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Recruitment & Retention

Published June 2008

The New Components of Compliance

 

  Kurt Ronn

In 2007, the same poultry processing corporation was forced to pay $1 million in back pay and interest and extend offers to 462 people in the classes affected by the systemic discrimination. Clearly, the OFCCP is focused on class-action, make-whole remedies, rather than individual cases of discrimination. Data undiscoverable years ago is now accessible due to the increased recordkeeping required by the Internet Applicant regulations.

Since the auditors are more experienced, more knowledgeable and privy to additional recruitment data, OFCCP fines should continue to increase. In the age of systemic discrimination, it is imperative federal contractors are in compliance with regulations to avoid escalating penalties.

Carefully Evaluate 10 Key Factors

Because the OFCCP has begun thoroughly investigating federal contractors' practices to eradicate systemic discrimination, it is imperative organizations prepare appropriately. HR and talent management leaders are obligated to regularly develop, analyze and review affirmative action plans to make sure they're in accordance with current regulations. If irregularities are found, companies must proactively amend their recruitment practices. Rather than wait until the OFCCP sends a scheduling letter to begin audit preparations, organizations should be prepared.

Federal contractors should analyze 10 factors to improve compliance with OFCCP regulations:

1. Evaluate the organization's applicant tracking system (ATS). Using updated recordkeeping technology can significantly mitigate the risks associated with noncompliance.
2. Select a random sample of positions across multiple divisions/functions. By sampling a random group of positions, compliance can be evaluated across the entire organization. Rather than focus on a specific department, a broad sampling likely will reveal company-wide shortcomings.
3. Follow the process from job posting to hire. Systemic discrimination can occur at any point in the hiring process. Therefore, positions should be evaluated from posting to hire to determine if there are any insufficiencies.
4. Basic qualifications should be clear and documented. Basic qualifications determine who is or isn't considered to be a candidate for a position. Qualifications must be clearly articulated and documented to ensure all eligible candidates are fairly considered.
5. Document resume-database searches. Database searches must accurately reflect the basic qualifications listed for the position, so recruiters must pay special attention to keywords used. Searches must not go beyond the basic qualification criteria, or some candidates may inadvertently become applicants.
6. Analyze race, ethnicity and sex data-collection procedures. When a person becomes an applicant for a position, voluntary race, ethnicity and sex information must be requested and recorded. This will ensure an adverse impact analysis can be accurately performed.
7. Review tests or questionnaires. Tests must be applicable to the job requirements in order to be considered valid. A test that is not relevant for a position should not be required, as it could disproportionately exclude certain demographic groups from consideration as candidates.
8. Did managers interview people not in the ATS? By identifying interviewees not in the company's ATS, companies can determine additional methods by which applicants are being received. Policies should be implemented to account for these individuals.
9. Assess record-retention policy interview notes. Federal contractors must maintain recruitment records for up to two years from the position's date of hire. Records must be kept for this time period to guarantee all data is available for review in the event of an OFCCP audit.
10. Examine third-party recruitment vendors. Companies using third-party vendors cannot pass liability for noncompliance to the vendor. So if utilizing a third-party search firm, the company must be certain the vendor operates in compliance with OFCCP regulations.

Act Now to Change Faulty Practices