20151021a Webinar - AAP Data, Reports, and Other ...c.ymcdn.com/sites/ · AAP Data, Reports, and OtherAAP Data, Reports, and Other Requirements, Oh My! A presentation of the BCG Institute

AAP Data, Reports, and OtherAAP Data, Reports, and OtherAAP Data, Reports, and Other AAP Data, Reports, and Other Requirements, Oh My!Requirements, Oh My!

A presentation of theBCG Institute for Workforce Development (BCGi)BCG Institute for Workforce Development (BCGi)

October 21, 2015

The following presentation is not to be construed as legal advice. For specific legalThe following presentation is not to be construed as legal advice. For specific legal advice please consult your corporate counsel or a labor attorney.

Contact Information

Biddle Consulting Group, Inc.193 Bl R i R d S it 270193 Blue Ravine Road, Suite 270Folsom, CA 95630916.294.4250www.biddle.com | www.bcginstitute.org

Marife Ramos, PHR Di f O i

Nina Le-TsePractice Manager Data & AnalyticsDirector of Operations

916.294.4250 ext. [email protected]

Practice Manager – Data & Analytics 916.294.4250 ext. [email protected]

2 Copyright © Biddle Consulting Group, Inc.

Agenda

• Regulations (4212/503)

• How Does Your Decision Affect Your AAP

• Required Dataq

• Affecting Analyses

• Utilizing Your AAP Next StepUtilizing Your AAP… Next Step

• Why Address AAP Issues

B k d & P ( l i )• Background & Purpose (regulations)

• Q&A

3Copyright © Biddle Consulting Group, Inc.

New Regulations


New Regulations

The OFCCP is increasing the responsibilities of federal contractors!

• The VEVRAA (4212) and Section 503 final rulings (effective March 2014) require federal contractors to outreach and recruit to protected veterans and individuals with disabilities.

• VEVRAA creates a hiring benchmark of 7% for veterans.

• Section 503 creates a goal of having 7% of employees per job group be individuals with disabilities.

• Failure to meet the benchmark/goals will not result in loss of contract However• Failure to meet the benchmark/goals will not result in loss of contract. However, lack of documentation of positive outreach, recruitment, and action oriented programs could be problematic.


New RegulationsSection 503 & VEVRAA (4212) – 2015 AAP

• Part I of AAP narrative: Outreach

Section 503 & VEVRAA (4212) – 2015 AAP

EO 11246

narrative: Outreach obligations

• Data collection and analytical reports

• Placement goals

Section 503

• Part II of the AAP narrative: Outreach

bli ti

Affirmative Action Plan 503 obligations

P t II f th AAP

Action Plan

VEVRAA• Part II of the AAP

narrative: Outreach obligations


New RegulationsSection 503 & VEVRAA (4212) – 2016 AAP

• Part I of AAP narrative: Outreach

( )

EO 11246 obligations• Data collection and

analytical reports• Placement goals

Section 503

• Part II of the AAP narrative: Outreach obligations

• Data collection reports

Affirmative Action Plan • Data collection reports

• Utilization goals

• Part II of the AAP

Action Plan

VEVRAA

Pa t o t e Pnarrative: Outreach obligations

• Data collection reportsHi i b h k• Hiring benchmarks


How Does Your Decision Affect Your AAP

(Data)


How Does Your Decision Affect Your AAP?How Does Your Decision Affect Your AAP?

