Julia M éndez, CAAP, PHR, CELS Director, Workforce Compliance & Diversity Solutions - PowerPoint Presentation

Julia M éndez, CAAP, PHR, CELS Director, Workforce Compliance & Diversity SolutionsPeopleclick Authoria Research Institute Convincing Hiring Managers to Hire Affirmatively April 19, 2011

Today’s Agenda Defining EEO, AA, Diversity AA Statistics Case For Hiring Affirmatively Ways to Measure Success Consequences of Not Hiring Affirmatively

QuestionWhat are the differences among Equal Employment Opportunity, Affirmative Action and Diversity

Equal Employment Opportunity (EEO)? Requirement under the Civil Rights Act of 1964 (Title VII) for employers with 15 or more employees Protects individuals from discrimination based on race, color, religion, national origin and genderOther EEO laws protect against discrimination due to age and disability Enforced by Equal Employment Opportunity Commission (EEOC) and other various state and local agencies

Equal Employment Opportunity (EEO) Discrimination Practices under Federal EEO Laws: Cannot discriminate in the following practices: Recruiting, hiring and advancementPre-employment inquiriesCannot harass or create a hostile work environment due to protected classCompensation & other employment terms, conditions and privilegesSegregation and classification of employeesCannot retaliate due to a complaint of discrimination being filed

Required Posting – Revised 11/09 http://www.eeoc.gov/employers/upload/eeoc_self_print_poster.pdf

What is Diversity?Individual differences and similarities based on: Age, ethnicity, gender, race, sexual orientation, religion, work experience, education, family status, organizational role/level, mental/physical abilities, first language, geographic location, communication style, work style, or status, etc. Company implemented and monitored

What is Diversity? It is no longer a choice, but a business reality. It is valuing differences in people based on their identification with various groups.It is a collective mix of both individual similarities and differences in the workplace.It drives one to look beyond race and gender.It enables organizations to create an atmosphere of full acceptance.

Business Case for DiversityDiversity will be required of organizations to remain competitive in the shifting marketplace. The ability for an organization to remain competitive will be dependent upon its ability to mold to the changing workplace.Embracing a culture of diversity helps to improve financial results. . .it also strengthens a company’s brand, unifies the corporate culture and empowers stakeholders.

Business Case for Diversity It’s all about that innovation that happens with a diverse team of people…They bring in diverse cultures, skills and talents to a team. Success requires a global perspective as well as knowledge of other cultures.. .People want to see others who look like them in their local businesses. Employees will work at companies where they feel welcomed and valued. Diverse companies outperform companies that are not because they have stronger teamwork and a greater understanding of customers, partners and suppliers.The Business Case for Diversity: How Companies Keep Their Competitive Edge By Tammy WorthNovember, 2009

What is Affirmative Action? Proactive action-oriented programs designed to ensure equal opportunity of qualified women, minorities, disabled individuals and veterans in the employment processEnforced by the Office of Federal Contract Compliance Programs (OFCCP)

What is Affirmative Action?Designed toPromote equal employment opportunityEliminate discrimination for protected members Create an opportunity to make a differenceRemove barriers in the workplaceLevel playing field in every phase of the employment process

ExerciseMake your case to management for recommending diversity initiatives to strengthen your AAP and minimize EEO complaints.

Which Laws Are Enforced by the OFCCP?Executive Order 11246 (Race, Color, Religion, Gender, National Origin)Section 503 of the Rehabilitation Act of 1973 (Individuals with Disabilities)Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) (Covered Veterans)

EO 11246 Prohibits discrimination based on race, color, religion, gender, or national origin Requires companies to engage in affirmative action for women and minoritiesRequires companies to maintain data on applicants, hires, promotions, transfers and terminations by race and sex

Section 503 of Rehabilitation Act of 1973 Prohibits discrimination based on an individual’s physical or mental disabilityIf federal contract exceeds $10,000, requires contractor to employ and advance in employment qualified individuals with disabilitiesRequires companies to take affirmative action to ensure individuals with disabilities are included in all employment activitiesRequires companies to make reasonable accommodation due to physical and mental limitations

Vietnam Veterans’ Readjustment Act Prohibits discriminations based on protected veteran statusIf federal contract prior to 12/01/2003 exceeds $25,000, (on or after 12/01/2003, $100,000) requires contractor to employ and advance in employment qualified covered veterans Requires companies to take affirmative action to ensure covered veterans are included in all employment activities

Affirmative Action Reporting

Difference Between Permissible Goals & Unlawful PreferencesGoals should NOT be interpreted as permitting unlawful preferential treatment and quotas. Goals are neither quotas, set-asides, nor a device to achieve proportional representation of equal results.Goals do not require that any jobs be filled by a person of a particular gender, race, or ethnicity. Goals are not a ceiling or a floor for employment.The goal-setting process is used to target and measure the effectiveness of AA efforts to eradicate and prevent barriers to EEO.

