An Introduction to Affirmative Action Planning 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to any individual based on race, color, religion, gender, or national origin • Merit selection procedures to be superseded by affirmative action programs Affirmative Action Laws • Executive Order 11246 – Protects individuals based on race, color, religion, gender, and national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 establishment* – 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 Implementation ₋ 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 System • Physical & Mental Qualifications • Responsibility for Implementation • 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 Annotations 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 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 Analysis 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 Example 2B: All technical 2B: All entry-level professionals professionals Easier to define Shows promotions on Advantages 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 and Incumbency 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 Patent PTATT Attorney 210 1 0.03 15.86 35.13 0.48 1.05 Database DBA II Administrator 106 5 0.16 44.48 46.29 7.12 7.41 II Technical TCHWR Writer 284 2 0.06 21.13 62.93 1.27 3.78 Database DBA Administrator 106 7 0.22 44.48 46.29 9.79 10.18 Human HRSPEC Resources 062 3 0.09 40.09 69.70 3.61 6.27 Specialist Accounting ACCT Specialist 080 6 0.19 38.65 54.57 7.34 10.37 Systems SYSA Analyst 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 Job Code Job Title Total Min Fem Group 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 Totals: 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 Statistics 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 PMSA 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 – 2008 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 non-minorities • 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 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 & Corporate 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 programs • 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! 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