How to Evaluate Your Affirmative Action Program's Audit Readiness

#TMwebinar

The presentation will begin at the top of the hour.

A dial in number will not be provided.

Listen to today’s webinar using your computer’s speakers or headphones.

How to Evaluate Your Affirmative Action Program’s Audit Readiness

#TMwebinar

Speakers: Julia Méndez, SHRM-CP, CDP, PHR, CAAP, CELS

Principal Business Consultant

PeopleFluent

Rosemary Cox, SPHR


PeopleFluent


#TMwebinar

Tools You Can Use

Audio Control– A dial in number will not be provided.

– Adjust the volume by sliding the indicator in the Media Player box to the left.

– Also check your computer’s volume for external speakers or headsets.

#TMwebinar

Speaker Bios

Resources

Media Player

Q&A

Slides

Twitter

Help

Post Event

EvaluationShare This

Group Chat

HRCI

TM Webinars

Tools You Can Use

#TMwebinar

Tools You Can UseQ&A and Live Group Chat

– Enter your first name and initial and join the live discussion with other webinar attendees

– Enter technical or content-related questions into the Q&A box

– Type your question in the space at the bottom.

– Click “Submit.”

Q&A

Group Chat

#TMwebinar

Tools You Can Use

Twitter- Click “Post” in the Twitter widget.

#TMwebinar

@TalentMgtMag

#TMwebinar

1. May I receive a copy of the slides?

YES! Click on the resource list located on the top left

portion of your screen.

2. May I review the webinar recording at a later date?

YES! You may log in again using today’s link to review the

presentation on-demand.

3. Is this webinar HRCI certified?

YES! The HRCI certification code will appear in the box to

the right of the slides after the required watch-time has

elapsed.

Frequently Asked Questions

#TMwebinar

Julia Méndez, SHRM-CP, CDP, PHR, CAAP, CELS


PeopleFluent


Rosemary Cox, SPHR


PeopleFluent

© PeopleFluent 2015

How to Evaluate Your Affirmative Action Program for Audit Readiness

Julia Mendez, PHR, SHRM-CP, CAAP, CDP, CELS


Rosemary Cox, SPHR, SHRM-SCP


10© 2015 PeopleFluent How to Evaluate Your AAP’s Audit Readiness

• Audit selection

• Preparing for an audit

• Scheduling Letter

• Best practices

Agenda


Have any of your locations been selected for an audit in the last 24 months?

Yes

No

I don’t know

Polling Question #1


OFCCP AUDIT SELECTION


• Federal Contractor Selection System

• Contracts First Initiative

• Pre-Award audits

• Complaint activity

• Conciliation Agreement

How are Establishments Selected?


• Receive a Corporate Scheduling Announcement Letter (CSAL)

• OFCCP contacts contractor by phone

• Receive audit notice by certified mail

How is a Contractor Contacted for a Review?

How often can an establishment be reviewed?


What if the audit notice has been floating around or we need more time

to prepare for the submission?


How do you prepare your clients for an audit?


• Schedule meeting with appropriate personnel

• Review AAP and reconcile data

• Are correct people in the AAP?

• Are includes/excludes appropriate?

• Are manager/supervisors notated?

• Is compensation data complete?

• Do you have adverse impact in any area?

• Can you produce documentation?

• Are disposition codes correct?

• Have you performed a step analysis?

Preparing for an Audit


• Are transactions correct (hires, promotions, transfers, terminations)?

• Do the prior year totals – plus and minus the transactions – accurately reflect the current year totals?

• Review and make appropriate edits to narratives

• Ensure good-faith efforts are documented

• Prepare package for OFCCP submission

Preparing for an Audit


Does someone within your company review the integrity of data before analysis/AAPs are run?

Yes. We audit the data prior to running plans

No. Our vendor “scrubs” the data we send them

No. We run the reports with the data “as is”

I don’t know

Polling Question #2


So what exactly is in the Scheduling Letter?


1. Organizational Profile (aka Work Force Analysis).

2. Formation of job groups (Job Group Analysis).

3. For each job group, statement of % of minority and female incumbents (JGA).

4. For each job group, determination of minority and female availability (Availability Analysis).

5. For each job group, comparison of incumbency to availability (Incumbency vs. Availability).

6. Placement Goals for each group where incumbency is less than availability.

Itemized Listing


7. Results of evaluation of effectiveness of outreach and recruitment efforts to identify and recruit qualified IWD.

8. Documentation of all actions taken to comply with audit and reporting system requirements.

9. Documentation of computations or comparisons described in 41 CFR 60-741.44(k) for preceding AAP year and if 6 months or more into current AAP year, information for at least the first 6 months of the current AAP year.

Itemized Listing Section 503


10. Utilization analysis evaluating representation of IWDs in each job group (or entire workforce, if appropriate). If 6 months or more in current AAP year on date receive the scheduling letter, submit information that reflects current year progress.

Itemized ListingSection 503


11. Results of evaluation of effectiveness of outreach and recruitment efforts.

12. Documentation of all actions taken to comply with audit and reporting system requirements.

13. Documentation of computations or comparisons described in 41 CFR 60-300.44(k) for immediately preceding AAP year and, if 6 months or more into current AAP year, information for at least the first 6 months of current AAP year.

Itemized Listing Section 4212 (VEVRAA)


14. Documentation of hiring benchmark, methodology used to establish it if using 5 factors. If 6 months or more into current AAP year, submit information that reflects current year results.

