Affirmative Action 101 - Amazon S3 · • Secrets for Improving your AAP Results • Adverse Impact...

Affirmative Action 101 Presented by: Nicolas Paul Kairos Services, Inc.

Agenda

• Covering the Basics • Secrets for Improving your AAP Results • Adverse Impact – Shortfall – Back Pay • Applicant Flow & Dispositions • OFCCP Audit Hot Topic – Websites Compliance • Veteran and Disability Data Collection & Analysis

Coverage

Who must prepare written AAPs?

• Criteria for AAP – 50 or more employees – A contract of $50,000 or more – Government bills of lading reasonably expected to total

$50,000 or more – A depository of Government funds

Consequences of Non-Compliance

• Back pay or other financial remedies • Negative Press • Company wide debarment

‘Data as of’ and AAP Plan Year Dates

What The Dates Mean

• AAP Year – The 12 month period during which the AAP is valid – Example: An AAP year can be from January 1 to December

31, 2016 (calendar year of 2016) • Data Dates for AAP

– The workforce snapshot date (“as of” date) – The personnel actions used for the preparation of this AAP

would be for the prior 12 months (calendar year of 2015)

What are my options for organizing my AAP?

The Basics

• Options in organizing your AAPs – Standalone – Roll to AAP with Manager – Roll to AAP where HR function is that supports group

• Considerations in the final decisions – Accountability – Narrowing risk

The Reports

Basic AAP Required Reports

Workforce Analysis

Job Group Analysis

Availability Analysis

Incumbency vs. Availability Placement

Goals

Prior Year Placement

Goals

Job Groups and the Job Group Analysis

Creating Job Groups

• Job Group Creation – Job Content – Opportunity/Progression – Salary

Job Group Analysis

• The basic unit of analysis • Foundation for the rest of your AAP

– Goals – Adverse Impact

• Hiring • Promotions • Terminations

Availability and the Availability Analysis

Availability Analysis

What is “External” Availability?

What is “Internal” Availability?

What is “Weighting”?

Final Availability and Underutilization

Final Availability

• What is “Final Availability”? – The representation of females and minorities you should

have given your external and internal practices of hiring, promoting and transferring people into a particular job group.

Underutilization

What is “Underutilization”? • Having materially fewer minorities or women in a particular

job group than would be reasonably expected given availability.

Comparison of Incumbency to Availability

I’m underutilized. Now what?

Placement Goals

• Current Year Placement Goals • Goals = Availability • Placements

– Hires – Promotions

Prior Year Goals

Prior Year Placement Goals Report

33.3%

•Minority Goal for Administrative Support

•Total hires into this job group = 7 (0 are Minorities)

•Total promotions into this job group = 6 (1 is Minority)

?

•How many total placements were there into this job group? (Hint: Placements = Hires + Promotions)

•How many of these were Minority placements?

? •What was the Minority placement rate?

•Was the goal accomplished?

Improving Your AAP Results

• Re-create Job Groupings • Re-visit Census Mapping • External vs. Internal Availability Weights • Recruitment Areas • Feeder Pools

How do I show my good side?

Improving Your AAP Results

• Re-create Job Groupings • Re-visit Census Mapping • External vs. Internal Availability Weights • Recruitment Areas • Feeder Pools

Today’s most important lesson…

Impact Ratio Analysis

Adverse Impact Shortfall Back

Pay

Adverse Impact

• What is Adverse Impact? – A substantially different rate of selection in hiring, promotions or

termination – Comparison of favored group vs disfavored group

Standard Deviation

• What is a Standard Deviation? – Standard deviation is a numerical value used to indicate how widely

individuals in a group vary. If individual observations vary greatly from the group mean, the standard deviation is big; and vice versa.

What Are The Odds?

Standard Deviation Chance Hand of Cards (approx)

1.0 SD 3.2 in 10 1 Pair

2.0 SD 5 in 100 2 Pair

3.0 SD 3 in 1,000 Straight

4.0 SD 6 in 100,000 4 of a kind

5.0 SD 6 in 10 million Royal Flush

6.0 SD 2 in 1 billion Something is amiss!!

TECHNOLOGY INC. Dallas, Texas

IMPACT RATIO ANALYSIS 1/11/15 - 12/31/15

NEW HIRES

LABORERS & HELPERS (8) Category Hired Applicants Selection Impact Factor Adverse Std.

Rate Ratio Impact Dev. Non-Minority 52 900 5.8% 238.3% FAVORED NO Minority 16 660 2.4% 42.0% YES 3.20 Black 0 244 0.0% 0.0% YES 3.84 Hispanic 12 188 6.4% 110.5% NO Asian 4 116 3.4% 59.7% YES Native Amer. 0 8 0.0% 0.0% YES* TOM 0 24 0.0% 0.0% YES* Male 62 1272 4.9% 234.0% FAVORED NO Female 6 288 2.1% 42.7% YES 2.09

Shortfall Defined and Calculated

• “Shortfall”: the number of positions a company falls short of selecting.

• How is it calculated?

Shortfall Calculation

Laborers Job Group

660 x 4.4% = 29

29 – 16 = 13

Back Pay

• What is Back Pay? – It is not a Fine or a Penalty – It is the Value of a Position

• How is Back Pay Calculated? – Start with Shortfall x average annual salary

Back Pay Calculation

Laborers Job Group

$8 x 2080 = $16,640

$16,640 x 13 = $216,320

Big Numbers are Bad Numbers

Job Group: Managers & Supervisors (1)

Category Hired Applicants Selection Impact Factor Adverse Std.