Identifies goals based on tests used to determine underutilizationPlacement Goals Only job groups with a goal will appear Goal Placement Rate **NOT A QUOTA**

Goal Attainment Prior Year Employees Only job groups with a goal last year will appear on this report If actual placement rate is greater than goal placement rate, the goal has been met Prior Year Goals Progress Towards Goal

Impact Ratio Analysis - Hires 2 Standard Deviations

QuestionHow does your organization currently measure effectiveness of recruiters with respect to AA?

Responsibility of Recruiters Separate all information regarding race/ethnicity/gender from applications.Does applicant pool mirror the available qualified workforce? Are you using recruiting sources that somehow limit the gender and/or race of potential applicants?

Responsibility of Recruiters Include an “applicant source” column in the applicant log that indicates where each applicant found a particular job posting.Take note of whether or not certain recruitment efforts are yielding fewer (or no) qualified candidates. Take note of recruiting sources that yield qualified candidates with respect to covered groups: Females, Minorities, Disabled, Veterans.Focus recruitment efforts accordingly.

Responsibility of Recruiters Determine whether money is being spent wisely with respect to recruiting sources that yield the most effective resultsAssess whether you are helping the company improve with respect to goals

Rating Performance of RecruitersNumber of Recruitment Companies Number of RecruitsNumber that Passed Internet Applicant definitionDiversity percentagesNumber hired If recruiters are responsible for determining who gets interviewed, who is an applicant, etc., audit the disposition information for accuracy.

QuestionHow does your organization currently hold managers responsible for AAP success?

Responsibilities of Management Be well versed on laws/regulations regarding affirmative action and equal opportunity.Be aware of issues within your own department.Create a plan of action for making progress with respect to goals or deficiencies. Create an atmosphere free of discrimination.Generate ideas to assist the company in meeting relevant objectives.

Types of Information You Should Disseminate to Management Placement Goals Goal Attainment ResultsAreas with Adverse ImpactIssues at Departmental LevelsCompensation IssuesProblem AreasNarrative AAPsTraining on EEO/AA

Case for Hiring Affirmatively

Reasons for Hiring AffirmativelyIt’s the law Brings diversity into the workplaceFocus during today’s OFCCP auditsCompetitive advantageReduces turnover

Current OFCCP Focus Adverse Impact Analysis Compensation Data Rescission of 2006 Compensation Analysis Guidelines 2% or $2000 test Analysis of Good Faith Efforts Training & documentation of training Active Case Enforcement – chance audit continues beyond desk audit phase Patricia Shiu - OFCCP

Requests in Recent Audits Proof of GFE for veterans and persons with disabilitiesReview of accessibility of website if accept online applications List of veterans and persons with disabilities hired in AAP yearCopies of training documents proving managers trained on AA obligationsAccommodations made for religion, veterans status, disabilities and list of namesDetails on hiring processList of protected individuals who were not promoted but consideredList of individuals that were out on maternity leave List of terminations along with reason

VEVRAA Origin Title 38 of the U.S. Code, Section 4212, Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) of 1974 law requires that employers with Federal contracts or subcontracts meeting dollar threshold provide equal opportunity and affirmative action for covered veterans.

Outreach RequirementNote that OFCCP can request to view VETS-100 report in order to determine if contractor is meeting AA obligations to recruit, retain, and promote veterans Posting positions through State Employment Office might be deemed insufficient if VETS-100 figures show no veterans or very small percentage of covered veterans employed by your company

10 Reasons to Hire Veterans Accelerated learning curveLeadership TeamworkDiversity and inclusion in actionRespect for proceduresEfficient performance under pressureConscious of health and safety standardsTriumph over adversity Technology and globalization Integrity Source: www.hirevetsfirst.gov

Veteran Facts: Census Bureau 200921.9 million - number of military veterans in the U.S. 1.5 million - number of female veterans2.3 million black veterans1.1 million Hispanic veterans258,000 Asian veterans 153,000 American Indian or Alaska Native30,000 Native Hawaiian or Other Pacific Islander3 states with 1 million or more veterans: CA, FL, TX

Veterans Facts: Census Bureau 200926% percent of veterans with at least a bachelor’s degree $35,402 median income9.8 million 18-64 in the labor force5.5 million veterans with a disability