• Data Requirements for Your AAP:

― Employees Data – All active employees as of a chosen snapshot date

o Compensationp

― Hires Data – All hires that occurred one year from and up to the snapshot date

― Applicants Data All applicants associated with the hires that occurred― Applicants Data - All applicants associated with the hires that occurred one year from and up to the snapshot date

― Promotions Data - All promotions that occurred one year from and up to the snapshot datep

― Terminations Data - All terminations that occurred one year from and up to the snapshot date



• Women & Minorities AAP Technical Reports D i d F Y DDerived From Your Data:― Workforce Analysis― Job Group Analysis― Final Availability Analysis― Internal Availability Analysis― Comparison of Incumbency to Availabilityp b y v b y― Placement Goals― Personnel Transactions― Additional Reports:― Additional Reports:

o Adverse Impact Analysiso Compensation Analysis

G l P Ro Goals Progress Report



• Veterans (4212) AAP Technical Reports Derived ( ) pFrom Your Data:― Data Collections/Hiring Benchmark

• Disabilities AAP Technical Reports Derived From Your Data:Your Data:― Data Collections/Utilization



• Changes in the Data:Data Changes Affected ReportsData Changes Affected Reports

Employees File Race and Gender Information All reports except for the Personnel Transaction, Hiring Benchmark, and Disability Utilization.

Department Information Only the Workforce Analysis

Salary Information Workforce Analysis and Compensation Analysis

Job Information (job title, EEO Category, job group)

All reports except for the Personnel Transaction, and Veterans Hiring Benchmark

Employee name and NoneEmployee name, and employee number

None

Hire date None. However, if the hire dates are outside the snapshot date then those records should besnapshot date then those records should be excluded from the data and it will affect the all employee related reports.



• Changes in the Data:Data Changes Affected Reports

Transactions Files (Hires, Promotions and

Race and Gender Information Personnel Transactions and the Adverse Impact Analysis ReportsPromotions and

Terminations)Analysis Reports

Employee names and EmployeeNumbers

None

Job information (job title, EEO Category, job group)

Personnel Transactions and the Adverse Impact Analysis Reports. However, if analyses are conducted by job group and changes in the job information did not affect the job group information, then both the Personnel Transactionsinformation, then both the Personnel Transactions and the Adverse Impact Analysis Reports will not be affected either.

Effective Dates None. However, if the records are outside the transaction period then those records should be pexcluded from the data and it will affect the Personnel Transactions and Adverse Impact Analysis Reports.

Disability Status Data Collection and analysis

Veteran Status Data Collection and analysis (hiring benchmark)







• Availability Analysis:J b Gr p― Job Groupso Assigning jobs into appropriate EEO categories and job groups

― Census datao Assigning the appropriate Census code to each of the job title

― Labor/Recruitment Areaso Determining the appropriate areas where you would typically draw your

l l )talents (i.e., employees)― Feeder Job Groups

o Determining appropriate feeder groups and weights― Factors Weights

o Determining appropriate factors and weights



• What are EEO Categories?J b Cl ifi ti― Job Classifications

EEO Category

Executive/Sr. Level Managers 1.1

First/Mid Level Managers 1.2

Professionals 2

Technicians 3Technicians 3

Sales Workers 4

Administrative Support Workers 5

Craft Workers 6Craft Workers 6

Operatives 7

Laborers and Helpers 8

S i W k 9Service Workers 9



• What are job groups?J b ti f j b th t i il i― Job groups are aggregations of jobs that are similar in o content, wage rate, and opportunity

• Developing job groupsDeveloping job groups― Start with the EEO categories (e.g., Executive, Managers,

Professionals, etc.)―How many employees in each EEO category?

o Enough number of employees to break down into sub categories?g

―Develop the sub categorieso Levels? (e.g., Entry Level, Mid Level, Senior Level)o Specialty? (e.g., Administrative Professionals, Technical

Professionals, Finance Professionals)18Copyright © Biddle Consulting Group, Inc.


• How does EEO categories affect your AAP?

