Elements of an Affirmative Action Plan Presented by: Allen Oyler, President Onsite HR Services, Inc...

Elements of an Affirmative Action Elements of an Affirmative Action PlanPlan

Presented by:Allen Oyler, President

Onsite HR Services, Inc

© 2006 All rights reservedMarch 2006

[email protected]

© All rights reserved

ObjectivesObjectives

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


Sources of AAP RequirementSources 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


Who is a “Contractor”?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)


Federal Agency

Acme Corp150 employees & $50,000 contract

Division “A”Cheese100 Emp

Division “B”Cigarettes

50 Emp

WarehouseEstablishment

50 Emp

ManufacturingEstablishment

50 Emp

Who Must have an AAP & how many Who Must have an AAP & how many AAPs?AAPs?


Supplier 1(Milk)

$100,00049 Emp

Supplier 2(Containers)$25,000 – Acme$25,000 - Beta

125 Emp

Supplier 3(Computer SW)

$75,000100 Emp

Acme Corp (Contractor)

Cheese

FederalAgency

Must Contractor Involve Others?Must Contractor Involve Others?

Beta Corp(Contractor)

Bread


““Subcontractors” Must Have AAPsSubcontractors” 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


Federal Government

Contractor

Division “A”Cheese

Wholly-owned subsidiaryCigarettes


Contractor’s Affiliated Entities Contractor’s Affiliated Entities May Need AAPMay 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


APPLICANT ISSUESAPPLICANT 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).


Why Applicant Definition is Why Applicant Definition is SignificantSignificant

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


““Traditional Applicant”Traditional Applicant”(EEOC)(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?


“ “Internet Applicant”Internet Applicant”(OFCCP)(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.


Practical Application of Internet Practical Application of Internet DefinitionDefinition

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.


““Advertised Basic Qualifications”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


Elements of AAPElements of AAP


Data & DatesData & Dates

Transactions

HiresTerminations

Promotions/DemotionsTransfers

Salary Changes

Beginning Plan Year

1/1/04@00:00:00

End Plan Year

12/31/04@24:00:00

Administrative Changes


AAP ComponentsAAP 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


1000 - President, CEO Total 3 - (2WF/1BF) - Supervisor (1WF)

1025 - Corporate Technical Officer Total 2 - (1WM/1WF) - Supervisor (1WM)

1140 - Corporate Information Systems Total 31 - (15WM/10WF/1BM/1AM/3AF/1HM) - Supervisor (1WM/1WF)

1135 - Office Systems Total 12 - (7WM/3WF/2BM) - Supervisor (3WM)

1035 - General Counsel Total 8 - (4WM/3WF/1BF) - Supervisor (2WM)

1040 - Intellectual Property Office Total 9 - (5WM/4WF)

1050 - Legal Affairs - International Total 6 - (2WM/4WF)

1060 - Federal Policy & Regulation Total 7 - (4WM/3WF) - Supervisor (1WM)

1075 - Government Relations Total 5 - (4WM/1WF) - Supervisor (1WM)

1070 - International Affairs Total 7 - (5WM/2WF) - Supervisor (1WM)

1080 - Corporate Communications Total 13 - (6WM/6WF/1BM) - Supervisor (1WM/1WF/1BM)

1085 - Chief Financial Officer Total 3 - (2WM/1WF) - Supervisor (2WM)

1095 - Investor Relations Total 3 - (1WM/2WF) - Supervisor (1WM)

1100 - Internal Audit Total 5 - (3WM/1WF/1BM) - Supervisor (1WM)

1110 - Treasury Operations Total 10 - (3WM/4WF/1BM/1BF/1HM) - Supervisor (2WM/1BF)

1115 - Controller - Corporate Total 2 - (1WM/1BF) - Supervisor (1WM)

1120 - Taxes Total 6 - (2WM/3WF/1AF) - Supervisor (1WF)

1130 - Accounting Total 6 - (2WM/3WF/1AM) - Supervisor (1WM/2WF)

1125 - Payroll Total 3 - (1WM/1WF/1BF) - Supervisor (1BF)

1150 - Controller - Division Total 37 - (8WM/18WF/2BM/5BF/2AM/1AF/1HF) - Supervisor (4WM/5WF)

1145 - VP Finance - Division Total 2 - (1WM/1WF) - Supervisor (1WM)

1155 - Financial Services - Corporate Total 6 - (5WM/1WF) - Supervisor (1WM/1WF)

1160 - Financial Services - Division Total 6 - (4WM/1WF/1AF) - Supervisor (1WM)

1185 - Sub-Contracts & Purchasing Total 8 - (2WM/3WF/1BM/2BF) - Supervisor (1WM)

Organizational ProfileOrganizational Profile

Name of unit

Total Number of Incumbents

By Race & Gender

Show

Relationship

Between Units

Supervisor

Informatio

n


Job Group DefinedJob 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.