American with Disabilities19% of U.S. resident reports some level of disability in 2005 54.4 million Americans are roughly equal to populations of California and Florida46% of people age 21 to 64 with a disability were employedChanges of having a disability increase with age: 52% people 65 and older71% people 80 and older

Hiring Persons with DisabilitiesSkills – People with disabilities are just as skilled as other applicants. Finding and keeping skilled workers is essential for short-term money-making and long-term sustainability in the market. Customers – People with disabilities come from many walks of life and could acquaint your company with a brand new customer base. Retention – Workers with disabilities have a higher retention rate and are more loyal to their companies than able-bodied employees. “Myths about hiring people with disabilities”

Hiring Persons with DisabilitiesThese workers are loyal to their employers and tend to reduce turnover. Workers with disabilities tend to boost customer loyalty, cut worker’s compensation costs, and provide financial incentives to their employers. 92 percent of consumers surveyed felt more favorable toward employers who hired workers with disabilities.

Hiring Persons with DisabilitiesMeet diversity recruiting and hiring goals. Promote your company’s commitment to a diverse workforce and a positive work environment.Save money and time by lowering your turnover rate. Employees with disabilities statistically have a higher rate of loyalty and longevity.

Hiring Persons With DisabilitiesThe federal government has developed a program designed to encourage employers to hire workers with disabilities. It is called the Work Opportunity Tax Credit (WOTC). It has the potential of reducing an employer’s federal tax liability by as much as $2,400 per qualified worker. An employer can take as much as 40 percent of the first $6,000 of wages paid during the first 12 months of employment for each new hire.

Hiring Persons With DisabilitiesAdditionally, the U.S. Social Security Administration’s (SSA) Ticket to Work Program (TTW) provides employers up to $4,800 in the first nine months of employment when they hire a Social Security beneficiary with disabilities.

Accessibility Case Baltimore, Maryland (August 27, 2008): The National Federation of the Blind (NFB) and Target settled a class action lawsuit$6 million fund established for individuals in California to claim up to $7000 each if they tried to use Target.com and encountered barriers

Accessibility CasesSeptember 26, 2008 iTunes$250,000 contribution February 11, 2010Major League Baseball’s official Web site

OFCCP Accessibility Watch List Ability to Navigate Navigation link Use without a mouse Use screen reader Audio / Text Captions Text descriptions Reasonable Accommodations Avoids triggers for epileptic seizures Online forms Ability to request additional help

Female Facts: Census Bureau 2010157.2 million women in the U.S. as of 10-1-10 153.2 million malesAt 85 and older, there were more than twice as many women as men$36,278 median annual earnings of women 15 or older in 2009 Women earn 77 cents for every $1 earned by menStates with highest ratio of women-to-men earnings: D.C., AZ, CA, NV, NY, FL NC, TX, MD

Female Facts: Census Bureau 201029.9 million women 25 or older with a bachelor’s degree in 2009 (30%) 28.7 million men had a bachelor’s degree 55% - percentage of college students in fall 2008 were women

Case for Hiring Females in Senior RolesWomen traditionally make majority of healthcare and nutrition relation decision within the family Women are a huge market for news and entertainmentFinancial performance improvesProvides balance by reflecting makeup of employees Senior support for women in leadership roles is a critical enabler of profit growthSource: Sharing Best Practices to Boost Senior Female Leadership by Melissa J. Anderson

Case for Hiring Females in Senior RolesWomen bring a different mindset and skill set Social chemistry changes in the boardroom when women are introduced; everyone is more thoughtful and considerateWomen pose more critical questions Source: Is 30 Per Cent Representation the New Gender-Equality Dream? Paul Yeung/Reuters

Quick Facts: 2009White persons not Hispanic 65.1% Black persons 12.9%American Indian and Alaska native 1.0%Asian 4.6%Native Hawaiian and Other PI .2% Persons of Hispanic or Latino origin 15.8%

Diversity FactsWhites are now the minority in 46 of the nation’s 366 metro areas including New York, San Diego, Las Vegas and Memphis

Asian Facts: Census Bureau 200916 million U.S. residents of Asian descent The second-fastest minority groupNumber of Asians in the U.S.:Chinese descent – 3.8 million Filipinos – 3.2 millionAsian Indians – 2. millionVietnamese – 1.7 millionKoreans – 1.6 millionJapanese – 1.3 millionTop states with largest Asian population:California – 5.2 millionNew York – 1.5 millionTexas – 1 million

Asian Facts: Census Bureau 2009$68,780 is the median household income For Asian Indians, the median income was $90,42950% of Asians 25 and older had a bachelor’s degree20% of Asians 25 and older had a graduate degree80% of Asians live in a household with Internet use; highest rate among race and ethnic groups