– AAP analyses are typically conducted by job groupings

o Technically, job groups are “sub-groupings” of the EEO categories. If jobs were assigned to incorrect EEO category, then the jobs can possibly be included in the incorrect job groupg p

Job

Title

EEO Categories

Job GroupsJob Groups

19


• Availability Analysis:A i i i t C d t th i t C– Assigning appropriate Census code to gather appropriate Census Availability data

o Human Resources Manager in EEO Category 1.2 (First/Mid Level M )Managers)

Occupation Census/SOC Code EEO Category Females Minorities

Human Resources Managers (0136) First/Mid Level 55 4% 24 9%Managers 55.4% 24.9%

Human Resources, Training, and Labor Relations (0635) Professionals 66.7% 24.6%

Human Resources Assistants, Except Payroll and Timekeeping (5360) Office and Clerical 53.6% 34.7%

First Line Supervisors/Managers of Office Administrative Support Workers (5000) Office and Clerical 67.6% 23.2%Administrative Support Workers (5000)

20


• Availability Analysis:― Labor/Recruitment Areas (Factors)

A recruitment area is defined as the geographical area from which the t t ll k bl ld k k t fill thcontractor usually seeks or reasonably could seek workers to fill the

positions in question

o External Recruitment/Labor Areao External Recruitment/Labor Area

o Internal Recruitment/Labor Area/



• Availability Analysis:E l R i /L b A― External Recruitment/Labor Area

o Local Labor Area – Counties close to the location

Zi C d A l i― Zip Code Analysis

― Asking knowledgeable staff

R bl A Wid ( )o Reasonable Area – Wider area(s)

― CBSA

St t /R i― State/Region

― National

22


• Availability Analysis:D fi i th E t l R it t A― Defining the External Recruitment Areas….

o Maintenance Engineer in EEO Category 9 (Service Workers): Census Code 422

Occupation Census/SOC Code Females Minorities

National 29.9% 43.2%

Statewide: California 27.0% 71.7%

Sacramento County, CA 26.4% 57.0%

Sacramento, CA (50%); Douglas+Carson City, NV (50%) 23.6% 41.2%



• Availability Analysis:I l F F d ( )― Internal Factors – Feeder(s):o The percentage of minorities or women among those promotable,

transferable, and trainable within the contractor’s organization

o Can you use the same job group as your feeder job group?

– Yes, you can. But ideally, it should be a different job h ?group. Why?

Whoa! Exactly the same?



• Availability Analysis:― Internal Factors Feeder(s)Internal Factors – Feeder(s)

Target Job Group Females Minorities

2 Professionals 22 7% 5 0%2 - Professionals 22.7% 5.0%

Feeder Job Groups Females Minorities

2 Professionals 22 7% 5 0%

4 – Sales 0.0% 50.0%3 – Technicians 2.0% 30.0%

2 – Professionals 22.7% 5.0%

5A – Office and Clerical

100.0% 0.0%



• Availability Analysis:I l F F d ( )― Internal Factors – Feeder(s)

― After identifying the “feeders”, then determine the “weights”o How much promotion/transfer opportunities would come

f h f d ?from each feeder?

Target Job Group Feeder 1 Weight Feeder 2 Weight Feeder 3 Weight

2 - Professionals 4 - Sales 70% 3A –Techs

15% 5A – Office and Clerical

15%



• Availability Analysis:– Factor Weights:

o The weights given to the internal and external availability data for each job groupfor each job group

– Assigning the factor weights requires the user to ask the following question: “Out of 100 hypothetical movements into this job

group, what number do I expect to come from a recruitment area (i.e. area 1 and area 2), or an internal pool?”



• Availability Analysis:– Factor Weights

FRaw %

F W i hWeighted %

Factors %

(Females) Factor Weights

We g ed %(Females)

External Factor

Local Recruitment Areas 55.2% 10.0% 5.5%

National Recruitment Area 55.4% 10.0% 5.5%

Internal Factor

Feeders 67.6% 80% 54.0%

FINAL AVAILABILITY 65.0%



• Adverse Impact Analysis:p y―What is adverse impact?

o Adverse Impact occurs when a selection process yields a statistically significant disparities in the selection rates between two groups (e.g., males and females)

o Investigate your datao Investigate your data – Are the candidates truly applicants?



