Collecting Applicant Data: The Perils of NOT Collecting the Right Data

America’s Job Exchange400 Minuteman Road, Andover, MA 01810www.americasjobexchange.com

Collecting Applicant Data: The Perils of NOT Collecting the Right Data

37th Annual AILG Conference • Phoenix, AZ • April 17, 2012

Rathin SinhaPresident, America’s Job Exchange

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Visit www.americasjobexchange.com/employer or Call 1-866-923-6284

Agenda

Affirmative Action – OFCCP Regulations

Data Collection – Historical Perspective

Compensation Analysis

Applicant Tracking

Example of Data Collection

Perils of Not Collecting Data

Disclaimer: The information contained in this presentation is based on the opinions and experience of members of America’s Job Exchange. It is not dispensed as legal advice.

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Executive Order 11246Prohibits Federal contractors from discriminating in employment decisions based on race, color, religion, sex or national origin. Need for written Affirmative Action Plan (AAP)

Section 503 of the Rehabilitation Act of 1973Requires Federal contractors to take affirmative action to hire, retain and promote individuals with disabilities.

Vietnam Era Veteran’s Readjustment Act, as amended in conjunction with Jobs for Veterans Act (VEVRA/JVA)Requires Federal contractors to take affirmative action to hire, retain and promote veterans.

The OFCCP mandates that companies doing business with the Federal government must comply with the following set of regulations in their workforce practices.

OFCCP Regulations – The Broad View

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Statistical analysis of pay equity was a frequent topic of OFCCP presentations as early as 1999

2005 regulations addressed applicant record keeping challenges presented by internet recruiting and hiring

2006 guidelines solidified use of statistical analysis to root out pay discrimination

In 2008 compliance audits began to include a review of contractors’ online job application systems

It has traditionally emphasized the importance of data collection and statistical analysis as a mechanism for Federal contractors to demonstrate compliance.

Data Collection – Historical Perspective

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Organizational Profile

Job Group Analysis

Availability Analysis

Placement Goals

Compensation Analysis

Today analytical approaches have expanded to cover a broader range of tasks related to affirmative action planning and implementation

Data Collection and Analysis in Affirmative Action

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Lilly Ledbetter Fair Pay Act of 2009 makes rooting out pay discrimination a priority

OFCCP has implemented a Pay Equity Task Force and an enhanced audit strategy

Investigations into compensation are expected to increase from a small percentage to between 20% and 40%

As expected, compensation analysis remains a top priority for the agency to ensure pay equity between genders and among demographic groups

Data Collection and Analysis for Pay Equity

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Section 503 revisions recommend additional data collection and analysis related to individuals with disabilities

Proposed changes to VEVRAA Section 4212 Part 60-300 calls for improved data collection for veteran referrals, applicants and hires

Part 60-300 will also require contractors to establish hiring benchmarks to measure affirmative action efforts

Increased appetite for data has also led the agency to propose use of a more quantitative approach related to applicant tracking and selection.

Data Collection and Analysis for Applicant

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Data Types in the Hiring Funnel

The data collection and analytical framework for the hiring process can be grouped in three distinct sets of activities in a talent acquisition and retention model.

Employee Demographics

Selection Process

Applicant Pool

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Applicant Pool – Mirroring Local Community

* The data used in this chart is illustrative; it is not based on actual employee or census data.

Contractors must ensure that its hiring program is capable of creating a workforce that looks like the community where the business is located.

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Selection Process: Maintaining Applicant Pool Ratio

* The data used in this chart is illustrative; it is not based on actual employee or census data.

Use of data collection and statistical analysis is an effective mechanism to establish benchmarks and demonstrate progressive improvement in achieving goal

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Veterans • Minorities • Persons with Disabilities

Outreach to Protected Communities

Attracting an applicant pool that reflects local census data can be the foundation of the Affirmative Action compliance.

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Post Jobs in National Job Sites with Appropriate DemographicsPost job listings in job sites that reach large number of seekers including minorities, women, veterans and the disabled.

Post Jobs in Niche Job Sites with Targeted DemographicsPost jobs in niche job sites that are specifically targeted to minorities, women, veterans and people with disabilities.

Send Jobs to State Employment Delivery SystemsSend job listings to the public employment offices by mail, fax, email or other electronic means, or to the state job banks.

Linkage Agreements with Groups of InterestDevelop linkage agreements with local organizations and engage in local outreach

Implementation of Outreach

Contractors should develop outreach programs to attract candidate pool that reflects the local community– including targeted programs for the veterans and person of disabilities.

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For example, America’s Job Exchange, offers outreach to an applicant pool that could be key for affirmative action.

Internet Applicant: Using an Appropriate Job Board

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A broad network of job listing partners, such as the one provided by AJE, can help ensure required outreach to attract appropriate candidate pool.

The Network for Outreach

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OFCCP Compliance Reporting

Appropriate data retention and reporting tool, such as the reporting tool available from AJE, can be useful in maintaining records of individual jobs in various job groups.

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OFCCP Compliance Reporting - Individual Job Records

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OFCCP Compliance Reporting – Job Traffic Results

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The unemployment rate for individuals with disabilities is 1.5 times that of individuals without disabilities

Proposed OFCCP rule would require contractors to set a goal of 7% of workforces comprised of individuals with disabilities

Part 60-300 seeks to establish a benchmark for the percentage of employees who are protected veterans that contractors will hire

It is anticipated that benchmarks will be in effect to address any demographic discrepancies between their workforce and general population.

What Lies Ahead – Establishing Benchmarks

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Use data collection and analysis to demonstrate sufficiency and efficacy of such outreach. Best effort is no longer good enough – Contractors must demonstrate results using data.

The Perils of Not Collecting Data

Paid $3 million in back wages to 21,635 applicants and was required to extend jobs to 1,703 affected workers

Paid $100,000 in back wages and interest affected job seekers and applicants

Paid over $900,000 in back wages and was required to make 61 jobs available to the affected classCompany A

Company B

Company C

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ComprehensiveUtilize a turnkey set of products and services to fulfill current requirements and stay abreast of changing regulations with updates and new products.

Cost EffectiveThe cost of services is significantly lower than companies doing the same work internally or using an agency to do in pieces.

ExpertiseCompliance services being the core offering, third-party vendors provide deep expertise and domain experience to help contractors navigate the regulations.

Third parties such as America’s Job Exchange are a significant resource available to Federal contractors who must meet the OFCCP data collection requirements.

Conclusion

For more information, please contact:

Thank You

Rathin Sinha, President

America’s Job Exchange

[email protected]

Collecting Applicant Data: The Perils of NOT Collecting the Right Data

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