Pacific Facts: Census Bureau 20091.1 million Native Hawaiian and Other Pacific Islanders $53,455 median income of NH/OPI14% NH/OPI had a bachelor’s degree4% had a graduate or professional degree29.9 is the median age compared to 36.8 for the population as a whole

African American Facts: Census Bureau 200941.8 million estimated black residents in U.S. 65.7 million projected black population for 7-1-5018 states with an estimated black population of at least 1 million: New York led the way23 states in which blacks were the largest minority group 19% percentage of blacks with bachelor’s degree1.5 million blacks with advanced degrees

American Indian and Alaska Native5 million estimated population 29.7 median age 5 – number of states with American Indian or Alaska Natives were the largest minority group: AL, MT, ND, OK, SD163,676 – number of American Indians and Alaska Natives with graduate or professional degree $37,348 median salary

Hispanic Facts: Census Bureau 2009 48.4 million Hispanic population (16%)More than 1 of every two people added to the nation’s population between 71-08 to 7-1-09132.8 million projected Hispanic population on July 1, 2050 27.4 median age16 states with at least half-million Hispanic residents: AZ, CA, CO, FL, GA, IL, MA, NV, NJ, NM, NY, NC, PN, TX, VA, WA21 states in which Hispanics were largest minority group

Hispanic Facts: Census Bureau 2009 35 million U.S. residents 5 and older who spoke Spanish$37,913 median pay13% percent with bachelor’s degree

Older Americans: Census Bureau 200939.6 million people 65 and older 88.5 million – projected population of people 65 and older in 2050$31,354 median 2009 income of households with householders 65 and older55% the percentage who worked full-time among people 65 and older 20% percentage of population 65 and older who had a bachelor’s degree

Older Americans: Census Bureau 200974 men 65 and older for every 100 women in the same age group 5.6 million people 85 and older 71,991 number of centenarians in US 4.1 million living in California; 3.2 in Florida; 2.6 in New York

Ways to Measure Success

Company Structure

Dashboard View of Compliant and Management Level

Audit Risk Dashboard: Areas of Potential RiskPlans

Measuring Effectiveness

Measuring Effectiveness

Measuring Effectiveness

Prepare you Good Faith Effort Submission

Gap Analysis

Recruiting Area North American Industrial Classification System

Consequences of Non-Compliance

Equal Employment OpportunityWhat Remedies Are Available When Discrimination Is Found? Back pay HiringPromotionReinstatementFront payReasonable accommodation or other actions that will make an individual “whole”

Equal Employment Opportunity Other remedies may include payment of:Attorneys' fees Expert witness feesCourt costsCompensatory and punitive damages also may be available where intentional discrimination is found:Actual monetary losses, future monetary losses, and mental anguish and inconveniencePunitive damages may be available if an employer acted with malice or reckless indifference

Discrimination Case – 7-27-10Area Temps Agrees to Pay $650,000 for Profiling Applicants by Race, Sex, National Origin and Age Temporary Agency Complied With Discriminatory Placement Requests,Fired Employees Who Opposed Unlawful Practices, EEOC Alleged

Top Cases in FY 2008A freight handling company in NC had to pay over $10 million for violations of recordkeeping, past performance issues not resolved, recruitment , hiring and systemic discrimination. The bulk of the remedies were paid to minorities but females did get over $1 million.The other two major cases involved the same company, one of the nation’s leading poultry company, (one location in TN had to pay almost $5 million) and the other location in NC had to pay almost $10 million. The monies were paid out strictly to minorities. Issues involving recordkeeping, past performance, recruitment, hiring and systemic discrimination.

Top Cases in FY 2009The top case in 2009 was almost $5 million in New Jersey (a wholesale grocer), involved systemic discrimination against females, issues with selection/testing, hiring, and recordkeeping and support data2nd largest case was in Arkansas (a baby food company), over $2 million; systemic discrimination against females and minorities, selection/testing, hiring, recordkeeping and support data, and continuing issues with past performance.The 3rd largest case was in California, almost $2 million (a transportation company), systemic discrimination against females, hiring , recordkeeping and support data

Executive Order 11246 ViolationProducers Rice Mill (Stuttgart, Arkansas – February 2008); $350,000. Discriminated against non Hispanics for laborer positions and females for operatives positions in hiring process. Failed to collect and maintain personnel and employment records in accordance to regulations.Failed to provide records showing that it conducted IRAs.Failed to list all employment openings with the Arkansas Department of Workforce Services.

Questions Julia Mendez 800-538-3277 x 6110 Julia.Mendez@Peopleclickauthoria.com