• Adverse Impact Analysis:Adverse Impact Analysis:― Job Groups

o Is it appropriate to analyze by job groups? pp p y y j g po Do the job titles within the job groups have the same

selection process? D fl li !o Data must reflect reality!



• Adverse Impact Analysis:Adverse Impact Analysis:― Data

o Is it correct?

– Timeframe?

– Were all the appropriate data captured?

o Consider data refinements

– Exclude applicants that are not associated with any hires

– Exclude records that are not truly applicants


How Does Your Decision Affect Your AAP?How Does Your Decision Affect Your AAP?D fi i i f A li

• Adverse Impact Analysis:

Definition of an Applicant

• Adverse Impact Analysis:

― Who should be included in the applicant data? o Follow the Internet Definition of an Applicantpp

• Individual Submits Expression of Interest.• Contractor Considers Individual for a Particular Position.• Individual Possesses Basic Qualifications• Individual Possesses Basic Qualifications.• Individual Does NOT Self-Eliminate Before Offer is Made



• Adverse Impact Analysis:―Disposition Codes

o A disposition code is a device that identifies ALL specific decisions or actions that have been taken relative to an Applicant.pp ca t.

o At the heart of a well-developed (compliant) Applicant Tracking System (ATS) are disposition codes.D ib hi h h did f ll f h l io Describes which step the candidate fell out of the selection process

o Used to filter out the non-applicantso Disposition codes should vary based on the selection process

Offered

No Show:

Interview

Applicants

Failed Test:

Written



• Ad I t A l i• Adverse Impact Analysis:―Disposition Codes (continued)

A bi di i i d ill ff h l i io Ambiguous disposition codes will affect the analysis since you cannot confidently exclude non-applicants

o Results are not accurate since all applicants and non-applicantso Results are not accurate since all applicants and non applicants will be analyzed

o Need to ensure data integrity before submitting to the OFCCP



• Adverse Impact Analysis: Disposition Codes Male Female

No Show: Interview 5 4

Did Not Meet Basic Qualifications: Education

17 31

Failed Test 14 11

Hired 26 15

Total Applicants (Unrefined) 62 61 SD*= 2.04pp ( )Selection Rate 41.9% 24.6%

Total Applicants (Refined)Selection Rate

4065.0%

2657.7%

SD* = 0.60

* SD = Standard Deviation. Statistically significant when 1.96 or greater.35

Copyright © Biddle Consulting Group, Inc.

Utili i Y AAP d Utilizing Your AAP and Plan for Next StepPlan for Next Step


Utilizing Your AAPUtilizing Your AAP

Where do we go? How do we get there?R i ( h AAP/R l )• Review (the AAP/Results)

– Utilization Analyseso Women and Minorities

o Disabilities

– Adverse Impact

– Veteran Hiring Benchmark

– Compensation Analysis

• Plan (the Action)

• Implement (the Plan)37



Things to Consider:Things to Consider:

• Accuracy of Data/Information Usedy /

• Analyze Correctly

• Properly Interpret and Prioritize



Properly Interpret and Prioritize:Properly Interpret and Prioritize:

• Look at the Big Picture. How pervasive is the problem?problem?

– Consider the nature of the job group. For example, are the jobs in the job group historically female dominated jobs?jobs in the job group historically female-dominated jobs? How many female employees do we already have in the job group?



T t

Company NamePlan Name Snapshot Date: 12/31/2011

Placement Goals SummaryWh l PTest:

Females 2 16.67% 3

Minority 7 58.33% 0

Females 27 64.29% 01B - Managers 52.35% NO

Job Group

1A - Officials 44.00% YES

Total Employees: 12 27.50% NO

Gender / RaceGroups

Employees (#)

Employees (%)

Availability (%)

Establish Goal?Yes / No

Utilization Test #

Whole Person

Minority 9 21.43% 1

Females 17 53.13% 0

Minority 12 37.50% 0

Females 15 25.00% 7


2A - Professionals 38.18% YES


1C - Assistants 52.70% NO


Total Employees: 42 24.30% YES

Females 10 37.04% 0


Females 38 57.58% 23


5A - Office & Clerical 92.45% YES


3A - Technicians 31.01% NO


Note: Above Results are Sample Only. They are intended to draw attention for the point(s) being made in this presentation. Therefore, some numbers may not reflect true mathematical results.