Itemized Listing Section 4212 (VEVRAA)


15. Copies of EEO-1 for last three years.

16. Copy of CBA. Include other documents such as policy statements, employee notices or handbooks, etc. that implement, explain, or elaborate on provisions of CBA.

17. Information on AA goals for immediately preceding AAP year and progress on goals for the current AAP year. If 6 months or more into current AAP year, submit info that reflects progress on goals established in current AAP year and describe implementation of action-oriented programs designed to achieve these goals.

Itemized Listing Supporting Data


18. Data on employment activity for immediately preceding AAP year and, if 6 months or more into current AAP year, information for at least the first six months of the current AAP year. Information can be presented by job group or job title.

a. Applicants and hires: Total number of applicants and total number of hires, minority break out information, female/male information. Unknown race and/or sex should be included in data submitted.

b. Promotion: Total number of promotions by gender and race/ethnicity. Include definition of “promotion” as used by your company and basis on which they are compiled.

Itemized Listing


18. (continued)

c. Terminations: For each job group or job title, provide total number of employee terminations by gender and race/ethnicity. When presenting terminations by job title, include the department and job group from which the person(s) terminated.

19. Employee level compensation data for all employees (including full-time, part-time, contract, per diem or day labor, temporary) as of date of the workforce analysis in AAP. Provide gender and race/ethnicity information and hire date for each employee as well as job title.

Itemized Listing


19. (continued)

a. For all employees, compensation includes base salary and or wage rate, and hours worked in a typical workweek. Other compensation or adjustments to salary such as bonuses, incentives, commissions, merit increases, locality pay or overtime should be identified separately for each employee.

b. Contractor may provide any additional data on factors used to determine employee compensation (education, past experience, duty location, performance ratings, department or function, salary level/band/range/grade)

c. Documentation and policies related to compensation practices should be included in the submission

Itemized Listing


20. Copies of reasonable accommodation policies and documentation of any accommodation requests received and their resolution, if any.

21. Most recent assessment of personnel processes including the date assessment was performed, any actions taken or changes made as a result of the assessment, and the date of next scheduled assessment.

22. Most recent assessment of physical and mental qualifications including date of assessment, actions taken or changes made as a result of assessment, and date of next scheduled assessment.

Itemized Listing


Notes under Item #22 state

“If any of the requested information is computerized, you must submit it in an

electronic format that is complete, readable, and useable.”

Itemized Listing


What types of requests are you seeing today that are taking contractors by

surprise?


So after all of this, what may be the outcome of

the audit?


• Compliance Evaluation Closure Letter • No violations

• Minor violations

• Conciliation Agreement• Major violations

Outcome of Compliance Review


• FY 2014 = 3,802 compliance evaluations and 501 conciliation agreements

• September 2014 – April 8, 2015 = 1,333 compliance evaluations with 220 conciliation agreements (16.50%)

OFCCP Activity


• May 2015: Manufacturer in Alabama will pay $115,000 in back wages, interest to 159 applicants; systemic hiring discrimination against 83 women and 19 African Americans

• April 2015: Media and technology company in Seattle, Washington: $190,000 settlement for back wages and interest to 96 former and current female employees and 100 minority job applicants

Selection Discrimination


• February 2015: Massachusetts medical center will pay $190K in back wages, interest and salary adjustments

• January 2015: Research university and hospital in Maryland; $360K in back wages and damages for two African American women

Pay Discrimination


Polling Question #3

If you were selected for an audit today, how prepared would your organization be?

Well prepared

Somewhat prepared

Not prepared

Don’t know


What are some best practices that we can put into place now to prepare for

an audit?


Best Practices

• Review job groups, labor areas, and other plan data prior to writing an AAP

• Reconcile data and ensure accuracy for AAP prior to audit

• Review compensation annually (make changes if needed)

• Document and review effectiveness of GFE

• Hold managers, recruiters, HR staff accountable for progress and GFE


Best Practices

• Review processes and procedures to ensure being carried out

• Review website and facilities for accessibility

• Take employees seriously

• Take tours of facilities

• Investigate adverse impact

• Review record retention requirements

• Train HR, recruiters, managers, employees

TM

© 2014 PeopleFluent | Confidential Talent Insights. Business Outcomes.TM

ThankYou

Find PeopleFluent on…Twitter: twitter.com/peoplefluentLinkedIn: linkedin.com/company/peoplefluent Facebook: facebook.com/peoplefluentBlog: peoplefluent.com/resources/peoplefluent-blog

Julia Méndez, Principal Business Consultant

[email protected]

Rosemary Cox, Principal Business Consultant

[email protected]

DISCLAIMER: The information provided in this presentation is for educational and informational purposes only. It does not constitute legal advice or legal opinions. PeopleFluent makes no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained herein. Nothing that is provided in

this presentation should be used as a substitute for the advice of legal counsel.

Questions?

mailto:[email protected]

mailto:[email protected]

#TMwebinar

Please complete the

webinar evaluation.

#TMwebinar

Join our next Webinar!

Creating a Meaningful Performance Management System

Tuesday, October 6, 2015

Webinars start at 2 p.m. Eastern / 11 a.m. Pacific

Register for all upcoming Talent Management Webinars at www.talentmgt.com/webinars

OR click the icon on the widget bar!

http://www.talentmgt.com/webinars

Recruiting & HR

How to Evaluate Your Affirmative Action Program's Audit Readiness