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Importance of Affirmative Action Plans

Learn why Affirmative Action Plans are mandated by executive orders to protect women, minorities, disabled veterans, and persons with disabilities from discrimination. Discover the purposes, enforcement methods, penalties for non-compliance, and the role of HR in implementing and monitoring these plans.

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Importance of Affirmative Action Plans

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  1. P.O. Box 1584 Apple Valley, CA 92307 760-247-3303 www.erma.com

  2. Why Affirmative Action Plans? • Mandated by Executive Order 11246 of 1965 for women and minorities • Mandated by Vietnam Veterans’ Readjustment Assistance Act of 1971 for disabled veterans and Vietnam Era Veterans and Rehabilitation Act of 1973 for persons with disabilities • OFCCP – Office of Federal Contract Compliance Programs – Division of DOL responsible for oversight of affirmative action

  3. Purposes of Affirmative Action Plan for Women and Minorities • Protect Women and Minorities from unlawful discrimination - both intentional and impactful • Audit HR practices • recruitment, selection, promotion, compensation, discipline, termination, etc. • Demonstrate “Good Faith Efforts” • Develop Actions/Timetables to resolve discrepancies

  4. Enforcement Methods • Compliance Audit (Desk) • Off-Site review of Records • Compliance Audit (On-site) • Focused Review / Non Focused Review

  5. Penalties for non Compliance • Conciliation Agreements • Fines • Debarment from Government Contracts

  6. Glossary • Adverse Impact Analysis- Analysis of personnel actions to determine the existence of impactful discrimination • Applicant– a person submitting an application or resume for a posted position who meets the minimum requirements for that position. • Availability - the percentage of minorities and females available to the contractor for employment in a given job or job group • Availability Factor Analysis - deriving the availability for a job or job group by considering persons available in the reasonable recruitment area and within the facility • Goal - A rate of recruitment, selection or promotion to remedy underutilization. Not a quota! • Good Faith Effort - the means by which the contractor plans to achieve a goal • Job Group - A family of jobs whose incumbents have similar compensation, advancement potential and levels of responsibility • Organizational Profile - A snapshot of the organization at a point in time consisting either of an Organizational Display or a Workforce Analysis • Organizational Display - A tabular or graphic representation of the workforce • Protected Class - Racial Minorities, Religions, Females, Persons over 40, persons with disabilities, veterans • Reasonable Recruitment Area - the geographical area from which the company can be expected to recruit the majority of outside applicants • Underutilization - having proportionally fewer women or minorities in the workforce than could reasonably be expected given the availability in the labor area • Underrepresentation - having proportionally fewer women or minorities in a job group or organizational unit than are present in the workforce • Workforce Analysis - A listing of the job titles in each organizational unit, from the lowest to the highest paid including the race and sex of all incumbents

  7. Affirmative Action Process Workforce Analysis Goals Good Faith Efforts Job Group Analysis Adverse Impact Analysis Utilization Analysis Availability Analysis

  8. Workforce Analysis • Listing of job titles in the organization classified into organizational units or work groups • may include compensation data on each job title • Can be done with a simple organizational chart

  9. Job Group Analysis • Lists each job title in the organization in terms of job groups • identifies the number of female and minority incumbents in each job group

  10. Availability Analysis • Determines the availability of women and minorities by considering two factors: 1. Reasonable Recruitment Area 2. Promotions possible in the organization

  11. Utilization Analysis • Compares incumbent women and minorities with available women and minorities • Identifies areas of underutilization • Common methods • Any Difference • 80/20 Rule • Two Standard Deviations • Fisher’s Exact

  12. Adverse Impact Analysis • Determines the statistical indication of adverse (disparate) impact against a protected class • Analyzes the HR flow in all aspects • Statistical Method Used • 80/20 • Two Standard Deviations • Fisher’s Exact

  13. Adverse Impact Analysis Promotion Selection Termination Results

  14. Good Faith Efforts • Affirmative Actions that will remedy underutilization/underrepresentation, adverse impact • sourcing/recruitment • selection • promotion • training

  15. Goals • Placement Goals for targeted groups • Avoid reverse discrimination and quotas • Audit progress toward goals mid-year • OFCCP Audits

  16. HR’S Role • Ensure fairness in hiring, promotion, compensation and termination • Train all supervising managers on responsibilities for harassment free workplace • Ensure accuracy of data • Identify deficiencies and take remedial action

  17. Is just good business! Affirmative Action….

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