The Statistical Significance Test (i.e.Whole Person Test) was followed in declaring underutilization and establishing goals. When the probability value is .05 or lower, then a goal is established. Utilization Test # indicates the number needed to eliminate underutilization based on the utilization test selected.



Properly Interpret and Prioritize:

L k h Bi Pi H i i h• Look at the Big Picture. How pervasive is the problem?

I th j b d tili d? D it l h d– Is the job group underutilized? Does it also show adverse impact?

– Is there a “trend” in the job group/job title?j g p/jo Periodic assessment of the group: Is there always adverse

impact/underutilization/pay disparity?

A h h j b l d i bl h l i h– Are there other job related variables that can explain the observed areas of concern?

o Tenure may explain some pay disparitiesTe e y e p so e p y d sp eso Validation of a problematic step in the selection process



Company Name

Female Minorities Female Minorities Female Minorities Female Minorities Female MinoritiesTerminations (Invol) Terminations (All)

Employee Data as of 12/31/2011Transaction Period 01/01/2011 - 12/31/2011

Adverse Impact Analyses

Job GroupUtilization Hires Promotions

Female Minorities Female Minorities Female Minorities Female Minorities Female MinoritiesPlan Name1A - Officials 3 N 1.99 N 2.03 N 1.96 N 1.96 N1B - Managers N 1 N N N N N N N N1C - Assistants N N 2.07 N N N N N N N2A - Professionals 7 N N N N N N N N N5A Office & Clerical 23 N N N N N N N N N5A - Office & Clerical 23 N N N N N N N N N

Note: Above Results are Sample Only. They are intended to draw attention for the point(s) being made in this presentation. Therefore, some numbers may not reflect true mathematical results.



Properly Interpret and Prioritize:Properly Interpret and Prioritize:

• Good Faith Efforts and Action-Oriented ProgramsReview the effectiveness of the outreach efforts– Review the effectiveness of the outreach efforts

o Identify the reasons they DO or DO NOT worko Evaluate other options

• Job Postings– Document posting of any/all third-party organizations

o Screen shotso Copies of the actual job postings


Utilizing Your AAP: Plan (the Action)Utilizing Your AAP: Plan (the Action)

• Pinpoint the cause of any issuesPinpoint the cause of any issues– Do we need to make adjustments to the

data/information that go into the AAP?data/information that go into the AAP?– Are additional analyses needed?

• Prioritize• Prioritize– You do not need to solve everything at once.

Whi h f d h i ?– Which areas of concern need the most attention?



• Identify the steps that should be taken toIdentify the steps that should be taken to address each issue

Who needs to know?– Who needs to know?o Identify executives and management staff that need to be

included.o How to communicate the issues?

– TrainingE il– E-mails

– Consider your personnel, policies, and procedures.

45


• Once a plan is formulated:Once a plan is formulated:

– Assign responsibility

o Hold people accountable

o Assess performance

– Set a timeframe for corrective actions

P i di ll l t th ff ti f th l– Periodically re-evaluate the effectiveness of the plan and adjust accordingly


Why Address AAP Why Address AAP Issues?


Why Address AAP Issues?

