Census Coding Exercise by sNDd0a3


									An Introduction to

Affirmative Action
Kristyn Hurley, PHR
Sr. HR Consultant

June 17, 2009
Seminar Objectives

    • Overview of Affirmative Action

    • Components of an Affirmative
      Action Plan

    • Plan Implementation

    • Understanding an OFCCP Audit
   Overview of
Affirmative Action
Affirmative Action is . . .

 • Organizations having and abiding by an equal
   opportunity policy

 • Organizations analyzing its workforce to assess
   representation of women and minorities

 • Organizations developing and implementing action
   plans to ensure appropriate representation of women
   and minorities (and also Veterans and individuals
   with disabilities)
Affirmative Action does not allow...

 • Quotas

 • Extending preferences to any individual based on race,
   color, religion, gender, or national origin

 • Merit selection procedures to be superseded by
   affirmative action programs
Affirmative Action Laws
 • Executive Order 11246
   – Protects individuals based on race, color, religion,
     gender, and national origin

 • Section 503 Rehabilitation Act of 1973
   – Protects individuals with disabilities

 • Vietnam Era Veterans Readjustment Act of 1974
   – Protects special disabled Veterans and
     Vietnam-Era Veterans

 • Veterans Employment Opportunity Act of 1998
   – Protects any Veterans from other wars and conflicts

Monitored by the Office of Federal Contract Compliance Programs
What do the Regulations Require?

 • Written Affirmative Action Plan
  – To include all U.S. based employees (including those
    working outside the U.S. but recruited within the
    U.S.) based on their physical location or

  – This plan must be updated annually and monitored
    throughout the plan year
Who has to Comply with the Regulations

 • Federal contractors and subcontractors, with:
  – a total of 50 more employees at all locations
    combined, and

  – at least one federal contract or subcontract of
    $50,000 or more
Affirmative Action Plan Contents

1. Affirmative Action Plan for Veterans &
   Individuals with Disabilities
  (narrative only)
Affirmative Action Plan Contents
2. Affirmative Action Plan for Minorities
   & Women
  • Roster Analyses
     ₋ Workforce Analysis/Organizational Display
     ₋ Job Group Analysis
     ₋ Availability Analysis
     ₋ Incumbency vs. Estimated Availability
       (i.e., Utilization Analysis)
     ₋ Placement Goals
     ₋ Compensation Analysis
Affirmative Action Plan Contents
3. Affirmative Action Plan for Minorities
   & Women (con’t)
   • Personnel Action Analyses
     ₋ Goal Attainment
     ₋ Adverse Impact Analyses
       (reports should not be included in AAP)
   • Narrative
     ₋ Designation of Responsibility for
     ₋ Identification of Problem Areas
     ₋ Action-Oriented Programs
     ₋ Internal Audit & Reporting System
Veteran and Individuals with
Disabilities Narratives
 • EEO Policy            • External & Internal
                           Dissemination of Policy
 • Review of Personnel
   Policies              • Audit & Reporting
 • Physical & Mental
   Qualifications        • Responsibility for
 • Reasonable
   Accommodations        • Training
 • Harassment
Establishment Based AAPs

Develop a plan for each establishment with 50 employees
or more. Include employees in the plan for the
establishment/location where they work unless:
 • An employee’s manager works at a different location; if so,
   include the employee’s data in the manager’s plan (also list
   the employee’s record in the roster for the work location)

 • Selection decisions for an employee are made at a higher-
   level establishment; if so, include the employee’s data in the
   higher-level establishment’s plan (also list the employee’s
   record in the roster for the work location)
Establishment Based AAPs

Determine in which plan employees working in
establishments with fewer than   50 employees will be
included; options are:
 • Create a plan for the establishment
 • Include employees in the plan that provides human
   resources support to the small establishment
 • Include employees in the plan of the manager to whom
   they report

 San Fran, CA                      MD HQ
   20 ees                          120 ees
    (<50)                         + 20

 No Plan                      AAP: 140

                Dallas, TX
                   80 ees

                             Jamaica – 1 ee
Functional-based AAPs

Develop plans based on functional or business units within
a corporate structure. Some things to consider when
deciding whether or not to submit a functional AAP
include whether or not the functional or business unit:
 • Operates somewhat autonomously
 • Has its own managing official
 • Is listed separately on an organizational chart
 • Operates under separate cost centers
Affirmative Action Plan Year

 • Annual Plan:   January 1, 2008
 • Covers:        January 1, 2008 - December 31, 2008
 • Data Analyzed: January 1, 2007 - December 31, 2007

 • Example: Update Plan
 • Update Plan:   July 1, 2008 Update Plan
 • Data Analyzed: January 1, 2008 - June 30, 2008
Data Requirements

  Prior 12 months    Plan Date:    Future 12 months
                       Jan. 1      Action Plan

