –Job Group 2A – Sr Level Professionals –Job Group 2B – Mid Level Professionals –Job Group 2C – Entry Level Professionals
© All rights reserved Job Group Analysis Summary Individual Jobs Sr Attorney Engineer VI Attorney II HR Administrator Assembler Finance Clerk Job Groups Sr Professionals Mid Level Prof Operatives Clerical Mechanical Engineer I Electrical Engineer I Computer Engineer II Electrical Engineer II Senior Engineer Technical Professional Mid Level Technical Professional Senior Level Technical Professional
© All rights reserved Placement of Incumbents in Job Groups CFR 60-2.13 The contractor must separately state the percentage of minorities and the percentage of women it employs in each job group
© All rights reserved Job Group Analysis Summary Individual Jobs Sr Attorney Engineer VI Attorney II HR Administrator Assembler Finance Clerk Job Groups Sr Professionals Mid Level Prof Operatives Clerical Percentage Minority & Female 20.45%15.94% 13.70%47.95% 33.33%91.67% 20.59%97.06%
© All rights reserved Determining Availability CFR 60-2.14 1. Census Data Comparison 2. Promotable, Transferable, Trainable Trainable – those who could become promotable or transferable during the AAP year with training.
© All rights reserved Comparing Availability To Current Employment Hired 50% from Outside & 50% from Inside (Trainable/Promotable) Census Data Incumbents Promotable Trainable Placement Goal
© All rights reserved CFR 60-2.16 Placement Goals CFR 60-2.16 Placement goals serve as objectives or targets reasonably attainable by means of applying every good faith effort to make all aspects of the entire affirmative action program work. Placement goals also are used to measure progress toward achieving equal employment opportunity.
© All rights reserved Identification of Problem Areas CFR 60-2.17(b) The workforce by organizational unit and job group Personnel activity ( applicant flow, hires, terminations, promotions, and other personnel actions ) Personnel procedures ( selection, recruitment, referral, etc.) Compensation system(s) Any other areas that might impact the success of the affirmative action program
© All rights reserved Example #1 Comp. Analysis NameSalary Experience, Performance Smith (White)$31,0003 yrs. “2” perf rating Thomas (White)$34,0005 yrs. “4” perf rating Buckley (White)$40,0006 yrs. “5” perf rating Adams (White)$37,0005 yrs. “5” perf rating Jones (African American ) $23,0003 yrs. “2” perf rating
© All rights reserved JAAR Broad Groups Concentrated Under Represented OK
© All rights reserved 5/22 = 22.73% 7/26 =26.92% 22.73/26.92 = 84.43% Offers Hires Promotions Transfers Terminations Involuntary 6/42 = 14.30% 19/59 =22.00% 14.30/22.00 = 65.00%
© All rights reserved Statistically Significant?
© All rights reserved Discrimination Pyramid JAAR/IRA/80% Rule Potential problem Adverse Impact Statistical Analysis (2 Standard Deviations) Requires explanation for actions Disparate Impact Not able to explain reason for adverse impact
© All rights reserved Action-Oriented Programs CFR 60-2.17(c) Develop & Execute action oriented programs designed to correct problems areas Must be more than same old procedures that didn’t solve problems Must demonstrate good faith efforts
© All rights reserved Examples of Action Items Refine job posting procedure. Identify 2 additional recruiting sources for minority engineers. Participate in three new job fairs focusing on female applicants. Review job descriptions to assure validity.
© All rights reserved Questions?
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