…Because, in many circumstances, it is legally required

• Under 41 CFR 60-2, Federal contractors are obligated to identify potential issues and addressed them

Titl VII bli ti h th i d i t• Title VII obligations when there is adverse impact

• 41 CFR 60-3 “Uniform Guidelines on Employee Selection Procedures”Procedures


Why Address AAP Issues?Recent OFCCP Settlements

F l C (O b 2015 3 di )• Fastenal Company (October 2015 – 3 year audit process)• General Warehouse position• 7,398 black applicants; 1,055 female applicants• $1,253,611• 154 African Americans and 17 female forced job offers• Across regions (Midwest and Southeast)

• Westat Inc. (September 2014 – 5 year audit process)• Research Analyst, Programmer Analyst, Data Collection/Survey Process positions• 3,561 applicants (female/multiple races)• $1,500,000 in back wages and interest• 113 forced job offers



Recent OFCCP Settlements

• Lincoln Electric (June 2014 – 7 year audit process)p• Factory and Production positions• 5,557 African American applicants • $1,000,000 in back wages and interest g• 48 forced job offers

• Cargill Meat Solutions (January 2014 – 5 year audit process)• Production positions • 2,959 applicants (both genders/multiple races) • $2,200,000 in back wages and interest • 354 forced job offers



…Because diversity helps the organization’s bottom line

• It’s in your best interest – diversity in the workforce fosters innovation

bottom line

y yand improved business competitiveness

• Companies must attract and retain employees from diverse communities• Companies must attract and retain employees from diverse communities to win the “war for talent”



…Because the stakes are high for organizations

• Negative financial consequences

• Negative relational/PR consequences• System for Award Management: www.sam.gov

o Excluded Parties List System: Publicly available listings on parties debarred from receiving/competing for federalparties debarred from receiving/competing for federal contracts for violating

• OFCCP website: www.dol.gov/ofccpi / l i h f d lo Lists recent cases/settlements with federal contractors

• National/Local Media and News resources

/• Directly related to negative recruiting/retention results



…Because organizations that don’t take their

• Slopp record keeping makes for a ripe target

responsibilities seriously are an easy target

• Sloppy record-keeping makes for a ripe target

• Knowing about problem areas and not fixing them is worse than not knowing in the first placenot knowing in the first place


P d Purpose and BackgroundBackground


Purpose of an AAP

“An Affirmative Action Plan is a set of goal oriented management policies and procedures designed to identify and eliminate barriers to employmentand procedures designed to identify and eliminate barriers to employment opportunities for minorities, women, protected veterans and individuals with disabilities that are not based on specific job requirements”

Intended to foster equal opportunity (not equal outcome) so everyone has a fair chance

• They are designed to evaluate diversity and fairness within the contractor’s workforce• They are designed to evaluate diversity and fairness within the contractor s workforce as well as personnel processes/procedures

• They outline action-oriented programs and good-faith efforts

Th d d ll h ( l k h f)• They are updated annually so that contractors can see progress (or lack thereof)


Background

What brings you here today?

• Your organization has a contract(s) with the federal government which requires the g ( ) g qdevelopment of an Annual Affirmative Action Plan (AAP).

• Your organization also realizes that Affirmative Action Plans represent good business practices.p

Compliance with the Law (E.O. 11246)

• It is required of all federal contractors with 50 or more employees and $50K or more in contracts

• What if contractors don’t comply?p y

– Contracts can be revoked and contractors can be disbarred

– Contractors can be forced into Conciliation Agreements (i.e., with financial damages and forced changes)damages and forced changes)


Background: OFCCP Update

Current Activities and Focus• OFCCP is still aggressively pursuing Recordkeeping/Adverse Impact

i d C p tiissues and Compensation• Lack of effort in job postings/recruitment is resulting in a high volume of

conciliation agreementsC i• Compensation

• Directive 307 gives OFCCP the ability to ask for a lot more when looking at compensation.

• Item 19 within scheduling letter• Heightened focus on efforts made toward individuals with disabilities

and protected veterans

• Documentation around reasonable accommodation• Accessibility of workplace for individuals with disabilities • Positive outreach efforts for individuals with disabilities and protected

57

pveterans


Questions

Documents

20151021a Webinar - AAP Data, Reports, and Other ...c.ymcdn.com/sites/ · AAP Data, Reports, and OtherAAP Data, Reports, and Other Requirements, Oh My! A presentation of the BCG Institute