  • Applicants        Roster      Update Plan
                    (snapshot)      (6 mos)
  • New Hires
  • Transfers
  • Promotions
  • Terminations
Create Reference Tables
 •   Salary Grade (if applicable)
 •   Job Groups
 •   Job Codes
 •   Department Codes
 •   Applicant Disposition Codes
 •   Termination Codes
 •   Ethnic Codes
 •   Promotion Codes (if applicable)
 •   Transfer Codes (if applicable)
Create Personnel Action Tables

 •   Roster
 •   New Hires
 •   Promotions
 •   Transfers
 •   Terminations
 •   Applicants
Organizational Profile

 • Depicts the staffing pattern within a department or
   organizational unit

 • Provides an overview of the workforce that may assist
   in identifying areas where minorities and/or women
   might be concentrated or segregated

 • Can use an Organizational Display or a
   Workforce Analysis
Organizational Display
Job Group
Job Group Analysis

 • A job group is one job or a group of jobs of similar
   level and content

 • Analyzed to show the percentage of minorities and
   women employed in each group

 • Most analyses in an AAP are based on job groups
EEO-1 Job Categories
1.1   Executive/Senior Level Officials and Managers
1.2   First/Mid Level Officials and Managers
2     Professionals
3     Technicians
4     Sales Workers
5     Administrative Support Workers
6     Craft Workers
7     Operatives
8     Laborers and Helpers
9     Service Workers
Job Groups
 Approach        Content Driven           Opportunity Driven
                   Jobs are grouped      Jobs are grouped together
 Description      together based on         by level, wage rate,
                    similar content            or opportunity
                2A: All administrative       2A: All senior-level
                    professionals               professionals
                  2B: All technical           2B: All entry-level
                    professionals               professionals
                   Easier to define        Shows promotions on
                  recruitment area           goal attainment
                  Limits promotion           Possibility of more
Disadvantages     movement in goal        recruitment areas due to
                     attainment          diversity of job group titles
Job Group Analysis Report
Availability Analysis

 • This is a statistical analysis of the percent of minorities
   and females available to work within your organization
 • The OFCCP has designated at least two factors that
   should be considered in determining availability
   – External Availability: based on your reasonable
     recruitment areas and the specific job titles in a
     job group
   – Internal Availability: based on your feeder job pools
  Reasonable Recruitment Areas
1. Officials & Managers                       USA
  2. Professionals                      50% USA, 50% Texas
     3. Technicians                           Texas

        4. Sales                              USA

           5. Office & Clerical         San Antonio PMSA
              6. Crafts                 San Antonio PMSA

                     7. Operatives      San Antonio PMSA
                        8. Laborers       Local counties

                           9. Service     Local counties
Census Coding
Staffed jobs within 2A - Professionals

   Job Code                Job Title            Census Code
     PTATT              Patent Attorney             210
     DBA II         Database Administrator II       106
    TCHWR               Technical Writer            284
      DBA           Database Administrator          106
    HRSPEC         Human Resources Specialist       062
     ACCT             Accounting Specialist         080
      SYSA              Systems Analyst             100
External Availability
                                                    Census Data     Weighted Data
 Job                     Census   Total
          Job Title                       Weight    Min     Fem     Min      Fem
Code                      Code    Emp’s
                          210       1     0.03     15.86   35.13   0.48     1.05
DBA II   Administrator    106       5     0.16     44.48   46.29   7.12     7.41
                          284       2     0.06     21.13   62.93   1.27     3.78
                          106       7     0.22     44.48   46.29   9.79     10.18
HRSPEC    Resources       062       3     0.09     40.09   69.70   3.61     6.27
                          080       6     0.19     38.65   54.57   7.34     10.37
                          100       8     0.25     34.64   33.75   8.66     8.44
                                   32     1.00                     38.27    47.50
 Internal Availability
             Feeder Jobs Into 2A                        Number of Employees
  Job Code              Job Title                      Total      Min     Fem

CSSPECII       Computer Support Spec II       3A          9        4       1

ADMNII         Administrative Assistant II    5A          7        2       7

HRASSTII       HR Assistant II                5A          4        1       3

ACCTCLRKII Accounting Clerk II                5A          5        2       2
                                                         25        9       13

                                                       Percent:   36.0%   52.0%
 Factor Weights
 2A Professionals
                                     Factor 1 and 2             Weighted
                                     Weighted Data               Data        Source of
Factor         Description                            Weight
                                     Min     Fem               Min    Fem

         % of minorities or                                                  Washington
  1      women with the requisite
                                     38.27 47.50       .60     22.9   28.5   DC-MD-VA-
         skills in the reasonable                                            WV
         recruitment area
         % of minorities or
  2      women among those
                                     36.0    52.0      .40     14.4   20.8   Feeder job
                                                                             pool from
         promotable, transferable                                            3A & 5A
         and trainable within the
         contractor’s organization

                                                      1.00     37.3   49.3
Availability vs. Incumbency Analysis

 • Compares the percent of employment by race and
   gender within each job group to the percent available

 • When the percentage of minorities and females
   employed in a particular job group is less than would
   reasonably be expected given their availability, the
   contractor must declare underutilization, therefore
   establishing a goal
Incumbency vs. Estimated Availability
Placement Goals
Placement Goals