Rate Ratio Impact? Dev.

Non-Minority 2 8 25.0% 100.0% FAVORED NO

Minority 1 4 25.0% 100.0% NO

Black 1 2 50.0% 200.0% NO

Hispanic 0 2 0.0% 0.0% YES*

Asian 0 0 0.0% N/A NO

Native Amer. 0 0 0.0% N/A NO

TOM 0 0 0.0% N/A NO

Male 2 10 20.0% 40.0% YES 0.89

Female 1 2 50.0% 250.0% FAVORED NO

Job Group: Managers & Supervisors (1)

Category Hired Applicants Selection Impact Factor Adverse Std.

Rate Ratio Impact Dev.

Non-Minority 4 16 25.0% 100.0% FAVORED NO

Minority 2 8 25.0% 100.0% NO

Black 2 4 50.0% 200.0% NO

Hispanic 0 4 0.0% 0.0% YES*

Asian 0 0 0.0% N/A NO

Native Amer. 0 0 0.0% N/A NO

TOM 0 0 0.0% N/A NO

Male 4 20 20.0% 40.0% YES 1.26

Female 2 4 50.0% 250.0% FAVORED NO

Big Numbers are Bad Numbers

Job Group: Managers & Supervisors (1)

Category Hired Applicants Selection Impact Factor Adverse Std.

Rate Ratio Impact Dev.

Non-Minority 8 32 25.0% 100.0% FAVORED NO

Minority 4 16 25.0% 100.0% NO

Black 4 8 50.0% 200.0% NO

Hispanic 0 8 0.0% 0.0% YES 1.58

Asian 0 0 0.0% N/A NO

Native Amer. 0 0 0.0% N/A NO

TOM 0 0 0.0% N/A NO

Male 8 40 20.0% 40.0% YES 1.79

Female 4 8 50.0% 250.0% FAVORED NO

Job Group: Managers & Supervisors (1)

Category Hired Applicants Selection Impact Factor Adverse Std.

Rate Ratio Impact? Dev.

Non-Minority 32 128 25.0% 100.0% FAVORED NO

Minority 16 64 25.0% 100.0% NO

Black 16 32 50.0% 200.0% NO

Hispanic 0 32 0.0% 0.0% YES 3.16

Asian 0 0 0.0% N/A NO

Native Amer. 0 0 0.0% N/A NO

TOM 0 0 0.0% N/A NO

Male 32 160 20.0% 40.0% YES 3.58

Female 16 32 50.0% 250.0% FAVORED NO

More Back Pay?

• In addition to wages, OFCCP’s calculation of back pay includes: – Benefits – Overtime – Shift differentials – Raises – Bonuses

What’s the big deal about Applicant Flow Logs?

Common Applicant Flow Issues

• No applicant flow data • High applicant to hire ratios • Low applicant to hire ratios • Lack of race/gender/veteran/IWD identification • Recruitment source data • Dispositions, Dispositions, Dispositions!!!

Website Compliance

• Updated EEO Tagline (for home and careers webpages)

• Language for Reasonable Accommodation Requests (for careers webpage)

• Language for “EEO is the Law" Poster (for careers webpage)

• E-Verify (for careers webpage)

Veterans and Individuals with Disabilities

Data Collection & Analysis

Veteran Data Collection

• Pre-Offer – “Yes” / “No” / “Refuse to Answer”

• Post-Offer – “Yes” / “No” / “Refuse to Answer” / “Yes” but refuse to answer category

• “Yes” Categories – Disabled Veteran – Recently Separated Veteran – Active Wartime or Campaign Badge Veteran – Armed Forces Service Medal Veteran

• Resurvey Not Required • HRIS / ATS Fields

Have I met my hiring benchmark?

Disability Data Collection

• Pre-Offer – “Yes” / “No” / “Refuse to Answer”

• Post-Offer – “Yes” / “No” / “Refuse to Answer”

• Resurvey Every Five Years – Reminder during the intervening five years

• HRIS / ATS Fields

SECTION 503 UTILIZATION REPORT

SECTION 503 UTILIZATION REPORT

SECTION 503 UTILIZATION REPORT

For Additional Information contact: Nicolas Paul

Director of Operations

Attendees of today’s session are eligible to receive the following forms/toolkits by request: -EEO Policy Statement -Sample Language For Letter to State Employment Agencies -Equal Opportunity Clause -Sample Language For Targeted Outreach Letter -Self Identification & Race/Ethnic Identification -Sample Vendor Notification Letter -EEO-1 Job Category Definitions -Veterans Pre-Offer Invitation To Self-Identify -Sample Language for Employment Agency Letter -Veterans Post-Offer Invitation To Self-Identify -Sample Language For Recruitment Source Letter -Disability Pre/Post-Offer Invitation To Self-Identify -Race-Gender Invitation to Self-Identify -EEO Tagline for Job Ads in Print or Online -Genetic Information Nondiscrimination Act Of 2008 -Website Compliance Checklist -VEVRAA/Section 503 Checklist -Tools for Self Assessment for Veterans and IWDs

Phone: (972) 369-0015 Nick@KairosServicesInc.com www.KairosServicesInc.com