Job Group ExampleJob Group Example(Professional Jobs)(Professional Jobs)

– Job Group 2A – Sr Level Professionals– Job Group 2B – Mid Level Professionals– Job Group 2C – Entry Level

Professionals


Job Group Analysis SummaryJob Group Analysis Summary

Individual Jobs

Sr AttorneyEngineer VIAttorney II HR AdministratorAssemblerFinance Clerk

Job Groups

Sr Professionals

Mid Level Prof

Operatives

Clerical

Mechanical Engineer IElectrical Engineer IComputer Engineer IIElectrical Engineer IISenior Engineer

Technical Professional

Mid Level Technical Professional

Senior Level Technical Professional


Placement of Incumbents in Job Placement of Incumbents in Job

GroupsGroups CFR 60-2.13CFR 60-2.13

The contractor must separately state the percentage of minorities and the percentage of women it employs in each job group


Job Group Analysis SummaryJob Group Analysis Summary

Individual Jobs

Sr AttorneyEngineer VIAttorney II

HR AdministratorAssembler

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%


Determining AvailabilityDetermining Availability CFR 60-2.14CFR 60-2.14

1. Census Data Comparison2. Promotable, Transferable,

TrainableTrainable – those who could become promotable or transferable during the AAP year with training.


Weighted Factor

Min Fem Weight % Min Fem

13.97 42.65 50.0 6.98 21.32

16.67 66.67 50.0 8.34 33.34

15.32 54.66

6.00 17.00

NO YES

Raw Statistics

Source of Statistics

Placement Goal:

(41 total)

Employment % : 14.63 41.46

Eighty Percent Rule: Availability:

A placement goal is set when employment is less than 80% of availability.

Employment #:

1. Percentage of minorities or women with requisite skills in the reasonable recruitment area.

Acme Falls MSA

2. Percentage of minorities or women among those promotable, transferable, and trainable within the contractor's organization.

Feeder J ob Computations

Factor

Acme Technology IncorporatedColumbia, MD

January 1, 2004 Annual AAP

Availability Factor Computation Form

J ob Group 1C Entry Level Management

Comparing Availability

To Current Employment

Hired 50% from Outside & 50% from Inside (Trainable/Promotable)

Census Data

IncumbentsPromotableTrainable

Placement Goal


Placement Goals CFR 60-2.16CFR 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.


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


Example #1 Comp. AnalysisExample #1 Comp. AnalysisName Salary

Experience,Performance

Smith (White) $31,000 3 yrs. “2” perf rating

Thomas (White) $34,000 5 yrs.“4” perf rating

Buckley (White) $40,000 6 yrs.“5” perf rating

Adams (White) $37,000 5 yrs.“5” perf rating

Jones (African American )

$23,000 3 yrs.“2” perf rating


# % JAAR ?

# % JAAR ?1 0 0 13-19 U 0 0 30-44 U

1 0 0 15-23 U 1 100 72-100 O

# % JAAR ?

# % JAAR ?30 6 20 13-19 C 19 63 30-44 C

6 4 67 15-23 C 5 83 72-100 O1 1 100 24-35 C 1 100 61-92 C

# % JAAR ?

# % JAAR ?6 0 0 13-19 U 1 17 30-44 U

# % JAAR ?

# % JAAR ?6 1 17 13-19 O 2 33 30-44 O

White Collar

Clerical

Department 1145 - VP Finance - Division

TotalEmpEEO Code

White Collar

Clerical

Blue Collar

Department 1150 - Controller - Division

TotalEmpEEO Code

White Collar

Department 1155 - Financial Services - Corporate

TotalEmpEEO Code

White Collar

Department 1160 - Financial Services - Division

TotalEmpEEO Code

Min Fem

Fem

Min Fem

Min Fem

Min

JAARJAAR

Broad Groups

Concentrated

Under Represented

OK


Non

Tot Fem Fem

22 5 17

26 7 19

Non

Tot Fem Fem

18 7 11

20 9 11

Non

Tot Fem Fem

12 3 9

13 3 10

Non

Tot Fem Fem

42 6 36

59 19 40

Offers

Applicants

J ob Group 1C Entry Level Management

Offers

Applicants

J ob Group 2A Senior Level Professionals

Applicants

J ob Group 1B Mid Level Management

Offers

Applicants

Applicants Detail by GenderBreakdown of Offers and Applicants by Job Group

For Period: 1/1/2003 to 12/31/2003J ob Group 1A Executive Management

Offers 5/22 = 22.73%7/26 =26.92%

22.73/26.92 = 84.43%

OffersHiresPromotionsTransfersTerminations

Involuntary

6/42 = 14.30%

19/59 =22.00%

14.30/22.00 = 65.00%


Sel Rate

AI? Stat Val Sel Rate

AI? Stat Val

0.77 Yes 0.916 0.80 No

1.15 No 0.78 Yes 1.648

1.12 No 1.11 No

1.08 No 0.35 Yes 4.630

1.07 No 1.08 No

1.11 No 1.09 No

0.00 Yes 2.000 1.50 No

1.00 No 1.00 No

0.94 No 0.94 No

1.20 No 0.81 No

0.99 No 0.91 No

Adverse Impact Detail for ApplicantsFor Period: 1/1/2003 to 12/31/2003

Min Fem

J ob Group

1B

1A

1C

2A

2B

2C

3A

4A

5A

5B

7A

Statistically Significant?Statistically Significant?


Discrimination PyramidDiscrimination Pyramid

JAAR/IRA/80% RulePotential problem

Adverse ImpactStatistical Analysis

(2 Standard Deviations)Requires explanation for actions

Disparate ImpactNot able to explain reason

for adverse impact


Action-Oriented ProgramsAction-Oriented ProgramsCFR 60-2.17(c)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


Examples of Action ItemsExamples 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.


Questions?Questions?

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