 • Goals are “Placement Rates” by which the under-
   represented group should be successful (hires and
   promotions) as opportunities become available
 • Goals are equal to the statistically established
   Availability percentage
 • Establishing Goals is not an admission of discrimination
   or non-compliance
Placement Goals

 • Goals are not quotas and do not justify
   preferential treatment
 • Goals serve as objectives and targets for which we
   make a “good faith effort” in trying to achieve
Placement Goals
Goal Attainment

 • The goal attainment analysis shows progress made
   towards meeting each of the goals set in the prior year’s
   affirmative action plan or during the update period
 • Goal attainment is determined by evaluating the
   placement opportunities (hires & promotions)
   the contractor had and determining whether or
   not the goal was met
  Goal Attainment
                    Plan Date:
  Jan 2007           Jan 2008         Jan 2009

Set Goals for    Set Goals for    Set Goals for Jan
                Jan 2008 – Dec.    2009 – Dec. 2009
 Jan 2007 –
  Dec 2007
                 Review Goal        Review Goal
                Attainment for     Attainment for
                  2007 Goals         2008 Goals
Goal Attainment
Personnel Activity
Personnel Action Analyses
 • Summarizes personnel actions (applicants, new hires,
   terminations, promotions, transfers, etc.) by race and gender
 • Used to determine the percentage of opportunities that are
   given to minorities and females, as compared to males and
 • Determined by using Adverse Impact Analyses
    • The rate of positive actions (hires, promotions) of
    • protected class should be at least 80% of the rate of
      the non-protected class
    • The rate of negative actions (terminations, demotions)
      of non-protected class should be at least 80% of the rate
      of the protected class
Personnel Action Analyses

 • A finding of adverse impact does not indicate that
   discrimination has occurred, only that more research
   is needed to determine why the protected class has
   been less successful than the non-protected group
Plan Implementation

• Communicate plan to management
• Monitor your plan and plan progress
• Keep management up-to-date on progress
  and strategies
• Conduct targeted recruitment
• Good faith efforts
Understanding an
 OFCCP Audit
Compliance Evaluations

Compliance Reviews &
Management Reviews
Accurate Data

 • Check all effective dates
 • Internal applicants are in the applicant data
 • Terminated employees are removed
   from the roster
 • Census codes are reasonable
 • Availability weightings are appropriate
 • Job groups are created accurately
 • Compensation data reported consistently
Accurate Data cont.

 • Confirm consistency of employee records
 • Geographic recruitment areas are reflective of
   recruitment base
 • Review incumbents vs. actual number of
   employment actions
 • Annotated employees are accounted for across plans
The Scheduling Letter

AAP for Minorities and Females
  •   Organizational Profile
  •   Job Group Analysis
  •   Availability analysis: external and internal
  •   Comparison of Incumbency vs. Estimated Availability
  •   Placement Goals
  •   Goal Attainment
  •   Transaction Summaries
       •   Applicants, Hires, Promotions, and Terminations
The Scheduling Letter cont.

  • Individuals with Disabilities and
    Veterans Narrative
  • Past three years of EEO-1 reports
  • Compensation Analysis
  • Collective Bargaining agreement
    (if applicable)
   •   All due to the OFCCP no later than 30 calendar days
       from date of receipt of letter
OFCCP Red Flags

• Potential indicators of systemic discrimination:
  •   Statistically significant adverse impact
  •   Large shortfall (threshold appears to be 10 or
      more individuals)
  •   Presence of other problem areas
       • Lack of good faith efforts
       • Failure to keep records
       • Failure to follow company policies
       • Technical issues with AAP
Possible Outcomes of an Audit

If there were no apparent violations, OFCCP is
likely to close the audit at this stage:

 • Compliance Evaluation Closure Letter –
   No Violations
 • Compliance Evaluation Closure Letter –
   Minor Violations
Possible Outcomes of an Audit

If issues exist, the plan is referred to a team of Compliance
Officers to conduct an onsite visit and investigation. This
could result in:
 • Conciliation Agreement
 • Recommendation for Enforcement
 • Debarment
Affirmative Action Checklist

 • Develop a professional looking plan
 • Review targeted recruitment resources
 • Develop and communicate reasonable action oriented
 • Monitor records of all personnel activity, including
  referrals, placements, transfers, promotions,
  terminations, and compensation, at all levels to ensure
  your nondiscriminatory policy is carried out
Affirmative Action Checklist

 • Review applicant definition, tracking process, and ability
  to evaluate data monthly, quarterly, or semi-annually
 • Update affirmative action statistics on a semi-annual basis
 • Provide management reporting at least two times
  each year
 • Perform a comprehensive salary equity analysis to
  determine any problems and financial liability by race
  and gender
 • Maintain records as required
Recap of Seminar Objectives

 • Overview of Affirmative Action
 • Components of an Affirmative Action Plan
 • Plan Implementation
 • Understanding an OFCCP Audit
Thank you!
Questions, Comments?

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